The Project Owner is Bankrupt — Can You Still File a Mechanic’s Lien?
June 2, 2022
Many contractors in the region may be asking themselves this question right now. Earlier this year, GT Real Estate Holdings, LLC, terminated its agreement with the City of Rock Hill for the construction of a new practice facility for the Carolina Panthers. Construction on the project was already well underway. Yesterday, GTRE filed a voluntary… Read more
The Surety Has Tendered its Defense – Now What?
February 23, 2022
This is a question we sometimes get from contractors who are either on the receiving end of a payment bond claim for the first time or have deeper concerns about their current bonding relationship. An important first step is to review the fundamental difference between insurance policies (which provide coverage against the risk of defined… Read more
Insurance Carrier Intervention – Not a Tool of the Trade
July 23, 2021
Insurance carriers for general contractors and subcontractors sued in any case alleging damages due to construction defects will often (but not always) aggressively seek to show they owe no duty to defend or indemnify their insureds for such claims. While the duty to defend is relatively broad (compared to the duty to indemnify) and is… Read more
Are You (Really) Indemnified…?
March 12, 2020
Indemnification clauses run a close third for “Most Tortured Interpretations” in the history of the written word, just behind the United States Constitution and the lyrics to The Beatles’ “I Am the Walrus.” One would think that, by now, a razor-sharp indemnification clause would exist such that it would become essentially boilerplate language, with a… Read more
Changes to Contractor Licensing Laws for 2018
October 4, 2018
The last legislative session in South Carolina saw a change in South Carolina’s contractor licensing laws. South Carolina has five different general contractor licensing groups. Each license group is determinative of the dollar value of work that a general contractor could perform and each with its own net worth requirement ranging from $10,000 to $250,000…. Read more
Construction Contracts 101 – Key Terms and Provisions
August 31, 2017
A construction contract can be a daunting document. It can be hundreds — if not thousands — of pages in length depending on the complexity of the project. In addition to the document that is signed by the parties, the full construction contract can include drawings, specifications, geotechnical reports, general conditions, special conditions, and other… Read more
Initial Highlights of the 2017 Edition of AIA A-201
June 20, 2017
As you may be aware, the American Institute of Architects (“AIA”) revises its main contract forms every ten years and has recently released the 2017 Editions of their contract forms, including the AIA A201 – General Conditions of the Contract for Construction. I’ve just finished an initial review of the new AIA A201 2017 Edition. … Read more
The Duty to Defend in the Contractor’s CGL Insurance Policy
May 3, 2017
The CGL carrier’s duty to defend an insured contractor for a claim for defective construction can be a huge cost savings tool. But, contractors should be mindful of the benefits and hazards of tendering a defense to its carrier before doing so. What is the duty to defend? Commercial general liability (“CGL”) insurance carriers generally owe… Read more
SCDOT’s New Prompt Payment Requirements Begin July 1
May 2, 2017
As of July 1, 2017, the South Carolina Department of Transportation (“SCDOT”) will impose new prompt payment requirements on its contractors. The New Requirements The new Prompt Payment Clause, which can be found in its entirety here, will require the following: The Contractor will pay its subcontractors within 7 calendar days of receiving payment from… Read more
The Beginning of the End for Davis-Bacon?
January 31, 2017
On January 24, 2017, U.S. Senator Jeff Flake (R-AZ) introduced a bill that may signal the beginning of the end for Davis-Bacon prevailing wage provisions. The Davis-Bacon Act, applicable on federal infrastructure projects, was passed during the depression as a stopgap measure to ensure that workers on qualifying federal government projects were paid wages that… Read more