Contractors and Subcontractors

Acceptance Doctrine Revisited

by David R. Cook Jr.
September 18, 2014February 14, 2022

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… Read More »Acceptance Doctrine Revisited

Georgia Court of Appeals Examines CGL Coverage Exclusions

by David R. Cook Jr.
October 9, 2013February 14, 2022

In several prior posts, we have discussed the availability of CGL insurance to cover certain property damages arising from defective construction. A recent Georgia case examines several arguments of a CGL insurer’s attempt to avoid such coverage. Read More »Georgia Court of Appeals Examines CGL Coverage Exclusions

Construction Industry Still Unaware of Potential CGL Coverage Related to Faulty Workmanship

by David R. Cook Jr.
September 3, 2013

A recent Georgia case illustrates that many in the construction industry still believe that CGL insurance policies exclude coverage for defective construction – a belief that resulted in loss of coverage for one contractor. The court affirmed that, “while construction defects constituting a breach of contract are not covered by [CGL] policies, negligently performed faulty workmanship that damages other property may constitute an ‘occurrence.’”

Based on a mistaken belief of no coverage, a contractor failed to provide timely notice to its insurance carrier. As a result, the court dismissed the CGL insurer from the case, leaving the contractor (and the owner) without insurance coverage for substantial damages. Read More »Construction Industry Still Unaware of Potential CGL Coverage Related to Faulty Workmanship

Fast Track Arbitration as a Vehicle for Resolving Small Claims

by David R. Cook Jr.
April 21, 2012

Many contractors and subcontractors fear the unpredictable costs of litigating their claims. This is especially the case if the claim is small. In some instances, the uncertainty of legal fees and consultant costs can cause them to forego asserting their claims altogether. They may not realize, however, that if their contract incorporates the AAA Construction Industry Arbitration Rules (“AAA Rules”), they may have an arbitration provision that promotes prompt and cost-efficient claims resolution.

Depending on the characteristics of a claim, the AAA ConsRead More »Fast Track Arbitration as a Vehicle for Resolving Small Claims

Recovery of Attorney Fees and Interest Under The Georgia Prompt Pay Act

by David R. Cook Jr.
January 28, 2012

In November 2010, the Georgia Court of Appeals interpreted the Georgia Prompt Pay Act to mandate the recovery of reasonable attorney fees to a prevailing party.

The Prompt Pay Act

Georgia’s Prompt Pay Act (the “Act”) generally provides additional remedies to a contractor or subcontractor where they perform construction work on property and the owner of the property fails to remit payment within statutory deadlines. Where the Act applies, it provides for an award of attorney fees and interest on late payments. In Electric Works CMA, Inc. v. Baldwin Technical Fabrics, Inc., the court explained that attorney fees are recoverable without the necessity of showing bad faith.Read More »Recovery of Attorney Fees and Interest Under The Georgia Prompt Pay Act

Georgia Supreme Court Invalidates Construction-Related Indemnity Provision

by David R. Cook Jr.
January 19, 2012

In November 2011, the Georgia Supreme Court broadly interpreted Georgia’s anti-indemnity statute to preclude a developer’s indemnity claim against a homeowners’ association. Read More »Georgia Supreme Court Invalidates Construction-Related Indemnity Provision

New Residential Roofing Law Impacts Roofing Contracts and Marketing

by David R. Cook Jr.
October 11, 2011

After many of the recent storms crossing Georgia, residential roofing contractors became increasingly involved with assisting homeowners in procuring the necessary repairs to storm-damaged roofs. Contractors negotiated with insurance companies, provided documentation to insurance companies, and ultimately performed the necessary repairs to the storm-damaged roofs. In 2011, the Georgia General Assembly amended the Georgia Fair Business Practices Act in a manner that will directly impact these residential roofing contractors.

Professional vs. Ordinary Negligence Claims Against Contractors and Engineers

by David R. Cook Jr.
October 6, 2011

The Georgia Court of Appeals recently addressed the distinction between professional negligence vis‑à‑vis simple negligence. This distinction was particularly important in Hamilton-King v. HNTB Georgia, Inc., 2011 WL 2716073 (2011) because the trial court previously excluded Plaintiffs’ expert testimony, an essential part of its professional negligence claim. Without the expert testimony, Plaintiffs’ professional negligence claim was doomed. The only remaining question was whether Plaintiffs also asserted claims of simple negligence. Finding that the claims were based solely on professional negligence, the case was properly dismissed.

Public Contractor Marketing: Am I a Lobbyist?

by David R. Cook Jr.
September 19, 2011

Many vendors to state and local governments (such as contractors, subcontractors, and architects) market their services to public officials and governmental employees. But they rarely consider such marketing efforts to be lobbying, nor would they consider themselves to be lobbyists. Before the recent amendments to the Ethics in Government Act (the “Act”), they may have unwittingly qualified as lobbyists — and in violation of the Act.

Court of Appeals Rejects Owner’s Common Contract Defenses

by David R. Cook Jr.
June 30, 2011

Payment disputes are becoming increasingly common as all project participants struggle with the harsh construction economy. In a recent appellate opinion, a general contractor and its subcontractor recovered on the subcontractor’s differing-site-conditions claim, despite the owner’s assertion of fairly common and usually effective construction law defenses.