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Documents on Construction Law, Construction, Insurance
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|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...
|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...
|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published on January 4, 2016On Nov. 4, 2015, the Louisiana Court of Appeals for the Fourth Circuit issued a currently unpublished opinion, which held that a subcontractor’s lien was premature when the subcontractor filed a statement of claim on a public works project before the formal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...
|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...
|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...
|How to Contain Construction Disputes|
John B. Cooper; Jones Day;
January 11, 2016, previously published on December 2015Imagine if, when a dispute involving defective design or defective construction first arose, it could be dealt with in a safe environment so that the defects could be remedied and the possible impacts of them limited, reduced or avoided?
|New York’s Appellate Division Reverses Collateral Estoppel Ruling Against Payment Bond Sureties in Suit to Enforce Arbitration Award|
Thomas F. Giordano; Schnader Harrison Segal & Lewis LLP;
January 7, 2016, previously published on November 2015A recent decision by the First Department of the Supreme Court, Appellate Division, addresses the preclusive effect of arbitration awards in subsequent judgment enforcement suits against payment bond sureties. In Five Star Electric Corp. v. Federal Insurance Co., 127 A.D.3d 569, 8 N.Y.S.3d 98 (1st...