Bond Claims – Page 2 – Construction Law Musings- Richmond, VA

Be Careful with Good Faith Payments

Originally posted 2019-11-25 09:00:29.

Sometimes doing the expedient thing and what looks good at the time can come back to bite you. Just ask 3M Company.

In Faneuil, Inc. v. 3M Co., the Virginia Supreme Court considered a customer services subcontract between Faneuil and 3M relating to a toll collection contract 3M entered into with ERC. The subcontract had a “pay if paid” clause in it requiring payment to 3M from ERC before ERC was required to pay Faneuil, a written change order provision and a base monthly payment to Faneuil for the services that could be reduced in the event of less than expected toll collections. Further, the subcontract stated that if either party settled 3rd party claims, that settlement would not bind the other party to the subcontract absent consent or Court order. Continue reading Be Careful with Good Faith Payments

Anatomy of a Construction Dispute- A Wrap Up

Originally posted 2015-02-06 09:37:58.

Under construction (Photo credit: Wikipedia)

Over the past four weeks, I’ve “mused” on the “stages” of a construction dispute. What started as a kernel of thought in my mind turned into what has seemed to be a popular set of four posts that I hope were both informative and interesting. Because of the great feedback I’ve gotten, I thought that I’d consolidate the posts into one so that my readers (thank you, by the way) will have them all in one place. Here they are:
Continue reading Anatomy of a Construction Dispute- A Wrap Up

Keep Your Construction Claims Alive in Crazy Economic Times

Originally posted 2020-04-06 09:00:29.

Coronavirus is dominating the news. Construction in Virginia is facing what is at best an uncertain future and at worst a series of large scale shutdowns due to COVID-19. The number of cases seem to grow almost exponentially on a daily basis while states and the federal government try and patch together a solution. All of this adds up to the possibility that owners and other construction related businesses could shutter and importantly payment streams can slow or dry up. Aside from keeping your contractual terms in mind and meeting the notice deadlines found in your contract, these uncertain economic times require you to be aware of the claims process.

Along with whatever claims process is set out in the contract and your run of the mill breach of contract through non-payment type claims, in times like this payment bond and mechanic’s lien claims are a key way to protect your payment interest. The law has differing requirements for each of these unique types of payment claims. Continue reading Keep Your Construction Claims Alive in Crazy Economic Times

My Top Ten Construction Law Musings Posts To Date

Originally posted 2013-02-08 09:00:34.

For this week’s Guest Post Friday, we welcome back Josh Johnson (@josh_c_johnson and one of @vaconstrlawyers). Josh is a friend and partner at Gentry Locke Rakes & Moore, LLP in Roanoke, Virginia. He is in Gentry Locke’s construction practice group and he also oversees the firm’s e-Discovery and information management processes. He is the co-author of two blogs – Virginia Construction Law Update and Virginia OSHA Law News.

It is a privilege to be guest posting here on Construction Law Musings, and we appreciate the opportunity to introduce Gentry Locke’s new construction and OSHA blogs – Virginia Construction Law Update and Virginia OSHA Law News. We hope that you will check out our blogs from time to time. We are working hard to provide useful information and updates.

In today’s guest blog post, though, we are going to focus on Chris’s hard work over the last several years. So, using David Letterman’s Top Ten style format, I have decided to provide my Top Ten favorite posts from Construction Law Musings.

Continue reading My Top Ten Construction Law Musings Posts To Date

Discussions of Changes in Virginia Mechanic’s Lien Law at ZLien

Originally posted 2015-06-16 13:00:56.

Once again I get to thank Scott Wolfe (@scottwolfejr) over at Zlien for an opportunity to guest post. This time around it is on the soon to be implemented changes to the Virginia law as it relates to contractual waivers of lien and bond claim rights.

Here’s a taste of the post over at Scott’s blog:

At its most basic level these changes void the fairly standard contractual terms found in many Virginia construction contracts that provide that a subcontractor waives its mechanic’s lien rights on the project prior to any work being performed. As I stated in my earlier posts, this is a big deal and brings Virginia in line with a majority of the states in barring the enforceability of such clauses. However, and despite much lobbying by the Virginia chapter of the Associated General Contractors, the language does not extend to general contractors. The wisdom of such an omission is best left to the politicians.

For the rest of my thoughts check out the full post here.

As always, I welcome your comments below. Please subscribe to keep up with this and other Construction Law Musings.