Maria J. Giardina – July 19, 2012 California Senate Bill 474 prohibits a contract provision requiring a subcontractor to indemnify a general contractor, construction manager, or other subcontractor for claims arising out of their “active negligence.” This bill, which becomes effective January 2013, represents a major legislative victory for subcontractors and establishes other important protections… Continue reading New Indemnity Law Protects Subcontractors
Category: Construction Contracts
What is a “Pay if Paid” Contract Clause and Can it Apply to a Construction Subcontractor?
Construction Law Info Blog – July 10, 2012 What constitutes a “pay-if-paid” construction contract clause? The United States Court of Appeals for the Third Circuit recently addressed this question in Sloan v. Liberty Mutual Insurance Company, 653 F.3d 175 (3d Cir. 2011). That case involved a waterfront condominium in Philadelphia. Isla of Capri Associates LP,… Continue reading What is a “Pay if Paid” Contract Clause and Can it Apply to a Construction Subcontractor?
Leapfrogging Privity – Preserving Owner-Direct Claims Against Subs
Stewart O. Peay and Mark O. Morris – June 28, 2012 Utah law requires that owners’ claims against general contractors and design professionals with whom the owner has direct contracts (collectively referred to hereafter as “generals”) and their respective subcontractors and subconsultants (collectively referred to hereafter as “subs”) for construction and design defects be based… Continue reading Leapfrogging Privity – Preserving Owner-Direct Claims Against Subs
Warranty Disclaimers: Jones v. Centex Homes
May 31, 2012 The Ohio Supreme Court recently issued a very important ruling for home builders and contractors throughout Ohio. Centex Homes, a residential home builder, in its contract with its buyers attempted to disclaim all construction warranties and limit the buyers to certain specific written warranties. Jones and other claimants, however, brought claims for… Continue reading Warranty Disclaimers: Jones v. Centex Homes
Contractors Insurance Used As One Of The Basis To Avoid Scam
Authorities warn construction firms about their business practices as well as companies and homeowners about getting involved in contractor scams. There have been several reports within the United States about incidences of misrepresentation where unknown contractors would approach clients as sent by insurance companies. Once hired to work on the property, they are said to… Continue reading Contractors Insurance Used As One Of The Basis To Avoid Scam