Construction Law Archives - Lamson Dugan & Murray LLP

5 Mar, 2024

Not So Guaranteed: Can Small Losses Render a Sizable Liquidated Damages Provision Unenforceable?

Andrew Wilkinson2024-03-05T13:35:01-06:00March 5th, 2024|Construction Contractor Advisor, Construction Contracts, Latest News|

A “Liquidated Damages” provision should be a key part of your playbook when entering a construction contract. These damages typically apply when a party misses a performance deadline. The value of damages is usually expressed in a certain amount of dollars per day. Liquidated Damages are intended to avoid the difficult task of figuring out the economic impact of delayed performance. In many cases, an accurate estimation is quite difficult [...]

24 Jan, 2024

Wages for Federal Construction Projects: New Requirements Under Davis-Bacon Act and Executive Order 14026

Callie Kanthack2024-01-24T14:09:46-06:00January 24th, 2024|Construction Contractor Advisor, Davis Bacon Act, Federal Construction Projects|

How much are you paying your employees? Wages for federally-funded construction projects have increased under the Davis-Bacon and Related Acts and Executive Order 14026. The Davis-Bacon and Related Acts (“DBRA”) applies to contractors and subcontractors performing work on federally-funded or assisting with contracts in excess of $2,000.00 for the construction, alteration, or repair of public buildings or public works. The DBRA requires federal contractors and their subcontractors to pay employees [...]

2 Jan, 2024

Your Contract Terms Should Not Be “Standard”

Andrew Wilkinson2024-01-02T11:30:04-06:00January 2nd, 2024|Construction Contractor Advisor, Construction Contracts, Nebraska Construction|

Many clients come through our doors because a project has gone wrong due to obligations they unknowingly take on after signing “industry standard” contracts. Standard industry contracts make for good starting points, but careful contractors will want to move beyond, or at least study, the “typical” terms in a contract to maximize the opportunities for success on a project, including being paid for the work you complete. Form Contracts Favor [...]

8 Dec, 2023

Open Communication and Good Contracts Keep the Peace

Craig Martin2023-12-08T11:11:12-06:00December 8th, 2023|Construction Contractor Advisor, Construction Contracts|

It is a common occurrence for a home construction project to encounter delays, whether due to a change in project scope, weather conditions, delayed building materials, or a labor shortage. These delays can cause problems which can be avoided with a simple concept: open communication and clear provisions in a construction agreement. Oftentimes, an issue arises early in the building process that, if identified and communicated early, could have been [...]

6 Jul, 2022

Working on Federal Projects—Beware of the Sovereign Acts Doctrine

Craig Martin2022-07-05T17:29:34-05:00July 6th, 2022|Construction Contractor Advisor, Federal Construction Projects|

Contractors working on federal projects continue to face losses caused by COVID. Recovering these losses is proving difficult and the Sovereign Acts Doctrine may make it even more difficult. The Sovereign Acts Doctrine balances the government’s dual role in acting as a contractor and the sovereign. When the sovereign takes action which is in the public good, a breach of contract action will not stand against the sovereign. In order [...]

1 Jun, 2022

Do you have insurance coverage for that?

Craig Martin2022-05-31T10:17:54-05:00June 1st, 2022|Construction Contractor Advisor, Construction Insurance, Latest News|

Contractors are often surprised to learn that they do not have insurance coverage if the materials they provide fail. A recent case out of the 11th Circuit Court of Appeals (which oversees Alabama, Florida and Georgia), upheld the trial court’s ruling that a contractor’s insurer was not required to cover claims that the concrete it provided did not meet specifications. The controversy arose when Morgan Concrete (“Morgan”) agreed to supply [...]

15 Mar, 2022

How to Get Paid on Public Projects in Iowa and Nebraska: The Little Miller Act

Craig Martin2022-03-07T14:34:46-06:00March 15th, 2022|Construction Contractor Advisor, Iowa Miller Act, Little Miller Act, Nebraska Miller Act|

Congress enacted the Miller Act to provide protection to contractors furnishing labor and material on federal projects. Many states, including Nebraska and Iowa, have enacted “Little Miller Acts,” which provide that same protection on state and county public projects. These laws require general contractors on certain government jobs to carry a performance bond to protect the government against delays and incomplete work. Those covered are also required to carry payment [...]

23 Feb, 2022

Modifications and Release Agreements in Construction Contracts

Craig Martin2022-02-11T13:08:00-06:00February 23rd, 2022|Change Orders, Construction Contractor Advisor, Construction Contracts|

Construction contracts typically allow for modifications during the course of performance. Parties can agree to change the scope of work or price that was originally agreed to. For example, contractors can run into unexpected costs due to another’s negligence or delays. Material costs may go up and the contract price may become inadequate. Modifications allow for contractors to be fairly compensated for the increased costs that result through no fault [...]

25 Jan, 2022

COVID-19 and Force Majeure Clauses

Craig Martin2021-12-30T13:51:35-06:00January 25th, 2022|Construction Contractor Advisor, COVID-19, Force Majeure|

The resurgence of COVID-19 has increased the importance of force majeure clauses in construction contracts. Here are some things to consider for your force majeure clause. Effect of Force Majeure Clause Force majeure clauses seek to excuse the nonperformance of a party. A party is no longer obligated to perform when an event expressed in the force majeure clause occurs, and the event is the cause of the party’s inability [...]

11 Jan, 2022

What you need to know about Indemnification Clauses

Craig Martin2021-12-30T13:46:56-06:00January 11th, 2022|Construction Contractor Advisor, Construction Contracts, Indemnity clauses|

Construction projects are risky, and parties allocate risk to reduce their own liabilities. Indemnification clauses shift risk from one party to another, but they come in may shapes and sizes. Therefore, it is important to read yours carefully. Terminology and Effect of Indemnification An “indemnitor” promises to compensate an “indemnitee” for injury or loss that the indemnitee incurs. Subcontractors are typically indemnitors that promise to “indemnify” the general contractor for [...]

20 Dec, 2021

OSHA’s Vaccine Rule—Reinstated

Craig Martin2021-12-20T09:12:55-06:00December 20th, 2021|Construction Contractor Advisor, COVID Employment, COVID-19, OSHA|

The tug-of-war on vaccination continues. On December 17, 2021, a federal appellate court lifted the stay on OSHA’s emergency temporary standard requiring employers with 100 or more employees to ensure employees are vaccinated or are testing regularly. The appellate court’s decision was immediately appealed to the U.S. Supreme Court. What does this mean for employers? OSHA’s emergency temporary standard (ETS) requiring vaccinate or testing and masking is now in place, [...]

10 Dec, 2021

Federal Contractor COVID Vaccine Mandate Stayed

Craig Martin2021-12-09T08:23:59-06:00December 10th, 2021|Associated Builders and Contractors, Construction Contractor Advisor, COVID Construction|

On December 7, 2021, a federal judge in Georgia issued a nationwide injunction preventing the Biden administration’s Covid – 19 vaccine mandate for federal contractors from going into effect. The injunction will remain in place until the court reaches a final decision on the matter, which could take several months. In ruling in favor of the various states that filed the lawsuit, the court found that President Bidens’s Administration likely [...]

29 Sep, 2021

New Guidance on COVID-19 Vaccine Mandate for Federal Contractor

Craig Martin2021-09-29T15:23:40-05:00September 29th, 2021|Construction Contractor Advisor, COVID Construction, COVID-19, Vaccination|

The Federal Workforce Task Force, created by President Biden’s Executive Order on COVID Safety Protocols, released guidance on workplace safety protocols for federal contractors and subcontractor. The Guidance explains which contracts are covered, which employers are covered and the COVID-19 vaccination requirements for covered employees. Below are answers to common questions about the Guidance. When will the Vaccine Mandate start? Government agencies will begin implementing the new requirements during the [...]

28 Jul, 2021

Material Costs Continue to Rise—What’s a Contractor to do?

Craig Martin2021-07-24T09:08:33-05:00July 28th, 2021|Construction Contractor Advisor, Construction Contracts, Escalation Clause|

While COVID has made the past year wild and unpredictable, this summer could be even wilder with rapidly escalating material costs. Lumber prices have tripled, steel prices are through the roof and PVC has doubled. These increases can turn into real numbers on your projects and if you don’t have any protections in place, the project could turn ugly in a hurry. Now is the time to review your current [...]

12 May, 2021

Another Reason Not to Act As Your Own General Contractor

Craig Martin2021-05-24T14:14:56-05:00May 12th, 2021|Construction Contractor Advisor, Construction Contracts, Statute of Limitations|

The Nebraska Supreme Court recently issued an important opinion concerning the statute of limitations for a homeowners bringing claims against contractors. When an owner acts as his own builder or general contractor, he must file a lawsuit against a subcontractor within four years of the subcontractor completing its work, not within four years of completion of the total home or project. Add this to the list of reasons a homeowner [...]

28 Apr, 2021

Material Cost Increases—Are you ready?

Craig Martin2021-04-25T12:09:44-05:00April 28th, 2021|Construction Contractor Advisor, Construction Contracts, Escalation Clause|

Construction contractors are seeing material costs increase, particularly lumber, steel and fuel. As you review your contracts for 2021 and beyond, you may want to consider adding a price-escalation clause the protect against material cost increases. What is a price-escalation clause? In its simplest terms, a price-escalation clause allows contractors to recover material cost increases on a project. While triggering events for escalation clauses vary, the two most popular types [...]

7 Apr, 2021

Work Changes and Considerations

Craig Martin2021-04-08T07:25:42-05:00April 7th, 2021|Change Orders, Construction Contractor Advisor, Construction Contracts|

Changes on construction projects are inevitable, especially with the reality of projects during and after the COVID-19 pandemic. Due to this inevitability, owners should consider including contingency in the budget to deal with change orders. Accounting for legitimate changes quickly and obtaining an agreement that the payment fully resolves the issue can limit larger disputes down the road. Unresolved change orders often result in disputes that end up with legal [...]

24 Mar, 2021

Settling your claim? Make sure you get paid.

Craig Martin2021-03-23T08:20:10-05:00March 24th, 2021|Construction Claims, Construction Contractor Advisor|

Your work on the project is done, but your final payment is delayed. You then hear that the owner and general contractor are arguing about final payment. The owner contacts you directly to pay your final pay application. You sign the release and get your check. But, the check bounces. Now what? You may be out of luck. When entering into a settlement agreement on a construction project, you need [...]

3 Mar, 2021

Lien Waivers—Worth a Thorough Review

Craig Martin2021-02-27T08:28:10-06:00March 3rd, 2021|Construction Contractor Advisor, Construction Contracts, Lien Waiver, Nebraska Construction Law|

Throughout a project, and especially at the end, you are likely being asked to sign a lien waiver. Given the significant impact that these waivers may have on your opportunity to get paid, how closely are you reviewing lien waivers before you sign them? Here are some points to think about before your sign. Is the lien waiver conditional or unconditional? The concern here is whether the lien waiver goes [...]

10 Feb, 2021

Buy America—The Biden Administration’s Plan

Craig Martin2021-02-06T11:16:48-06:00February 10th, 2021|Buy America Act, Construction Contractor Advisor, FAR Council, Federal Construction Projects|

The Biden Administration issued another executive order, this one focusing on the application and enforcement of the Buy America Act. As the name indicates, the Buy America Act is intended to increase the amount of American goods used on and in government contracts. President Biden’s executive order focuses on enforcement and the administration of the Act. The most significant change created by the executive order is to create a Made [...]

3 Feb, 2021

President Biden Orders OSHA to Issue New COVID-19 Guidance

Craig Martin2021-01-30T09:38:10-06:00February 3rd, 2021|Construction Contractor Advisor, COVID Construction, COVID-19, OSHA|

President Biden recently issued an Executive Order (copy here) requiring OSHA to issue “science-based guidance” to help keep workers safe from COVID-19 exposure. The Executive Order does not create immediate changes, but calls for quick action by OSHA to update its guidance. The Executive Order requires OSHA to: issue, within two weeks, revised guidance to employers on workplace safety during the COVID-19 pandemic; consider whether any emergency temporary standards on [...]

27 Jan, 2021

How to Deal with the Dreaded Pay-if-Paid Clauses

Craig Martin2021-01-26T11:22:56-06:00January 27th, 2021|Construction Contractor Advisor, Construction Contracts, Nebraska Construction Law, Pay-if-Paid|

It seems that more and more general contractors are using pay-if-paid clauses in their construction contracts. Pay-if-paid clauses are some of the most controversial and heavily negotiated clause in construction contracts. This article will explain what pay-if-paid clause is and provides some guidance on how to negotiate around these difficult clauses. A pay-if-paid clause, if properly drafted, pushes the risk of non-payment from the general contractor to you. The clause [...]

20 Jan, 2021

I’m Not Getting Paid. Can I Terminate the Contract?

Craig Martin2021-01-21T08:58:20-06:00January 20th, 2021|AIA Contracts, Breach of Contract, Construction Contractor Advisor, Construction Contracts, Nebraska Construction, Nebraska Construction Law|

I’d like to say that the answer is clearly yes, but that’s rarely the case with construction contracts. Ultimately, it will come down to the facts of your situation and whether the construction contract specifically allows you to pull off the job. Not Getting Paid Not getting paid is probably the most popular reason contractors terminate a construction contract. The difficulty arises when we look closely at the circumstances leading [...]

13 Jan, 2021

Construction Contracts–The Scope of the Work

Craig Martin2021-01-13T14:22:41-06:00January 13th, 2021|Construction Contractor Advisor, Construction Contracts, Nebraska Construction Law, Scope of Work|

Construction contracts can take on many shapes and sizes and there are several important provisions that you should review. But, the most important, in my mind, is the scope of work to be provided. Preventing Costly Overruns Ideally, the scope of work will detail, and limit, the work that is to be provided for the money that the owner is obligated to pay. We recommend that the scope of work [...]

12 Nov, 2020

So You’ve Got A Construction Lien, Now What?

Craig Martin2020-11-12T10:30:43-06:00November 12th, 2020|Construction Contractor Advisor, Construction Lien, Nebraska Construction Law|

Contractors sometime believe that once the lien is filed, they are home free for getting paid. Unfortunately, that is often not the case. There are always concerns about whether the owner has sufficient funds to pay the contractor and subcontractors. Obviously, that is why the lien was filed. There are also concerns about whether there is any equity in the property to satisfy the liens. But, even if you file [...]

4 Nov, 2020

Arbitration versus Litigation

Craig Martin2020-10-31T11:08:55-05:00November 4th, 2020|Arbitration, Construction Contractor Advisor, Construction Contracts, Nebraska Construction Law|

Construction contracts often contain an arbitration or litigation provision. While each forum has its advantages, a question often times overlooked is whether an arbitration provision is enforceable. Litigation is the Default Litigation is the default method of dispute resolution. This is not to say that litigation is the best way to resolve a case. But unless the contract contains an enforceable arbitration agreement, the parties will have to take their [...]

28 Oct, 2020

Be Careful Negotiating a “Paid-in-Full” Check

Craig Martin2020-10-23T13:53:29-05:00October 28th, 2020|Accord and Satisfaction|

You’ve probably heard a story about a business owner that cashed a “paid-in-full” check and waived the rest of her claim. But, can this really happen? A recent case out of Mississippi reminds us that it can. In this case, a contractor was hired to build a municipal water system. Disputes arose and the contractor threatened to file suit. The municipality then issued a check to the contractor marked “Paid [...]

22 Oct, 2020

Signing Lien Waiver and Releases—Think Twice

Craig Martin2020-10-18T11:50:03-05:00October 22nd, 2020|Lien Releases, Pay Application, Waivers|

Subcontractors are asked to sign lien waivers and releases nearly every time they submit a pay application. But, it may be worth your time to review the language and identify unpaid work before you submit the waiver. A recent case out of North Carolina drives home this point. Gamewell Mech, LLC v. Lend Lease (US) Construction, Inc. involved a breach of construction contract between the subcontractor and general contractor. The [...]

30 Sep, 2020

Change Order Best Practices—Document the Request

Craig Martin2020-09-26T11:29:24-05:00September 30th, 2020|Change Orders, Construction Contractor Advisor, Construction Contracts|

You know the situation, the project manager or superintendent just cornered you on the job site and told you that he needs some extra work. But, what you do next may very well make the difference on whether you get paid for that extra work. Document the Conversation The first thing you should do is confirm the conversation in an e-mail to the project superintendent or whomever is your point [...]

23 Sep, 2020

Should you Update your Construction Contracts after COVID?

Craig Martin2020-09-12T11:50:59-05:00September 23rd, 2020|Construction Contractor Advisor, Construction Contracts, Construction Law, COVID Construction|

There are few, if any, construction projects that were not impacted by COVID-19. Now that we have all dealt with these impacts, it’s time to look ahead and determine if your construction contracts should be updated to address these impacts. Below are some provisions that you should review to address future COVID type situations. Notice Provisions Delivery of notices is a critical obligation under construction contracts. But, what if the [...]

16 Sep, 2020

Damages for Delays and Disruptions on the Project—How do you recover them?

Craig Martin2020-09-12T11:20:37-05:00September 16th, 2020|Construction Contractor Advisor, Construction Damages, Construction Delays, Delay Damages|

Construction projects around the country are experiencing delays. These delays can lead to extended general conditions, idle labor and equipment costs, material cost escalation, and de-mobilization and re-mobilization costs. But, how do you recover those damages? Notice The first step to recovering delay damages is to provide notice. But, your notice has to be timely and it has to follow the requirements of the contract. So, review the contract and [...]

9 Sep, 2020

How Not to Use a PPP Loan!!

Craig Martin2020-09-02T07:28:13-05:00September 9th, 2020|Construction Contractor Advisor, Construction Law, Fraud|

The U.S. Attorney for Minnesota recently indicted a contractor for defrauding the Paycheck Protection Program ("PPP"). Given the broad uses of PPP loans, this contractor went pretty far out of bounds to get himself indicted. The U.S. Attorney’s press release explained the underlying allegations. Strike One: The contractor applied for a PPP loan well after his construction company had stopped operation. Strike Two: The contractor submitted false employee and expense [...]

3 Sep, 2020

What Does it Mean to Incorporate the Prime Contract?

Craig Martin2020-09-02T07:23:53-05:00September 3rd, 2020|Construction Contractor Advisor, Construction Contracts, Nebraska Construction Law|

How often have you read that the terms of the prime contract are incorporated into the subcontract? If you read your subcontracts, you’ve probably seen that language in every contract over the last 10 years. But, what does that mean? It means you are bound by the terms of the prime contract, even if you haven’t seen it. Contract Language Most construction subcontracts incorporate the prime or upstream contact. A [...]

26 Aug, 2020

The Economics of Litigation Must Make Sense

Craig Martin2020-08-22T09:11:28-05:00August 26th, 2020|Construction Contractor Advisor, Construction Litigation, Nebraska Construction Law|

Much as the economics of a construction project must make sense, the same is true when you are considering litigation. The costs associated with litigation must be considered in light of the potential recovery. A recent decision from the Nebraska Court of Appeals drove this point home. The case, Scheichinger v Swain Construction, involved the sale of a skid loader and a claim that Swain Construction misrepresented the number of [...]

17 Jun, 2020

Shoddy Construction Work – Is it covered by your CGL?

Craig Martin2020-06-13T10:31:54-05:00June 17th, 2020|Commercial General Liability (CGL), Construction Contractor Advisor|

A recent 8th Circuit Court of Appeals case, applying Missouri law, reminds us that shoddy workmanship may not be covered by your commercial general liability insurance. This also means that if an owner claims your faulty workmanship caused problems on the project, you may have to pay those damages out of your own pocket, not the insurers. In this case, American Family Mutual Insurance Co., S.I. v. Mid-American Grain Distributors, [...]

10 Jun, 2020

Liquidated Damages—They Must have a Reasonable Basis

Craig Martin2020-06-06T09:35:00-05:00June 10th, 2020|Construction Contractor Advisor, Liquidated Damages, Nebraska Construction Law|

A recent case out of Pennsylvania refused to allow an owner to assess liquidated damages for project delay. This case serves as a reminder that if you are including liquidated damages in your construction contract, there must be some reasonable basis for the amount of liquidated damages. In this case, D.A. Nolt v. The Phila. Mun. Auth., the City of Philadelphia sought to enforce a $10,000 per day liquidated damages [...]

3 Jun, 2020

Indemnity Obligations in the Age of COVID-19

Craig Martin2020-05-30T10:12:42-05:00June 3rd, 2020|Construction Contractor Advisor, COVID-19, Indemnity clauses, Nebraska Construction Law|

COVID-19 has created chaos in the construction world. One of the biggest problems is staffing projects to meet deadlines on the project. But, what if your company is hit with a COVID-19 outbreak and you cannot staff the job? Have you already agreed to indemnify the upstream contractor or owner for any damages stemming from a COVID-19 outbreak? We recommend reviewing your indemnity obligations to determine your risk and the [...]

12 May, 2020

New I-9 Forms—Are you using them? You should be.

Craig Martin2020-05-09T08:17:46-05:00May 12th, 2020|Construction Contractor Advisor, Form I-9, I-9 Audit|

With everything else going on this Spring, employers may have forgotten that they need to start using the new Form I-9. You can find a copy of the new Form I-9 here. This new form, which was published in January, 2020, went into effect on May 1, 2020 and employers should not use the older versions from this point on. Below are some answers to questions we’ve been receiving about [...]

22 Apr, 2020

Construction—The Top Industry Receiving PPP Loans

Craig Martin2020-04-18T08:17:40-05:00April 22nd, 2020|Construction Contractor Advisor, Construction Industry, Nebraska Construction|

As you have likely heard, the Paycheck Protection Program (PPP) funds have run out. While Congress battles about how to add more funds to the PPP, the Small Business Administration has released the specifics about the number of businesses that received loans, the industries and locations. In a nutshell, the SBA approved 1,661,367 loans from 4,975 lenders. The average size of the loans was $206,000 and about 75% were for [...]

15 Apr, 2020

Construction Work—Is it an Essential Activity in your Jurisdiction?

Craig Martin2020-04-11T08:15:10-05:00April 15th, 2020|Construction Activity, Construction Contractor Advisor, Construction Economy, COVID Construction, COVID-19|

Shelter in place orders abound throughout the country, yet construction continues to march on. As we continue to deal with the impact of COVID-19, it’s important that you know whether your construction work is considered essential. Your local government, state, county and city, may have established guidelines which will impact your operations. For example, Nebraska has “requested” that everyone stay at home and social distance at work. Construction projects are [...]

31 Mar, 2020

Construction Contractors and the CARES Act

Craig Martin2020-03-28T10:19:33-05:00March 31st, 2020|Construction Contractor Advisor, Construction Law, COVID Construction|

The Coronavirus Aid, Relief, and Economic Security (CARES) Act was just passed and it contains a number of provisions that will benefit the construction industry, including, the Paycheck Protection Program, unemployment, and delayed payroll taxes. Below are a few of the highlights. Paycheck Protection Program This is a low interest loan program for small businesses that were operational since February 15, 2020 and had employees to whom it paid wages. [...]

25 Mar, 2020

Is it Time to Send your COVID-19 Notice? YES

Craig Martin2020-03-27T14:15:50-05:00March 25th, 2020|Construction Claims, Construction Contractor Advisor, Construction Delays, COVID Construction, COVID-19|

COVID-19 is hampering all aspects of our lives, and the construction industry is no exception. As you continue to assess your construction projects, don’t forget that you likely have notice obligations to upstream contractors or the owner to let them know of potential delay and cost increase claims. Review Your Contract Your contract probably requires you to provide notice of delays to upstream contractors or the owner. And, it likely [...]

18 Mar, 2020

Is the Coronavirus Infecting Your Construction Schedule?

Craig Martin2020-03-27T14:16:40-05:00March 18th, 2020|Construction Claims, Construction Contractor Advisor, Construction Contracts, Construction Damages, Construction Delays, COVID Construction, COVID-19, Delay Damages|

We are all feeling the impact of the Corona virus, either because we or someone we know has been exposed or it is causing changes to our schedules. Have you given any thought about how the schedule on your project will be impacted? This could come in the way of a reduced labor force or scarcity of building materials. Perhaps it’s time to look at your contract to see how [...]

11 Mar, 2020

A Very Bad Day Indeed

Craig Martin2020-03-04T07:53:57-06:00March 11th, 2020|Construction Contractor Advisor, Construction Damages, Construction Defect, Nebraska Construction Law|

As a construction attorney, I am often tasked with confronting architects and engineers on the decisions they made in planning or monitoring construction projects. The vast majority of times, the architect or engineer is well versed in the underlying regulations and codes on which he or she based their decisions. But sometimes, the architect or engineer admits to having no knowledge of the underlying codes and to having no previous [...]

30 Jan, 2020

Construction Contract Basics—Schedule

Craig Martin2020-01-29T09:32:51-06:00January 30th, 2020|Construction Contractor Advisor, Construction Contracts, Nebraska Construction Law|

Last week’s post on the Las Vegas Raiders’ stadium got me thinking about scheduling language in construction contracts. Scheduling is a critically important piece of the construction contract puzzle, yet not all contracts contain firm schedules or even start dates. This may be because the general contractor wants some flexibility as to when the work will start. But, for the subcontractor, an elusive start date can wreak havoc on its [...]

22 Jan, 2020

Scheduling on Construction Projects

Craig Martin2020-01-18T12:53:43-06:00January 22nd, 2020|Construction Contractor Advisor, Construction Contracts, Delay Damages|

The schedule on construction projects is often as important as the budget. So, when I read an article that identifies significant problems with a project, but specifically notes that the general contractor says that the problems will not create any delays, I often wonder if the parties are being realistic. I also wonder whether the subcontractors will be forced to work extra time to make up the schedule. ENR recently [...]

7 Jan, 2020

Terminated for Convenience—Now What?

Craig Martin2020-01-06T10:47:30-06:00January 7th, 2020|Construction Contractor Advisor, Construction Contracts, Termination|

Congratulations, you have just been awarded a big contract. You have beaten out your competition and this project will show case your company’s talents and dedication to the industry. You have mobilized your crew and you are ready to get to work. Then you get the notice from the owner that the project is canceled, and you are terminated for convenience. This is far from convenient for you, but what [...]

31 Dec, 2019

The Vagaries of Litigation

Craig Martin2019-12-30T07:30:19-06:00December 31st, 2019|Construction Contractor Advisor, Construction Litigation, Nebraska Construction Law|

Over the past few years, I’ve posted blogs about the Seattle Viaduct project and the problems Bertha, the tunnel-boring machine, ran into on the project. Not surprisingly, the parties sued each other. And, Big Bertha’s problems continued into the courtroom. As some of you may recall, Big Bertha was launched with much fanfare, then ran into a pipe and stopped working. The project was finally completed in February, 2019, three [...]

10 Dec, 2019

What is a “Waiver of Subrogation” in Construction Contracts?

Craig Martin2019-12-07T12:15:51-06:00December 10th, 2019|Construction Contractor Advisor, Construction Contracts, Nebraska Construction Law, Subrogation|

Waiver of Subrogation clauses are contained in nearly every form construction contract. Contractors sign them as a matter of course, but how often do you actually consider what it means to waive subrogation? In this blog, we’ll discuss what subrogation is and why it’s usually a good idea to waive it. What is Subrogation? Legally speaking, subrogation is a concept that allows an insurance company that has paid a loss [...]

6 Sep, 2019

Can a General Contractor Be Liable for a Subcontractor’s Employee’s Injury?

Craig Martin2019-09-05T09:08:32-05:00September 6th, 2019|Construction Contractor Advisor, Nebraska Construction Law, Risk Management|

The short answer is maybe. Nebraska courts have long held that a general contractor can be held liable for a subcontractor’s employee’s injury, but only if the general contractor exercises significant control over both the worksite and the subcontractor. The question becomes whether the general contractor’s conduct demonstrates this control. A general contractor that retains control over a subcontractor’s work has a duty to use reasonable care to prevent injuries [...]