Patrick McKnight | Dispute Resolver Recent reforms to certain state retainage laws have reduced the lawful amount of withholding permitted on construction projects. In theory, retainage allows an owner to mitigate the risk of incomplete or defective work by withholding a certain portion of payment until the construction project is substantially complete. Recent statutory developments… Continue reading Recent Statutory Changes Cap Retainage on Applicable Construction Projects
Tag: construction defects
“Catastrophic” Construction?: The Government’s Continued Payment Defeats Materiality
Tirzah S. Lollar, Megan Pieper and Eliza Buergenthal | Arnold & Porter This January, the Eastern District of Pennsylvania rejected a subcontractor’s doomsday allegations that a general contractor had submitted false claims for defective construction work on a project to build a new school on the Marine Corps Base in Quantico, Virginia. In Chowns Group LLC… Continue reading “Catastrophic” Construction?: The Government’s Continued Payment Defeats Materiality
Illinois Supreme Court Finds Construction Defect Claim Triggers Initial Grant of Coverage
Tred R. Eyerly | Insurance Law Hawaii The Illinois Supreme Court found that the underlying allegations addressing construction defects were sufficient to establish “property damage” caused by an “occurrence.”Acuity v. M/I Homes of Chicago, LLC, 2023 Ill. LEXIS 1019 (Ill. Nov. 30, 2023). M/I Homes was the general contractor for a… Continue reading Illinois Supreme Court Finds Construction Defect Claim Triggers Initial Grant of Coverage
LEG 3 – Has America sneezed?
Jonathan Bruce | HFW We have recently seen a further eyebrow raising decision on LEG 3 (a defects exclusion/write back) under a Construction All Risks (“CAR”) policy coming out of the US, the second in only three months. These will attract some attention for insurance market participants in other jurisdictions because of the dearth of… Continue reading LEG 3 – Has America sneezed?
If a Defect Occurs During Construction, Is It an “Occurrence?”
Brendan J. Witry | The Dispute Resolver Establishing insurance coverage for construction defects is almost as important as establishing liability in the underlying construction defect litigation itself. The risk to the defendant contractor of defending a construction claim can place significant burdens on a contractor’s operations and an uninsured judgment might even put the contractor… Continue reading If a Defect Occurs During Construction, Is It an “Occurrence?”