When an owner requires a contractor to post a payment and performance bond, the contractor, invariably, provides a bond in the form of AIA Document A312-2010. The payment portion of the bond is primarily for the benefit of...more
You are invited to join Procopio’s Construction & Infrastructure Law attorneys and guest industry speakers on Thursday, November 10, 2022, for an informative half-day webinar focused on the most pressing California...more
When representing clients in negotiating and drafting construction agreements for private construction work, I am often asked: Should we require the contractor to provide a bond? This question doesn’t arise on public works...more
Given, well, the state of everything, private owners should seriously consider requiring the contractor to secure a performance bond (a third-party surety guaranteeing the contractor’s performance under the contractor’s...more
In McDonald v. Fidelity & Deposit Company of Maryland, 2020 UT 11, the Utah Supreme Court recently shed additional light on what is and what is not recoverable under the public payment bond statute, Utah Code Ann. §...more
Party A (contractor) entered into a construction contract (the EPC Contract) with Party B (employer). Party B made an advance payment under the EPC Contract and Party A procured an Advance Payment Bond (the Bond) from a...more
A construction project can be a breeding ground for general contractor versus subcontractor payment disputes. Whether it is payment for extra work subject to the project owner’s approval, slow pay or no pay by the project...more
Legal System - 1. Is your jurisdiction primarily a common law, civil law, customary law or theocratic law jurisdiction? Are the laws substantially derived from the laws of another jurisdiction and, if so, which? What...more
Whether you are the owner or the general contractor, dealing with mechanic’s liens filed by subcontractors or suppliers can be frustrating and, in some cases, present the very real threat of having to pay twice for work or...more
Getting paid on time is essential to running a construction business. And the bigger the job, the bigger the risk it can pose to your company. Fortunately, there are a number of tools available to help contractors,...more
On November 5, 2018, the Federal Circuit held in a precedential decision that bonding requirements in FAR 52.228-15, “Performance and Payment Bonds—Construction,” were read into all construction contracts by operation of law...more
Fisk Elec. Co. v. DQSI, L.L.C., 2018 U.S. App. LEXIS 17914 (5th Cir., June 29, 2018) - DQSI, L.L.C., (“DQSI”) a general contractor, was hired by the Army Corps of Engineers (“Corps”) for a pump station construction...more
Contractors, like other businesses, often find it advantageous to assign their accounts in exchange for some other form of consideration from the assignee. What is different about a contractor’s accounts, as compared to most...more
Pinnacle Crushing & Constr. LLC v. Hartford Fire Ins. Co., 2018 U.S. Dist. LEXIS 67965 (W.D. Wa. Apr. 23, 2018) - The Army Corps of Engineers (the “Corps”), as owner, and Cherokee General Corporation (“CGC”), as prime...more
United States ex rel. Metro Mech., Inc. v. Triangle Constr. Co., 2018 U.S. Dist. LEXIS 1487 (S.D. Miss. Jan. 4, 2018) - Triangle Construction Company, Inc. (“Triangle”) contracted with Mississippi Portfolio Partners III,...more
As of January 1, 2018, direct contractors in California who make or take a contract “for the erection, construction, alteration, or repair of a building, structure, or other private work” are jointly and severally liable with...more
Pritchett Controls, Inc. v. Hartford Accident & Indemnity Co., 2017 U.S. Dist. LEXIS 192182, 2017 WL 5591872 (D. Md. Nov. 21, 2017) - James W. Ancel, Inc. (“JWA”) was the prime contractor on a project for the Maryland...more
Preliminary Lien Notices - “Prelims” should always be given (usually necessary for perfecting lien, bond and stop notice claims) Send within twenty (20) days of first day materials/labor furnished (“20-day...more
The 2017 regular session of the West Virginia Legislature saw several changes in laws relevant to employers. Changes of interest to employers include the West Virginia Safer Workplace Act, Second Chance for Employment Act,...more
United States v. Int’l Fid. Ins. Co., No. 16-0472-WS-C, 2017 U.S. Dist. LEXIS 16791 (S.D. Ala. Feb. 7, 2017) - This action arose out of a payment dispute between Bay South Limited, Inc. (“Bay South”) and Stephens...more
United States ex rel. J.A. Manning Constr. Co. v. Bronze Oak, 2017 U.S. Dist. LEXIS 6054 (N.D. Okla. Jan. 17, 2017) - In May 2014 the Cherokee Nation issued a bid notice for bridge and roadway construction in Mayes...more
Welcome to the winter 2016 edition of our Under Construction newsletter. We hope your year has been good to your family, your company and you as we wrap up these remaining few weeks of 2016. A recent hot topic with...more
Pennsylvania has continued to refine its mechanic’s lien law in recent years, and next year will bring the most sweeping changes ever for owners and contractors that work on larger projects....more
There are three types of bonds that afford financial protection in connection with a construction project: payment bonds, Cranesperformance bonds, and bid bonds. Below is a primer on the differences between these bonds and...more
A recently proposed bill to reduce the retainage amount for certain public work contracts to five percent and to allow a claimant to recover reasonable attorney’s fees and costs from a payment bond surety that fails to timely...more