Category Archives: Contract Clauses

Notice of Contract Claims – Don’t Delay

Notice of Contract Claims – Don’t Delay

Notice provisions in contracts can be complicated and burdensome, and are often disregarded by contractors and owners alike. Does it really matter whether notice is documented, so long as the owner knows about the event when it happens, and the parties expressly or tacitly agee to address compensation for the event at a later date? In a word: yes. In Commonwealth of

Pay Bond + Deadbeat Owner + Pay When Paid = Pennies for Subs?

Pay Bond + Deadbeat Owner + Pay When Paid = Pennies for Subs?

Ok, here’s one that is tough to swallow. An Owner pleads poverty in the face of a multimillion dollar claim, and offers the Prime and Subs a pittance to settle. One Subcontractor refuses to accept the settlement and pursues valid claims against a solvent Prime and, more importantly, a big, fat payment bond. The Third

Passing Buck to Sub under Tender Costly to Prime

Posted on May 16, 2011 4:35pm EDT Late last week an appellate decision out of California was released that illustrates the inherent hazards of broad form indemnity provisions (i.e., indemnity not limited to personal injury and property damage, but including economic loss as well). It also provides a lesson on the significance of prevailing party

Avoiding Conflict: Architect and Engineer Proposals and Final Contracts

What happens when an engineer’s project proposal to an architect is signed by the architect, but conflicts with the terms of a later executed AIA document?  If, like most A/E’s, you assume that the proposal is an intermediate step subject to the terms of a later executed AIA agreement, your assumption may be hazardous to your profit. In the Illinois case of