LexisNexis® Legal Newsroom
PA Supreme Court Reverses Bricklayers Mechanics’ Lien Case

On April 17, 2014, the Pennsylvania Supreme Court, [ enhanced version available to lexis.com subscribers ], issued its long-awaited decision in Bricklayers of Western Pennsylvania Combined Funds v. Scott’s Development Co. , and reversed the Superior Court decision which held that a union trust...

Pennsylvania Court Determines if Union Trustees Have Standing to File Mechanic’s Lien

By Martin J. Saunders, Of Counsel. Pennsylvania, like many states, has a mechanic’s lien statute to ensure that contractors and subcontractors who make improvement to property will be paid for the labor and materials they furnish in the erection, construction, alteration or repair of property...

Should a General Contractor Tell a Sub that its Bid is Too Low?

A recent article by my pal, and occasional guest poster , Craig Martin ( @craigmartin_jd ) asks the question: “ Does a General Contractor Have to Tell a Subcontractor that its Bid is Too Low? ” In his great post on a recent Nebraska decision, [ enhanced version available to lexis.com subscribers...

Pennsylvania Amends Mechanics’ Lien Law to Protect Home Owners from Double Jeopardy and Clarify Priority Given to Open Ended Mortgages

By Marc J. Felezzola On July 9, 2014, Governor Tom Corbett signed into law legislation amending Pennsylvania’s Mechanics’ Lien Law of 1963 (the current Mechanics’ Lien Law in Pennsylvania). The stated primary purpose of the amendments is to protect homeowners who pay the prime contractor...

Pennsylvania Amends Mechanics’ Lien Law to Create New Notice Procedures and Requirements

By James D. Miller, Esq. On October 14, 2014, Governor Tom Corbett signed into law Act No. 142 (the “Act”), [ enhanced version available to lexis.com subscribers ], amending the Pennsylvania Mechanics’ Lien Law, 49 P.S. 1101 et seq., [ enhanced version available to lexis.com subscribers...

Early Action on Your Construction Contract is Key

I bang the drum of early and frequent consultation with one of us construction attorneys on a regular basis here at Musings and in other places of the “blawgosphere.” Why do I do this? Doesn’t such consultation help to avoid the problems that seem to make those of us in the construction...

Just When You Thought General Contractors Were Necessary Parties. . .

Did you think that a subcontractor had to name a general contractor in a mechanic’s lien suit? I did. Did you think that nothing about this changed in the case where a Virginia mechanic’s lien was “bonded off” pursuant to Va. Code Section 43-71 , [ enhanced version available to...

No Written Change Orders

By Kevin Rust Most construction contracts have provisions that bar any payment for work outside the scope of the contract unless there is a written change order. All contractual provisions, at least in North Carolina, may be waived. Thus, even if your contract provides that no additional work will be...

2014 California Roundup of Mechanics Lien Decisions: Most Were Pro-Claimant, But Construction Lenders Did Well Too

By Mr. William Michael Hensley Get the latest expert analysis on California mechanics liens cases. This article covers recent cases and their practical implications. Excerpt: Effective on January 1, 2011 and then July 1, 2012, California overhauled the mechanics lien statutes in its most extensive...

Warranty Provisions Deserve Careful Consideration from Contractors

By Casaundra Maimone , Attorney, Vandeventer Black LLP It goes without saying that a contractor should carefully review all of the proposed terms and negotiate all of the final terms of a construction contract such that the provisions are best tailored to their role on the project. Nonetheless...

Statutory Subcontract Limits And Requirements For North Carolina Subcontracts: The Short Summary©

By Neil Lowenstein [1], Attorney, Vandeventer Black LLP Below is a short summary of some of the statutory requirements and constraints in the North Carolina code regarding subcontract requirements for North Carolina projects (commercial or public). 1. Pay when paid ( NCGS § 22C-2 ), [ enhanced...

The Anatomy of a Construction Dispute Stage 2- Increase the Heat

Last week we discussed the groundwork and circumstances of a construction claim . This week’s post will discuss the next steps, hopefully short of full blown arbitration or litigation that you, as a construction company, can pursue presuming your claim has been properly preserved. If your contract...

Wow! A Mechanic’s Lien Bill That Helps Subcontractors and Suppliers

You know how I’ve stated on many occasions that the contract is king here in Virginia? You know how that included contractual provisions waiving mechanic’s lien rights for subcontractors and suppliers? You know how I thought that the General Assembly would not do anything to make mechanic’s...

Do We Really Want Courts Deciding if Our Construction Contracts are Fair?

As I posted recently, the Virginia General Assembly has passed, and I can see no reason why the governor won’t sign, [ enhanced version available to lexis.com subscribers ], a bill that would essentially invalidate preemptive contractual waivers of lien rights as they relate to subcontractors and...

A Subcontract Term That Conflicts With the Miller Act Is Ineffective In a Suit Against the Surety On the Payment Bond – But, That Right May Be Waived

By Dylan B. Spadaccino, Esq. In United States ex rel. Marenalley Constr., LLC v. Zurich American Ins. Co., et al , Civil Action No. 14-4581 (E.D. Pa. March 13, 2015), a subcontractor filed suit under the Miller Act, [ enhanced version available to lexis.com subscribers ], to recover against the...

The Pennsylvania Contractor and Subcontractor Payment Act, as well as the Pennsylvania Prompt Payment Act, are Subject to the Six-year Statute of Limitations Set Forth in Section 5527(b) of the Judicial Code

By Dylan B. Spadaccino, Esq. In East Coast Paving & Sealcoating, Inc. v. North Allegheny School Dist ., No. 751 C.D. 2014 (Pa.Cmwlth. March 6, 2015) , East Coast filed a complaint against the School District seeking, among other things, damages under the Contractor and Subcontractor Payment...

Proposed Amendment to Mechanics’ Lien Law Seeks to Give Architects Lien Rights in Pennsylvania

By Marc J. Felezzola Representative Dan Truitt , a Republican serving part of Chester County, Pennsylvania, recently proposed as House Bill 430 legislation, [ enhanced version available to lexis.com subscribers ], that seeks to amend the Pennsylvania’s Mechanics’ Lien Law of 1963 (i...

Back Posting with Thoughts on Lien Waivers

After a week of being unable to post due to the rigors of my solo construction practice , I’m back on the blogging train. For those of you that missed my new musings this past week, I hope that you had a chance to look through some of the past Guest Post Friday posts for some good stuff to read...

July 1, 2015 Statutory Changes Affecting Virginia Contractors and Subcontractors

As always seems to be the case, this year, as in others, the Virginia General Assembly has seen fit to “tweak” a few construction related statutes. All of these changes will go into effect on July 1, 2015. The big one, and one that I posted about a while back is the change to the Virginia...

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...

California Workers' Comp Case Roundup (7/3/2015)

CALIFORNIA COMPENSATION CASES Vol. 80 No. 6 June 2015 A Report of En Banc and Significant Panel Decisions of the WCAB and Selected Court Opinions of Related Interest, With a Digest of WCAB Decisions Denied Judicial Review CONTENTS OF THIS ISSUE © Copyright 2015 LexisNexis. All rights...

Prospective Waiver of Lien Rights by Subcontractors & Suppliers

By Jay Rixey , Associate, Vandeventer Black LLP Earlier this year, the General Assembly enacted legislation amending Virginia Code § 43-3, [subscribers can access an enhanced version of this statute: lexis.com | Lexis Advance ], providing that a subcontractor, lower-tier subcontractor, or...

Insurance Coverage for Subcontractor Non-Compliance with Prevailing Wage Laws?

One Court Says There Is At Least a Duty to Defend. Subcontractor non-compliance with prevailing wage laws is unfortunately not uncommon. But might that be covered by the General Contractor's insurance? For one design-build project that included coverage for professional liability a federal...

Understanding the Automatic Stay in a Debtor-General Contractor Bankruptcy Case

by Shalanda Franklin What do you do when the general contractor files for bankruptcy before paying your invoices? When you receive notice that a general contractor of a project that you have been involved with has filed for bankruptcy, you must immediately stop any actions you may have begun to collect...

A Construction Stitch in Time

It’s a cliche for a reason that “A Stitch in Time Saves Nine.” Why? Because it is almost always cheaper and more efficient in the long run to get something right the first time than to fix it later. This old adage is true in life, and particularly true in the world of construction....