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Construction Contracts

Contractual Limitations Period Must Have Clearly Identifiable Starting Point

Many construction-related contracts contain a contractual period of limitations — a contract term that establishes a period of time during which a party must file a claim against the other party (“limitations provision”).  Such a contractual provision precludes an aggrieved party from filing a lawsuit after the period expires.   They are generally enforceable in Georgia.

In Carrier Corp. v. Rollins, Inc., the Court of Appeals of Georgia interpreted a limitations provision contained in a $2 million contract for installation of an HVAC system at the owner’s headquarters.  The owner filed suit alleging that the HVAC system installed by the contractor never functioned properly. Read More »Contractual Limitations Period Must Have Clearly Identifiable Starting Point

Guest Post: Risk Management and Insurance Considerations for Joint Ventures

This guest post was written by Bud LaRosa.  It was originally posted on another blog, http://blog.construction-today.com/

By Bud LaRosa

Construction is seeing a lot more joint ventures now than it has in the past. Projects are becoming larger and more complex, requiring a certain expertise that only one or more of the partners can bring. Whatever the reasons for entering into a JV, there are many risk factors that need careful and consideration.Read More »Guest Post: Risk Management and Insurance Considerations for Joint Ventures

The Creative-But-High Standard of “Alternative” Claims in Construction Disputes

Sometimes construction claimants and their attorneys need to think outside the box in their efforts to recover payment for work.  There are many situations in which claimants adequately prove they are entitled to recover, but for one reason or another they are not made whole.  For instance, the counterparty may become insolvent or dissolved, or a mere breach-of-contract action is inadequate to recover for all losses.  In these situations, claimants must find alternative claims for recovery and other pockets from which to recover. Read More »The Creative-But-High Standard of “Alternative” Claims in Construction Disputes

Recovery of County’s Ultra Vires Payments

At some point, a county’s board or administrators may be faced with complaints from the community about payments made to a private entity. Members of the community (or competitors of the payee) may raise a number of complaints, including:

• payments were made to a friend of a commissioner,
• payments were made without a valid contract,
• the contract was not properly recorded,
• the contract was not effectively approved, or
• the county failed to comply with public works bidding laws.Read More »Recovery of County’s Ultra Vires Payments

Fast Track Arbitration as a Vehicle for Resolving Small Claims

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

Lien Priority: Not Always Just a Matter of Filing

Non-payment can place contractors, subcontractors, and suppliers in a precarious cash-flow situation.  On most jobs, they outlay their capital and hard work in advance of payment by the owner.  They rely on the owner to pay the correct amount at the time provided in the agreement.  When private owners fail to pay, contractors, subcontractors, and some suppliers can generally resort to filing liens to encourage payment.  As one case illustrates, liens do not always provide adequate security of payment. Read More »Lien Priority: Not Always Just a Matter of Filing

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

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

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