Claims Defense Subcontracting 
Best Practices Construction Law
FEBRUARY 1, 2024
The proposed amendment introduces an affirmative defense, contending that Kellogg Brown & Root Services, Inc. Background: The contract in question, executed on July 9, 2013, was for the construction of an Aegis Ashore Missile Defense System site in Deveselu, Romania, with a firm, fixed-price amount of $134,211,592.
NH Construction Law
DECEMBER 19, 2020
It is often said that a payment bond surety may assert all of the contractual defenses to payment enjoyed by its principal. If the principal is a general contractor with a “pay-if-paid” clause in its subcontracts, must a subcontractor wait for the general contractor to be paid before it can collect on a payment bond?
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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. The court rejected this argument.
Best Practices Construction Law
JUNE 21, 2016
shall be deemed a conclusive waiver by the Contractor of any and all claims for damages for delay arising from such condition. ” The appellate court also found that actual knowledge of the delays and claims did not excuse the subcontractor from complying with the the notice requirements of the contract. .”
Levelset
AUGUST 30, 2024
These acts represent a substantial shift in how payment bond defenses are handled for sureties under both the Public Works Act and the Private Works Act. The new laws expand the defenses available to sureties. The courts rejected these defenses because allowing sureties to do so would contradict the Private or Public Works Acts.
Best Practices Construction Law
NOVEMBER 21, 2019
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. Court of Appeals for the 4th Circuit concluded that a “pay if paid” clause in a subcontract was not ambiguous and, therefore, enforceable against the subcontractor.
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.”. Medical expenses, property damage, and legal defense costs can grow quickly. Cyber insurance.
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