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The Utah Court of Appeals delivered a significant ruling – including its length, approximately 12,500 words – underscoring the critical importance of adhering to contract provisions, particularly regarding payment terms in...more
Gordon Rees Scully Mansukhani presents the latest insights from our Government Contracts group, offering a comprehensive overview of recent significant decisions, regulatory changes, and essential updates for businesses...more
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
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
“Ensuing loss” provisions have long been the subject of nuanced arguments in insurance litigation. The provisions, which sometimes afford coverage for a “covered loss” stemming from an expressly excluded peril, serve as...more
Manufacturing construction is booming across Texas in early 2025, with Samsung’s landmark $17 billion semiconductor facility in Taylor, Texas leading the charge as part of a broader trend concentrated along major metro areas...more
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
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
An issue of great importance to all construction project parties, including design professionals and contractors, is pending before the Massachusetts Supreme Judicial Court (SJC). In the matter of Trustees of Boston...more
Considering all that can go wrong on a construction site, it can seem like a miracle that anything is ever built. Construction projects can be massive undertakings, often with millions of dollars at stake, requiring the...more
A pair of cases in the past two years have come to opposite conclusions about whether general damages can be capped by contract provisions for liquidated damages. Liquidated damages clauses are a common feature of...more
Originally published by the Daily Journal of Commerce on May 18, 2023. You will often see in construction contracts terms directing the contractor to use “best efforts” or “reasonable efforts” or “commercially reasonable...more
When reviewing a proposed design or construction contract, the responding party will often do a cursory check to see whether the contract proposes arbitration or litigation for dispute resolution. So long as the proposed...more
Kilpatrick Townsend partner Thomas Allen recently presented "The Future of Construction, Infrastructure and Energy Disputes in the Endemic Age" for the Inter-Pacific Association's Arbitration Day at Maxwell Chambers in...more
On August 31, 2022, Kilpatrick Townsend partner Thomas G. Allen spoke at the Inter-Pacific Bar Association’s Arbitration Day at Maxwell Chambers in Singapore. Mr. Allen, who leads the firm’s international disputes practice,...more
The purpose of a liquidated damages provision in a construction contract is to establish in advance a fair amount of compensation to the injured party for a breach of contract to avoid spending time and money fighting over...more
In BCD Associates., LLC v. Crown Bank, CA No. N15c-11-062 (Super. Ct. Del, May 2, 2022), the trial court found that when a bank pays a contractor directly, it can create a legally binding relationship subject to the terms of...more
In Hanuman Chalisa, LLC. v. BoMar Contracting, Inc. [1] the parties executed an agreement for the construction of a hotel in Columbus, Ohio. The contract included a guaranteed maximum price (“GMP”) of $5,172,701 and a “Cost...more
The Philippines construction industry is expected to grow with the introduction of the "Build, Build, Build" initiative and the amendment of a number of laws that would loosen restrictions on foreign investment. The...more
Just like a bride and groom vow to join together for better or for worse, commercial parties joining together through a joint venture must make a similar promise to share in profits and losses. ...more
What’s a goocher? If you saw the movie, Stand By Me, then you know exactly what I mean. And there are times when parties to a construction contract face a goocher. ...more
Construction contracts may be priced in a number of ways. For most contracts, even those which are "fixed price", there is usually scope for cost/price variability. Four cases from December 2020 highlight some of the...more
Liquidated damages are a sum specified in a contract as the measure of recovery in the event of a breach of the contract. Liquidated damages provisions are common in construction contracts to guard against damages that the...more
Pacta sunt servanda, i.e., agreements must be kept. This applies in both good economies and bad. Companies considering a modification of their business operations to offset lower revenue must be mindful of existing...more
The COVID-19 pandemic has wreaked havoc on the hospitality sector, significantly impacting the financial performance of existing hotels and causing delays to new hotel projects. These impacts may result in hotel owners and...more