Construction contracts generally outline various scenarios in which a party can terminate the contract. In one common scenario, a contractor is permitted to terminate its subcontractor “for cause” if the subcontractor provides deficient work or fails to meet the project schedule. Contracts often describe this type of deficiency as a “failure or neglect to carry
Construction
NY Contractors Face Increased Liability and Administrative Costs from Proposed Amendments to Wage Theft Prevention Act
The State of New York is poised to pass wage theft legislation that could have a major impact on the construction industry across the state. Among other things, it would impose greater liability risk on prime contractors and reporting requirements on subcontractors.
The bill, S2766-C, adds a new section to NY Labor Law §…
Owner Liability to Construction Subcontractors in Contract or Quasi-Contract
The typical arrangement on most construction projects is that the property owner or developer engages the services of a general contractor or construction manager, which in turn subcontracts the work out to the various trades pursuant to a number of subcontracts. Under this standard arrangement, subcontractors seeking payment for their work are generally limited to…
Written Change Order Requirements in Construction Contracts May be Waived
A frequent topic of dispute in litigation involving construction projects is whether a subcontractor is entitled to payment for work it performs outside its contractual scope of work—often referred to as “extra work” or “change order work”—without obtaining a signed written change order to perform the work. The same issue often arises in the context…
NYC Resumes Full Construction as Focus Turns to Jobsite Safety and Disease Control
On Monday, June 8, 2020, unrestricted construction resumed in New York City. Even projects considered non-essential or otherwise exempted can restart. However, this does not mean that a project can simply forge ahead without thought or consideration. The State of New York , the New York City Department of Buildings, the Occupational Safety and…