Construction Law Newsletters

Defenses to Construction Contract Termination

When one party opposes the termination of the construction contract by the other party, various defenses may be asserted. These include waiver of breach, ratification of breach, failure to timely assert termination right, and substantial completion of contract. Action and inaction by a party can lead to a claim of waiver or ratification of the breach.

Designation of Property as "Historical"

In order for a property to be officially recognized as "historical" by the federal government, with all the attendant benefits and responsibilities that come with such a designation, the property must be listed in the National Register of Historic Places.

General Contractor's Duty to Coordinate Subcontractor Construction Efforts

On a construction project, it is usually the general contractor, not the owner, who is in direct privity with the subcontractors. Basically, the owner hires the general contractor to complete the construction project and the general contractor hires subcontractors to assist on the various jobs necessary to do just that. In order to fulfill his obligations to the owner, the general contractor must coordinate the efforts of all the subcontractors so that each subcontractor's job can be done efficiently and with as little delay as possible.

Liquidated Damages for Delay

When a construction project is delayed through the fault of a contractor, that contractor may be responsible for liquidated damages. Many construction contracts provide for this eventuality by specifying that the contractor must pay a predetermined amount for each day of delay attributed to it. A court will generally enforce such a liquidated damages provision so long as the payment amount is commensurate with the owner's entitlement to damages as opposed to an amount that, instead, operates to penalize the contractor.

PROS AND CONS OF INTERNATIONAL ARBITRATION IN GLOBAL CONSTRUCTION PROJECTS

International arbitration is a method by which parties to a global construction project may resolve their disputes without resorting to the courts of a foreign country. It is generally the preferred method for resolving disputes. There are both advantages and disadvantages to international arbitration.