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Construction Contracts Subcontracts

Bradley Arant Boult Cummings LLP

Limitation of Liability in Extra Work Order Trumped by Subcontract

A federal court in Louisiana last week refused to enforce a limitation of liability provision included in an extra work order holding that it was trumped by the parties’ subcontract (see Planet Construction v. Gemini...more

Bradley Arant Boult Cummings LLP

Incorporation Clauses: Does the Subcontractor Really Assume All Obligations of the Prime Contractor?

Many subcontracts contain a catch-all provision requiring the subcontractor to do everything the prime contractor is obligated to do under the prime contract. This is known as an “incorporation” clause because it adopts or...more

Bradley Arant Boult Cummings LLP

Don’t Overlook Your Subcontracts on Federal Projects

The Armed Services Board of Contract Appeals’ (“ASBCA or “Board”) decision in Fluor Intercontinental, Inc., serves as an important reminder to prime contractors to be cognizant of the clauses they include in subcontracts for...more

Hahn Loeser & Parks LLP

Beware What Your Contract Says: It Just Might Be Enforced

When reviewing a contract, how often have you had the following thoughts: “That provision is so one-sided, there’s no way it will be enforced the way it’s written!” Or “I won’t worry about negotiating that provision; a court...more

Snell & Wilmer

Hogs Can Get Slaughtered on Fees in Utah if Their Claim is Too Greedy

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Construction contracts generally provide that the loser in a construction dispute must pay the attorneys’ fees of the prevailing party. But construction contracts, by their nature, can lead to outcomes in which it is hard to...more

Williams Mullen

New Virginia Prompt Payment Statutes Invalidate Most 'Pay When Paid' Clauses

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On April 27, 2022, the Virginia General Assembly passed Senate Bill 550, which makes “pay when paid” and “pay if paid” clauses unenforceable in most circumstances and requires both public and private construction contracts to...more

Schwabe, Williamson & Wyatt PC

Buy Indian Act Revised to Better Comply with Biden’s Racial Equity Order

Effective May 9, 2022, Native tribes, workers, and businesses may face fewer hurdles when competing for federal construction projects due to several revisions the Department of the Interior has published to its Department of...more

Saul Ewing LLP

Delaware Court Shows Importance of Order of Priority Clauses

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A recent bench trial in Delaware State Court ruled that a subcontractor was entitled to payment from a general contractor because an order of priority clause gave priority to a bid proposal contract term that barred a...more

Bradley Arant Boult Cummings LLP

Miller Act Suit Stayed until CDA Remedies Exhausted

A federal district court in Washington recently rejected a subcontractor’s motion for reconsideration of a previously granted motion to stay in a Miller Act lawsuit (the Miller Act governs prime contractor bond requirements...more

BCLP

Security of payment circular issued by the Development Bureau of Hong Kong - to take effect from 31 December 2021

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On 5 October 2021, the Development Bureau (DevB) published the Technical Circular (Works) No.6/2021 for the implementation of security of payment provisions in public work contracts (Circular). The Circular promulgates a...more

Porter Hedges LLP

Statutory v. Contractual Retainage On Texas Private Projects And The Contractual Retainage Notice

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Statutory Retainage- Texas law obligates construction owners to withhold 10% of the value of the work during the course of a project and for 30 days after final completion. This is generally known as statutory retainage....more

Akin Gump Strauss Hauer & Feld LLP

A Strict Approach to Notices as a Condition Precedent to Entitlement: The Impact for Contract Drafters and International...

Maeda Corporation and China State Construction Engineering (Hong Kong) Limited v Bauer Hong Kong Limited handed down in the Hong Kong Court of Appeal has significantly elevated the fundamental importance of so-called...more

Buckingham, Doolittle & Burroughs, LLC

Dear YouDig? How to avoid a design-build debacle

Dear YouDig?, We are a design builder. We hired a design team to do the preliminary design for our bid on a large DB project. We won the bid. Of course we warranted to the project owner that we would build the project, as...more

White & Case LLP

The FIDIC Yellow Book Subcontract: Opportunities in Asia?

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Late last year, the Fédération Internationale Des Ingénieurs-Conseils1 ("FIDIC") launched the First Edition Conditions of Subcontract for Plant and Design-Build (the "Yellow Book Subcontract"). The Yellow Book Subcontract is...more

Troutman Pepper

New York Court Holds Contractor’s Failure to Timely Pass Through Subcontractor Delay Claim to the Owner Constitutes Breach of the...

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Rad and D’Aprile, Inc. v. Arnell Construction Corp, No. 502464/14, 2019 BL 131606 (NY. Sup. Ct. April 3, 2019) - In June of 2001, Arnell Construction Corp. (“Arnell”) entered into a prime contract to build two sanitation...more

Troutman Pepper

Alaska’s Supreme Court Holds That Executing a Settlement Agreement Releases Parties from Contractual Obligation to Arbitrate...

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SMJ Gen. Constr., Inc. v. Jet Commer. Constr., LLC, No. S-16785/16985, 2019 BL 131640 (Alaska Apr. 12, 2019) - In 2016, Jet Commercial Construction, LLC (“Jet”) entered into a subcontract with SMJ General Construction,...more

Troutman Pepper

Ninth Circuit Finds Arbitration Award Is ‘Irrational’ Because It Disregards the Contract’s Plain Text Simply to Reach a Just...

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Aspic Eng’g & Constr. Co. v. ECC Centcom Constructors LLC, No. 17-16510, 2019 BL 26363 (9th Cir. Jan. 28, 2019) - Aspic Engineering and Construction Company (“Aspic”), a local Afghan subcontractor, entered into multiple...more

Troutman Pepper

A Fire Destroying More Than Half of the Project Is Not a Cardinal Change Where the Parties Entered into a Separate Agreement to...

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IES Commercial, Inc. v. Manhattan Torcon, A Joint Venture, 2018 U.S. Dist. LEXIS 164973 (D. Md. Sept. 26, 2018) - In 2009, the Army Corps of Engineers hired Manhattan Torcon Joint Venture (“MT”) as general contractor to...more

Bradley Arant Boult Cummings LLP

Casting the First Stone: Contractors Considering Default Termination Should Examine Which Party Committed First Material Breach -...

During a construction project, circumstances may arise that lead a general contractor to consider termination of a subcontractor’s right to proceed under the subcontract. The Randy Kinder Excavating v. J.A. Manning...more

Jones Day

Australia: Adjudicators’ Security of Payment Determinations Not Reviewable for Errors of Law

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The Situation: The High Court of Australia has, for the first time, confirmed that determinations by adjudicators appointed under security of payment legislation are not reviewable for errors of law alone. The Result: The...more

Troutman Pepper

Arbitration Award Ruling That, Because of Cultural Differences, a Local Afghan Subcontractor Is Not Bound by the F.A.R. Provisions...

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Aspic Eng’g & Constr. Co. v. ECC Centcom Constructors, LLC, No. 17-cv-00224-YGR, 2017 U.S. Dist. LEXIS 111767, at *10-12 (N.D. Cal. July 18, 2017) - This matter came before the Court on a motion to vacate a final...more

Troutman Pepper

US District Court in New York Holds Owner’s Interference Bars Claim that Contractor Breached By Abandoning Project

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NYU Hosps. Ctr. v. HRH Constr. LLC, 2015 U.S. Dist. LEXIS 31967 (S.D.N.Y. Mar. 12, 2015) - NYU Hospitals Center (“NYU”) hired HRH Construction LLC (“HRH”) to renovate NYU’s radiology center. HRH entered into...more

Snell & Wilmer

Under Construction - June 2015

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Letter from the Editor - Welcome to the summer edition of our Under Construction newsletter. In this issue, we highlight several hot topic items affecting the construction industry such as what happens when the...more

Bradley Arant Boult Cummings LLP

General Contractors Beware: Coverage Under Additional-Insured Endorsement to Subcontractor’s CGL Policy May End When...

Within the past four months, two courts interpreting Mississippi law have held that an additional-insured endorsement to a subcontractor’s commercial general liability (CGL) insurance policy did not obligate the insurer to...more

Smith Anderson

The National Defense Authorization Act of 2013 will Change Small Business Contracting and Teaming

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Federal government contractors that contract or team with small businesses must become familiar with recent changes resulting from the National Defense Authorization Act of 2013, signed into law in early January (the “NDAA”)....more

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