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Construction Law: Contracts

We are frequently requested by subcontractor clients to review the subcontract that has been prepared by the prime contractor, before our client signs it. While no two agreements are identical, there are a number of problematic contract provisions that appear in many agreements. Here is a list of ten such provisions (and their variations) that […]

One of the most effective collection procedures available to subcontractors and suppliers to California Construction projects is the “stop payment notice” procedure found under California Civil Code sections 9350 – 9364.  Under this procedure, the unpaid subcontractor or supplier may serve the stop payment notice on the public entity and the direct or “prime” contractor […]

It is well-established law in California that the latest date on which a mechanic’s lien may be recorded relates to the date of completion (or cessation) of the project work, or, if a Notice of Completion is recorded, to the date of the recording of that Notice. As to the earliest date a subcontractor or […]

There are occasions when a meeting (pre-litigation) among parties to a dispute with similar and/or opposing interests can be productive. Many contracts require parties to a dispute to “meet and confer” prior to initiating a formal claim. The purposes of such a meeting may include reviewing and discussing the issue, identifying any common interests and […]

Certain phrases in our language originated as legal concepts. “Ready, willing and able” and “acts of God” are examples. Another such phrase is “Time is of the essence.” What is the legal significance of including this phrase in a contract?
For many years the prevalence of the “Type 1” indemnity clause has been the subject of fierce debate within the construction industry. Subcontractors have complained that they are saddled with indemnity obligations that require them to indemnify contractors from construction-related claims for which these subcontractors are truly not responsible. In defense, contractors have argued that they must be entitled to the freedom to set contractual terms to best protect themselves and they point out that subcontractors are certainly free to negotiate better terms or turn down work.