Construction

Contract Indemnity and Duty to Defend vs. Insurance Duty to Defend

A New Hampshire court has issued a thoughtful decision on the duty to defend arising from an indemnity obligation in a design contract. The court distinguished between the duty to defend often invoked for insurance coverage, from a duty to defend exp… Read More
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It’s Not About Football, But . . . Arbitrator’s Decision Vacated, then Upheld, on Issue Not in Original Reference

Football fans on either side of Deflategate will see the corollaries here. Over a span of years, a drywall company made several attempts to withdraw from the contractors’ association that bargains with particular unions. The company ended up in arb… Read More
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Inadvertent Contractor Prequalification Can Be Overridden by Public Authority

A Massachusetts trial court has held that a public authority, which inadvertently prequalified an electrical contractor who did not have the proper license, can override its own prequalification decision and reject a bid from the contractor. The cont… Read More
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Lost Profit Claim is Constrained by Low Bid Setting

A contractor was the lowest bidder on a public project, and the second-low bidder was only $11,705 higher. A consultant later discovered that some of the bid quantities that it provided to the contractor (pre-bid) were mistaken. The contractor, who s… Read More
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What are the Contract Damages when Construction Creates No Benefit or Improvement?

From the Iowa Court of Appeal comes an interesting question and decision. If the construction project is not properly performed, and creates no benefit or improvement for the owner, what is the measure of the owner’s damages? The answer: the amount… Read More
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The Contract Isn’t Signed, a Few Issues Remain, the Work is Done; Now What?

Lawyers hate this question. A contractor and subcontractor, having gone back and forth on a few contract terms while the sub is performing work, reach the end of the project – or at least the end of the sub’s work – without an agreed contract f… Read More
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Four-Year UCC Statute of Limitations Does Not Cut off Remedy against Product Manufacturer’s 10-Year Warranty

When a manufacturer provides a 10-year warranty on its product, that warranty is not cut off by the four-year statute of limitations in the Uniform Commercial Code, per the Delaware Supreme Court. Even when the manufacturer limits the scope of its wa… Read More
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Federal Court Rebukes US Dept. of Labor – Private Project on Publicly-Leased Land is Not Subject to Davis-Bacon Wage Rates

Referring to the “novelty of the U.S. Department of Labor’s interpretation,” a federal Court of Appeal has held that construction of the CityCenterDC private development project is not subject to Davis-Bacon wage rates, even though the land… Read More
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Withholding Less Retainage ≠ Release of Retainage; No Prompt Pay Act Violation

Sometimes a construction contract allows for the amount of retainage being withheld by the owner to reduce, once the project is more than half complete. For instance, retainage that starts at 10% may reduce, at the halfway mark, to 5% being withheld… Read More
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Contractor Claim Not Dismissed under Contract Disputes Act for Failure of Timely Notice

Almost two years into a multi-year design-build contract, the government questioned the basis of design of the piles for a ship repair wharf. The contractor stopped work while the design issue was resolved with the government. The work stoppage led t… Read More
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