The Massachusetts Affordable Homes Act (H. 4977), signed into law on August 6, 2024, makes several significant changes to the statutory provisions governing appeals from zoning decisions under G.L. c. 40A, § 17. Where...more
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
For a decade, the U.S. Department of the Interior has wrestled with financial assurance (or bonding) requirements for offshore oil and gas companies. Over the last 10 years, the Interior Department has released – and later...more
Perfecting a performance bond claim in Texas requires careful attention to legal requirements and procedural details set forth on the face of the bond and under Texas law. Perfection of a performance bond claim is often...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
On December 13, 2023, the Ohio House Public Utilities Committee adopted a substitute version of H.B. 197 making several amendments to the proposed legislation that authorizes community solar programs in Ohio. The substitute...more
The Appellate Court of Maryland issued a reported opinion in a case construing an American Institute of Architects (“AIA”) A312 performance bond. In Wildewood Operating Company, LLC v. WRV Holdings, LLC, et al. 2023 Md. App....more
Most bond forms in use today, including the standard form AIA A312-2010, contain express condition precedents that trigger a surety’s obligations under the bond. Under a performance bond, the bond obligee is required to...more
Bond markets have been in upheaval recently, with knock-on impacts on decisions on whether to make or defend calls on performance security on construction projects. In the first quarter of this year, we saw the continued...more
All construction project owners, lenders, and contractors take note: a recent federal court opinion offers a reminder that additional obligees on a performance bond must comply with all conditions precedent in the bond in...more
Construction project participants sometimes disregard contractual formalities, particularly in the "heat" of a project dispute. However, consequences can and often do arise in those circumstances, and sometimes the parties do...more
In Cell-Crete Corp. v. Fed. Ins. Co., a California court awarded a surety attorneys’ fees and costs that its principal incurred defending the surety against a claim on a public-works payment bond. This is good news for...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
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
I do a lot of prevailing wage defense and am always interested in developments in this nuanced area of wage-hour law. I have noticed a trend lately that States (e.g. New York have been legislating into effect laws that...more
On June 10, 2022 Governor Pritzker signed into law two new amendments to the Illinois Wage Payment and Collection Act (“Act”) that now expose non-union general contractors to liability for the wages of their subcontractor’s...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
In In re Robinett, a party filed a petition for writ of mandamus, challenging a trial court’s order appointing a temporary administrator. No. 03-21-00649-CV, 2022 Tex. App. LEXIS 926 (Tex. App.—Austin February 9, 2022,...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
Insurers regularly argue that commercial general liability (“CGL”) policies are not performance bonds and therefore there is no coverage for claims seeking damages for defective or faulty workmanship. Insurers also argue...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
If you are a construction contractor, you deal with performance bonds as part of your business and daily work. They are necessary for almost every project you are participating or will participate in, and, along with other...more
On December 22, 2021, Governor Wolf signed into law Act 97 of 2021, which amended Section 509 of the Pennsylvania Municipalities Planning Code (MPC). The amendment will take effect in February 2022....more
A recent decision from the United States District Court for Delaware held that a surety was not liable for consequential damages to a building owner after a default by its contractor because the surety’s liability could not...more
In Peek v. Mayfield, a beneficiary sued a trustee for breach of fiduciary duty. No. 02-20-00107-CV, 2021 Tex. App. LEXIS 6080 (Tex. App.—Fort Worth July 29, 2021, no pet.). ...more