Termination
Performance Bond Surety Not Liable if Underlying Contract Was Not Terminated
February 15th, 2021
A modular construction subcontractor provided a performance bond to the prime contractor in the AIA form A312-2010. The GC later claimed that the modular sub failed to properly perform its work, including “that more than 260 windows were leaking an…
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Categories: Construction
The Cost of 24 Hours: Abandonment Did Not Excuse Failure to Give Proper Termination Notice
February 11th, 2020
Although a sub apparently abandoned a project, breaching its subcontract, the general contractor’s failure to give 48 hours’ termination notice required by the subcontract was also a breach (it had given 24 hours’ notice). The trial court decis…
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Terminating a Contract? Dot the i’s and Cross the t’s!
October 20th, 2017
From a Connecticut trial court comes a reminder to follow the contract process when terminating a contract. Failure to do so could constitute a breach by the one issuing the termination letter. A sub and general contractor had many changes, claims an…
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Categories: Construction
Manifest Disregard of Contract Termination Clause: Arbitration Award Vacated
January 27th, 2017
Arbitration awards are difficult to overturn, but the Rhode Island Supreme Court has ruled, in a 3-2 split decision, that an arbitrator manifestly disregarded the parties’ contract in his decision, and has vacated that award. The underlying project…
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Pursuing a Performance Bond? Follow the Terms of the Bond
December 15th, 2016
A contractor seeking almost $1 million in claimed cost overruns against a subcontractor’s bond has been reminded that the bond terms must be followed. Or else. The bond required the prime contractor, as bond obligee, to do three things: (a) give no…
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Categories: Construction
About Stan Martin
Stan Martin holds a law degree and an undergraduate degree in architecture. He has been involved with the construction industry for more than 45 years, working in construction prior to law school and beginning his construction law practice. During his career, he has been actively involved with the Associated General Contractors of Massachusetts, the Boston Society of Architects, the American Arbitration Association, and the Massachusetts Building Congress.