Construction
Direct vs. Consequential Damages – What is the Difference, Really?
November 3rd, 2016
Many people, even while negotiating the terms of a contract “mutual waiver of consequential damages” clause, fail to appreciate the distinction between direct and consequential damages. A federal district court judge in Pennsylvania has penned a…
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Categories: Construction
Bond or Guaranty Requirement on New York Projects Clarified
October 24th, 2016
The New York lien law, for private projects being built on public land, requires that the project owner furnish “a bond or other form of undertaking guaranteeing prompt payment of moneys due.” Lien Law § 5. In a dispute concerning construction o…
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Categories: Construction
Indemnities Demystified
October 18th, 2016
Indemnity. In the panoply of contract terms, no other word strikes as much terror into the hearts of contract administrators, project managers and other business types. This fear is often born of the failure to understand the essential elements and p…
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Resolving Conflicting Contract Terms
October 4th, 2016
Was one party trying to be cute, or was this simply an error not caught in the drafting process? Two inconsistent terms made it into the final contract, and then became the basis for a post-termination dispute. One term allowed the contractor to reco…
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Statutory Amendment Extending Payment Bond Lawsuit Deadline Does Not Apply Retroactively
September 24th, 2016
New York amended its payment bond law in 2011 to extend the timetable for filing a claim against a public project payment bond. The former deadline was one year after submitting an invoice for final payment. The amended law requires bond claim lawsui…
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Worker Protection and the New York Labor Law – Absolute Liability for Commonplace Missteps
September 21st, 2016
A tile finisher needed a short platform to reach the top of installed bathroom tile to inspect the finished work, after toilets had been installed in a Delta Sky Club lounge. He used a “Kwik Bench” raised platform (“Heights adjusts [sic] from 1…
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Categories: Construction
Clarification on Architect’s/Engineer’s Liability for Safety During Construction
September 20th, 2016
With underlying facts showing less-than-stellar actions on the part of more than one player, the Mississippi Supreme Court has clarified and confirmed the applicable standard for when a design professional should be liable for safety on a constructio…
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Categories: Construction
City Ordinance Conditioning Favorable Tax Treatment on Project Labor Agreement Must be Considered in Light of City’s Regulatory Authority
September 13th, 2016
Whether Jersey City can require developers to enter into project labor agreements as a condition of receiving tax exemptions or abatements is still an open question per the Third Circuit Court of Appeal. The federal appellate court held that the city…
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Categories: Construction
Beware Hidden Dangers of Attorneys’ Fee Provisions
September 7th, 2016
First, I believe the trial court got it mostly right. But the appeals court had the last word. The case serves as a reminder that attorneys’ fee provisions at times do not always serve the greater purpose of balancing the stakes in litigation. Seco…
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Company Was Additional Insured Under GL Policy Even by General Designation and Not Specific Name
September 3rd, 2016
A second-tier subcontract required the sub-sub to provide insurance naming, as additional insured parties, both the first-tier sub, and also “the Project owner and construction manager.” When the sub-sub’s employee was injured and sued…
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