Unpaid Subcontractors Are Not Required to Give Ante Litem Notice Prior to Filing Actions Seeking Damages from Local Governments for Failure to Obtain Payment Bonds
In City of College Park v. Sekisui SPR Americas, LLC., 331 Ga.App. 404 (2015), the Georgia Court of Appeals held that an unpaid subcontractor who was seeking to recover from the City of College Park for failure to obtain a payment bond as required by Georgia’s Local Government Public Works Construction Law, was not required to give the City ante litem notice before bringing its action. This decision disapproves of Jacks v. City of Atlanta, 284 Ga.App. 2002 … Read more
In May, the Cobb County Board of Commissioners approved the GMP (guaranteed maximum price) for construction of the new Atlanta Braves stadium at $462.2 million. Cobb Chairman Tim Lee said that this price was “where we expected it to be,” which is far less than the original estimate of $482 million. The 5-0 vote approving the GMP was a procedural step required as part of the contracts between the Braves, American Builders 2017 (the joint venture of four construction firms … Read more
It’s important for any contractor or construction company to understand how they may be impacted by Georgia’s Right to Repair Act. The first component of this act is that prior to filing a lawsuit, a homeowner must serve all responsible contractors with written notice. This notice must be given at least ninety days before a suit is filed. In order for this notice to be valid, the homeowner must deliver it by overnight delivery or certified mail. The one exception … Read more
Lawmakers Approve Bill Allowing Local Governments to Partner with Private Entities for Public Projects
A bill soon headed to the Governor’s desk for signature will greatly expand the opportunities for state and local governments to partner with private entities on a wide array of new public projects. Senate Bill 59, known as the “Partnership for Public Facilities and Infrastructure Act,” (the “P3 Act”), was approved by Georgia legislators on April 2, 2015, just before the end of the 2015 legislative … Read more
Must a subcontractor’s claim of lien identify the contractor in order to be valid? In the recent case of Robertson v. Ridge Environmental, LLC, the Court of Appeals of Georgia held that a subcontractor’s claim of lien does not need to include the name of the contractor.
Subcontractor performed work on several properties at the direction of Contractor. When Subcontractor was not paid for the work, it filed claims of lien on the properties. But the claims of lien did … Read more
Since 1 July 2008, residential contractors and general contractors must comply with licensing laws. Failure to comply with those laws can have disastrous financial and legal consequences. A recent case serves as a reminder of the importance of complying with licensing laws. In that case, the Court of Appeals considered whether an unlicensed contractor could recover on a contract entered into before 1 July 2008. According to O.C.G.A. § 43-41-17(b), contracts entered on or after 1 July 2008 are unenforceable. … Read more
Autry, Hanrahan, Hall & Cook attorney David Cook contributed an article to the Atlanta Bar Construction Law Section. The article addresses a recent case that involved several important construction litigation issues, including:
- the Acceptance Doctrine,
- absence of privity in a negligent-construction claim,
- negligent-construction claims without express contractual obligations,
- third-party beneficiaries,
- use of experts originally hired by opposing parties,
- Georgia’s Right to Repair Act, and
- joinder of corporate owners for acts of negligent construction.
New AAA Fixed Time and Cost Arbitration: Affordable Dispute Resolution?
A prior post discussed the advantages of the AAA’s Fast Track Arbitration Procedure. More recently, the American Arbitration Association has created a new set of rules that also seek to minimize the cost and time for dispute resolution through arbitration. According to the AAA, these “Supplementary Rules for Fixed Time and Cost Construction Arbitration” will allow parties to determine:
- the maximum time to complete arbitration;
- the number
Wrongful Termination and the Right to Cure: The Subcontractor’s Perspective
In a recent case, a subcontractor asserted a wrongful-termination claim against a contractor when it was terminated for violating certain safety rules of the project. When the subcontractor’s personnel were seen crossing “live” transit tracks, the owner sent a letter to the contractor precluding the subcontractor from accessing the project, and the contractor terminated the subcontract. Yet even when the subcontractor allegedly violated safety protocols, it still had a contractual … Read more
A recent construction case addressed the Acceptance Doctrine and a potentially broad exception that prevented its application to a negligent-construction claim.
The case involved structural damage to a newly constructed Holiday Inn Express resulting from settlement of rear parking lot, pool areas, and one side of the building. Owner hired Contractor to perform grading work, and Contractor hired Subcontractor to perform certain aspects of the grading work. After the grading work was complete, Owner separately hired another contractor to construct … Read more