Construction

Criticize the Contractor? An Arbitration Award for Defamation

Hell hath no fury like a homeowner scorned, particularly one with access to sophisticated IT professionals who will establish and optimize a website solely to criticize the contractor. But the cabinetry contractor – whose arbitration award includin… Read More
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Mind The (Procedural) Gap – Third-Party Claims Lost

Owner sued contractor, who filed third-party claims against subs seeking only indemnity from them if the contractor was found liable to the owner. Contractor then moved to dismiss the owner’s claim as barred by the statute of limitations. The court… Read More
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Agreement for Specific Performance Precludes Actual Damages Claim

In settling an environmental contamination claim, the property owner agreed to accept a cash payment and the environmental company agreed to perform remediation work. The settlement documents provided that the owner’s remedy was in specific perform… Read More
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Subcontract Is Enforceable Even Though Too Low To Pay Prevailing Wage Rates

A subcontractor agreed to perform site clearing work for $5,000, and only later learned it was a public project requiring payment of prevailing wages. Instead of paying workers $13 and $14 per hour, the sub would have to pay $36 and $43 for a chainsa… Read More
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A Sobering Reflection on the Dangers of Unsafe Construction

The San Jose Mercury News reports the manslaughter convictions of a construction company owner and project manager, who proceeded with unprotected excavation work in the face of a stop-work order from the local building inspector. According to the ar… Read More
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Arbitration Venue: Where the Parties Agreed, Despite State Law

The contract calls for arbitration in Indiana, applying the laws of Nebraska. But Nebraska has a law prohibiting parties from being compelled to arbitrate outside that state for an in-state project. In a GC/sub dust-up including lawsuits in both stat… Read More
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Delegation of Arbitrability to the Arbitrator – May Not Be Enforceable

Some arbitration clauses include a “delegation provision” where the parties grant to the arbitrator – instead of a court – the authority to determine validity and enforceability of the arbitration clause itself. A recent decision by the West… Read More
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Liquidated Damages Liability After Convenience Termination

A contractor and public authority struggled through much of a pump station replacement project. During the work, the town agreed to extend the completion date by five months. Many change orders were presented and agreed to. The extended completion da… Read More
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AGC of America Calls for Transfer of VA Construction Management

AGC of America has issued a white paper calling for transfer of construction management duties currently exercised by the Office of Construction and Facilities Management at the U.S. Dept. of Veterans Affairs. In the paper, AGC notes that it has neve… Read More
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Subcontractors May Have Limited Relief Against Town When Prime Contractor’s Surety Fails

Subcontractors on a public project for the town of Darien, Connecticut found themselves on the short end of the stick when the prime contractor failed to pay (apparently went out of business) and its surety turned out to be bogus. Subcontractor claim… Read More
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