Fairfield Connecticut Building Expert Directory

Construction Contracts Fall in Denver

October 02, 2013 — CDJ STAFF
After nearly a year of growth, residential construction contracts dropped 22% in the Denver area in August. Residential construction contracts are still above what they were before August 2012, but the gains since then have been wiped out. The value of contracts in August 2012 was $219.8 million, and this this August they have fallen to $171.7 million. Commercial construction also saw a reduction, however, there the fall was only 7%, dropping from $1.54 billion to $1.43 billion. Read the court decision
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Reminder: Pay if Paid Not All Encompassing (but Could it be?)

December 09, 2019 — Christopher G. Hill - Construction Law Musings
On numerous occasions, I have discussed the need to be careful with so called “pay if paid” clauses in construction contracts. While such clauses are enforceable in Virginia (when phrased correctly), there are exceptions and limitations (for instance in the Miller Act context). One such exception (that I frankly would have thought to be obvious) is that such clauses do not protect a general contractor from paying all subcontractors. Such a clause only protects a general contractor from payment to those subs for whose work the general contractor has not been paid. In other words, if a general contractor has been paid by an owner for a particular subcontractors work, it cannot use the pay if paid clause to deny payment even in the event that other subcontractors were deficient in their work or the owner has failed to pay the general contractor in full. In Precision Contractors Inc. v. Masterbuilt Companies Inc. (PDF) the Fairfax, VA Circuit Court reiterated this principal stating that nothing in the contract suggests that either party to the lawsuit had any intention to shift the risk of non-payment by the owner or non-performance of other subcontractors to the plaintiff (Precision). Read the court decision
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Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

Manhattan Developer Wants Claims Dismissed in Breach of Contract Suit

August 27, 2014 — Beverley BevenFlorez-CDJ STAFF
The Real Deal reported that Savannah, the developer of the condo conversion at 141 Fifth Avenue, “has filed to dismiss a number of claims in a $7.5 million breach of contract lawsuit by the property’s board of managers, while alleging professional negligence against several of its own contractors.” Savanah’s lawyers stated, according to The Real Deal, that whether or not construction defects exist, their client isn’t responsible: “However to the extent that any of the alleged defects exist at the building, sponsor cannot be held liable for the existence of such defects.” Read the court decision
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New York City Construction: Boom Times Again?

October 22, 2013 — CDJ STAFF
Construction spending in New York City is expected to reach $31.5 billion this year, which would be the first time has exceeded $30 billion since 2006. Further , construction spending is projected to grow to $37 billion in 2015. During that same period, construction jobs are expected to grow from 120,000 to 130,000. Richard Anderson, the president of the New York Building Congress noted that “just five years after the worst downturn since the Great Depression, the city’s construction industry finds itself on the brink of yet another building boom.” Much of the increase is due to new residential construction. Read the court decision
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Real Estate & Construction News Roundup (06/06/23) – Housing Woes, EV Plants and the Debate over Public Financing

July 10, 2023 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
In our latest roundup, we look at the increasing difficulty of purchasing a home, potential international fallout from a new trade deal a renewed commitment by one American automaker to electric vehicles, and more! It’s becoming increasingly more difficult for house hunters to find homes, specifically in certain major cities. (Khristopher J. Brooks, CBS) Due to years of overuse and a decades-long drought, Arizona has halted new housing construction of parts of metro Phoenix. (AP via NBC) After several claims by the FTC over privacy concerns regarding its voice assistant Alexa and doorbell camera Ring, Amazon has agreed to pay over $30 million in fines. (Ayana Archie, NPR) Read the court decision
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Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team

Contractors Should Be Optimistic that the Best Value Tradeoff Process Will Be Employed by Civilian Agencies

September 10, 2018 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel
In The Fiscal Year 2019 NDAA Imposes Government-Wide Limitations on the Use of Lowest-Price Technically Acceptable Procurements, Pillsbury attorneys Dick Oliver and Aaron Ralph are optimistic that contractors will soon have additional legal authority to demonstrate to civilian agencies that a best value tradeoff process should be employed.

Congress’ trend of limiting the use of the much-derided lowest price, technically acceptable (LPTA) procurement process continues.

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Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team

Is Settling a Bond Claim in the Face of a Seemingly Clear Statute of Limitations Defense Bad Faith?

October 11, 2021 — Christopher G. Hill - Construction Law Musings
We have often discussed payment and performance bonds here at Construction Law Musings, most often in the context of payment bond claims relating to federal and state-owned. construction projects. A late 2020 case out of the Eastern District of Virginia federal court examined what happens after such a claim, in this case, based upon a developer’s subdivision bonds, is made and negotiations commence between the surety and the claimant. Specifically, Fidelity & Deposit Co. of Maryland v. Ransgate Corp., et. al. looked at claims for indemnity by a surety and the principal/indemnitors in the event that the Surety settled such a claim. In the Ramsgate case, Surety provided two separate subdivision subcontract bonds to Ramsgate. Pursuant to those bonds and the indemnity clause of its indemnity agreement, the Surety sought reimbursement of its $80,000.00 settlement payment to the local building authority that it paid to resolve what was originally a claim for over $420,000.00 by the City. The project was started in 2002 and after many years of failures to complete (according to the City of Suffolk), the City made its claim for expenses in 2017. Ramsgate claimed that it completed the subdivisions in 2003. Read the court decision
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Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

Mechanic’s Liens and Leases Don’t Often Mix Well

May 03, 2021 — Christopher G. Hill - Construction Law Musings
As those who read my “musings” here at this construction law blog are well aware, the topic of Virginia mechanic’s liens is one that is much discussed. From the basic statutory requirements to the more technical aspects of these tricky beasts. One aspect of mechanic’s liens that I have yet to discuss in detail it how these liens attach in the situation where the contractor does work for a lessee and not for the owner of the underlying fee interest in the property. A recent case out of the Western District of Virginia federal court, McCarthy Building Companies Inc. v. TPE Virginia Land Holdings LLC, discusses the interaction of Va. Code 43-20, work on a leasehold, and parties necessary to any litigation relating to a lien for the work on that leasehold. The basic facts, outlined more thoroughly in the linked opinion, are these. MBC provided certain work to TPE Kentuck Solar, LLC on property leased from TPE Virginia Land Holdings, LLC. The lease was for a fixed term and for a fixed amount regardless of the work performed at the property. MBC was unpaid by the Kentuck entity and then recorded a lien on the property and then sued to enforce that lien and for unjust enrichment against TPE Land Holdings. TPE Land Holding filed a motion to dismiss the mechanic’s lien and unjust enrichment counts. Read the court decision
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Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

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