Construction Enquirer

MAY 16, 2023

cladding subcontract arose when FK issued a £1.69m application for payment which was greeted with a payless notice and then not paid. ISG claimed it had valid set off relating to Project Barberry and Triathlon, which the court should take into account. The payment dispute over the £3.4m

Subcontracting 110

Subcontracting Claims Accounting Contractors 110

Constructlaw

APRIL 20, 2023

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.

Tennessee 52

Tennessee Subcontracting Missouri Claims 52

ENR Construction

JUNE 15, 2022

agreement resolves claims of subcontracting kickbacks and bid rigging related to firm's past LOGCAP military operations support contract in Iraq Justice Dept.

Contract 69

Contract Subcontracting Agreement Claims 69

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

Construction Dive

MARCH 26, 2014

By Bruce Jervis Project owners do not want to be surprised with claims for additional work at the conclusion of a project. An example is found in a subcontract on a recent private project in Ohio. Contract clauses usually stipulate procedures that give the owner some advance notice and an idea of the increased cost.

Claims 52

Claims Subcontracting Ohio Contract 52

Constructlaw

OCTOBER 20, 2022

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. The court also affirmed the dismissal of X-Treme’s counterclaim for unpaid amounts.

Lien 52

Lien New York Subcontracting Claims 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

ENR Construction

JUNE 15, 2022

agreement resolves claims of subcontracting kickbacks and bid rigging related to firm's past LOGCAP military operations support contract in Iraq. Justice Dept.

Contract 36

Contract Subcontracting Agreement Claims 36

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

Constructlaw

JULY 20, 2023

This is a strong reminder to all tiers of the construction chain that Pennsylvania’s Contractor and Subcontractor Payment Act (CASPA) allows substantially prevailing parties — whether owners, contractors, or subcontractors — to recover fees incurred in proceedings involving payment claims.

Claims 40

Claims Subcontracting Contractors Philadelphia 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

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

DECEMBER 12, 2012

The Tennessee Court of Appeals ruled that an owner’s withholding of liquidated damages was a “claim” within the meaning of the AIA general conditions. The owner was required to give formal written notice of claim within 21 days after the contractual completion deadline passed.

Claims 48

Claims Tennessee Subcontracting AIA 48

Constructlaw

JUNE 22, 2020

Environmental Safety Corporation’s (“PAL”) complaint alleging numerous causes of action in connection with its suit against CEC … Continue reading Michigan Federal Court Permits Subcontractor’s Quasi-Contractual Claims to Proceed Despite Existence of Express Contract Covering the Same Subject Matter.

Michigan 52

Michigan Permits Claims Contract 52

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

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. Still other courts allow homeowners to bring negligence claims against subcontractors regardless of recourse against the builder-vendor. Sienna Court Condominium Ass’n v.

Subcontracting 40

Subcontracting New Hampshire Claims Illinois 40

Levelset

AUGUST 25, 2022

” To sum up, property owners in Texas are required to withhold 10% of the contract price to cover any potential claims from subcontractors or suppliers on the project. .” Making a claim against unpaid retainage/reserved funds. Notice of Claim for Unpaid Retainage. This withholding is specifically required under Tex.

Texas 52

Texas Lien Claims Contract 52

Constructlaw

DECEMBER 1, 2022

Notably, it was unclear whether Crescent supplied those services under a subcontract agreement with Ameriflow or whether the two entities were somehow affiliated. Such an interpretation would allow Crescent to perform “work for anyone at the wellsite, in as slipshod a manner as it wished, and still claim that RKI owed it indemnity.”

Texas 52

Texas Claims Contract Agreement 52

Levelset

JUNE 3, 2022

Contractors on public projects aren’t allowed to file mechanics liens when payment problems arise, as both the federal and state governments explicitly prohibit private entities from claiming an interest in public property. Washington State bond claim laws. If payment isn’t received, the next step is the bond claim itself.

Washington 52

Washington Claims Lien Contract 52

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.”. It serves as an additional safety net for businesses in the event of a large claim.

Insurance 98

Insurance Liability Claims Injury 98

NH Construction Law

MARCH 24, 2018

” 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. 659, 670 (2013), but not if the parties’ contract addresses the subject matter of the claim. Section 7.2.1 Should he suspend work, and risk being in breach?

Change Orders 40

Change Orders Subcontracting Contract Claims 40

ENR Construction

JULY 27, 2018

DOJ contends Sorensen Gross violated subcontracting requirements on a project in Jordan.

Subcontracting 28

Subcontracting Michigan Claims Construction 28

ENR Construction

JULY 27, 2018

DOJ contends Sorensen Gross violated subcontracting requirements on project in Jordan.

Subcontracting 28

Subcontracting Claims Construction 28

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

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.

Contract 77

Contract Subcontracting Drafting Virginia 77

NH Construction Law

MARCH 26, 2023

If an initial court challenge to the lien fails, the general contractor may well be coerced into an unfavorable settlement of the lienor’s claim. Otherwise, every payment bond would automatically convert every subcontract on the bonded project into a “no lien” subcontract. Hawkeye Funding, Ltd.

Lien 40

Lien Subcontracting New Hampshire Bargains 40

Construction Dive

AUGUST 11, 2016

Unfortunately, many of the subcontractor quotations contain terms and conditions inconsistent with the contractor’s preferred subcontract terms. Featured … Bidder’s Reliance on Subcontractor Quote Not ReasonableDescriptive Narrative Insufficient to Support Claim

Subcontracting 48

Subcontracting Bidding Claims Contractors 48

Construction Dive

MAY 28, 2014

By Bruce Jervis Most state mechanic’s lien statutes provide that if a lien claimant willfully exaggerates the amount of its claim, the lien may be declared null and void. The purpose of these statutory provisions is to protect owners against overreaching or fraudulent claims. Claims can be overstated for a variety of reasons.

Lien 52

Lien Claims Subcontracting Legal 52

Levelset

APRIL 28, 2022

If a subcontractor defaults on a project, the general contractor can make a claim with the insurance company to cover costs above their deductible and any loss reserve requirements. Some GCs pass the cost of the loss reserve onto the project owner and claim that amount as additional profit on the project. Who pays for claims.

Insurance 52

Insurance Contractors Claims ABC 52

Construction Lawyer

APRIL 3, 2012

Federal Court dismisses subs claim against GC because of arbitration provision. April 2, 2012), dismissed an action by a subcontractor against the general because there was an agreement to arbitrate in the subcontract. The Subcontract incorporated the terms and conditions of the Prime Contract by reference.

Claims 40

Claims Agreement Illinois Subcontracting 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. million; and.

Claims 63

Claims Liability Contract Contractors 63

Construction Dive

DECEMBER 5, 2012

It can also be used to support claims for delay and disruption. ” These clauses are common in subcontracts. A contractor may want flexibility in scheduling subcontracted work. When properly updated and maintained, the schedule is a powerful tool for project control and administration.

Schedule 48

Schedule Subcontracting Claims Agreement 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

NH Construction Law

AUGUST 11, 2018

A&M’s subcontract required it to assume full responsibility for implementing safety programs on the project, to maintain all work areas in a safe manner, and to furnish all safety equipment. Jones Lang Lasalle Construction Co. , 203 (2018), provides some guidance. The New Hampshire Supreme Court disagreed.

Subcontracting 40

Subcontracting Safety Compensation Claims 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 government asserts for the first time in its briefs that there exists an implied contractual duty for a prime contractor to manage its subcontracts. [T]he

Contract 48

Contract Claims Subcontracting Legal 48

NH Construction Law

MAY 28, 2018

Before subcontracting any significant portion of a long term job to someone who isn’t known to be financially solvent, the wise general will ask for proof that the sub can carry the strain of weekly payroll through a monthly requisition procedure, with retainage. How does a GC protect itself? § 5.5(a)(6).)

Subcontracting 40

Subcontracting New Hampshire Lien Insurance 40

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.

Subcontracting 52

Subcontracting Defense Claims Contractors 52