Construction
Subcontractor Charged For Having Its Own Lien Bonded Off
March 24th, 2015
Based on subcontract language, a Minnesota appeals court has held that the prime contractor could charge its lien bond premium against the sub who filed the lien. Arising from a power generation station project, the prime and a sub pursued breach of…
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Interplay of General Liability and Pollution Liability Coverage
March 19th, 2015
An explosion caused by release of natural gas from a damaged pipe caused personal injury and property damage. Resulting lawsuits against the contractor whose crew damaged the pipe were defended by the contractor’s general liability (GL) carrier, wh…
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No Equitable Adjustment for Contractor with Penny Bid
March 3rd, 2015
Believing actual quantities of rock removal would be far less than the engineer’s estimate, the contractor bid a penny per cubic yard of rock removal on a water main extension project. Of course, other bid items could then be inflated and yet the c…
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Contract Disputes Act Deadline for Contracting Officer Decision – Can’t Keep Extending
February 27th, 2015
The government when faced with a complex contractor claim may extend the deadline for the Contracting Officer’s response to a date beyond the original CDA 60-day period. What happens when the CO seeks to extend the deadline a second time? The Court…
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Attacks on Prevailing Wage Laws – Where’s the Tipping Point?
February 20th, 2015
News reports this week cover legislative action in four different states to reduce the scope of prevailing wage laws on public projects. Whatever your opinion on prevailing wage laws – love them, hate them, or somewhere in the middle – the effort…
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Statute of Repose Not Tolled by Builder’s Occupancy of House
February 17th, 2015
Is the New Hampshire eight-year statute of repose tolled (extended) when the original builder occupies a house for four years? The NH Supreme Court has said no. Drouin Builders built the house in 2001 and conveyed it to sole shareholder Michael Droui…
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Categories: Construction
Mechanic’s Lien Amount Shall Not Include Attorneys’ Fees
February 4th, 2015
The Utah Supreme Court has held that a mechanic’s lien does not include attorneys’ fees incurred by a contractor even when the lien statute allows recovery of reasonable legal fees. The court distinguished between the right to recover attorneys…
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Categories: Construction
Defense to Government Position is Not a Claim Subject to Contract Disputes Act
January 29th, 2015
The government claims a contractor’s work is defective. The contractor says in defense that problems are due to design deficiencies and not construction errors. Is the contractor’s position a “claim” subject to the Contract Disputes Act (CDA)…
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Insurance Coverage for Damaged NYC Tower Crane
January 26th, 2015
Readers will recall photos of a tower crane damaged by Hurricane Sandy. Construction of the NYC high-rise building known as One57 was underway when the crane was lashed by hurricane-force winds. The crane jib was apparently blown backwards, and ended…
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Lessons On an Offer of Judgment
January 22nd, 2015
Court rules in most states allow one party to make an “offer of judgment” any time prior to trial, allowing judgment to enter against it for a specified sum. The case ends if the offer is accepted. If not accepted, and the other party fails to do…
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Categories: Construction