Subcontractors May Be Exposed to the Risk of Nonpayment Due to a Contingent Payment Clause Even If There is a Payment Bond In Place
10/28/2016 | Articles & Alerts
Subcontractors are often in the difficult position of having to decide whether to enter into subcontracts containing “contingent payment” clauses, specifying that the subcontractor is not entitled to payment until the general contractor has been paid by the project owner. When properly crafted, contingent payment clauses serve to shift the risk of an owner’s nonpayment away from the general contractor and on to the subcontractor–a risk that many subcontractors are not suited to bear. Often, a subcontractor is not in […]
SNATCHING DEFEAT FROM THE JAWS OF VICTORY: Common Insurance Pitfalls for Construction Contractors by Joshua C. Quinter, Esq.
10/28/2016 | Articles & Alerts
As a construction lawyer, I deal with insurance issues for my clients regularly. While I recognize that insurance policies are dry, boring, and difficult to read for most people, they are critical to protecting assets and the business as a whole. Obtaining adequate coverage and properly understanding your policy can be the difference between survival and losing it all over a claim. Contractors should take more time and care to evaluate the company’s insurance needs and current coverages than they […]
Pennsylvania Court Expands Lien Rights For Excavation Work
10/28/2016 | Articles & Alerts
Until very recently, contractors performing excavation and site preparation work did not have the right to file a mechanic’s lien in Pennsylvania unless a building or other improvement was actually constructed at the site. That hard and fast rule abruptly changed on May 17, 2013 in a decision by the Pennsylvania Superior Court in B.N. Excavating, Inc. v PBC Hollow-A, L.P., et. al. Based on this decision, contractors now have the right to file mechanic’s liens in Pennsylvania based on […]
Indalex Sends a Message to Construction Insurers
10/28/2016 | Articles & Alerts
The Superior Court’s recent decision in Indalex v. National Union Fire Insurance Co. of Pittsburgh, 83 A.3d 418, 2013 Pa.Super. 311, diverged significantly from the expected result given recent trends in the case law. With its decision to reverse the trial court, the Superior Court provided a workaround to expand coverage with the right facts and strategic planning.
For Relief From Liability Claims, First Look to the Statute of Repose
10/28/2016 | Articles & Alerts
In today’s litigious environment, it is not unusual for claims to be asserted for bodily injury or property damage in connection with building construction completed years earlier. Claimants can assert that concealed construction deficiencies, or latent design defects caused a condition which led to an injury to a person or to property. Such claims can be serious depending on the nature of the injury alleged. For example, suits brought on behalf of homeowners’ associations against developers, designers, and contractors can […]
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