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CIVILIAN BOARD OF CONTRACT APPEALS RULES THAT GOVERNMENT CAN PURSUE ARCHITECT FOR SPECIFIC PERFORMANCE AND CONSEQUENTIAL RELIEF. |
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February 16, 2012 - This last October, the Civilian Board of Contract Appeals (“Board”) held that the Government may pursue both specific performance and actual or consequential damages for breach of contract against an architect.
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NORTH CAROLINA COURT RULES THAT “NO DAMAGES FOR DELAY” CLAUSE DOES NOT TRUMP “EQUITABLE ADJUSTMENT” CLAUSE FOR COST ESCALATION CLAIMS. |
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January 25, 2012 - In Southern Seeding Serv., Inc. v. W.C. English, Inc., 2011 WL 6039951 (N.C. App. Dec. 6, 2011), the North Carolina Court of Appeals found that a "no damages for delay" clause does not trump an "equitable adjustment" clause in the same construction subcontract. While labor and material cost escalation are normally perceived as an element of delay damages, the court in this case found that a separate contract provision distinguishing these costs permitted their recovery.
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RECENT CHANGES TO VIRGINIA'S LITTLE MILLER ACT ALTER THE RULES FOR CERTAIN PARTIES TO FILE CLAIMS AGAINST PAYMENT BONDS. |
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December 13, 2011 - On March 25, 2011, the Virginia legislature threw a curve ball to companies supplying labor or materials on public construction projects. This curve ball makes it both easier and harder for second-tier claimants to satisfy the prerequisites to filing suit against a payment bond.
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DC FEDERAL COURT RULES THAT PROMPT PAYMENT ACT DOES NOT CREATE PRIVATE CAUSE OF ACTION. |
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November 30, 2011 - This September, the U.S. District Court for the District of Columbia considered an issue of first impression in the District of Columbia - whether the federal Prompt Payment Act ("PPA"), codified at 31 U.S.C. §§ 3901-3907, creates a private cause of action for contractors.
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Nevada's Highest Court Upholds Award Against Electrical Subcontractor That Reneged On Pre-Bid Price Quote. |
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August 8, 2011 - This July, the Nevada Supreme Court ruled that a contractor was entitled to rely on a subcontractor's withdrawn bid under the doctrine of promissory estoppel.
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APPEALS COURT RULES THAT IMPROPER TERMINATION BARS BREACH OF CONTRACT ACTION AGAINST CONTRACTOR AND BOND. |
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May 27, 2011 - To reduce the potential damage that a haphazard termination can cause to owners and contractors, many contracts contain specific termination procedures that must be followed.
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VIRGINIA FEDERAL COURT RULES THAT PREJUDGMENT INTEREST MAY NOT BE ASSESSED AGAINST A SURETY UNTIL A DEMAND IS MADE. |
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February 14, 2011 - This past November, the United States District Court for the Eastern District of Virginia found as a matter of first impression in Virginia that prejudgment interest cannot accrue against a surety until a beneficiary has first made a demand for payment against the payment bond.
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FLORIDA MECHANIC’S LIEN CLAIMANTS MUST STRICTLY COMPLY WITH FLA. STAT. § 713.21(4). |
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June 4, 2010 - A decision last week exemplified a Florida court's severe application of this statute to mechanic's liens.
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FOURTH CIRCUIT UPHOLDS PAY-WHEN-PAID CLAUSES IN VIRGINIA CONSTRUCTION CONTRACTS. |
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May 5, 2010 - This February, the United States Court of Appeals for the Fourth Circuit confirmed that subcontractors in Virginia face an almost insurmountable task when attempting to avoid an unambiguous pay-when-paid clause.
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FIFTH CIRCUIT HOLDS THAT PARTIAL MECHANIC’S LIEN WAIVERS BAR THE CONTRACTOR FROM CLAIMS FOR EXTRA WORK AND DELAY DAMAGES. |
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April 21, 2010 - The Fifth Circuit recently considered the question of whether interim mechanic’s lien waivers executed by a contractor released extra work claims and delay damages incurred prior to the waiver.
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