Contracts and Claims
Timely articles covering the most pressing issues facing construction firms in the Midwest


 

Los Angeles Jury Returns Defense Verdict in Mold Bodily Injury Case
Court Rejects Claims Homeowner Injured From Exposure to Mold
Following a six week trial, a Los Angeles jury returned a defense verdict in a closely watched case involving claims of bodily injury from exposure to mold in a single family residence located in West Covina, California.

CONCRETE SUPPLIER PREVAILS ON LIEN

In a unique Missouri Court of Appeals decision, a concrete supplier was able to enforce its lien against a project in accordance with R.S.Mo. §§ 429.010-429.340, even though virtually none of the materials it supplied were incorporated into the final structure.

Breaking the Mold: Are These Lawsuits Really Necessary?
J. Nick Badgerow and Kelly A. Campbell - Spencer Fane Britt & Browne LLP
Newspapers, television news, and web news reports have all included stories on “mold” in houses and other buildings. Owners sue builders for damages resulting from the alleged infiltration of water or moisture into the building, and for the resulting damages. . .

Who Bears the Risk of Owner Non-Payment? Pay when Paid vs. Pay if Paid.
Philip W. Goodin and Joshua C. Dickinson - Spencer Fane Britt & Browne LLP
In every construction contract, the general contractor and its subcontractors must allocate the risk that the owner of the project either cannot, or will not, pay for work performed. The allocation of the risk can have a significant impact on the profitability of the project for all parties, and can lead to protracted litigation.

CONTRACTING CONSIDERATIONS: Some things to consider when entering into a construction contract
J. Nick Badgerow
Risk allocation is a fundamental consideration in contracts. As a general proposition, the parties to construction contracts will seek to include provisions that limit and distribute their respective risks, duties, responsibilities and liabilities. Such provisions can be unreasonable in their attempts to shift responsibilities from one party to another, and should, therefore, be scrutinized. . .

Impact of Approval of Shop Drawings on Contractual Obligations
 Philip W. Goodin and Joshua C. Dickinson
The use of shop drawings in the construction industry is commonplace where both the architect and the general contractor approve the shop drawings as submitted by the subcontractor. In fact, the legal effect of an architect or contractor’s “acceptance” of a particular set of shop drawings has been litigated in several jurisdictions with varying results.

Limiting Warranties: Not a Simple Matter
Most builders probably would say they have a good idea of how long a “one-year warranty” of their work lasts: 365 days after the date they completed their portion of the work, right? When it comes to warranties, however, things rarely are as simple as they seem. To take advantage of its rights under the warranty provided by the subcontractor, is the construction owner required

Getting Adjustments When Material Prices Increase Requires Planning
When prices of construction materials fluctuate wildly as they did with steel in 2004, a question naturally arises in specialty contractors’ minds: Are we entitled to get any price adjustment to our fixed-price contracts if major material prices go up too much? The unsatisfying answer to this question is: It depends.

Divorce, Construction-Style
How and Why an Owner May Terminate a Contract
A construction contract is much like a marriage. You and an owner exchange legal vows to build something worthwhile, and the process can seem as exciting as it does uncertain. Then again, unlike a marriage, parties to a construction contract usually intend to part long before their respective deaths.

Litigation – Some Practical Tips for Winning
Mike Saunders
Despite your best intentions, at some point or another you may find yourself involved in a lawsuit. Whether you are in court to enforce a contract, collect a debt, or defend yourself from a construction defect or employee discrimination. . .

Business entities – filings with the state
by Richard A. Chapo
Nearly all small businesses should form entities to limit their exposure to civil liability. In forming an entity, certain documents have to be filed with the state in question. State law instead of federal law governs business entities. When forming an entity, you should look to the secretary of state for your jurisdiction to find out the filing requirements.

Four ways to work out business disputes
by Giuseppe Leone
Business owners have four options to resolve disputes with partners, vendors or customers: direct negotiation, mediation, arbitration, and litigation. Each option is based on different assumptions, and entails a different cost. Therefore, it pays to understand them better.

How to handle no-show joint venture partners
by Habiba Abubakar
“No-show” is the polite term for joint venture partners who make empty promises. They are the all-talk-and-no-action types who initially seem to have all the enthusiasm in the world. Then suddenly … they don’t reply to your emails, they don’t return your phone calls. So what do you do?

How businesses can win major contracts using Internet collaboration networks
by Ken Thompson
Small businesses previously excluded from the global economy have discovered a new way for them to succeed in the “global economy.” They are joining “Virtual Enterprise Networks” with other like-minded but complementary businesses to market, sell and deliver collective offers to the market beyond what the individual companies could offer by themselves.

Government buying and selling on the Internet
by Christina DeMers
If you are a company looking to efficiently market your goods or services, increase sales and receive targeted sales opportunities, or if you are a government agency looking to simplify your procurement process and increase vendor competition, there exist plenty of opportunities in today’s online procurement marketplace.