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.

>> Continue Reading Posted In Construction Claims & Disputes , Construction Contracts , Construction Law , Construction Litigation
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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?

>> Continue Reading Posted In Construction Contracts , Construction Law
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How not to write an arbitration agreement

The Federal Prompt Pay Act sets time limits for payment of government construction contractors

The effect of giving an insurer late notice on a otherwise covered construction claim

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.

>> Continue Reading Posted In Construction Contracts , Construction Law
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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.

Posted In Construction Contracts
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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.

Posted In Construction Contracts , Construction Law , Government Contracts
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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

Posted In Construction Contracts , Construction Industry News , Construction Law
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Jury should not be allowed to interpret warranty against faulty materials and workmanship

Construction contract damages

Should a court enforce a contract that disclaims or limits liability for fraud?

"The handshake seals the contract..."

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.

Posted In Construction Contracts , Construction Litigation , Mississippi Construction Law , Trial and Litigation Techniques
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Recent wetlands permit decisions

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."

Posted In Construction Contracts , Construction Law , Insurance
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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.

>> Continue Reading Posted In Construction Contracts , Construction Law
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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.

>> Continue Reading Posted In Construction Contracts , Construction Law , Hurricane Katrina
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Harry Potter and Contract Law

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

family feud.jpg

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.

>> Continue Reading Posted In Construction Contracts , Trial and Litigation Techniques
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Type I, Type II and Type III Indemnity Clauses Explained

Failure to request time extension within 10 days of delaying event wrecks delay claim

Project designer may not unreasonably rely on information supplied by others

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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.

>> Continue Reading Posted In Construction Contracts , Construction Defects & Defective Construction , Construction Law , Construction Litigation
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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.

Posted In Construction Contracts , Construction Law
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Boilerplate in construction contracts

Waiver of subrogation clauses

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.

Posted In Alternative Dispute Resolution , Construction Contracts
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AIA arbitration clause negated by termination of contract

Are time limits for filing suit in construction bonds enforceable in Lousiana?

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.

Posted In Alternative Dispute Resolution , Construction Contracts , False Claims & Fraud
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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.

>> Continue Reading Posted In Construction Contracts , Construction Law
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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

Posted In Construction Contracts
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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.

Posted In Construction Contracts
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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.

Posted In Alternative Dispute Resolution , Construction Contracts , Construction Defects & Defective Construction
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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.

>> Continue Reading Posted In Construction Contracts
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Do It in Writing

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.

>> Continue Reading Posted In Construction Contracts , Insurance
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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.

>> Continue Reading Posted In Construction Contracts
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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.

>> Continue Reading Posted In Construction Contracts
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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.

>> Continue Reading Posted In Construction Contracts , Construction Law , Insurance
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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.

>> Continue Reading Posted In Construction Contracts
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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.

>> Continue Reading Posted In Construction Contracts
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