John Mark Goodman | BuildSmart A contract is an exchange of promises that a court will enforce. In the fast-paced world of construction, disputes often arise over whether the parties actually formed a legally enforceable contract. The general rule is that to form a contract the parties must reach a meeting of the minds on the… Continue reading Contract Formation 101: General Contractor Prevails in Dispute with Framing Subcontractor
Category: Construction Contracts
New 5% Retention Cap for California Private Projects: Key Impacts for Contracting Parties
Allison B. Etkin | Akerman Effective January 1, 2026, California will implement significant changes to private construction payment practices. Joining nine other states, Senate Bill 61, signed by Governor Gavin Newsom on July 14, 2025, amends California’s Prompt Payment Statute to establish a mandatory 5% cap on retention for private construction contracts. Until now, California law… Continue reading New 5% Retention Cap for California Private Projects: Key Impacts for Contracting Parties
You Agreed to Arbitrate, but the Other Side Refuses, What Now?
Jonna Summers | Porter Hedges A growing number of construction contracts now contain arbitration clauses. Yet, even with an arbitration clause, you may still find yourself before the court because your counterparty refuses to arbitrate. You have options. You can insist on your right to arbitrate by filing a motion to compel arbitration. Both the… Continue reading You Agreed to Arbitrate, but the Other Side Refuses, What Now?
Legal Insight: Key Rulings on Construction Delays and Liquidated Damages
Construction Claims & Project Management Overview Three recent rulings from state and federal courts have clarified the enforceability and limitations of delay-related contract provisions in construction projects, particularly concerning no-damages-for-delay clauses, concurrent delay, and the recovery of liquidated damages. These cases highlight how courts balance contractual risk allocation with the facts surrounding delay and project… Continue reading Legal Insight: Key Rulings on Construction Delays and Liquidated Damages
Is Your Subcontractor an Independent Contractor or an Employee? The Answer May Not Be as Simple as You Think
John Mark Goodman and Anne R. Yuengert | BuildSmart Most construction contracts include a provision stating that the contractor or subcontractor is an independent contractor and not an employee of the owner or contractor. That should settle the matter, right? Wrong. Depending on the context and jurisdiction, such contractual provisions may mean little or nothing at all. Check… Continue reading Is Your Subcontractor an Independent Contractor or an Employee? The Answer May Not Be as Simple as You Think