California has enacted two significant reforms that will reshape private construction contracts starting January 1, 2026. These changes impact change-order payment procedures and retention limits, creating new compliance...more
Effective January 1, 2026: Time to Update Your Contracts - If your firm is involved in private construction in California, a fundamental change in payment security is coming. Effective January 1, 2026, for all contracts...more
What legislation or regulations govern security of payment in construction contracts? The Construction Industry Security of Payment Ordinance (Cap. 652) (SOPO), which came into effect on 28 August 2025, governs security...more
What legislation or regulations govern security of payment in construction contracts? Unlike many other jurisdictions, Saudi Arabia does not have a dedicated Security of Payment Act. Instead, security of payment issues...more
In a recent decision, the Massachusetts Appellate Division of the District Court Department affirmed the trial court’s award of summary judgment in favor of an employer that had argued that a retention bonus did not...more
It’s nice to get paid. Giving up control of your business? Well… that’s a different story. On closing the sale of a business, owners realize a dramatic financial return on their investment. However, few buyers are willing to...more
In May 2024, the Hong Kong Government introduced the Construction Industry Security of Payment Bill (Bill) to the Legislative Council for first reading. If the Bill is passed into law, the Bill will introduce a statutory...more
This resolution is important for contractors’ rights to retention monies in construction contracts. The Hong Kong Court of First Instance (CFI) held in a recent judgment that, whilst the absence of segregation is not...more
El Gobierno Nacional de Colombia modificó mediante el Decreto 0242 de 2024 las tarifas de retención y autorretención aplicables a las empresas del sector minero y de hidrocarburos. Estas modificaciones fueron realizadas con...more
Continuing duty to advise or warn? How do you know? Whether, or not, a consultant has a continuing duty to advise or warn can be a challenging question to resolve....more
Last week we saw the Menard court reject the use of an indemnity clause to shift fees in a dispute between contracting parties. This week, a very recent decision from Nevada highlights another creative way to shift fees where...more
A recent Washington Bill 5528, sponsored by the Northwest Wall and Ceiling Contractors Association and the American Subcontractors Association of Washington, along with many other industry trade groups, successfully passed...more
An Equal Pay Act plaintiff must show that employees of the opposite sex were paid different wages for equal work. Pretty simple — right? However, there are many factors that go into deciding what is “equal work” or whether...more
The Centers for Medicare & Medicaid Services (CMS) on Nov. 18, 2019, published a proposed Medicaid Fiscal Accountability rule that would amend existing regulations related to 1) base and supplemental payments, 2)...more
Consider the following provision of in a contract between a general contractor and a subcontractor...more
Every private construction project in Illinois will be affected by a new law, effective immediately. The Contractor Prompt Payment Act (815 ILCS 603/1, et seq.) was amended to restrict the use of retainage on construction...more
On August 2, 2019, the Office of Federal Contract Compliance Programs announced the release of its new compliance assistance guides. Among the new guides are...more
Build UK recently published a set of minimum standards to be applied when using retentions in the construction industry, as well as their roadmap to zero retentions by 2023. Retentions can have a huge impact on cashflow in...more
On May 17, 2019, the Puerto Rico Department of the Treasury (“PR Treasury”) issued Internal Revenue Informative Bulletin No. 19-07, granting an additional extension until June 30, 2019 for employers to request the Federal...more
Many a construction dispute turns on defects. A significant subset of those turn on whether the existence of defects prevents practical completion from taking place. Originally published on the Practical Law Construction...more
United Riggers & Erectors, Inc. v. Coast Iron & Steel Co., 2018 Cal. Lexis 3510 (May 14, 2018) - In 2010, Universal City (“Universal”) hired Coast Iron & Steel Co. (“Coast Iron”) to build a new ride at the Universal...more
Guidance on the Federal Employee Retention Benefit for Certain Employers Affected by Hurricane Irma and María - New Regulation or Official Guidance - The Puerto Rico Department of the Treasury issued Internal Revenue...more
In recent case of United Riggers and Erectors, Inc. v. Coast Iron and Steel Company ___ Cal. 4th ___ (May 14, 2018 Case No. S231549), the California Supreme Court addressed whether a direct contractor can withhold payment...more
On May 14, 2018, the California Supreme Court issued its opinion in United Riggers & Erectors, Inc. v. Coast Iron & Steel Co., No. S231549, slip. op. (Cal. Sup. Ct. May 14, 2018). In it, the Court narrowly construed the “good...more
It is industry standard in California for owners of a construction project to make monthly payments to a contractor for work it has completed, less a certain percentage that is withheld as a guarantee of future satisfactory...more