Contracts Claims
Articles related to Construction Contracts, Payment, Claims and Claim Avoidance in Kansas, Missouri, Nebraska and Iowa. One of the most troubling aspects of the construction industry surrounds the area of getting paid for the work you perform.
It may be a sad byproduct of a tough economy, but one or more of your customers or vendors may file for bankruptcy protection. Although it is important to begin planning for the worst-case scenario before you formally enter into business transactions, planning in advance for a customer’s bankruptcy is not always an option.
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.
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.
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. . .
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.
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. . .
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.
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
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. . .
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.