Construction
Owner Need Not Respond to Contractor’s Claims Within Any Timeframe
July 13th, 2022
Contractors often face strict or limited notice periods, in which to advise the project owner of a claim or issue. Some contracts even include forfeiture provisions, where the contractor’s failure to give timely notice acts to nullify the claim. Bu…
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Massachusetts Appeals Court Enforces Prompt Pay Act Protocol
June 7th, 2022
In a closely-watched, hotly-disputed case, the Massachusetts Appeals Court has enforced critical elements of the state’s prompt pay act (PPA). As a result, the contractor was entitled to judgment against the project owner for the amounts not paid,…
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Limitation of Liability (and Consequential Damage Waiver) Clause Did Not Bar Claim for Bad Faith
January 24th, 2022
Limitation of liability clauses have become more common in construction industry contracts over the past 10-15 years. Such clauses are quite common in design contracts. It is also common for a limitation of liability clause to refer to multiple poten…
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Subcontractor’s Right to Direct Payment from Public Authority
January 21st, 2022
Subcontractors on public projects in Massachusetts have the right to seek payment directly from the awarding authority when the prime contractor has not made timely payment. A Massachusetts Superior Court judge has reinforced the awarding authority…
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Natural Gas “Blows” Causing Explosion Were Not “Abnormally Dangerous Activity”
January 15th, 2022
Almost twelve years ago, an explosion ripped through a power generation facility construction project in Middletown, Connecticut, known as Kleen Energy. Six workers were killed and many more were injured. The explosion was caused by a fuel line purge…
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Owner’s Assignment to Contractor, of Claims Against Architect, Not Barred by Anti-Assignment Clause
December 14th, 2021
A school district and architect signed a contract, with a common anti-assignment clause, for design of an elementary school building . During construction of the project, disputes arose between the district and contractor, and the contractor claimed…
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Categories: Construction
New Jersey Prompt Payment Act Supports Recovery of Fees that Exceed Contract Balance Due
September 24th, 2021
A subcontractor owed $30,500, who had to jump through multiple hoops to recover its money, was entitled to recover legal fees and costs exceeding the contract balance due. JHC Industrial Services, a second-tier sub, performed demolition work for Cent…
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Complaint Dismissed for Failure to Mediate First
July 28th, 2021
“Mandatory mediation” may seem an oxymoron, since mediation is a process whereby parties seek to resolve their dispute in an elective process. But a federal court judge has held that a contract clause mandating mediation prior to litigation is to…
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Reckless Misclassification under Davis-Bacon Creates False Claims Act Liability
July 16th, 2021
A US Court of Appeal has held that “reckless misclassification” of workers under Davis-Bacon can – due to amendments of the False Claims Act (FCA) in 2009 – can result in a contractor being liable under the FCA. And this liability could cover…
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No Agreement to Arbitrate Arose from Browsewrap Agreement
July 13th, 2021
Courts have enforced arbitration agreements arising from clickwrap agreements, even when the user has not bothered to read the fine print. A recent New Jersey appellate court has held, though, that mere reference to terms and conditions (including a…
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