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Subcontractors Breach of Contract Contract Terms

Bradley Arant Boult Cummings LLP

Court Separates Facts from Fiction – Lack of Supporting Project Documents Dooms Contractor

A recent decision from the U.S. District Court for the Southern District of Florida demonstrates how facts supported by documents generated during the project can be vital to prime contractor/subcontractor disputes. In...more

Venable LLP

The Subcontractor Performed. The Prime Contractor Paid. But a Hacker Ended Up with the Money. Who Is Responsible?

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When hackers gain access to a subcontractor’s information systems and divert the prime contractor’s payment to themselves instead of to the subcontractor, does the prime contractor still have to pay the subcontractor?...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

Stoel Rives -  Ahead of Schedule

The Role of Liquidated Damages Provisions in Construction Contracts

Considering all that can go wrong on a construction site, it can seem like a miracle that anything is ever built. Construction projects can be massive undertakings, often with millions of dollars at stake, requiring the...more

Bradley Arant Boult Cummings LLP

Court Rejects Contractor’s Claim That COVID-19 Rendered Performance Impossible

A fundamental premise of contract law is that promises must be kept. If legally enforceable promises or “contracts” are not kept, courts may step in to enforce them by ordering performance, awarding damages, or granting some...more

Bradley Arant Boult Cummings LLP

Limitation of Liability in Extra Work Order Trumped by Subcontract

A federal court in Louisiana last week refused to enforce a limitation of liability provision included in an extra work order holding that it was trumped by the parties’ subcontract (see Planet Construction v. Gemini...more

Stoel Rives -  Ahead of Schedule

Efforts Expected of a Contractor When Efforts Clauses Are in Dispute

Originally published by the Daily Journal of Commerce on May 18, 2023. You will often see in construction contracts terms directing the contractor to use “best efforts” or “reasonable efforts” or “commercially reasonable...more

Stoel Rives -  Ahead of Schedule

What Parties Ought To Consider When Considering Arbitration Provisions

When reviewing a proposed design or construction contract, the responding party will often do a cursory check to see whether the contract proposes arbitration or litigation for dispute resolution. So long as the proposed...more

Harris Beach PLLC

MA Appeals Court: Contractor's Pay Applications Deemed Approved for Owner's Failure to Comply with Prompt Pay Law

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The Massachusetts Appeals Court has interpreted for the first time the Massachusetts Prompt Payment Act (the “Prompt Pay Law”) in the matter of Tocci Building Corporation v. IRIV Partners, LLC, et al., Nos. 21-P-393 &...more

Robinson+Cole Construction Law Zone

Massachusetts Appeals Court Strictly Construes Prompt Payment Act

On June 7, 2022, the Massachusetts Appeals Court issued an opinion of first impression regarding the Massachusetts Prompt Payment Act, G.L. c. 149 § 29E (the “Act”).  In Tocci Building Corp. v. IRIV Partners, LLC, Appeals Ct....more

Woods Rogers

Virginia’s New Construction Payment Terms (Part 1)

Woods Rogers on

(Part one of a two-part article series) Confused about “pay-when-paid”, “pay-if-paid” clauses and the requirements of Virginia’s Prompt Payment Act on Virginia construction contracts? A new law intending to change the...more

BCLP

Scottish appeal court says NEC is not a charter for contract breaking

BCLP on

The September 2020 decision by the Scottish Court of Session in Van Oord UK v. Dragados UK [2020] CSOH 87, which has now been appealed. The dispute centred on the ability of Aberdeen Harbour expansion main contractor Dragados...more

McGlinchey Stafford

The Bullet Point: A Commercial Law Bulletin - When can a non-party enforce a forum selection clause?

McGlinchey Stafford on

The Bullet Point is a biweekly update of recent, unique, and impactful cases in state and federal courts in the area of commercial litigation. We’re pleased to expand the Bullet Point from its previous coverage of Ohio case...more

Holland & Knight LLP

Relying on NDAs in Trade Secret Cases: Can Information be Confidential but not a Trade Secret?

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A Georgia jury recently found that a software contractor breached a non-disclosure/confidentiality agreement (NDA) entered in connection with a software project but did not misappropriate trade secrets. The plaintiff...more

Verrill

Finding Teeth in Massachusetts' Prompt Payment Act

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In Tocci v. IRIV Partners, LLC, Boston Harbor Industrial Development LLC and Hudson Insurance Co. (November 19, 2020, Sup. Ct. 19-405), the Massachusetts Superior Court granted summary judgment on a contractor’s breach of...more

Akin Gump Strauss Hauer & Feld LLP

A Strict Approach to Notices as a Condition Precedent to Entitlement: The Impact for Contract Drafters and International...

Maeda Corporation and China State Construction Engineering (Hong Kong) Limited v Bauer Hong Kong Limited handed down in the Hong Kong Court of Appeal has significantly elevated the fundamental importance of so-called...more

Bradley Arant Boult Cummings LLP

Federal Prompt Pay Act Does Not Afford Subcontractors Right to Sue General Contractor

On October 15, 2020, in EMTA Insaat Taahhut ve Ticaret A.S. v. Cosmopolitan Incorporated, a federal district court held that the federal Prompt Pay Act (PPA) (31 U.S.C. §§ 3901, et al.) does not create a private right of...more

Ward and Smith, P.A.

Issues Impacting Enforceability of Liquidated Damages in Construction Contracts

Ward and Smith, P.A. on

Liquidated damages are a sum specified in a contract as the measure of recovery in the event of a breach of the contract. Liquidated damages provisions are common in construction contracts to guard against damages that the...more

Poyner Spruill LLP

Look Before You Leap: The Cost of Failing to Preserve Claims When Submitting Monthly Applications for Payment

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Subcontractors and contractors with pending construction contract claims, read your monthly application for payment, lien waiver, and change order forms closely before signing. Failure to do so may result in a costly waiver...more

Troutman Pepper

Michigan Federal Court Permits Subcontractor’s Quasi-Contractual Claims to Proceed Despite Existence of Express Contract Covering...

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P.A.L. Environmental Safety Corp. v. North American Dismantling Corp. Et Al., No. 19-11630, 2020 BL 198779 (E.D. Mich. May 28, 2020) - A Michigan federal court partially granted Consumers Energy Company’s (“CEC”) motion to...more

Moritt Hock & Hamroff LLP

When is A Cardinal Change “Cardinal”?

A cardinal change is a rare event in construction. However, when it "provably" occurs, it can turn the relative rights of the parties to a construction dispute upside down. A recent New York case bears this out. A general...more

Troutman Pepper

GAR Know-How Construction Arbitration - United States

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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

Troutman Pepper

Colorado Court of Appeals Finds Contractor Satisfied Conditions Precedent Under Performance Bond

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Whiting-Turner Contracting Co. v Guar. Co. of N. Am. USA, 2019 BL 97923 (Colo. App. Mar. 21, 2019). This construction dispute involved rights and obligations under a performance bond supplied for an office building...more

Troutman Pepper

The Buckeye State Bucks Recent Trend: Ohio Supreme Court Holds That Property Damage Caused By A Subcontractor’s Faulty Work Does...

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Ohio N. Univ. v. Charles Constr. Servs., 2018 Ohio LEXIS 2375 (Oct. 9, 2018) - This case arose out of the construction of an inn and conference center at Ohio Northern University (“ONU”). After completion of the project,...more

Bradley Arant Boult Cummings LLP

Casting the First Stone: Contractors Considering Default Termination Should Examine Which Party Committed First Material Breach -...

During a construction project, circumstances may arise that lead a general contractor to consider termination of a subcontractor’s right to proceed under the subcontract. The Randy Kinder Excavating v. J.A. Manning...more

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