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Tax spotlight turning on CIS materials claims by subbies

Construction Enquirer

HM Revenue & Customs is turning the spotlight on claims for rising materials costs under the industry’s CIS tax scheme. It’s quite apparent that this is part of a targeted campaign aimed at challenging the materials cost element included in invoices submitted by subcontractors for services provided to contractors. “A

Claims 100
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#127:  Subcontract "Flow Down" of Prime Contract Terms

NH Construction Law

Commercial construction subcontracts frequently incorporate by reference provisions of the prime contract between the owner and the general contractor, often with language requiring the subcontractor to assume toward the general contractor all duties owed by the general contractor to the owner. Such was the case in Flatiron-Lane v.

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

Best Practices Construction Law

KBR) made material misrepresentations in its proposal, rendering the fully-performed contract void ab initio. The Corps moved to amend its answer to allege that KBR’s material misrepresentations induced the Corps to enter the contract, justifying the voiding of the contract. under Contract No. W912GB-13-C-0011.

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#95:  Are Miller Act Claims Arbitrable?

NH Construction Law

Because venue provisions can be waived, courts allow Miller Act claims to be litigated in a different court selected by the parties’ contract. 106-277 at *5 (1999), tells us: “This bill does not void subcontract provisions requiring arbitration or other alternative methods of resolving disputes. Industrial Lumber Co. ,

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No Free Warranty: Connecticut Court Adopts Correction or Repair Test

Constructlaw

a Connecticut court considered for the first time whether the performance of warranty work tolls the statute of limitations on payment bond claims. s (ALS’s) bond claim because ALS admitted that it last performed non-warranty work on the project more than one year before filing suit, meaning the statute of limitations barred its claim.

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Choose With Care: Tennessee Federal Court’s Prompt Payment Conclusions Turn on Choice of Law Clause

Constructlaw

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). FE&C’s amended complaint also included claims for violation of the Tennessee PPA.

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

NH Construction Law

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? It is often said that a payment bond surety may assert all of the contractual defenses to payment enjoyed by its principal. 267 F.Supp.3d