News & Analysis as of

Breach of Contract Damages Construction Industry

Bradley Arant Boult Cummings LLP

Consequential vs. Direct Damages

Many construction contracts include a provision that prohibits the parties from recovering “consequential” damages in the event of a breach. Sometimes parties will negotiate and agree to a waiver of consequential damages that...more

Spilman Thomas & Battle, PLLC

Building Design Disputes – New Analysis of Direct v. Consequential Damages in Florida

Are design professionals involved in your Florida project? If so, then you need to be aware of this newly decided case. The U.S. District Court for the Middle District of Florida, in Orlando, issued an Order on July 11,...more

Bradley Arant Boult Cummings LLP

Court Rejects Subcontractor’s Safety Excuse for Jumping Ship

A federal judge in Oklahoma last week ruled against an electrical subcontractor who quit work before finishing because it was allegedly unsafe to continue. The court found that the subcontractor was simply losing money, and...more

Nelson Mullins Riley & Scarborough LLP

Florida Federal Court Makes Pivotal Ruling on Direct vs. Consequential Damages in Design Disputes

In a closely watched order issued July 11, 2025, the U.S. District Court for the Middle District of Florida addressed a previously unresolved and critical question under Florida law: whether remediation costs for defective...more

A&O Shearman

All aboard the Good Faith Express, but mind the causation gap

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In Matière v ABM, the court found that there was an express obligation of good faith in a number of contracts concerning a joint venture for a subcontracting role in the construction of the HS2 railway. However, it concluded...more

Bradley Arant Boult Cummings LLP

Court Affirms $1 Nominal Damage Award in Wind Farm Construction Dispute

Court Affirms $1 Nominal Damage Award in Wind Farm Construction Dispute The general contractor on the 60-turbine wind farm project in Good Hope, Illinois, is entitled to collect a whopping $1 on its cost-to-complete claim...more

J.S. Held

Lessons Learned from the Recent Ruling on Contractor Responsibilities in Delay and Inefficiency Claims

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The recent ruling in Berkley Insurance Company v. Suffolk Construction Company, issued by the United States District Court for the Southern District of Florida, has highlighted several significant lessons for subcontractors,...more

Conn Kavanaugh

Update Your Construction Contract! Massachusetts Supreme Judicial Court Holds that Breach of Contractual Indemnity Provision is...

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Under the Massachusetts statute of repose, tort claims involving improvements to real estate generally must be initiated within six years of the improvement’s opening to use. So, for example, if a worker suffers a jobsite...more

Bradley Arant Boult Cummings LLP

Court Affirms $1.6B Judgment in Bahamas Mega Project Dispute

A New York appeals court has affirmed a $1.6 billion award for the developer of a Bahamas mega project against various subsidiaries of China State Construction Engineering Corporation, the world’s largest construction company...more

Bradley Arant Boult Cummings LLP

Is It Defamatory to Call Your Contractor a Crook and a Con Man?

Not according to a decision from a federal court in Ohio. The case involves a landscaping project at a hillside home in Cincinnati. The property overlooks the Ohio River, but like many projects that become cases, it ended up...more

Gray Reed

Disrupted Operations – Owners Beware! – Part 2 (DAMAGES)

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Liquidated damages are intended to provide predictability to the owner and contractor as to the financial consequence of not completing a project in a timely manner. Since liquidated damages are intended to compensate the...more

Frantz Ward LLP

Offset, Setoff, and State Trends in Withholding Clauses

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States have been slowly clawing back at a higher-tier’s ability to withhold payments owed to its lower-tier subcontractors, aiming to protect subcontractors from undue financial hardship and ensure that payment disputes are...more

Mandelbaum Barrett PC

Preventing and Resolving Construction Disputes: Types of Damages in Construction Contracts

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Construction projects are complex and, when issues arise, it’s crucial to understand the different types of damages and how they are calculated. Whether you’re an owner or contractor, knowing the types of damages you may...more

Bradley Arant Boult Cummings LLP

Substantial Performance v. Material Breach

All breaches are not created equal. A minor, technical breach may be deemed “immaterial.” Other breaches – so-called “material” breaches — deprive the non-breaching party of something important or essential to the purpose of...more

A&O Shearman

Breach it and weep: deemed fulfilment ain’t fictional

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The Court of Appeal has held that a party who prevents a condition precedent to their obligation to pay from being met cannot rely on the unfulfilled condition to escape their liability in debt....more

Venable LLP

The Subcontractor Performed. The Prime Contractor Paid. But a Hacker Ended Up with the Money. Who Is Responsible?

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When hackers gain access to a subcontractor’s information systems and divert the prime contractor’s payment to themselves instead of to the subcontractor, does the prime contractor still have to pay the subcontractor?...more

Bradley Arant Boult Cummings LLP

Second Circuit: No-Damages-For-Delay Clause Bars Claim

The Second Circuit Court of Appeals recently applied a no-damages-for-delay provision to affirm the dismissal of a demolition contractor’s breach of contract claims. The project involved reconstructing and raising the Bayonne...more

Bradley Arant Boult Cummings LLP

Court Affirms Dismissal of Subcontractor’s Wrongful Termination Counterclaim and Clarifies Scope of Upcoming Trial on Damages

Back in April we examined the court’s decision in Boldt v. Black & Veatch, which dismissed a subcontractor’s counterclaim for wrongful termination on a 60-turbine wind farm project. As you may recall, the subcontractor hired...more

Bradley Arant Boult Cummings LLP

Court Rejects Contractor’s Claim That COVID-19 Rendered Performance Impossible

A fundamental premise of contract law is that promises must be kept. If legally enforceable promises or “contracts” are not kept, courts may step in to enforce them by ordering performance, awarding damages, or granting some...more

Bradley Arant Boult Cummings LLP

Liquidated Damages Disproportionate to Actual Damages Deemed Unenforceable

Construction contacts often include provisions that provide for pre-determined or “liquidated” damages in the event of a breach. Such provisions can provide certainty to the parties as to the consequences of a breach and can...more

Bass, Berry & Sims PLC

Tennessee Court Extends Economic Loss Doctrine to Construction Claims

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The Tennessee Court of Appeals recently issued an opinion extending application of the economic loss doctrine to certain construction claims. Among other things, the economic loss doctrine prevents a party from recovering on...more

BCLP

Global Water Associates: applying Hadley v Baxendale

BCLP on

From time to time, those seminal cases we all studied during the early parts of our career pop up in practice. We’re all familiar with them: the snail in the bottle in Donoghue v Stevenson; the spurious sounding flu remedy in...more

White & Case LLP

Turning off auto-correct? Employers' ability to recover costs of correcting contractors' defects

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In Thio Keng Thay v Sandy Island Pte Ltd [2019] SGHC 175 the High Court of Singapore confirmed that an employer may recover damages for rectifying defects even when it has done so in breach of a contractual defects...more

White and Williams LLP

Wisconsin Supreme Court Holds that Subrogation Waiver Does Not Violate Statute Prohibiting Limitation on Tort Liability in...

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In Rural Mut. Ins. Co. v. Lester Bldgs., LLC 2019 WI 70, 2019 Wisc. LEXIS 272, the Supreme Court of Wisconsin considered whether a subrogation waiver clause in a construction contract between the defendant and the plaintiff’s...more

Bradley Arant Boult Cummings LLP

Casting the First Stone: Contractors Considering Default Termination Should Examine Which Party Committed First Material Breach -...

During a construction project, circumstances may arise that lead a general contractor to consider termination of a subcontractor’s right to proceed under the subcontract. The Randy Kinder Excavating v. J.A. Manning...more

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