LexisNexis® Legal Newsroom
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Update Relating to SB891 and Bond Claim Waivers

Several bills were passed and will go into effect on July 1, 2015 that affect the construction industry here in Virginia. The most interesting of these was an amendment to the mechanic’s lien statutes relating to waivers of lien rights. As I posted in March , SB891, [ enhanced version available...

Quick Note: Be Careful with Pay if Paid Clauses (Both Subcontractors and General Contractors)

Aside from waiver of lien rights ( something that will be illegal in Virginia after July 1, 2015 ), the most troublesome contractual impediment to payment for a subcontractor or supplier on a project often is the “pay if paid” clause. As a general rule, in Virginia, these clauses where drafted...

Green Certification: Obtaining Green Certification For Existing Buildings In VA

By Kelley C. Holland “ Revaluing building reuse is not just an environmental issue, it’s an economic opportunity. One that will reduce our dependence on foreign oil and one that creates American jobs. Because renovation projects use less material, it is good for the environment, but...

When The Federal Govt Acts Badly, But Not Badly Enough To Show Bad Faith – What’s A Contractor To Do?

By: Robert K. Cox In the prior issue of this newsletter, we included an article on the high standard of proof and the practical considerations for a federal government contractor claiming that the federal government acted in bad faith in its contract dealings. You responded with the question, suppose...

New Jersey Supreme Court Addresses Statute of Repose in Multi-Phase Project

By Robert M. Palumbi In State v. Perini Corp., et. al . (2015 N.J. LEXIS 388) (N.J. April 30, 2015), the New Jersey Supreme Court, [subscribers can access an enhanced version of this opinion: lexis.com | Lexis Advance ], interpreted the state’s ten year statute of repose (N.J.S.A. 2A:14-1...

Ninth Circuit Holds Known Loss Language Inapplicable

In Kaady v. Mid-Continent Casualty Company , 2015 U.S. App. LEXIS 10754 (9th Cir. June 25, 2015), [subscribers can access an enhanced version of this opinion: lexis.com | Lexis Advance ], the United States Court of Appeals for the Ninth Circuit, applying Oregon law, had opportunity to consider the meaning...

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Changes to North Carolina’s Underground Utility Safety & Damage Protection Act

By Gretchen Ostroff During its last legislative session, the North Carolina legislature passed House Bill 476, [subscribers can access an enhanced version of this legislation: lexis.com | Lexis Advance ], which changed the law regarding pre-excavation underground utility identification and safe digging...

Appeals Court Pushes Back On Insurer’s Effort To Limit Construction Site Bodily Injury Claims

Insurers have long been writing endorsements to reduce their exposure for property damage caused by construction defects. These efforts have been taking place with First Manifestation, Loss in Progress and similarly named endorsements. Of course, insurers also face enormous exposure for bodily injury...

Call Miss Utility – Call Who & Why?

By George Nicholos Prior to excavating on any construction site or most anywhere – Call Miss Utility first! We have heard the line and seen the words countless times, but what or who exactly is Miss Utility? And what is the big deal about giving her a call? Miss Utility of Virginia is a free call...

The Risks of Using Criminal Statutes to Collect Construction Debts

By John Lockard The failure to make payment on a construction contract may not only result in a claim for money damages in a civil lawsuit, but it may also result in a violation of a criminal statute. For example, Code of Virginia Section 43-13, [subscribers can access an enhanced version of this statute...

Recent Revisions to AAA Rules

By Brett Saunders Think about the last major construction project you or your company was involved in. Chances are, that project was being performed under a contract that contained an arbitration clause. These clauses require disputes to be resolved through binding arbitration, instead of traditional...

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A Word of Caution to Design-Builders

By Ashley Moss The Virginia Department of Professional and Occupational Regulation (“DPOR”) licenses professional contractors, engineers, and architects in Virginia and punishes those who violate licensure laws. Although sometimes overlooked, businesses that provide professional services...