Continued Performance Clause Held Unenforceble
The Real Estate and Construction Blog summarizes a Califonia appellate court recently held a "continued performace clause" is not enforceable when the owner commits a material breach.
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Taking the hand-shake contract to the ultimate level
"We shook hands on it" connotes to folks in the construction business a legally binding deals been made. Would writing the contract with one's own blood connote more?
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How not to write an arbitration agreement
Make the arbitration clause one-sided and give yourself, but not the other party, a way to opt out and the clause is unenforceable according to a recent ruling by the Wisconsin Supreme Court.
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The Federal Prompt Pay Act sets time limits for payment of government construction contractors
The provisions of the Act are summarized and linked to over at Construction Lawyer-Utah.
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The effect of giving an insurer late notice on a otherwise covered construction claim
Marc Mayerson over at the Insurance Scrawl does his usual masterful job discussing recent case law on when late notice results in forfeiture of insurance coverage.
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The use of Engineering, Procurement, Construction Contracts for offshore wind farms
An Engineering, Procurement and Construction contract (EPC) requires the contractor to bear the construction risks and to deliver a "turn-key" project.
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Designing a fire suppression system for a new building
The New Jersey Law Blog provides important "how to" advice about designing a non-defective fire suppression system for a new building.
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When is owner non-compliance with payment terms a material breach of contract?
A material breach by the owner ordinarily relieves the contractor of his duty to perform. Non-payment by the government as a material breach of contract is the subject of a Government Contracts Litigation post.
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Builder Association applauds Supreme Court's Clean Water Act Decision
The National Home Builders Association believes a recent decision by the Supreme Court confirms the E.P.A. is exceeding its authority in requiring builders to secure water discharge permits
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Jury should not be allowed to interpret warranty against faulty materials and workmanship
The ContractsProf Blog summarizes an appellate decision holding the trial court erred in allowing the jury to decide the intent of an unambiguous one year warranty of materials and workmanship.
Posted In Construction Claims & Disputes , Construction Contracts , Construction Defects & Defective Construction , Construction Law , Construction Litigation , Government ContractsComments / Questions (0) | Permalink
Construction contract damages
The ContractsProf Blog points to a contract damages flowchart prepared by Profesor Tom Bell for his law students.
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Should a court enforce a contract that disclaims or limits liability for fraud?
Not in Delaware!
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"The handshake seals the contract..."
Depeche Mode on contracts psoted at ContractsProfBlog.
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Plaintiff's prospective insolvency as grounds for an injunction
The ContractsProf Blog discusses whether potential business insolvency constitutes grounds for an injunction in a breach of contracts case.
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Recent wetlands permit decisions
The Real Estate and Construction Law Blog summarizes two notable court decisions upholding permits for wetlands construction issued by the U.S. Corp of Engineers.
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Insurance coverage dodge revealed
May It Please the Court tells an eye opening story about a case in which "an insurance company issued a policy to a company in India, doing business in India, to cover work done in India for an American company" but "the policy excluded coverage for work done in India."
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Study of GC/CM approach yields mixed consclusions
Washington Construction law posts a copy of a atste study of the effectiveness of using the General Contractor/Construction Manager (GC/CM) delivery system on state and local projects.
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Rebuilding the Gulf Coast from the ground up
Check out this practical "how to" article in The SunHerald on how to deal with the proposed new FEMA flood zone elevation requirements. The article also discusses the Mississippi Gulf Coast home construction market.
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Harry Potter and Contract Law
The Online Guide to Mediation points to a collection of essays on the law as depicted in Harry Potter's World.
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What is the distinction between a general contractor and a construction manager?
The answer turns on more than the labels used in the parties' construction contracts, the Mississippi Supreme Court recently held in Aladdin Construction Company, Inc. v John Hancock Life Insurance Company.
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Family feud settled by Mississippi construction law decision
A daughter-father feud over a wedding gift triggered a lawsuit and enforcement of an oral construction contract in Simons v Jaggers, a recent Mississippi Supreme Court decision.
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Flow down clauses in subcontracts
Subcontract flow down clauses pass through the terms and conditions of the general contract into the subcontract. Dan Hawbaker over at Construction Law Blog points out the downside of a poorly drafted flow down provision.
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Recovering lost profits: Margin vs. Mark-Up
The Construction Contractor's Digest explains the difference between these terms and the formula for calculating each.
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Type I, Type II and Type III Indemnity Clauses Explained
May It Please the Court discusses the differences.
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Failure to request time extension within 10 days of delaying event wrecks delay claim
Read the report over at Build On This. on the Ohio appellate court's decision in Dugan & Meyers Constr. Co., Inc. v. State of Ohio Dep’t of Administrative Svcs..
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Project designer may not unreasonably rely on information supplied by others
The Construction Risk.com Report points to a Wisconsin appellate court decision holding a contract clause permitting an architect to rely on reports from other firms does not relieve the architect of its duty to inform the owner of inadequacies in the report and the need for additional investigation.
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Fire Code and Building Code Overlap
For a cogent explanation of issues related to the potential overlap between fire and building codes, read this post over at the Code Connection.
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Boilerplate in construction contracts
May It Please the Court commends a new book on the pitfalls of using boilerplate in contract documents.
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Waiver of subrogation clauses
Here's a how to article describing the potential consequences to all parties' of failing to require proof of coverage and waiver of subrogation rights on a construction project.
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Arbitration Clauses in non commercial contracts
Here's some good advice from the National Association of Home Builders on drafting a drafting a binding arbitration clause for non-commercial building projects.
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AIA arbitration clause negated by termination of contract
The mandatory arbitration clause in the American Institutes of Architects' General Conditions of the Contract of Construction does not survive termination of the contract, a Florida appellate court recently ruled in Aberdeen Golf & Country Club v. Bliss Construction, Inc.
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Are time limits for filing suit in construction bonds enforceable in Lousiana?
Maybe not says Jeff Boudreaux over at Louisiana Law Blog.
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California strikes down pre dispute contract jury trial waivers
There's a good summary of the decision and you can download it over at the Construction Attorney Blog.
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Mississippi construction law and claims news: the PEER report
Design professionals and their errors and omissions insurers will be warned they really will be required to cover the cost of change orders resulting from design omissions if Mississippi's Bureau of Building accepts the recommendations made in a recent report by the Mississippi Legislature's PEER Committee.
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Enforceability of Indemnity Clauses
The Contracts Prof Blawg discusses how the Indiana Appeals Court's decision last week in Simon Property Group, L.P. v. Brandt Construction, Inc. illustrates the difference between a contrator's breach of a contract duty to protect property from injury and breach of a promise to indemnify for loss to that property
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Time Extension and Related Clauses
William Langton summarizes what issues should be addressed in drafting and negotiating time extension and scheduling clauses.
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Developers Restricting Home Owners Associations Right to Sue
To limit construction defect suits, some developers are including clauses waiving any claims if notice is not given within 30 days and clauses requiring arbitration according to the Colorado Home Owners Association Law Blog.
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Type I and Type II "Preliminary Agreements" Defined
The distinction between Type I and Type II preliminary agreements is explained over at the Tennessee Business Litigation Law Blog.
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Do It in Writing
A reminder everyone in business needs to heed from over at BizzBangBuzz Blog.
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The Importance of Naming Indemnitees as Additional Insureds
A Georgia appellate court's recent decision creates uncertainty--at least in Georgia--over the scope of "insured contract" coverage provided by commercial general liability policies ("CGL'). Ordinarily insurance policies do not protect against breach of contract claims. But when provided by the policy "insured contract" coverage protects the insured when the insured contractually assumes tort liability for bodily injury or property damage to a third party.
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More Than Expression of Concern Needed to Establish Waiver of Notice Clause
A subcontractor seeking to establish estoppel or waiver of a contract clause precluding prosecution of a claim unless notice is given within 21 days of the event giving rise to the claim must provide more evidence than an oral expression of concern to defeat a motion for summary judgment, according to a New York Appellate Division brought to my attention by the Contracts Prof Blog.
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Fact Issues Preclude Enforceability of Pay- When-Paid Clause
A New York intermediate appeals court denied a general contractors motion to enforce a pay-when-paid clause because issues of fact existed over whether the general contractor should be estopped from asserting the pay-when-paid provision.
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Colorado Governor Vetoes Bill Limiting Scope of Indemnity Provisions in Construction Contracts
Colorado's Governor has vetoed a bill that would have prohibited one person from requiring another person or another persons insurer or surety from indemnifying that person from its own negligence for personal injury or property damage.
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Is it Really the AIA General Conditions?
It's not unusual for an owner, general contractor or design professional to modify the so called standard contract forms promulgated by the American Institute of Architects(AIA), the Associated General Contractors(AGC) and others. But historically the changes were easy to spot. Not so anymore warns Donald Gregory in the June edition of the Kegler Brown Construction Law Newsletter.
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Do You Remember The First Time You...?
Do you recall your thoughts the first time you had to decipher one of the "standard" construction contract forms? If so, you might empathize with the California publisher of Legal Commentary who observed in a recent post:
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How Far Can A Damage Limitation Go?
Standard form construction contracts often include clauses limiting the amount and types of damages that can be recovered. That contract drafters can go too far is illustrated by the recent Mississippi Supreme Court decision, Pitts v Watkins, Download file, which held that a home inspector could not limit his damages for negligence to the price paid for the inspection.
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