Construction Law Blog

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Top 10 Construction Industry Contract Provisions - Price and Payment - Part I

Date: December 4, 2014  /  Author: James R. Lynch  /  Categories: Contracting, Construction News and Notes, Claims, Change Orders  /  Comments (0)

This is the fifth post in our "Top 10 Construction Contract Provisions" series, which covers the topic is price and payment provisions.  Although these are typically separate terms they are so closely related that we are counting them together in our "Top 10."  Together, they answer some of the most fundamental questions about the contract:  What will be paid for the work, when, and how?  Part I of this post will cover the different type of pricing arrangements.  Part II of this post will cover the related topic of payment, including how and when payments are made toward the overall contract price.

Enforcing Subcontractor Bids

Date: December 2, 2014  /  Author: John P. Ahlers  /  Categories: Contracting, Construction Bidding, Government Contracts  /  Comments (0)

A contract is created by an offer, an acceptance, and exchange of consideration.  Offers are generally freely revocable prior to acceptance, unless supported by special consideration.  In the construction context, a general contractor's proposal (offer) is generally not accepted (the contract is not awarded) until sometime after bids are opened, but its proposal is based on its subcontractors' bids.  If a subcontractor were to revoke its bid in the period of time between when the bids are opened and the prime contract is awarded, the general contractor could be severely prejudiced.  Accordingly, when submitting bids on projects, a general contractor finds itself on the horns of a dilemma.  Its proposal is open until the contract is awarded, but if a subcontractor revokes its bid prior to award, it would be left to re-procure the subcontract work (generally at a higher cost) with no recourse against the subcontractor who withdrew its bid.

New Seattle Ordinance May Apply to Your Rental Property

Date: November 25, 2014  /  Author: Lawrence S. Glosser  /  Categories: Out of the Ordinary, Construction News and Notes  /  Comments (0)

If you own a residential rental property in Seattle, then you will want to pay attention to the new Rental Registration and Inspection Ordinance ("RRIO").  RRIO requires landlords to register all rental housing units located in Seattle with the City of Seattle.  The purpose of RRIO is to help ensure that all rental housing in Seattle is safe and meets basic housing maintenance requirements.

Limiting Contractors' Exposure to Delay Damages - Part II

Date: November 20, 2014  /  Author: John P. Ahlers  /  Categories: Contracting, Construction News and Notes, Delay Claims, Damages  /  Comments (0)

This is the second installment of a two-part blog informing contractors how they can limit their exposure to owner's project delay damages.  Part I of this blog series discussed how utilizing well-drafted liquidated damages clauses can protect a contractor from potentially limitless actual damages. Part II discusses the use of consequential damages waivers and limitation of liability clauses as measures to reduce a contractor's risk and exposure to delay damages.

Limiting Contractors’ Exposure to Delay Damages – Part I

Date: November 18, 2014  /  Author: John P. Ahlers  /  Categories: Contracting, Construction News and Notes, Delay Claims, Damages  /  Comments (0)

This is part one of a two-part blog series informing contractors how they can limit their exposure to owner's project delay damages, which in many instances may exceed the fee the contractor might otherwise make on the construction project.  Part I of this blog series discusses how utilizing well-drafted liquidated damages clauses can protect a contractor from potentially limitless actual damages.

A Primer on Bid Shopping in Public Contracts - Part II

Date: November 13, 2014  /  Author: John P. Ahlers  /  Categories: Recent Legislation, Construction News and Notes, Construction Bidding, Government Contracts  /  Comments (0)

This is the second installment of a two-part blog on bid shopping in public contracts.  Part I introduced the Subcontractor Listing Statute, RCW 39.30.060, which requires all general contractors bidding on public works projects of $1 million or more must submit the names of the plumbing, electrical, and HVAC (heating, ventilating, and air conditioning) subcontractors, with whom the prime contractor will contract.  Part II discusses actions arising out of the Subcontractor Listing Statute in more detail.

A Primer on Bid Shopping in Public Contracts - Part I

Date: November 11, 2014  /  Author: John P. Ahlers  /  Categories: Recent Legislation, Construction News and Notes, Construction Bidding, Government Contracts  /  Comments (1)

This is a two-part blog on bid shopping in public contracts.  Part I of this blog series explores bid shopping in general, including what it means to bid shop, bid peddle, and the consequences of bid shopping, and Washington's anti-bid shopping laws. Part II discusses actions arising out of the Subcontractor Listing Statute in more detail.

SCAM ALERT - BUSINESS OWNERS

Date: November 4, 2014  /  Author: Lawrence S. Glosser  /  Categories: Out of the Ordinary, Regulatory Administration, Construction News and Notes  /  Comments (0)

Please be aware that companies doing business as ANNUAL BUSINESS SERVICES, COMPLIANCE SERVICES, or CORPORATE RECORDS SERVICE (not to be confused with the Washington corporation, Compliance Services, Inc.) are mailing unsolicited notices to business entities in Washington State requesting that "Annual Minutes" and a fee of $125.00 be sent to them for filing.  You can see an example here.

New DBE Rules In Effect Today – November 3, 2014!

Date: November 3, 2014  /  Author: Lindsay K. Taft  /  Categories: Recent Legislation, Construction News and Notes, Government Contracts, MBE/DBE/WBE  /  Comments (0)

On October 2, 2014, the United States Department of Transportation (USDOT) issued a final rule impacting USDOT’s Disadvantaged Business Enterprise (DBE) regulations that has been in the works for over two years.   The rule, first proposed on September 6, 2012, makes several changes to both the administration and the implementation of the DBE program regulations.   Given the number of changes, this post will be broken up into two parts.  Part one will focus on the new application forms as well as the changes related to economic disadvantage and size standards: 

Contractor's Surety Taking Over Project was Not Permitted to Recover Progress Payment Made by Owner to Contractor's Bank Loan Account

Date: October 21, 2014  /  Author: Masaki (Saki) Yamada  /  Categories: Government Contracts, Contracting, Construction News and Notes, Indemnity, Claims  /  Comments (0)

It is commonly known in the construction industry that general contractors who perform public works projects are required to post a payment bond and performance bond, in part, to ensure that subcontractors are paid and the project is completed in the event the general contractor is unable to fulfill its contractual obligations.  A typical circumstance in which these bonds are relied upon is when the general contractor becomes financially unable to pay or perform (i.e. bankruptcy) before the public works project is completed.  Generally, under the payment bond, a surety would pay those subcontractors that have not been paid by the general contractor and, under the performance bond, the surety would take over the work left unperformed by the general contractor.