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When a government contract is terminated for convenience, contractors may find themselves navigating the complex process of preparing a termination settlement proposal. One critical consideration that often arises is whether...more
Federal government contractors are living in a climate of uncertainty. Executive orders affecting government contracts are being issued at a rapid pace. The executive orders tend to be broad and high-level with regulatory...more
Drafting and negotiating subcontracts can be tricky for both general contractors and subcontractors. General contractors are caught in between owners and subcontractors as the ones that will be held responsible for the work...more
Federal contracts famously include a clause permitting the government to terminate the agreement for the government's own "convenience"—even if the contractor did not default on its performance obligations. Aware of this...more
In this Insight, first published in PLC, Yorkie Fong considers the decision in A&V Building Solution Ltd v J&B Hopkins Ltd [2024] EWHC 2295 (TCC), which clarified the binding nature of an adjudicator's decision on their fees...more
Today's construction environment demands a lot from contractors who are pulled in multiple directions and whose responsibilities may seem limitless. Beyond performing good work, managing and effectively communicating...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
Following two weeks of trial testimony, a Travis County jury recently rendered a $10 million verdict in a novel corporate practice of medicine (CPOM) case. The jury found in favor of a physician hospitalist group that claimed...more
When reviewing a contract, how often have you had the following thoughts: “That provision is so one-sided, there’s no way it will be enforced the way it’s written!” Or “I won’t worry about negotiating that provision; a court...more
In a recent Arizona case, the trial court held that an owner could sue a subcontractor directly for recovery of the owner’s consequential delay damages based on the subcontract’s express indemnity clause, notwithstanding that...more
On April 27, 2022, the Virginia General Assembly passed Senate Bill 550, which makes “pay when paid” and “pay if paid” clauses unenforceable in most circumstances and requires both public and private construction contracts to...more
A recent bench trial in Delaware State Court ruled that a subcontractor was entitled to payment from a general contractor because an order of priority clause gave priority to a bid proposal contract term that barred a...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
Il nuovo dl semplificazioni modifica ancora la normativa in materia di contratti pubblici introducendo novita’ di assoluto rilievo. Dal subappalto, alla proroga sino al 2023 delle disposizioni transitorie ...more
On April 27, President Biden issued an executive order requiring federal contractors and covered subcontractors to pay a $15 per hour minimum wage beginning January 30, 2022. The order also requires contractors to incorporate...more
Maeda Corporation and China State Construction Engineering (Hong Kong) Limited v Bauer Hong Kong Limited handed down in the Hong Kong Court of Appeal has significantly elevated the fundamental importance of so-called...more
Dear YouDig?, We are a design builder. We hired a design team to do the preliminary design for our bid on a large DB project. We won the bid. Of course we warranted to the project owner that we would build the project, as...more
Skanska USA Building, Inc. v. J.D. Long Masonry, Inc., No. 1:16-cv-00933, 2019 BL 336852, (D. Md. Sept. 9, 2019) - On September 9, 2019, a Maryland federal court awarded Skanska USA Building, Inc. (“Skanska”) compensatory...more
Rad and D’Aprile, Inc. v. Arnell Construction Corp, No. 502464/14, 2019 BL 131606 (NY. Sup. Ct. April 3, 2019) - In June of 2001, Arnell Construction Corp. (“Arnell”) entered into a prime contract to build two sanitation...more
Aspic Eng’g & Constr. Co. v. ECC Centcom Constructors LLC, No. 17-16510, 2019 BL 26363 (9th Cir. Jan. 28, 2019) - Aspic Engineering and Construction Company (“Aspic”), a local Afghan subcontractor, entered into multiple...more
IES Commercial, Inc. v. Manhattan Torcon, A Joint Venture, 2018 U.S. Dist. LEXIS 164973 (D. Md. Sept. 26, 2018) - In 2009, the Army Corps of Engineers hired Manhattan Torcon Joint Venture (“MT”) as general contractor to...more
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
Commercial Item Contracting is intended to benefit both the government and contractors, but those benefits can sometimes get lost in the shuffle. Reminding the parties why Commercial Item Contracting was implemented can help...more
Although they share an ultimate customer, the interests of a prime contractor and a subcontractor are often divergent. Careful consideration and negotiation of subcontract terms can help to ensure there is a fair balance...more
Subcontracts contain a number of important provisions that shape the relationship between a prime contractor and its subcontractor. However, there is one provision that overshadows the rest in terms of its significance to the...more