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|Federal District Court Holds that Delay Damages are Not Allowed in Breach of Contract Action of Both Parties Contributed to the Delay and There is No Clear Proof of Apportionment.|
David S. Coats, John T. Crook, David S. Wisz; Bailey & Dixon, L.L.P.;
February 11, 2016, previously published on Fall/Winter 2015Claims for “delay damages” frequently arise when a contractor believes that its performance of contractual obligations is delayed for reasons outside the contractor’s control. A common defense to such claims is that the contractor also has some responsibility for the project...
|Contractor / Sub-Contractor entitlement to payment for “Extras”|
Owen Bourns; Perley-Robertson, Hill & McDougall LLP/s.r.l.;
February 1, 2016, previously published on January 25, 2016In a "fixed price" or "stipulated price" contract the contractor has agreed, by way of successful bid or non-bid agreement, to perform the work set out in the contract documents (which would include tender documents) for a fixed price. [Note the term contractor will be used...
|Appeals Court Rejects Subcontractors' Attempt to Foreclose on Expired Mechanic's Liens|
Ganfer Shore LLP;
January 29, 2016, previously published on January 13, 2016A contractor that is not paid for construction or maintenance work on real property may file a mechanic’s lien against the property. The mechanic’s lien statute is a valuable tool for contractors because a valid mechanic’s lien becomes a lien against the property as well as a...
|Construction Managers and Contractors: Improve Your Mergers & Acquisition and Dissolution Checklists to Avoid Expired License Exposure-and Worse|
Jeffrey B. Kirzner, Daniel D. McMillan; Jones Day;
January 27, 2016, previously published on January 2016Dissolving a newly acquired or existing affiliate of a construction or construction management firm can have adverse unintended legal consequences when the dissolved affiliate holds executory contracts and the related entity that takes over the performance of the contracts lacks the requisite...
|Fourth Circuit Narrows The Window for Filing Timely Liens Under the Public Works Act|
Brian Seth Schaps; Deutsch Kerrigan LLP;
January 27, 2016, previously published on January 4, 2016On Nov. 4, 2015, the Louisiana Court of Appeals for the Fourth Circuit issued a currently unpublished opinion, which held that a subcontractor’s lien was premature when the subcontractor filed a statement of claim on a public works project before the formal recordation of acceptance by the...
|A New Twist to Construction Fraud|
Trey R. Kelleter; Vandeventer Black LLP;
January 27, 2016, previously published on January 2016Virginia Code §18.2-200.1 makes it a crime to commit construction fraud, that is, to take an advance of funds in return for a promise to perform a job with no real intention of performing and indeed, failing to substantially perform. It is a felony if the job was for more than $200. To prove...
|Court of Appeals Warns -- Want to Get Paid? Comply with Contract Terms!|
Julia J. Nierengarten; Meagher & Geer, P.L.L.P.;
January 25, 2016, previously published on November/December 2015The Minnesota Court of Appeals recently issued an opinion that is important to all contractors to understand, if they want to get full payment on a project. The Court's decision gave a very clear instruction to all parties on a construction project - follow the terms of the contract. Failure to...
|Legal Framework and Benefits of Public-Private Partnerships|
David M. DiSegna, Teno A. West; Pannone Lopes Devereaux & West LLC;
January 20, 2016, previously published by Rhode Island Bar Journal on January/February 2016Throughout the United States, governments and public agencies face the daunting task of upgrading or replacing their antiquated and deteriorating infrastructure, while grappling with fiscal pressures, such as declining tax revenues, increased expenses, rising pension costs, and state and federal...
|The Superior Court of Québec Rules on the Obligation of Good Faith in Tendering Documents|
Simon Grégoire; Borden Ladner Gervais LLP;
January 15, 2016, previously published on January 8, 2015At the conclusion of a call for tenders by the ministère des Transports du Québec (MTQ) (the Québec Transport Department) for the extension of Autoroute 5 in Gatineau, Inter-Cité Construction Ltée (Inter-Cité) was the lowest conforming bidder. Unable to...
|Delay Damages: Don't Delay!|
Kevin A. Rust; Vandeventer Black LLP;
January 14, 2016, previously published on December 2015Delays are common on construction projects, and so are delay damages provisions in construction contracts. Depending upon your involvement in the project, and the size or your operation, you may not have much input into what that clause says. That doesn’t mean you shouldn’t read it and...