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Contract Void Ab Initio: Key Insights into the KBR vs. Corps of Engineers Affirmative Defense

Best Practices Construction Law

under Contract No. The proposed amendment introduces an affirmative defense, contending that Kellogg Brown & Root Services, Inc. KBR) made material misrepresentations in its proposal, rendering the fully-performed contract void ab initio. Misrepresentation of firm fixed prices and acceptance of subcontract terms.

Defense 62
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The Real Lemon in the Bunch: Understanding Pay-If-Paid Clauses in Construction Contracts

Best Practices Construction Law

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.

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#96:  Payment Bond Sureties and "Pay-if-Paid" Subcontracts

NH Construction Law

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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How to Avoid Construction Disputes

Job Order Contracting

The best defense to avoiding construction issues and disputes is to conduct significant upfront planning before the project starts and assure early and ongoing collaboration within a common data environment, including full financial transparency. This can be done through the deployment of LEAN collaborative construction delivery methodology.

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Contracting Reform Amendment Clears House; ConstructionPro Week Profiles 14 Other Proposals Potentially Affecting the U.S. Construction Industry

Construction Dive

Of particular importance is an amendment to National Defense Authorization legislation (H.R. A significant number of contractors, subcontractors, engineers, manufacturers of construction materials, and others would be affected by legislation now undergoing congressional consideration.

ACEC 48
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Subcontractor’s Failure to Strictly Comply With Notice Provision Costs $200,000

Best Practices Construction Law

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.” In Schindler v. Tully Construction Co. , Tully Construction Co. ,

Claims 82
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Louisiana Payment Bond Changes: What Material Suppliers Need to Know

Levelset

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.