Subcontractor Claims Archives - Lamson Dugan & Murray LLP

Make Sure to Pass on Subcontractor Claims

When a contractor receives a delay claim from a subcontractor, it’s important to pass on the claim to the owner or the contractor could be liable for the subcontractor’s entire claim. A recent decision out of New York underscores the importance of passing subcontractor claims to the owner. In the case Rad and D’Aprile, Inc.v Ariel Construction Corp., the subcontractor, Rad, made a claim for delay damages to the general [...]

Liquidating Agreements—Bridging the Privity Gap for Subcontractors

Craig Martin2018-04-23T23:55:10-05:00August 30th, 2015|Construction Contractor Advisor, Construction Contracts|

What is a subcontractor to do when the owner has demanded additional work, but has refused to pay for it? Typically, a subcontractor cannot sue the owner because the subcontractor doesn’t have a contract with the owner. Perhaps the subcontractor and general contractor should enter into a liquidating agreement through which the general contractor can pursue the claim on behalf of the subcontractor. Liquidating agreements bridge the privity gap between [...]