Columbus Ohio Building Expert Directory

Beyond the Flow-Down Clause: Subcontract Provisions That Can Expose General Contractors to Increased Liability and Inconsistent Outcomes

December 10, 2024 — Phillip L. Parham III - ConsensusDocs
Flow-down clauses in construction subcontracts—blanket clauses providing that some or all of the terms and conditions in the prime contract between the general contractor and the property owner apply equally between the subcontractor and general contractor—are an important component to managing risk for a general contractor and reducing the likelihood of disputes with either/both the owner and subcontractor. Put simply, flow-down provisions can provide continuity between the general contractor’s obligations to the owner and the subcontractor’s obligations to the general contractor. Properly drafted, flow-down clauses reduce the general contractor’s risk by ensuring that the subcontractor is legally bound to meet the owner’s objectives for the project in the same way as the general contractor. But relying on blanket flow-down clauses, alone, to protect the general contractor is like a soldier going into battle with nothing but a helmet, leaving significant other areas exposed and unprotected. In other words, a general contractor should look beyond just a singular, blanket flow down of terms to ensure its bases are properly covered. Accordingly, this article goes beyond the blanket flow-down clause and highlights several key subcontract provisions where inconsistent obligations among the subcontractor, general contractor, and owner expose the general contractor to increased liability and inconsistent outcomes. Specifically, this article will examine disputes resolution clauses, liquidating provisions, notice provisions, and termination provisions. However, this article will not provide a deep examination of these clauses, nor does it highlight every potentially relevant clause. Rather, it focuses on these select clauses to highlight important issues associated with flow-down provisions. Read the court decision
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Reprinted courtesy of Phillip L. Parham III, Jones Walker LLP
Mr. Parham may be contacted at pparham@joneswalker.com

One World Trade Center Tallest Building in US

November 13, 2013 — CDJ STAFF
It’s official! The tallest building in the United States is in New York. For forty years, the tallest building in the United States has been the Willis Tower in Chicago (better known by its former name, the Sears Tower). Now, the Council on Tall Buildings and Urban Habitat has decreed that One World Trade Center edges it out with its 1,776 feet of height, surpassing the Willis by 325 feet. There is a caveat. The antennas on the top of the Willis building aren’t counted in. The mast on the top of One World Trade Center is, and it adds 441 feet to the height of the building. If the mast weren’t counted, One World Trade Center would be 116 feet shorter than the building in Chicago. Read the court decision
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Will COVID-19 Permanently Shift the Balance between Work from Home and the Workplace?

April 13, 2020 — Adam Weaver - Gravel2Gavel Construction & Real Estate Law Blog
On March 15, 2020, the Center for Disease Control and Prevention (CDC) issued formal guidance to combat the spread of the coronavirus by recommending against gatherings of 50 or more people for the next eight weeks (CDC guidance), which includes nearly every office building in America. Thus, began the most significant work from home experiment this country has ever seen. With the majority of the workforce working from home, many employees see this as an opportunity to finally prove that, “yes, that meeting could have been an email.” However, while workers will not be distracted by constant (and potentially unnecessary) meetings, a number of issues and questions arise with working from home. Most importantly, is this working from home experiment a temporary opportunity for businesses to test remote work ideas or is this the new normal? And how will this affect commercial real estate moving forward? Read the court decision
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Reprinted courtesy of Adam Weaver, Pillsbury
Mr. Weaver may be contacted at adam.weaver@pillsburylaw.com

Residential Mortgage Lenders and Servicers Beware of Changes to Rule 3002.1

December 08, 2016 — James C. Vandermark & Amy E. Vulio – White and Williams LLP
This December, residential mortgage lenders and servicers will be required to comply with new requirements for providing notices of payment changes (PCNs) and post-petition fees, expenses, and charges (PPFNs) to mortgage borrowers in Chapter 13 bankruptcies. While the new Federal Bankruptcy Rule 3002.1 will provide much needed clarity, it will also significantly increase the number of PCNs and PPFNs that lenders will need to file. Reprinted courtesy of James C. Vandermark, White and Williams LLP and Amy E. Vulio, White and Williams LLP Mr. Vandermark may be contacted at vandermarkj@whiteandwilliams.com Ms. Vulpio may be contacted at vulpioa@whiteandwilliams.com Read the court decision
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The Construction Industry's Health Kick

October 02, 2018 — Erin Ansley - Construction Executive
The construction industry appears to be on a health kick, and by all accounts it isn’t a fad. Trends identified in recent years in the health care sector are strengthening with a surge of new projects nationwide. “All parts of the country are experiencing significant health care design and construction activity,” observes Hank Adams, HDR’s global director of health. “We’re expecting continued growth into the near future and feel optimistic that the marketplace will continue to be strong.” Modern urban planning strategies, engineering advancements and sophisticated design take center stage as oversized hospitals serving large patient populations within a 100-mile radius make way for more specialized centers that target the overall wellness of the local community. Reprinted courtesy of Erin Ansley, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Honoring Veterans Under Our Roof & Across the World

November 15, 2017 — Newmeyer & Dillion, LLP
November 11, 2017 - In honor of Veterans Day, we would like to take time to acknowledge, honor and thank those who have served in the United States Armed Forces. We are also proud to recognize eleven of our own who have served our great country. Ben Ammerman – United States Navy Philip Kopp – United States Air Force Ryan Manning – United States Marine Corps Jason Morris – United States Marine Corps Tyson Nakagawa - United States Marine Corps Richard Protzmann - United States Marine Corps Francis Quinlan - United States Marine Corps Louis “Dutch” Schotemeyer - United States Marine Corps Christina Soto-Maynez – United States Army Michael Studenka - United States Marine Corps Paul Tetzloff - United States Marine Corps About Us For more than 30 years, Newmeyer & Dillion has delivered creative and outstanding legal solutions and trial results for a wide array of clients. With over 70 attorneys practicing in all aspects of business, employment, real estate, construction and insurance law, Newmeyer & Dillion delivers legal services tailored to meet each client’s needs. Headquartered in Newport Beach, California, with offices in Walnut Creek, California and Las Vegas, Nevada, Newmeyer & Dillion attorneys are recognized by The Best Lawyers in America©, and Super Lawyers as top tier and some of the best lawyers in California, and have been given Martindale-Hubbell Peer Review's AV Preeminent® highest rating. For additional information, call 949-854-7000 or visit www.ndlf.com. Read the court decision
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Eleventh Circuit Reverses Attorneys’ Fee Award to Performance Bond Sureties in Dispute with Contractor arising from Claim against Subcontractor Performance Bond

February 27, 2019 — CDJ STAFF
On October 26, 2018, the United States Court of Appeals for the Eleventh Circuit (the “Eleventh Circuit”) issued a decision which reversed an award of prevailing party attorneys’ fees to performance bond sureties in their dispute with a contractor arising from the contractor’s claim against a subcontractor’s performance bond. Had the lower court’s decision been affirmed, the performance bond sureties would have been able to recover prevailing party attorneys’ fees against the contractor even though they were not parties to the underlying subcontract and the subcontract did not contain a prevailing party attorneys’ fee provision. The underlying case is complicated and arose from the construction of Brickell CityCentre in Miami. Americaribe-Moriarty JV (the “Contractor”) asserted a claim against a performance bond procured by a defaulted subcontractor and issued by International Fidelity Insurance Company and Allegheny Casualty Company (collectively, the “Sureties”). The Sureties filed a declaratory judgment action against the Contractor in the United States District Court for the Southern District of Florida (the “District Court”), seeking a declaration that the Contractor failed to perfect its claim against the performance bond. Reprinted courtesy of Gary M. Stein, Peckar & Abramson and K. Stefan Chin, Peckar & Abramson Mr. Stein may be contacted at gstein@pecklaw.com Mr. Chin may be contacted at kschin@pecklaw.com Read the court decision
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Motion to Dismiss Insureds' Counterclaim on the Basis of Prior Knowledge Denied

September 04, 2018 — Tred R. Eyerly - Insurance Law Hawaii
The insurer unsuccessfully moved to dismiss portions of the insureds' counterclaim based upon prior knowledge. Hudson Spec. Ins. Co. v. Talex Enter., 2018 U.S. Dist. LEXIS 105598 (S. D. Miss. June 25, 2018). The insureds' building collapsed in McComb, Mississippi. Pubic utilities were damaged and traffic disrupted. The City sued the insured, alleging that the building collapsed because there was too much water gathered on its roof. The City further alleged that the insureds knew too much water was on the roof because they had been told by someone hired to clean the drain that it was clogged and by a contractor that the roof was so damaged that it could not safely be repaired. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

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