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Venable LLP

Federal Subcontractors Beware: The Workshare Provision in Your Subcontract May Not Apply When the Government Increases the Value...

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A recent decision from the Court of Appeals of Virginia may have companies doublechecking the workshare terms in their subcontracts. The Court held that a subcontractor's 40 percent workshare only applied to the $70 million...more

Venable LLP

Federal Contractors and Subcontractors May Want to Double-Check the Liability Caps in Their Agreements After This Court Decision

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When two companies negotiate a subcontract in support of a federal government prime contract ("federal subcontract"), they may include provisions capping their liability to each other at specific amounts. In structuring such...more

Holland & Knight LLP

New York's 5 Percent Retainage Law Underscores Construction Contract Drafting

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New York Gov. Kathy Hochul on Nov. 17, 2023, signed Senate Bill S3539 (Retainage Amendment), which amended Sections 756-a and 756-c of the New York General Business Law, commonly referred to as the Prompt Payment Act. The...more

Miller Nash LLP

Contract Drafting 101: Implied Warranties and Design Delegation

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Important elements of a strong construction contract include implied warranties and design delegation. It is necessary to pay close attention to these concepts to protect against future disputes. When a contractor is...more

Bradley Arant Boult Cummings LLP

The Basics of Contract Interpretation: A Primer for Non-Lawyers in the Construction Industry

Every first year law student in the U.S. takes a course on the Law of Contracts. It’s a rite of passage where lawyers-to-be learn all about things like consideration and legally-enforceable promises. And as lawyers, we also...more

Robinson+Cole Construction Law Zone

Don’t Pay for Your Performance Bond More than Once

An often-overlooked part of contract negotiations is the language included in the performance bond.  While the owner or contractor (bond obligee) requires a performance bond and pays for it, negotiating efforts are typically...more

K&L Gates LLP

Discombobulated Contractual Communications? Let Us Be Clear!

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Introduction - Imagine you are on a construction site somewhere in the Middle East. On-site you will likely hear the following phrases and mutations thereof: “Are you going to answer me?” and “Why are you telling me this...more

Bilzin Sumberg

Appellate Court Narrowly Interprets Subcontract’s Venue Selection Provision in Payment Bond Lawsuit Against Surety

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Analysis of Southeastern Concrete Constructors, LLC v. W. Sur. Co., No. 2D20-2475, 2021 WL 2557297, (Fla. 2d DCA June 23, 2021) - One frequent consideration on the minds of those drafting construction contracts is the...more

BCLP

Global Water Associates: applying Hadley v Baxendale

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From time to time, those seminal cases we all studied during the early parts of our career pop up in practice. We’re all familiar with them: the snail in the bottle in Donoghue v Stevenson; the spurious sounding flu remedy in...more

Jones Day

Western Australia Proposes Building and Construction Industry (Security of Payment) Bill 2020

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The Western Australian government has sought industry comment on a suite of significant proposed reforms to the WA security of payment regime ("SOP"). If passed, the Bill represents the most significant reform to the...more

Gould + Ratner LLP

Best Practices for Coping With Project Modifications, Suspension and Termination During the Age of COVID-19

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As the COVID-19 pandemic continues, owners and developers find themselves facing the prospect of continued project disruptions. While almost every governmental shutdown order has allowed construction activities to continue as...more

Seyfarth Shaw LLP

COVID-19 Language for New Construction Contracts: A Practical Approach

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Introduction - Those entering into new construction contracts should include custom language addressing the parties’ respective rights and responsibilities related to COVID-19. ...more

King & Spalding

Tokyo Dispute Resolution & Crisis Management Newsletter – June 2020: Coronavirus & Construction Contracts - Causation, Force...

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Large construction projects, by their very nature, carry significant commercial and financial risk for the parties involved. Contributing to this overall risk is the reality that an act of nature or other circumstance beyond...more

Seyfarth Shaw LLP

A201 Playbook for COVID-19: Avoiding Pitfalls and Mitigating Risk on Construction Projects

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The 2019 novel coronavirus and the disease it causes (“COVID-19”) is changing the landscape of construction projects across the country. COVID-19 orders from governors and other public officials are impacting projects by...more

Seyfarth Shaw LLP

Reemergence of the Doctrine of Temporary Impracticality or Frustration Under Section 269 of the Restatement (Second) of Contracts...

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When trying to understand the full impact of COVID-19 on existing contractual obligations, parties will likely first consult force majeure provisions in their contracts to assess their rights or liabilities for continued...more

Lowndes

Coronavirus – Does Force Majeure Apply?

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The coronavirus has disrupted the economy and business activity, making it difficult or challenging for some parties to honor their contractual obligations. In fact, it is apparent that parties are terminating their...more

Seyfarth Shaw LLP

Managing Project Risk Associated with the Coronavirus Outbreak Through Force Majeure Provisions

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Globally, many developers and contractors are scrambling to identify available contractual relief as the Coronavirus (COVID-19) disrupts cross-border supply chains. US businesses will recall a similar effort just eighteen...more

Gray Reed

Obscure But Important Surety and Guarantee Rules

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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

Sheppard Mullin Richter & Hampton LLP

Last, but NOT Least: Why You Should Take a Closer Look at Your Next Indemnification Clause

Indemnification clauses appear in nearly every agreement, but they are often overlooked as mere boilerplate provisions after the parties have painstakingly negotiated all of the other terms. It is not uncommon for parties to...more

Burr & Forman

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

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As you may be aware, one of the greatest risks on a construction project involves the payment process. Just like my kids expect to be paid for the lemonade they sell, contractors and subcontractors expect to be paid on a...more

Burr & Forman

Design-Build Contractor Held to the Same Standard On Differing Site Conditions Clause

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A court recently held that the type of contract delivery method did not change the applicability of the differing site conditions clause. Appeal of John C. Grimberg Co., Inc., ASBCA No. 58791 (Oct. 25, 2018) involved the...more

Troutman Pepper

What Constitutes an Emergency in Public Contracts?

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In recent years, California has experienced the worst wildfires in its history, devastating the state and setting record-breaking highs. In just 2018 alone, the wildfires across California took 106 lives and burned more than...more

King & Spalding

Large-Scale Construction Projects: To Arbitrate, or not to Arbitrate – That is the Question

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Owners and contractors involved in large-scale energy and manufacturing projects face unique challenges in bringing projects to fruition. One challenge is negotiating and drafting a contract that places the parties in a fair...more

BCLP

Practically complete or completely impractical? Navigating the pitfalls of what constitutes practical completion

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Many a construction dispute turns on defects. A significant subset of those turn on whether the existence of defects prevents practical completion from taking place. Originally published on the Practical Law Construction...more

Shutts & Bowen LLP

Contractors: Are your contracts prepared for a Hurricane? A look into force majeure clauses following Hurricane Michael.

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Hurricane Michael made landfall on the Florida panhandle as the third strongest Atlantic hurricane on record to hit the United States. Hurricane Michael was the strongest hurricane, in terms of sustained winds, to hit the...more

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