News & Analysis as of

Construction Industry

Apologize for a design error? (law note)

by Melissa Dewey Brumback on

Have you ever apologized to a client for a failure in your professional work? Is that a good idea, or one that will get you in trouble with your partners/ lawyers/ insurance carrier/ the Court? As always, the answer is “it...more

Be Aware of Sovereign Immunity - Construction and Procurement Law News, Q1 2018

Sovereign immunity is the legal doctrine, dating back to the days of the British monarchy, that a sovereign or state cannot commit a legal wrong and is immune from suit: in essence, “the king can do no wrong.” ...more

Lien on Me (When Your Priority’s Gone) - Construction and Procurement News, Q1 2018

Imagine this scenario. You are the developer for a new mixed-used facility as part of a city’s revitalization effort. Months went into clearing all of the zoning and financing hurdles. But now, everything is in place. All...more

Beware of Blanket Additional Insured Endorsements That Require Contractual Privity

New York High Court Finds No Additional Insured Coverage In Absence of Contractual Privity With Named Insured - It is a common practice in the insurance industry for a project owner to require the general contractor to...more

Conforming the 421-a and MIH Programs

Many of our clients have asked us how they can avail themselves of the state’s revamped 421-a tax exemption program — the Affordable New York Housing Program — on a project that is also subject to the city’s Mandatory...more

Federal Court Holds That It Lacks Subject Matter Jurisdiction To Review VA’s Decision To Begin Debarment Proceedings Since That...

by Pepper Hamilton LLP on

Hope v. Dep’t of Veterans Affairs, 2018 U.S. Dist. LEXIS 28479 (E.D. Ark. Feb. 22, 2018) - This matter involved a motion for temporary restraining order and preliminary injunction (the “Motion”) filed by Richard Alan Hope...more

Pay IF Paid: It Means What it Says - Construction and Procurement Law News, Q1 2018

Pay when paid clauses are common in the construction industry. A typical pay when paid clause sounds something like this: “Prime Contractor will not pay Subcontractor until Prime Contractor receives payment from Owner.” ...more

Apartment and Condo Developers in California Take Note: Court Clarifies Calculation of School Impact Fees

Under California’s Education Code (section 17620), a school district can levy a fee on new residential construction for the purpose of funding new or improved school facilities to help meet the demand created by the new...more

Unstable Foundations: Following Industry Standards During Design Not Enough to Absolve Design/Build Contractor of Liability -...

MT Højgaard A/S (Respondent) v E.ON Climate & Renewables UK Robin Rigg East Limited, involved the construction of foundation structures for an offshore wind farm. The Supreme Court of the United Kingdom analyzed whether a...more

Rebuilding Texas: Design-Build in Public Procurement

In this article, the authors will explore the design-build delivery method under the Texas public procurement statutes. Design-build is a project delivery method in which the public owner hires one entity to perform both the...more

Contractor Denied Insurance Coverage for Delay, Contract, and Property Damage Claims

A recent decision from the Northern District of Ohio denied insurance coverage for claims involving construction delays, breach of contract, and property damage claims. See Maxum Indemnity Co. v. The Robbins Co., No. 1:17 CV...more

Worried About OSHA Silica Compliance? Not if You’re in One of These Five States

With the Occupational Safety and Health Administration’s (OSHA) silica standard already in effect for the construction industry and about to go into effect in June of 2018 for general industry, many employers are anxious...more

Choosing a Damages Methodology for Certain Construction Claims

In any construction dispute resolution process, not only does a claimant have to prove liability of the other party, but the claimant must also prove damages to prevail on its claim. The proof of damages element to...more

Court Of Appeals Upholds Impactful Decision In The Gilbane Case

As we wrote in April 2017, the case of Gilbane Bldg. Co./TDX Constr. Corp., v. St. Paul Fire & Mar. Ins. has become the harbinger of the insurance world in regard to the effectiveness of an additional insured endorsement. On...more

Florida Construction Contracts: Significant Changes In The 2017 AIA Documents – Digital Data Use And Transmission

by Fox Rothschild LLP on

Because of advancements in the use of digital technology in the administration of construction contracts, the 2017 AIA documents now default to the AIA’s Digital Data Use and Transmission protocol established in 2013 as set...more

The Worker Shortage Challenge: 5 Labor-Related Risks that Would Arise from Infrastructure Legislation

The moment President Donald Trump released his proposal for a $1.5 trillion infrastructure plan, it left many legislators on both sides of the aisle with plenty of questions to answer. The most common among them, which we...more

Insight into the AIA changes from an insider (law note)

by Melissa Dewey Brumback on

After my series on the Top 10 Changes to the AIA 201, I heard from the Chair of the Task Group for the A201-2017, Arlen M. Solocheck. Arlen is also both an architect and in-house owner’s representative at Maricopa Community...more

"ITIN Contractors" – What North Carolina Construction Companies Need to Know to Minimize Risk

by Ward and Smith, P.A. on

As explained in an earlier article, the North Carolina Department of Revenue (the "NCDOR") has aggressively audited North Carolina construction companies on the issue of whether they are properly withholding with respect to...more

Contractor Who Failed To Challenge Arbitration Award Within Statutory Three Month Period Cannot Resurrect The Challenge As An...

by Pepper Hamilton LLP on

St. George Fire Prot. Dist. No. 2 v. J. Reed Constructors, Inc. 2018, La. App. LEXIS 262 (February 20, 2018) - J. Reed Constructors, Inc. (“J. Reed”) and St. George Fire Protection District No. 2 (“St. George”) entered...more

Bonus Post: Other Notable Changes to the A201 Construction Contract (law note)

by Melissa Dewey Brumback on

Following our deep-dive into the newest A201 changes, and as promised in yesterday’s Insurance changes post, here are a few bonus changes to the General Conditions of the Contract...more

Contract Change #1- Insurance in the A201 (law note)

by Melissa Dewey Brumback on

At last, we have arrived at the Top Change in the AIA A201— and it deals with the subject that everyone loves to hate (until they need it!), Insurance....more

Rebuilding Texas: Construction Manager-Agent and Construction Manager-at-Risk

Texas public procurement statutes allow for several alternative delivery methods on public projects. This article explains how Texas public procurement statutes regulate the Construction Manager-Agent and the Construction...more

Contract Change #2- Digital Data in the A201 (law note)

by Melissa Dewey Brumback on

Coming in at #2 on our Top A201 Contract Changes is Digital Data. (Yesterday’s post on Termination for Convenience changes...more

Don't Sleep on This: New York High Court Addresses Scope of "Blanket" Additional Insured Endorsements

by Jones Day on

The Situation: The issue of whether "blanket" additional insured endorsements require direct contractual privity with an insurance policy's "named insured" has received inconsistent treatment by U.S. courts. The...more

Texas Supreme Court Holds Attorney’s Fees are Not Recoverable Under the Texas Construction Trust Fund Act.

In an opinion delivered last week, the Texas Supreme Court held that attorney’s fees are not recoverable under the Texas Construction Trust Fund Act. Dudley Construction, Ltd. v. ACT Pipe and Supply, Inc., No. 16-0651 (Tex....more

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