Originally posted 2012-07-02 09:00:23.
I have discussed the importance of every word in a construction contract on multiple occasions at Construction Law Musings. The United States District Court for the Western District of Virginia recently gave another reminder that one area that can act as a sword or shield in a contract is the language regarding provision of notice.
Continue reading Proper Notice Can “Accelerate” Your Recovery
Originally posted 2012-09-20 12:00:31.
I am always grateful for the opportunity to “muse” on other folks blogs. I am particularly grateful to Melissa Brumback (@melissabrumback) for the opportunity to discuss why contractors and subcontractors should “play nicely in the sandbox” at the great Construction Law in North Carolina blog.
Here’s an excerpt from the post. For the rest, you’ll have to go visit her blog.
While it is obvious that subs need to play nice with GC’s because they have the money, it may seem less obvious how the above can hurt a general contractor. The short answer (and don’t worry I won’t be going into the long one) is that burning good subs eventually means that good subs won’t work with you. Subs talk to each other. Your reputation will precede you. Eventually the economy will improve and you won’t be the only game in town. Not to mention that such actions are the stuff of which claims are made.
I recommend that you check out the post and the remainder of Melissa’s great blog, particularly if you are a North Carolina construction or AE professional.
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Originally posted 2013-02-11 09:00:06.
Here at Construction Law Musings, we often discuss the Federal Miller Act and its Virginia equivalent (the “Little Miller Act“). These two statutes provide subcontractors on government projects (on which no mechanic’s lien can attach) the protection of payment and performance bonds.
One question that often arises in this context is which subs can claim against the payment bond. Recently, the Eastern District of Virginia District Court affirmed that a second tier subcontractor has the right to claim against a payment bond under the Federal Miller Act. In U.S. ex rel IGW Electric LLC v. Scarborough, the Virginia federal court considered the claim of an electrical “sub-subcontractor” which held a contract with the subcontractor to build cottages in Norfolk, Virginia for the U. S. Navy.
Continue reading Reminder: Second Tier Subcontractors Have Miller Act Claim
Originally posted 2013-07-04 10:00:14.
I have discussed the necessity of following your well-drafted contract documents and obtaining written change orders on numerous occasions here at Construction Law Musings. Recently, the U. S. District Court for the Eastern District of Virginia in Richmond, VA gave a strong reminder regarding these two business practices for contractors.
In Carolina Conduit Systems Inc. v. MasTec N.A. Inc. the Court considered an all too familiar situation. In Carolina Conduit, the general contractor told the sub contractor “not to worry” about payment for excess flowable fill provided by the subcontractor. Based upon this representation, Carolina Conduit performed the additional work and then attempted to get MasTec to pay for that work. As you may predict, a dispute arose regarding this issue and Carolina Conduit sued for (among other expenses) the additional expense it incurred based upon the unforeseen need to provide excess flowable fill.
Originally posted 2014-09-23 10:59:49.
I bang the drum of early and frequent consultation with one of us construction attorneys on a regular basis here at Musings and in other places of the “blawgosphere.”
Why do I do this? Doesn’t such consultation help to avoid the problems that seem to make those of us in the construction law business happy? Aren’t all of us lawyers just out to complicate things and throw a monkey wrench into construction projects? In short, why would I constantly advise on ways to avoid exactly the construction litigation that you would think would make me the most money?
Continue reading Early Action on Your Construction Contract is Key
