You Are on Notice: Failure to Comply With Contractual Notice Provisions Can Be Fatal to Your Claim
September 26, 2022 —
Jenifer B. Minsky - ConsensusDocsImagine your firm is the construction manager on a multi-million-dollar project. At the end of the project you are five million dollars out-of-pocket. You have a stack of claims for additional and extended work which led to the overrun, payment for which will easily cover the shortfall. However, the owner refuses to compensate you until you can satisfactorily answer their inquiry: “Where are the notices that are expressly required under the terms of the contract?” You had a good relationship with the owner’s field representative who was aware you were performing the work and understood that your company was compiling claims. The once cooperative owner, now suffering financial restraints of their own, is resolute in their refusal leaving you no choice but to expend substantial sums of money to litigate the claims, the success of which is far from assured.
What Contract Language Can Be A Trap For An Unwary Contractor?
While courts are generally hesitant to order a forfeiture and some courts disfavor condition precedents, a judge’s hands may be tied by particular contract language requiring the strict enforcement of notice requirements. Such provisions may include: (1) an explicit clause that there be precise compliance with notice requirements; (2) express consequences for noncompliance (e.g., if the required notice is not provided the claim will be waived, forfeited or abandoned); (3) a statement that the notice requirements are a condition precedent to recovery; (4) language such as “if,” “provided that,” “or else” or “on condition that” (e.g., the owner shall review the claim, “provided such claim” was received within the applicable notice period) or (5) prohibition of any waiver of the notice requirement. To the extent the notice provision includes such language, a contractor can be without recourse even when the owner has actual knowledge of the claims or cannot show prejudice by the lack of notice.
Read the court decisionRead the full story...Reprinted courtesy of
Jenifer B. Minsky, Peckar & Abramson, P.C.Ms. Minsky may be contacted at
jminsky@pecklaw.com
Important New Reporting Requirement for Some Construction Defect Settlements
April 17, 2019 —
Ian Williamson - Gordon & Rees Construction Law BlogIn response to a tragic balcony collapse incident where the public later learned the contractor had paid millions to settlement defect cases in the preceding years, the California legislature passed, the state contractor’s license board is now implementing, a public disclosure requirement for certain construction defect claims. The disclosure requirement is triggered by a judgment (which is not a new requirement), an arbitration award, or a settlement of certain construction defect claims. These requirements are codified at California Business & Professions Code sections 7071.20-22.
What types of Projects: This requirement applies only if all of the following apply:
A) Residential
B) Multi-Family; and
C) Rental property
Limitations on Claims – The reporting requirement only applies if all of the following are true:
A) The claim is against a CSLB licensee (not a design professional) acting in the capacity of a contractor;
B) The claim is for a structural defect;
C) The total claim is valued at $1 million (not including investigation costs);
D) SB800 does not apply;
E) The action was filed after January 1, 2019; and
F) If a lawsuit, the case was designated complex by the courts (which may not apply if only contractor is sued).
Read the court decisionRead the full story...Reprinted courtesy of
Ian Williamson, Gordon & ReesMr. Williamson may be contacted at
igwilliamson@grsm.com
Another Reminder that Your Construction Contract is Only as Good as Those Signing It
December 17, 2024 —
Christopher G. Hill - Construction Law MusingsHere at Construction Law Musings, we beat the constant drum that “
the contract is king” and “draft a
good and well-worded construction contract” consistently. As a
Virginia construction attorney, I stand by these statements and fully endorse a well-written construction contract. Such a contract will set expectations and
provide the rules for your deal (particularly in the commercial context). Without this solid foundation (yes, I see the potential construction pun), when
there are issues on the job site, there will be no baseline for how to resolve those issues.
That said, I am also reminded on an almost daily basis that humans interact with these contracts. People negotiate the contracts and are the main forces that drive the success (or failure) of the construction project. Money is involved (often a lot of it) and there can at times be temptations to try and squeeze one last dollar out of the job despite what the contract says. Even the strongest contract cannot act as real-time protection against one party that refuses to comply with the contract and its performance or payment terms.
Read the court decisionRead the full story...Reprinted courtesy of
The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
More on Fraud, Opinions and Contracts
February 06, 2019 —
Christopher G. Hill - Construction Law MusingsHere at Construction Law Musings, I have discussed the interaction between fraud and contracts on many occasions. Recently, I got to put my advice into action. I am counsel for the plaintiff in the matter of Environmental Staffing Acquisition Corp. v. Beamon, et. al. in the Portsmouth, VA Circuit Court and recently got a great opinion (.pdf) right on point that was recently featured in Virginia Lawyers Weekly.
The basic facts are these. My client, Environmental Staffing (En-Staff) filed a Little Miller Act claim and a claim for breach of contract for Beamon’s failure to pay for temporary staffing that En-Staff provided it at the Jeffry Wilson housing project demolition in Portsmouth, VA. Beamon then counterclaimed for fraud and breach of contract claiming that some statements to the effect that a particular supervisor was qualified along with presentation of the individual’s resume constituted fraud. My client demurred to the two fraud counts (actual and constructive).
Read the court decisionRead the full story...Reprinted courtesy of
The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
OSHA Finalizes PPE Fitting Requirement for Construction Workers
December 31, 2024 —
Jonathan H. Schaefer - Construction Law ZoneOn December 11, 2024, the Occupational Safety and Health Administration (OSHA) announced it finalized a revision to the personal protective equipment (PPE) standard for the construction industry. The
final rule adds specific language to the existing standard requiring employers to provide properly fitting PPE for construction industry workers. This change aligns the construction industry with the standards in place for the general industry.
According to OSHA, many types of PPE must properly fit workers. Improperly sized PPE can ineffectively protect workers, creating new hazards for them, such as oversized gloves or protective clothing being caught in machinery and discouraging use because of discomfort or poor fit. OSHA stated that the longstanding issue with improperly fitting PPE particularly impacted women, as well as physically smaller or larger workers.
Read the court decisionRead the full story...Reprinted courtesy of
Jonathan H. Schaefer, Robinson+ColeMr. Schaefer may be contacted at
jschaefer@rc.com
California’s Housing Costs Endanger Growth, Analyst Says
March 19, 2015 —
John Gittelsohn – Bloomberg(Bloomberg) -- California’s high housing costs threaten the state’s economy as workers increasingly struggle to afford a roof over their heads, the state Legislative Analyst’s Office said in a report released Tuesday.
“The state’s high housing costs make California a less attractive place to call home, making it more difficult for companies to hire and retain qualified employees, likely preventing the state’s economy from meeting its full potential,” Chas Alamo and Brian Uhler, senior fiscal and policy analysts with the office, said in the study.
California was home to four of the five most expensive U.S. metropolitan markets for single-family home sales in the fourth quarter of last year, led by a median home price of $855,000 in the San Jose, Sunnyvale and Santa Clara area, according to the National Association of Realtors. San Francisco ranked second, with Honolulu and the California cities of Anaheim and San Diego rounding out the top five. The suburbs north of New York City and greater Los Angeles followed.
Read the court decisionRead the full story...Reprinted courtesy of
John Gittelsohn, BloombergMr. Gittelsohn may be contacted at
johngitt@bloomberg.net
Define the Forum and Scope of Recovery in Contract Disputes
March 02, 2020 —
Phillip L. Sampson Jr. & Richard F. Whiteley - Construction ExecutivePrivate and public companies spend billions of dollars every year on construction projects. For these projects, time is money, and incorporating the most advantageous legal terms in the construction contract can minimize the number and extent of disputes, and ultimately save money.
It is important to remember that the provisions in construction contracts are negotiable. In a common scenario, the contractor and owner informally agree to the scope of a construction project and its cost. When it is time to reduce the deal to writing, the contractor and owner decide to use an AIA contract that appears to be a standard form. The document looks to be on point, and the parties simply need to fill in a few blanks with the cost and scope-specific information. Presuming that the AIA provisions are mutually protective and beneficial, the parties do not think about altering the “standard” terms. They sign the contract, and the project begins.
Months later, the owner and contractor end up disputing delays on the project, entitlement to various payments, and whether certain aspects of the work are defective. At this point, the parties realize that some of the contract’s terms could have been drafted a bit more favorably—but by that time it’s too late. So remember, construction contracts are negotiable, even provisions within “standard” AIA contracts.
Reprinted courtesy of
Phillip L. Sampson Jr. and Richard F. Whiteley, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Mr. Sampson may be contacted at phillip.sampson@bracewell.com.
Mr. Whiteley may be contacted at richard.whiteley@bracewell.com.
Read the court decisionRead the full story...Reprinted courtesy of
Seattle Crane Strike Heads Into Labor Day Weekend After Some Contractors Sign Agreements
September 25, 2018 —
Christine Kilpatrick - Engineering News-RecordA continuing construction worker strike in Seattle and Western Washington state headed into Labor Day weekend after a number of contractors signed individual agreements to return to work.
Read the court decisionRead the full story...Reprinted courtesy of
Christine Kilpatrick, ENRMs. Kilpatrick may be contacted at
kilpatrickc@enr.com