When an owner requires a contractor to post a payment and performance bond, the contractor, invariably, provides a bond in the form of AIA Document A312-2010. The payment portion of the bond is primarily for the benefit of...more
Recent changes to Illinois law will impact the way school districts administer their summer construction projects. The Public Construction Bond Act has been amended effective January 1, 2024, to increase the threshold at...more
The Pennsylvania Supreme Court has agreed to hear an appeal of the case Eastern Steel Construction, Inc. v. International Fidelity Insurance Co., in which the Pennsylvania Superior Court clarified the claims that a...more
In All Seasons Landscaping, Inc. v. Travelers Casualty & Surety Co., No. DBD-CV21-6039074-S, 2022 WL 1135703 (Conn. Super. Ct. April 4, 2022) the plaintiff, a subcontractor on a state project, commenced a lawsuit against the...more
Welcome to Construction & Claims, a periodic digest of the headlines, statutory and regulatory changes and court cases involving construction news, claims, bid protests, contract administration and payment-related disputes....more
You are invited to join Procopio’s Construction & Infrastructure Law attorneys and guest industry speakers on Thursday, November 10, 2022, for an informative half-day webinar focused on the most pressing California...more
Two recent decisions by the U.S. Court of Appeals for the Third Circuit shed light on several recurrent issues that arise in trade secret litigation under the federal Defend Trade Secrets Act (DTSA) and related state acts....more
When representing clients in negotiating and drafting construction agreements for private construction work, I am often asked: Should we require the contractor to provide a bond? This question doesn’t arise on public works...more
Given, well, the state of everything, private owners should seriously consider requiring the contractor to secure a performance bond (a third-party surety guaranteeing the contractor’s performance under the contractor’s...more
When faced with a performance bond claim, the Surety will often seek to determine its overall exposure or expected loss. Once determined, the Surety can use this information to make educated decisions as to how to address its...more
Today, the Supreme Court of the United States issued the following decision: San Antonio v. Hotels.com, L.P., No. 20-334: Although the general rule in litigation is that each side bears its own attorney’s fees, certain...more
You’re a landowner in Utah, and fail to get a payment bond for commercial work a contractor is doing on your property, and the value of the work exceeds $50,000. To protect lien rights, contractors working on your property...more
In California, the "pay-when-paid" contract language typically found in general contractor’s subcontractor agreement may no longer be enforceable. A contract provision requiring a subcontractor to wait until the general...more
In McDonald v. Fidelity & Deposit Company of Maryland, 2020 UT 11, the Utah Supreme Court recently shed additional light on what is and what is not recoverable under the public payment bond statute, Utah Code Ann. §...more
Texas surety law contains obscure procedural rules that can have outsized consequences. Chapter 43 of the Civil Practice and Remedies Code is an important example....more
CEP Magazine (November 2019) - A statute on the books in Kentucky requires companies to post a bond for wages due from an employer, as protection against bankruptcy. Following the collapse of Kentucky coal company...more
Party A (contractor) entered into a construction contract (the EPC Contract) with Party B (employer). Party B made an advance payment under the EPC Contract and Party A procured an Advance Payment Bond (the Bond) from a...more
The May 2019 issue of Insights provided high-level background information about the recent trend of state legislation targeting student loan servicers. In the June 2019 issue of Insights, we took a deeper dive into New York's...more
A construction project can be a breeding ground for general contractor versus subcontractor payment disputes. Whether it is payment for extra work subject to the project owner’s approval, slow pay or no pay by the project...more
Legal System - 1. Is your jurisdiction primarily a common law, civil law, customary law or theocratic law jurisdiction? Are the laws substantially derived from the laws of another jurisdiction and, if so, which? What...more
Whether you are the owner or the general contractor, dealing with mechanic’s liens filed by subcontractors or suppliers can be frustrating and, in some cases, present the very real threat of having to pay twice for work or...more
Getting paid on time is essential to running a construction business. And the bigger the job, the bigger the risk it can pose to your company. Fortunately, there are a number of tools available to help contractors,...more
New Year's Resolutions For 401(k) Plan Sponsors. Get off on the right foot for 2019. A New Year's resolution is a tradition in which a person resolves to change and undesired trait or behavior to either improve their...more
K-Con, Inc. v. Sec’y of the Army, 2018 U.S. App. LEXIS 31196 (Fed. Cir., November 5, 2018) - In September 2013 K-Con, Inc. (“K-Con”) entered into two contracts with the government to supply and construct pre-engineered...more
On November 5, 2018, the Federal Circuit held in a precedential decision that bonding requirements in FAR 52.228-15, “Performance and Payment Bonds—Construction,” were read into all construction contracts by operation of law...more