Tricia Block, Jeffrey Kirzner, Michael McCauley, Daniel McMillan, Matthew Silveira and Carolyn Woodson | Jones Day In Brief The Situation: Beginning with contracts executed on or after January 1, 2026, two new California laws take effect: California Civil Code sections 8850 and 8811. Section 8850 has particularly significant ramifications for construction contracts on most private construction… Continue reading California Mandates Important New Rules for Private Construction Projects
Tag: Construction Contract
Understanding the Ostensible Subcontractor Rule: Avoiding Hidden Affiliation Risks in Small Business Contracting
Aron C. Beezley and Gabrielle A. Sprio | BuildSmart The Small Business Administration’s (SBA) ostensible subcontractor rule remains one of the most consequential — and misunderstood — affiliation principles in federal procurement. For small businesses pursuing set-aside contracts, failing to navigate this rule properly can result in bid protests, loss of eligibility, and even contract… Continue reading Understanding the Ostensible Subcontractor Rule: Avoiding Hidden Affiliation Risks in Small Business Contracting
Contract Formation 101: General Contractor Prevails in Dispute with Framing Subcontractor
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
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
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