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
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
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
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
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
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
Retention clauses are almost always included in California construction contracts and permit an Owner to withhold a portion of what is owed to the General Contractor as security to ensure the proper completion of the work....more
Property owners seeking to insulate themselves from some of the inherent risks associated with construction projects often turn to retainage provisions to reallocate very specific risks—the risks of delay, defective...more
On January 27, 2015, the Court of Appeal, Second Appellate District, affirmed, in part, a hefty trial judgment against the Rio School District for improperly withholding retention funds in the case of FTR International, Inc....more