Constructlaw

APRIL 20, 2023

Army Corps of Engineers hired Relyant Global LLC to act as the prime contractor. Relyant subcontracted with Federal Engineers and Constructors, Inc. (FE&C). Relyant later terminated its subcontract with FE&C. FE&C’s amended complaint included a claim for violation of the federal Prompt Payment Act (PPA).

Tennessee 52

Tennessee Subcontracting Missouri Claims 52

Construction Dive

OCTOBER 22, 2015

By Bruce Jervis Prime contractors enjoy a lot of leverage when awarding subcontracts. One way they utilize this advantage is to specify the forum and governing law for any claim or dispute under the subcontract. This is costly and inconvenient for the sub. And, the governing law may be less favorable.

Claims 48

Claims Subcontracting Contractors Design 48

Levelset

APRIL 28, 2022

In recent years, inflation, supply chain issues, and labor shortages have only increased the likelihood of project delays, performance issues, and contractor default. While general contractors commonly use performance bonds to reduce the risk of default, a bond ultimately protects the property owner, not the GC.

Insurance 52

Insurance Contractors Claims ABC 52

Constructlaw

JULY 14, 2022

Arenson subsequently entered into a subcontract with Sweet to complete the Work (the Subcontract). The Subcontract contained two signature lines, one for “Sweet Construction Approval” and one for “Arenson Office Furnishings Approval.” ASD was not a party to the Subcontract.

Subcontracting 52

Subcontracting Banking Contract Claims 52

Constructlaw

OCTOBER 20, 2022

seeking to recover amounts it paid X-Treme for uncompleted work and amounts it paid a replacement contractor. The court rejected X-Treme’s argument that the no-damage-for-delay provision did not bar its claim because the cause of the delay (incomplete drawings) was not within the parties’ contemplation when they executed their subcontract.

Lien 52

Lien New York Subcontracting Claims 52

NH Construction Law

MAY 20, 2023

A couple of years ago I blogged ( #101 ) on “pay-if-paid” clauses, which make a general contractor’s receipt of payment from the owner a prerequisite – a “condition precedent,” in legal terms – to its obligation to pay subcontractors. JBC Merger Sub LLC v. Tricon Enterprises, Inc. , 145, 286 A.3d

Contractors 40

Contractors Bargains New Hampshire Contract 40

NH Construction Law

MARCH 28, 2024

The reason is not hard to fathom: under the statute “the owner is to hold back from the principal contractor the amount due the sub-contractor” to pay such claims, Cudworth v. 536, 537 (1898), and owners need to know the amount of those claims in order to do so intelligently. Bostwick , 69 N.H.

Lien 40

Lien Accounting Claims New Hampshire 40

Construction Dive

APRIL 10, 2013

By Bruce Jervis Two recent cases involving the waiver of subcontract “pay-if-paid” clauses illustrate the uncertainty of enforcing these provisions. In one case, the prime contractor waived the right to enforce the clause against the subcontractor. In the other case, the contractor narrowly averted a waiver.

Subcontracting 52

Subcontracting Drafting Risk Claims 52

NH Construction Law

DECEMBER 19, 2021

When a contractor abandons or is terminated from a construction project before substantial completion, one of the first tasks for the owner/developer (or for the contractor’s performance bond surety if such a bond exists) is to locate and hire a completion contractor.

Contractors 40

Contractors Liability Bidding Contract 40

Construction Dive

DECEMBER 24, 2013

It was a rather prosaic and old-fashioned question: To which address should a notice of claim, transmitted by certified mail, be addressed? The Minnesota Supreme Court said the state payment bond statute created a trap for the unwary -- details of which can defeat meritorious claims.

Claims 48

Claims Subcontracting Minnesota Bidding 48

Levelset

JUNE 3, 2022

With this much focus on public works construction, contractors nationwide should be ready to take advantage of the opportunity to work on big government projects at both the federal and state level — as well as be completely prepared to protect their payment rights while doing so. Washington State bond claim laws.

Washington 52

Washington Claims Lien Contract 52

Best Practices Construction Law

NOVEMBER 21, 2019

Just like my kids expect to be paid for the lemonade they sell, contractors and subcontractors expect to be paid on a timely basis once the work has been performed. Contractors have a means of shifting the risk of non-payment by the owner to its subcontractor by including a certain payment provisions in the subcontract agreement.

Contract 77

Contract Subcontracting Drafting Virginia 77

Levelset

AUGUST 25, 2022

Given the slim profit margins on construction projects, retainage practices can be incredibly frustrating for contractors. One perhaps-overlooked change that contractors should be aware of is the introduction of a new term “reserved funds” that replaced the term “retainage” in some sections.

Texas 52

Texas Lien Claims Contract 52

Construction and Infrastructure Law

MARCH 7, 2018

It is industry standard in California for owners of a construction project to make monthly payments to a contractor for work it has completed, less a certain percentage that is withheld as a guarantee of future satisfactory performance. 4th 151 (2015), the General Contractor, Coast Iron & Steel Co. Code, § 8818.).

California 53

California Contractors Claims Subcontracting 53

Pro Builder

JULY 20, 2021

The Best Way for Trade Contractors to Stay Out of the Courtroom. The best way for specialty trade contractors to stay out of the courtroom is to manage their clients’ expectations. Contract Essentials for Building Trade Contractors. Trade Contractors. Tue, 07/20/2021 - 07:00. Karalynn Cromeens. Labor Woes? Project Scope.

Contractors 98

Contractors Contract Legal Change Orders 98

Construction Dive

FEBRUARY 21, 2013

By Bruce Jervis Contractors performing work without proper state licenses are in great jeopardy. Under the statutes and/or case law in many states, unlicensed contractors cannot enforce the construction contract. What of the parties who do business with unlicensed contractors?

Contractors 51

Contractors Bargains Subcontracting Claims 51

Construction Dive

OCTOBER 21, 2012

There are several steps that subcontractors should take if they want to maintain their rights to file delay claims, Navigant Construction Forum Executive Director James Zack said during a webinar that WPL Publishing held earlier this month. Zack and Navigant Consulting Inc. ” Read more.

Claims 48

Claims Subcontracting Bidding Negotiation 48

Autodesk Construction Cloud

NOVEMBER 15, 2021

Owners pass on certain risks (contractually) to general contractors, who may do the same thing when hiring specialty contractors. She recalls her experience speaking with a fellow attorney who had to go through a 129-page subcontract that could have been cut down to ten pages. “It’s Let’s meet in the middle.

Contract 52

Contract Contractors Negotiation Subcontracting 52

NH Construction Law

APRIL 26, 2022

A few years back I blogged ( #84 ) that owners generally lack “third party beneficiary” rights required in order to enforce subcontracts. Other courts have allowed direct homeowner suits against subcontractors only if there is no recourse against the general contractor. Dagenais , 130 N.H. Champion Aluminum Corp. ,

Subcontracting 40

Subcontracting New Hampshire Claims Illinois 40

Levelset

SEPTEMBER 14, 2022

“If something goes wrong, liability could hit the GC’s policy, which dilutes liability insurance limits, negatively impacts their claims history, and forces them to deal with a claim that’s not really their fault.”. Are subcontractors covered under the general contractor’s insurance? Cyber insurance.

Insurance 98

Insurance Liability Claims Injury 98

Construction Dive

JANUARY 9, 2014

By Bruce Jervis A prime contractor’s relationship with the project owner obviously differs from the contractor’s relationship with a subcontractor. Yes, contractors occasionally speak out of both sides of their mouths. At the same time, the contractor told its subcontractor the delay was not excusable.

Contractors 52

Contractors Subcontracting New York Claims 52

NH Construction Law

MARCH 26, 2023

When a general contractor or lower tier subcontractor or supplier records a mechanic’s lien attachment on property, security for the lienor’s hoped-for judgment is achieved – but often something more, and perhaps unintended, is achieved. Hawkeye Funding, Ltd. Partnership , 150 N.H. 581 (2004).

Lien 40

Lien Subcontracting New Hampshire Bargains 40

NH Construction Law

DECEMBER 22, 2019

If we look no further than this language, the first of these two methods of establishing third party beneficiary status appears to be a perfect fit in the usual owner-contractor-subcontractor relationship: through his subcontract, the subcontractor (promisor) is rendering a performance that the general contractor (promisee) owes to the owner.

Subcontracting 40

Subcontracting Contract New Hampshire Legal 40

Construction Dive

AUGUST 11, 2016

By Bruce Jervis When a contractor is preparing to submit a binding bid on a contract, the contractor is necessarily reliant on the price quotations it receives from prospective subcontractors and suppliers. It is impossible to price a bid without incorporating the cost of parties furnishing labor and materials to the project.

Subcontracting 48

Subcontracting Bidding Claims Contractors 48

Levelset

MARCH 21, 2022

Restoration contractors can spend a lot of time waiting for payment. To cover these expenses, restoration contractors need to manage their cash flow to ensure they have enough money in the bank — especially when the insurance company is dragging their feet. 5 tips to manage cash flow on a restoration project.

Cash Flow 98

Cash Flow Insurance Lien Management 98

NH Construction Law

MARCH 24, 2018

of the A201 (2007) is typical: “A Change Order is a written instrument prepared by the Architect and signed by the Owner, Contractor and Architect.” ” Some contracts are even more limiting, expressly stating that if extra work is done without a signed change order, no additional compensation can be claimed.

Change Orders 40

Change Orders Subcontracting Contract Claims 40

Best Practices Construction Law

MAY 27, 2016

I previously blogged about the rules relating to pass-through claims , where a prime contractor’s recovery from an owner for damages suffered by its subcontractor is limited in certain circumstances. In Kellogg Brown & Root Servs., million; and. million; and. million; and.

Claims 63

Claims Liability Contract Contractors 63

Levelset

OCTOBER 14, 2022

Plumbing contractors should include business insurance as an integral part of their financial strategy. With numerous policies available, the plumbing contractor’s insurance landscape offers many ways for you to protect your physical and financial business assets. Why plumbing contractors need insurance. Worker injury.

Insurance 52

Insurance Liability Injury Compensation 52

Best Practices Construction Law

JUNE 21, 2016

Whether you are an owner, contractor, subcontractor or supplier, you will want to read the rest of this post since it illustrates precisely what all those attorneys have been telling you for years: “Please, please, please read your contract.” Tully Construction Co. ,

Claims 82

Claims Contract Legal New York 82

Best Practices Construction Law

FEBRUARY 21, 2018

Proper insurance coverage is an important risk management tool for contractors, subcontractors, project owners/developers and design professionals. This was a hard lesson learned by a contractor recently in Vivify Construction v. The insurance policy provided “Additional Insured” coverage for the contractor.

Insurance 54

Insurance Subcontracting Injury Construction 54

Construction Dive

DECEMBER 5, 2012

It can also be used to support claims for delay and disruption. Consequently, some project owners and contractors eschew precision and specificity in favor of flexibility and discretion. ” These clauses are common in subcontracts. A contractor may want flexibility in scheduling subcontracted work.

Schedule 48

Schedule Subcontracting Claims Agreement 48

NH Construction Law

MAY 28, 2018

Like many states, New Hampshire law requires that if a subcontractor doesn’t pay wages to its employees, the general contractor must pay them. Davis Bacon requirements are yet another instance in which “[t]he prime contractor shall be responsible for the compliance by any subcontractor,” 29 C.F.R. § RSA 275:46.

Subcontracting 40

Subcontracting New Hampshire Lien Insurance 40

Best Practices Construction Law

FEBRUARY 8, 2017

Following various audits, the Government filed a complaint against Lockheed seeking more than $115 million in reimbursement based upon a claim of breach of contract. The contracting officer concluded that Lockheed was responsible for repayment of approximately $102 million because the contractor breached its duty of performance.

Contract 48

Contract Claims Subcontracting Legal 48

Construction Dive

OCTOBER 28, 2012

The contractor had subcontracted the architectural design to another company. The publisher of a local newspaper requested a copy of the subcontract. The prime contractor and the architect objected, citing confidential and proprietary information contained in the subcontract.

Contract 48

Contract Subcontracting Documentation Minnesota 48

Construction Dive

FEBRUARY 26, 2014

These subcontract provisions make the prime contractor’s obligation to pay, or at least the timing of the payment, contingent upon the contractor’s receipt of payment for the sub’s work from the project owner. An unpaid subcontractor on a federal project sued to recover against the Miller Act payment bond.

Subcontracting 51

Subcontracting Defense Claims Contractors 51

Construction Dive

AUGUST 14, 2013

By Bruce Jervis It is well established that if a contractor wants to enforce a “pay-if-paid” clause in a subcontract, the clause must state that payment by the project owner for the subcontractor’s work is a condition precedent to the contractor’s obligation to pay the sub for that work.

Subcontracting 51

Subcontracting Claims Risk Contractors 51

Construction Marketing Ideas

MARCH 11, 2016

SDI is obtained by the general contractor to protect it from subcontractor defaults—much like a performance bond or other guaranty. While the definition of a default depends on the terms of the SDI policy, it is solely based on a failure to fulfill the terms of a covered subcontract. SDI is “pay first, question later, if necessary.”

Legal 48

Legal Consulting Subcontracting Industrial 48