Where Insurance and Contracts Collide in Construction

Location in the Commonwealth of Virginia

Location in the Commonwealth of Virginia (Photo credit: Wikipedia)

As has been said a “few” times here at Construction Law Musings, the courts of the Commonwealth of Virginia strictly interpret the actual terms of a construction contract. A recent case in the Circuit Court for the City of Richmond provides yet another example of this fact.

In Fixture Specialists Inc. v. MGT Construction Mgmt. Inc., the Court looked at whether a waiver clause in the prime contract between the owner, Cedar Street Genesis, and the general contractor, MGT Construction Management, Inc. (“MGT”) can be extended to protect a plumbing subcontractor and acknowledged third party beneficiary of the all risk insurance policy carried by the owner. In this case, MGT withheld approximately $130,000.00, an amount over and above any insurance coverage, from Fixture Specialists to cover damages incurred due to a water leak alleged to have been caused by Fixture Specialist’s negligent performance of its scope of work.

Legislative Changes that Impact Construction 2017

Well, the Virginia General Assembly has finished its yearly run through the legislative process and this year there are a few highlights for those of us in the construction industry. It is always interesting to see what issues are the big ones that get a lot of attention. This year the changes impacted public procurement,…

The Anatomy of a Construction Dispute Stage 2- Increase the Heat

Originally posted 2015-01-19 09:00:35. Republished by Blog Post PromoterLast week we discussed the groundwork and circumstances of a construction claim. This week’s post will discuss the next steps, hopefully short of full blown arbitration or litigation that you, as a construction company, can pursue presuming your claim has been properly preserved. If your contract requires…

Knowledge Management for Leases: The Option to Expand

Originally posted 2014-04-14 09:00:47. Republished by Blog Post PromoterFor this week’s Guest Post Friday here at Construction Law Musings, we welcome Jason Mark Anderman. Jason is President of WhichDraft, designed to help small businesses, freelancers, and entrepreneurs easily and affordably create the kinds of legal documents they use in their businesses every day via a…

Should a Subcontractor provide bonds to a GC who is not himself bonded? (Bonding Agent Perspective)

Guest Post Friday is back, and for this week, Construction Law Musings welcomes Steve Moore. Steve has been the Construction & Surety Manager for Towne Insurance Agency-Invincia, in Chesterfield, VA since 2010. Steve’s experience in the Virginia surety bonding marketplace started in 1985 with USF&G. His underwriting travels took him from USF&G to starting National…

About musings

I am a construction lawyer in Richmond, Virginia, a LEED AP, and have been nominated by my peers to Virginia's Legal Elite in Construction Law on multiple occasions. I provide advice and assistance with mechanic's liens, contract review and consulting, occupational safety issues (VOSH and OSHA), and risk management for construction professionals.

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