John Brucker, Scott Greer and Gregg Jacobson | King & Spalding California has enacted Senate Bill 61 (“SB-61”), a significant piece of legislation that directly impacts owners and developers of private construction projects in the state. Signed into law on July 24, 2025, SB-61 establishes a mandatory cap on retention payments for most private construction… Continue reading New California Law Caps Retention for Private Construction Projects
Category: Construction Contracts
How to Prepare for 5% Retention in California Construction Contracts
David Norton | Allen Matkins With Governor Newsom’s signature to Senate Bill No. 61 on July 14, 2025, California joined a growing number of states that have passed legislation to cap the amount of retention that owners, contractors, and subcontractors can withhold on private construction projects. Although retention for public projects has long been limited… Continue reading How to Prepare for 5% Retention in California Construction Contracts
Direct vs. Consequential: Why Precise Contract Language Matters
Danny Cerrone, Jr. and Andrew Giel | Clark Hill When entering into a construction contract, it is important to understand and account for the differences between direct damages and consequential damages, as these differences can determine what damages may be recoverable. Direct damages, sometimes referred to as general or proximate damages, follow from the type… Continue reading Direct vs. Consequential: Why Precise Contract Language Matters
Consequential Damages: Are They Foreseeable?
Jeffrey Haber | Freiberger Haber In BLDG 44 Developers LLC v. Pace Companies N.Y., LLC, 2025 N.Y. Slip Op 32881(U) (Sup. Ct., N.Y. County July 25, 2025) (here), BLDG 44 Developers LLC sued Pace Companies New York, LLC for breach of contract, seeking approximately $16 million in consequential damages related to delays in a construction project… Continue reading Consequential Damages: Are They Foreseeable?
Subcontracts and Multiparty Arbitration in Construction Disputes
Stavros Brekoulakis and Ahmed El Far | Global Arbitration Review Major construction projects typically involve several parties and interrelated contracts, including subcontracts. Although the provisions of the main contract between the employer and the contractor do not usually become a part of the subcontractor’s agreement, a dispute arising out of the main contract may give… Continue reading Subcontracts and Multiparty Arbitration in Construction Disputes