Construction
Email was insufficient notice under payment bond law, but court left the door open for (more explicit) email notice in the future
March 16th, 2016
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,…
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Contractor’s Warranty – for One Year Correction Period, or Longer?
March 9th, 2016
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…
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Categories: Construction
Nonunion contractors recover damages against labor union
March 3rd, 2016
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…
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Categories: Construction
Limitations period on design contract starts when design is fully approved and not when design is initially stamped
February 17th, 2016
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…
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Categories: Construction
No default notice = No performance bond recovery
February 11th, 2016
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…
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Categories: Construction
Failure to follow claims procedure was an irrevocable waiver of the claim
February 3rd, 2016
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…
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Reference to AAA Construction Industry Rules means that parties agreed to have arbitrator determine arbitrability
January 28th, 2016
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…
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Foreman’s own safety violation is imputed to the employer; thus, OSHA liability
January 23rd, 2016
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…
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Categories: Construction
Indemnity, Duty to Defend, and Timing
January 20th, 2016
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…
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Homeowner’s alleged waiver of building code requirement did not absolve contractor from liability for the same
January 12th, 2016
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…
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Categories: Construction