Skip to content

Subcontractor Lien

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

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

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