Perfecting a performance bond claim in Texas requires careful attention to legal requirements and procedural details set forth on the face of the bond and under Texas law. Perfection of a performance bond claim is often...more
Recent changes to Illinois law will impact the way school districts administer their summer construction projects. The Public Construction Bond Act has been amended effective January 1, 2024, to increase the threshold at...more
All construction project owners, lenders, and contractors take note: a recent federal court opinion offers a reminder that additional obligees on a performance bond must comply with all conditions precedent in the bond in...more
Construction project participants sometimes disregard contractual formalities, particularly in the "heat" of a project dispute. However, consequences can and often do arise in those circumstances, and sometimes the parties do...more
In Cell-Crete Corp. v. Fed. Ins. Co., a California court awarded a surety attorneys’ fees and costs that its principal incurred defending the surety against a claim on a public-works payment bond. This is good news for...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
An often-overlooked part of contract negotiations is the language included in the performance bond. While the owner or contractor (bond obligee) requires a performance bond and pays for it, negotiating efforts are typically...more
If you are a construction contractor, you deal with performance bonds as part of your business and daily work. They are necessary for almost every project you are participating or will participate in, and, along with other...more
When a party to a construction contract is faced with nonperformance of another party, often the desire to keep the project moving takes precedence in responding to the performance default. ...more
As MGT Construction executives start pleading guilty to conspiracy to commit wire fraud and bank fraud, every construction company executive should reflect on the duties of disclosure owed to their bonding companies....more
Texas surety law contains obscure procedural rules that can have outsized consequences. Chapter 43 of the Civil Practice and Remedies Code is an important example....more
Dear YouDig?, We are in the middle of a massive addition to our warehouse. The value is high seven figures in construction services. We don’t do this all the time but we fell in love with the Design-Builder, signed their...more
Strickland v. Arch Ins. Co., No. 17-10610, 2018 U.S. App. LEXIS 504 (11th Cir. Jan. 9, 2018) - Strickland provided sand to a paving company (“Douglas”) for a Georgia Department of Transportation (“GDOT”) road improvement...more
Contractors may benefit in making a small equity investment in the projects they construct. The financial benefit can arise from the investment itself and from improved understanding and communication with the owner during...more
Int’l Fidelity Ins. Co. v. Americaribe-Moriarty JV, 2017 U.S. App. LEXIS 3628 (11th Cir. Feb. 28, 2017) - Americaribe-Moriarty Joint Venture (“Americaribe”) entered into a subcontract with Certified Pool Mechanics I,...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
As the competition for construction loan projects remains at unprecedented levels in much of the country, lenders are frequently being asked to waive, modify or re-visit their standard construction loan credit enhancement...more
Notable 2014 Case Law: Bonds - In Ponderosa Fire District v. Coconino County, 235 Ariz. 597 (Ct. App. Ariz. 2014), the Court of Appeals considered whether the County had discretion to decide not to call...more