Everyone knows that time is money, and in particular this is true with New York construction contracts. It is also well known that delays are often part of the construction reality, along with change orders and extras. Delays impact owners, contractors and subcontractors.
Continue reading “New York Construction Delays, All Things Being Equal, They’re Not”
When it comes to subcontractor agreements, there are numerous types of agreements that might be used and the fine print in these agreements can be crucial. Some documents, such as the American Institute of Architects (AIA) 401 and the Associated General Contractors of America (AGC) Form 640 serve as standard forms of agreement.
Many contractors and subcontractors go about their work feeling protected from claims for damages because their agreements contain certain exclusions. Some of these agreements will even have language stating ‘Not responsible for [X, Y, and Z]’. But the ruling handed down February 14, 2012, by the Supreme Court, Nassau County serves as a reminder that contractual indemnity provisions are more of a privilege than a right, and are not subject to enforcement automatically.
Continue reading “NY Supreme Court Strikes Contractor Liability Limitation Provision”
In a recent client conference, I was asked, “So what is arbitration, anyhow?” In the context of a construction claim or in seeking to prevent such a claim, there are several significant advantages that arbitration can provide in lieu of litigation. In today’s challenging business environment, this signifies awareness of the various options available that could make an important impact on your business’ circumstance.
Continue reading “5 Reasons to Consider Arbitration for Your Construction Dispute”
Indemnification is an important legal concept which impacts nearly all construction contracts. It has several forms and types, but generally amounts to a contract requirement where one party party agrees to restore the other party from any losses. Where an anticipated loss should occur, the damaged party can expect reimbursement for the loss.
Continue reading “Appellate Court Upholds Contractor Indemnification”
To minimize potential legal problems when planning construction, whether the project is a large commercial project, a new residence, or even a renovation to an existing structure, care must be taken to have essential terms included in the contract.
Continue reading “Construction Contract Drafting Considerations”
The Supreme Court, New York County, recently clarified the impact of contractual language specifying litigation as the forum for resolution in the subcontract, and impact of New York’s Prompt Payment, providing for arbitration of disputes where it applies.
Continue reading “Subcontractor’s Arbitration Action Stayed by Supreme Court”
One topic that came up in my practice recently was a contractor’s potential exposure to liability for punitive damages under New York law. As the name suggests, punitive damages are awarded above and beyond their contract or property damages, ‘where the wrong done was aggravated by circumstances of violence, oppression, malice, fraud, … on the part of the defendant, and are intended to address the plaintiff’s mental anguish or other aggravation, to punish the defendant for its behavior.’ Black’s Law Dictionary 390 (6th Ed. 1991).
Continue reading “Punitive Damages Claims in New York Construction Contract Disputes”
Like the strings of a marionette puppet, after the completion of a New York construction project there are various legal theories that serve as ties between the builder and the owner. For the builder, the sooner these lingering ties can be removed the less exposure they face for claims of defects. For the owners, the longer they are able to establish these connections the longer they may have legal recourse against the builder for defects, should that be necessary.
Continue reading “Construction Warranty vs. Statute of Limitations Between Builder and Owner”
The Law Offices of John Caravella, P.C. offers a free initial consultation with a Long Island construction attorney to discuss your legal concerns with no obligation. To schedule an appointment, call our office today or fill out the form below.
