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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
The Oklahoma Supreme Court has rejected a contractor’s performance bond claim due to the lack of adequate notice to the subcontractor’s surety (see Flintco LLC v. Total Installation Management Specialists, Inc., No. 120,100...more
In recent months, changes to tariff laws have had a significant impact on the construction industry. With looming disruptions to global supply chains and material costs rising, there are a number of commercial and legal...more
Like they warned us on Schoolhouse Rock, it is no easy feat for a bill to become enacted into law. Just ask the proposed “Prompt Pay” legislation that currently languishes in Michigan. By way of background, “Prompt Pay”...more
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
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
The Alabama Supreme Court found that an indemnification provision was enforceable that required a subcontractor to indemnify a general contractor on a proportional-fault basis against liability for death or personal injury. ...more
A California appeals court has upheld a $5 million award in favor of Whiting-Turner Contracting Company and against the owner of a 12-story, Virgin-brand hotel in San Francisco. Whiting-Turner agreed to construct the hotel...more
Babin Builders and Development Inc. v. Quinones, Fla. 1st DCA, No. 1D2022-4103, February 12, 2025 - For construction defect litigation, many times we are called into action to defend a subcontractor who has been included as a...more
An “action over” (also called a “third-party over action”) is a type of legal action (lawsuit or arbitration) in which an injured employee, after collecting workers’ compensation benefits from his employer, files a tort claim...more
A federal court in upstate New York is permitting a subcontractor’s delay claim to proceed notwithstanding a “no damages for delay” provision in the subcontract. The case, The Pike Company, Inc. v. Tri-Krete, Ltd., involves...more
The Retreat at Charleston National Country Club Home Owners Ass’n, Inc. v. Winston Carlyle Charleston National, LLC, S.C. App. Case No. 2021-001050, Opinion No. 6099 (Feb. 12, 2025) Key Takeaways: Case Summary (for those of...more
Arbitration agreements have become commonplace in construction contracts. As a result, a significant portion of construction disputes are resolved privately through arbitration rather than in public courts. This article...more
An Illinois federal court ruled in favor of steel subcontractor Nucor in its contract dispute with Direct Steel. The project involved the construction of pre-engineering metal buildings for the Army Corps of Engineers. The...more
Although many contractors have never heard of the expression “lien fund” having an understanding as to what this phrase means is crucially important in the context of seeking payment pursuant to a construction lien. In...more
In construction disputes, owners typically deal with defects within the scope of work of the subcontractor or vendor by pursuing claims directly against the general contractor. The owner, however, may consider pursuing claims...more
A mechanics’ lien is a powerful remedy that provides a contractor with a priority lien on a property and a fast means of being made whole if payment is not rendered at the completion of a job. In order to successfully obtain...more
When negotiating design and construction contracts for large projects, it is common for sophisticated parties to push to the end of their negotiations the half-dozen or so provisions that one side or the other has...more
General Contractors may seek to condition payments to Subcontractors by using “pay-if-paid” or “pay-when-paid” clauses in their contracts. Typically, as the name suggests, pay-when-paid provisions concern the timing of...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
Change orders are a fact of life for construction projects. They can be challenging even when the owner and contractor agree on the scope, price, and schedule impacts associated with the change. Change orders are far more...more
Most construction contracts include provisions detailing how and when a contractor must provide notice of claims, or events that may lead to future claims, for additional compensation and/or time. These contract provisions...more
The construction industry will continue to face rising material prices, volatile markets and inflation. Disputes go hand in hand with rising prices as projects become much more difficult to complete on time and within budget....more
A federal court in Louisiana last week refused to enforce a limitation of liability provision included in an extra work order holding that it was trumped by the parties’ subcontract (see Planet Construction v. Gemini...more
A developer client recently expressed mixed emotions when reflecting on a new project that had been delivered on time and under budget. The investors were happy, and the client had just written a check to the prime contractor...more