David Adelstein | Florida Construction Legal Updates A general contractor’s subcontract with its subcontractor should include a provision that entitles it to flow down liquidated damages assessed by the owner stemming from delays caused by the subcontractor. Such a provision does not mean the general contractor does not have to prove delays caused by the subcontractor or can arbitrarily… Continue reading Subcontract Should Flow Down Delay Caused by Subcontractors
Month: January 2021
California Precludes Surety From Asserting Pay-When-Paid Provision As Defense To Payment Bond Claim
Nicholas Korst | Ahlers Cressman & Sleight In a recent case in California, the Court of Appeals held that a surety who had issued a public works payment bond cannot rely on the “Pay-When-Paid” provision in the subcontract as a defense against the subcontractor’s claim against the payment bond.[1] The case was a public works… Continue reading California Precludes Surety From Asserting Pay-When-Paid Provision As Defense To Payment Bond Claim
Business Risk Exclusions Bar Faulty Workmanship Claim
Tred R. Eyerly | Insurance Law Hawaii The manufacturer of roofing and waterproofing systems was unsuccessful in securing coverage for alleged faulty workmanship due to the “your work” and “your product” exclusions. Siplast, Inc. v. Emplrs Mut. Cas. Co., 2020 U.S. Dist. LEXIS 176539 (N.D. Texas Sept. 25, 2020). Siplast was… Continue reading Business Risk Exclusions Bar Faulty Workmanship Claim
Do Not Lose Your Mechanics Lien Right Through a Subordination Agreement
William L. Porter | Porter Law Group If you are a member of the California construction industry you might know that the right of a contractor, subcontractor or supplier to record a mechanics lien to protect the right to payment is well protected by state law. In fact, our California Constitution, article XIV, Sec. 3 specifically elevates… Continue reading Do Not Lose Your Mechanics Lien Right Through a Subordination Agreement