No Damages for Delay May Not Be Enforceable in Virginia

qimono @ PixabayAnyone who reads Construction Law Musings with any regularity (thank you by the way) knows that the contract is king in most instances here in Virginia.  Any commercial construction subcontractor in Virginia is likely also very familiar with so-called “no damages for delay” clauses in construction contracts.  These clauses essentially state that a subcontractor’s only remedy for a delay caused by any factor beyond its control (including the fault of the general contractor), after proper notice to the general contractor, is an extension of time to complete the work.  However, in 2015 the Virginia General Assembly passed a change in the law that precluded the diminishment of any right to claims for demonstrated additional costs prior to payment.  This left open the question as to which types of “diminishment” would be barred by the statute.

The recent case out of the Eastern District of Virginia federal court, Strata Solar LLC v. Fall Line Construction LLC, added a bit of clarity. Continue reading No Damages for Delay May Not Be Enforceable in Virginia

The Construction Lawyer as Counselor

Originally posted 2019-04-24 10:56:09.

It’s been a while since I discussed the role that I believe a construction lawyer should serve.  Back in 2013, I discussed how those of us that practice construction law are seen as “necessary evils.”  I was thinking over the weekend about certain clients and matters (as I often do, particularly in the shower) and came to the conclusion that the best role for me as a Virginia construction attorney is that of counselor and sounding board for my clients.  Sure I come from a litigation background, enjoy working with other construction lawyers here in the Commonwealth, and often the first contact that I have with clients is when there is a problem, but I enjoy my practice, and I believe clients are more satisfied with their interactions with me when I try and provide a more cost effective and pragmatic solution than that which litigation or arbitration provides. Continue reading The Construction Lawyer as Counselor

Residential Contractors, Be Sure to Have these Clauses in Your Contracts

Originally posted 2018-04-27 09:11:50.

I have often “mused” on the need to have a good solid construction contract at the beginning of a project.  While this is always true, it is particularly true in residential contracting where a homeowner may or may not know the construction process or have experience with large scale construction.  Often you, as a construction general contractor, are providing the first large scale construction that the homeowner has experienced.  For this reason, through meetings and the construction contract, setting expectations early and often is key. Continue reading Residential Contractors, Be Sure to Have these Clauses in Your Contracts

Do We Really Want Courts Deciding if Our Construction Contracts are Fair?

Originally posted 2015-03-17 10:06:56.

Virginia General Assembly (Photo credit: Wikipedia)

As I posted recently, the Virginia General Assembly has passed, and I can see no reason why the governor won’t sign, a bill that would essentially invalidate preemptive contractual waivers of lien rights as they relate to subcontractors and material suppliers.  It does not apply to General Contractors, but it is a step in what many (including those attorneys that represent subcontractors and suppliers) believe is the right direction.

Of course, as soon as I posted last week,  my friend and colleague Scott Wolfe (@scottwolfejr) commented on that post and then gave his two cents worth at his Zlien blog.  The gist of the comments here at Musings and the post over at his blog was essentially that these contractual provisions were inherently unfair and therefore should be abolished because of both a relative disparity in leverage between the Owner or GC and the Subcontractor when it comes to negotiations and the fact that subcontractors often don’t read their contracts or discuss them with a construction attorney prior to signing them.  I hear this first of his arguments often when I am reviewing a contract after the fact and a client or potential client acts surprised that a provision will be enforced and the courts of the Commonwealth of Virginia will actually enforce them.  As to Scott’s second reason, I have always warned here at Musings that you should read your contracts carefully because they will be the law of your business relationship in the future.

Continue reading Do We Really Want Courts Deciding if Our Construction Contracts are Fair?

Be Sure to Bring Up Any Mechanic’s Lien Defenses Early and Often

As those of you who regularly read Musings are aware, mechanic’s liens are a big part of my law practice and a big issue here at this construction law blog.  I’ve discussed the picky requirements of the mechanic’s lien statutes in Virginia and how the 90 and 150-day rules are strictly enforced. However, a recent case out of the City of Norfolk Virginia Circuit Court cautions that while failure to meet these strict requirements may invalidate a lien, it only does so if the owner or general contractor seeking to invalidate the lien argues the invalidity and/or presents evidence of that invalidity either pretrial or during trial. Continue reading Be Sure to Bring Up Any Mechanic’s Lien Defenses Early and Often

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