Construction

Email was insufficient notice under payment bond law, but court left the door open for (more explicit) email notice in the future

The Massachusetts payment bond statute requires public project claimants to give notice to the general contractor by certified mail – not an uncommon requirement. The Massachusetts Appeals Court has just held that an email was not adequate notice,… Read More
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Contractor’s Warranty – for One Year Correction Period, or Longer?

Standard industry contract forms include warranty clauses that have no time limit. Those standard forms also include “correction of work” clauses requiring the contractor to address problems that arise in the year after project completion. Does t… Read More
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Nonunion contractors recover damages against labor union

A small group of open shop steel erectors have prevailed against an ironworkers union in a federal court case with a tortured history. The 1st Circuit Court of Appeal has recently confirmed a jury verdict, awarding damages to the contractors for the… Read More
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Limitations period on design contract starts when design is fully approved and not when design is initially stamped

The Supreme Court of Virginia has held that final approval of a design triggered commencement of the limitations period, and not submission of the original stamped drawings. The design firm had argued that the original submittal was the triggering da… Read More
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No default notice = No performance bond recovery

A five-sentence decision from the Eighth Circuit Federal Court of Appeal may not be a record, but it sends a blunt message: failure to provide notice of default is fatal to a performance bond claim. The reader has to go back to the lower court decisi… Read More
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Failure to follow claims procedure was an irrevocable waiver of the claim

Consider this sentence: “courts cannot decide cases of contract interpretation on the basis of what is just or equitable.” Contractors are reminded, via an Ohio Court of Appeals decision, that claim deadlines and waiver language will be applied w… Read More
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Reference to AAA Construction Industry Rules means that parties agreed to have arbitrator determine arbitrability

A Florida Court of Appeal has concluded that an arbitration clause incorporating the AAA Construction Industry Arbitration Rules means that the parties intended to submit issues of arbitrability to the arbitrator and not to the courts. The parties ha… Read More
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Foreman’s own safety violation is imputed to the employer; thus, OSHA liability

The general standard in OSHA cases is that a foreman’s knowledge of a safety violation by a subordinate is imputed to the employer. An exception has been carved out by some courts when it is the foreman’s own safety violation that gives rise to t… Read More
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Indemnity, Duty to Defend, and Timing

The concept of indemnity gets a lot of press. With good reason, since an indemnity is one tool in the risk management shed. As a recent court decision shows, however, a duty to defend is different than an indemnity. And a party who seeks to establish… Read More
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Homeowner’s alleged waiver of building code requirement did not absolve contractor from liability for the same

The contractor installed a membrane roof on top of three existing layers of roofing, claiming that the homeowner orally directed this step and orally directed that the existing roofing not be stripped. The building code prohibits more than two layers… Read More
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