Common Construction Contract Provisions: No-Damages-for-Delay Clause
March 16, 2017 —
David Cook & Chadd Reynolds - Autry, Hanrahan, Hall & Cook, LLP BlogIn continuing our series on common contract provisions found in construction contracts, this post highlights no-damages-for-delay clauses.
Parties to a contract – particularly a construction contract – may agree that the performance of the contract must occur within a set amount of time. When a party is delayed in performing a contract, it may incur additional costs due to the delay. In most circumstances, unless the parties agree otherwise, the delayed party would be entitled to an extension of time to perform the contract. But it may also seek to recover the additional costs resulting from the delay.
A no-damages-for-delay clause attempts to prevent the delayed party from recovering those additional costs. In construction contracts, an upstream party, such as an owner or prime contractor, typically relies on a no-damages-for-delay clause when presented with a delay claim by a downstream party, such as a subcontractor.
Reprinted courtesy of
David Cook, Autry, Hanrahan, Hall & Cook, LLP and
Chadd Reynolds, Autry, Hanrahan, Hall & Cook, LLP
Mr. Cook may be contacted at cook@ahclaw.com
Mr. Reynolds may be contacted at reynolds@ahclaw.com
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You Are Your Brother’s Keeper. Direct Contractors in California Now Responsible for Wage Obligations of Subcontractors
January 31, 2018 —
Garret Murai – California Construction Law BlogIf there’s one law from the 2017 Legislative Session that’s garnered a lot of attention in the construction press, it’s
AB 1701. Under AB 1701, beginning January 1, 2018, for contracts entered into on or after January 1, 2018, direct contractors may be found liable for unpaid wages, fringe or other benefit payments or contributions, including interest, but excluding penalties or liquidated damages, owed by a subcontractor of any tier to their workers. Here’s what you need to know about AB 1701.
What code section did AB 1701 amend?
AB 1701 added a a new section 218.7 to the Labor Code.
To whom does AB 1701 apply?
AB 1701 applies to direct contractors only. A direct contractor is defined as a “contractor that has a direct contractual relationship with an owner.”
On what types of projects does AB 1701 apply?
AB 1701 applies to private works projects only.
When does AB 1701 take effect?
AB 1701 took effect on January 1, 2018 and applies to all contracts entered into on or after January 1, 2018.
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Garret, Murai, Wendel, Rosen, Black, Dean, LLPMr. Murai may be contacted at
gmurai@wendel.com
Judgment Stemming from a Section 998 Offer Without a Written Acceptance Provision Is Void
March 22, 2021 —
Arezoo Jamshidi, Stevie B. Newton & Lawrence S. Zucker II - Haight Brown & Bonesteel LLPIn Mostafavi Law Group, APC v. Larry Rabineau, APC (B302344, Mar. 3, 2021), the California Court of Appeal, Second Appellate District (Los Angeles), addressed an issue of first impression: whether the purported acceptance of a Code of Civil Procedure section 998 (“section 998”) offer lacking an acceptance provision gives rise to a valid judgment. The appellate court held that a section 998 offer to compromise (“998 Offer”) without an acceptance provision is invalid and any judgment stemming from it is void.
In Mostafavi Law Group, plaintiffs sued defendants for defamation per se, among other claims, which was litigated at-length over several years. Defendants served plaintiffs with a written 998 Offer, offering to settle the action for the sum of $25,000.01. The 998 Offer did not specify the manner in which plaintiffs were to accept the offer.
Within the statutory time period for acceptance, plaintiffs’ counsel hand-wrote the following onto the 998 Offer: “Plaintiff Mostafavi Law Group, APC accepts the offer.” That day, plaintiffs also filed a notice of acceptance of the 998 Offer, along with proof thereof, and sent a copy to defendants. The next day, having received the notice of acceptance, defendants advised plaintiffs that they would “draft and send . . . a settlement agreement for . . . signature” before paying the settlement funds.
Reprinted courtesy of
Arezoo Jamshidi, Haight Brown & Bonesteel LLP,
Stevie B. Newton, Haight Brown & Bonesteel LLP and
Lawrence S. Zucker II, Haight Brown & Bonesteel LLP
Ms. Jamshidi may be contacted at ajamshidi@hbblaw.com
Mr. Newton may be contacted at snewton@hbblaw.com
Mr. Zucker may be contacted at lzucker@hbblaw.com
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Enerpac Plays Critical Role in Industry-changing Discovery for Long Span Bridges at The University of Nebraska-Lincoln
April 19, 2022 —
EnerpacMENOMONEE FALLS, Wis. (April 18, 2022) – Three years ago when Marc Maguire, assistant professor of construction programs at the University of Nebraska-Lincoln, started investigating a new stranded wire product for bridge girder reinforcing he thought the best strands for bridge construction were the industry standard 7-wire strands.
After running a multitude of analyses, Maguire and student researchers found that 19-wire 1-1/8 in. diameter strands outperform the typical 7-wire 1-1/6 in. diameter strands and allow bridges to reach unprecedented lengths. Further tests conducted by the Durham School of Architectural Engineering and Construction with the help of Enerpac hydraulic tools examined the bond strength, force transfer, and development length of the 19-wire strands.
"Traditionally, 19-wire strands are not often used in the U.S. because they are not widely available and they are much larger than standard strands," said Maguire. "We wanted to show that there was an alternative option to the common 7-wire strand--one that can perform at the same level, if not better."
About Enerpac
Enerpac is a global market leader in high pressure hydraulic tools, controlled force products, portable machining, on-site services and solutions for precise positioning of heavy loads. As a leading innovator with a 110-year legacy, Enerpac has helped move and maintain some of the largest structures on earth. When safety and precision matters, elite professionals in industries such as aerospace, infrastructure, manufacturing, mining, oil & gas and power generation rely on Enerpac for quality tools, services and solutions. For more information, visit www.enerpac.com.
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Patent or Latent: An Important Question in Construction Defects
October 25, 2013 —
CDJ STAFFPieter M. O’Leary, writing for the site AVVO offers the advice that whether a construction defect is patent or latent could influence whether or not it’s covered in a construction defect claim. He notes that a “patent defect” is “a construction defect that is ‘readily observable or evident,’” while a “latent defect” is “a construction defect that is present but not readily detectable even with reasonable care.” While this may sound like a simple distinction, he notes that “distinguishing between the two can often be difficult and sometimes highly contested by the various parties in a lawsuit.”
The first question is “whether the average consumer, during the course of a reasonable inspection, would discover the defect.” The question arises because “if a defect is hidden and not detectable (latent defect), a longer time period exists for the claimant to file a claim.”
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15 Wilke Fleury Lawyers Recognized in 2020 Northern California Super Lawyers and Rising Stars Lists
August 17, 2020 —
Wilke Fleury LLPWilke Fleury is proud to announce that 15 of our astounding attorneys were featured in the Annual List of Top Attorneys in the 2020 Northern California Super Lawyers magazine.
Super Lawyers rates attorneys in each state using a patented selection process; they also publish a yearly magazine issue that regularly produces award-winning features on selected attorneys.
Wilke Fleury LLP
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Persimmon Offers to Fix Risky Homes as Cladding Crisis Grows
February 22, 2021 —
Olivia Konotey-Ahulu - BloombergPersimmon Plc, the U.K.’s biggest homebuilder, has offered to pay for work on potentially unsafe buildings in the wake of the cladding scandal that arose from London’s Grenfell Tower fire.
The firm has made a provision of 75 million pounds ($104 million) in its 2020 results for any necessary repair work on 26 buildings it developed that may be affected by the issue, it said in a statement Wednesday. It no longer owns the properties and said it would provide support where owners failed to accept their legal responsibilities.
“The concern around now banned cladding is affecting many thousands of homeowners who live in high-rise buildings right across the country,” Chairman Roger Devlin said in the statement. “We believe we have a clear duty to act to address this issue.”
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Olivia Konotey-Ahulu, Bloomberg
Massive Danish Hospital Project Avoids Fire Protection Failures with Imerso Construction AI
December 23, 2023 —
Aarni Heiskanen - AEC BusinessEnsuring regulatory compliance of firewall constructions is getting a high-tech boost. Over the past 16 months, the construction team responsible for the iconic new Nyt Hospital Nordsjælland near Copenhagen used Imerso construction AI technology to achieve remarkable results. By using Imerso, the team enhanced work productivity while preventing costs and delays worth €5.2 million during the construction of the superstructure.
Inspired by this success, the team led by Project Manager Anders Kaas has since been eager to explore the potential of the technology in other areas. The opportunity arose to address a topic that has traditionally posed significant challenges and expenses in numerous construction projects – ensuring regulatory compliance of fire barriers and firewall constructions.
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi