5 Feb, 2020

Surety Hires Terminated Contractor to Finish Project

2020-02-03T09:20:54-06:00February 5th, 2020|Construction Contractor Advisor, Construction Defect, Construction Surety|

Imagine a situation where the property owner finds significant problems with its contractor’s work and decides to fire the contractor.  The property owner promptly informs the surety seeking a replacement contractor to finish the project.  The surety investigates the situation and decides to hire the terminated contractor to finish the project.  Sounds a bit odd, and certainly disappointing to the owner, but this can happen and did happen in a [...]

1 Aug, 2019

Waiving Goodbye to Liquidated Damages

2019-08-01T09:37:40-05:00August 1st, 2019|Construction Contractor Advisor, Construction Contracts, Liquidated Damages, Nebraska Construction|

Construction contracts often contain liquidated damage provisions, requiring a contractor to pay a set amount for each day the project is delayed.  But, as the Nebraska Supreme Court recently ruled, in U.S. Pipeline v Northern Natural Gas, an owner can waive liquidated damages where its actions induce the belief that the owner intended to waive liquidated damages. In this case, the parties agreed that the work would be done in [...]

9 Jul, 2019

Construction Project Problems–Who has to Pay for It?

2019-07-01T08:51:00-05:00July 9th, 2019|Construction Claims, Construction Contractor Advisor, Construction Contracts|

I often harp on the importance of having an experienced construction attorney review your construction contracts.  A recent situation at Dartmouth College emphasized the importance of anticipating the unexpected when reviewing your construction contracts. Dartmouth is building a new $200 million engineering school, with a 340 vehicle underground parking garage. The first step was to dig a 70-foot-deep hole for the 160,000 square foot building.  The problem is that the [...]

8 Mar, 2013

HOW TO PROPERLY INSURE A CONSTRUCTION PROJECT

2018-04-23T20:59:45-05:00March 8th, 2013|Additional insured coverage, Construction liability, Construction subrogation, Indemnity clauses, Insurance contract, Midwest Insurance Law Guide|

  Here are three simple rules for obtaining indemnity and insurance on a construction project if you are the owner or the General Contractor. #1.  Make all subcontractors add you as an additional insured on their CGL policies by endorsement.  Insist upon the ISO 1985 version, which would cover you for losses incurred even if it is your fault.  This is the broadest form available. #2.  Draft a contract with the subs that contains two separate clauses:  one [...]

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