CONDITIONAL PAYMENT BOND CONSIDERATION-MAKE SURE THERE IS PAY-IF-PAID PROVISION
If a general contractor is going to have a conditional payment bond, it needs to ensure it subcontracts contain pay-if-paid or pay-when-paid provisions. This conditional payment language in subcontracts is the general contractor’s defense that it doesn’t have to pay a subcontractor UNTIL owner...
CONSIDER THE LIMITED WARRANTY FROM YOUR HOMEBUILDER
When purchasing a home from a homebuilder, there is an important consideration when it comes to the limited warranty you receive around the time you close on the home. That limited warranty likely includes an arbitration provision requiring you to arbitrate your disputes, such as construction defect claims, against...
PRESUMPTION OF PREJUDICE APPLIES TO ALL AFFIRMATIVE DEFENSES REGARDING INSURED’S FAILURE TO COMPLY WITH POST-LOSS POLICY CONDITIONS
In a recent property insurance coverage dispute, an issue on appeal pertained to the “prejudice” jury instruction associated with the insured’s failure to comply with post-loss policy conditions. The trial court found that the prejudice only pertained to prompt notice and not other post-loss policy conditions. This was...
BONA FIDE DISPUTE DEFEATS VIOLATION OF PROMPT PAYMENT ACT
Most, if not all, jurisdictions, including the federal government, have what is known as a “Prompt Payment Act.” The objective is to ensure prompt payment. If prompt payment is not made, the Prompt Payment Act provides for interest penalties, as well as potentially other costs such...
ARE “FINANCIAL HARDSHIP” DAMAGES RECOVERABLE?
In a case out of the Civilian Board of Contract Appeals, F.O.G., LLC v. Department of the Interior, CBCA 8203, 2026 WL 1191881 (CBCA 2026) a contractor claimed damages that included “financial hardship” damages due to slow payments. The financial hardship damages included personal damages to the contractor’s president...
About The Author
David Adelstein
Phone: (954) 361-4720
Email: Dadelstein@gmail.com