New York Construction Delays, All Things Being Equal, They’re Not

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.

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Construction Contract Drafting Considerations

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.

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Punitive Damages Claims in New York Construction Contract Disputes

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).

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Subcontractor’s Arbitration Action Stayed by Supreme Court

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.

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Protections Provided to New York Architects and Contractors under the Economic Loss Rule

THE ECONOMIC LOSS RULE IN NEW YORK CONSTRUCTION CONTRACTS:

WHAT IT IS AND HOW IT MAY BENEFIT CONTRACTORS AND ARCHITECTS

The “economic loss rule” is a rule that New York courts use to prevent a plaintiff from recovering against a defendant for a tort (usually negligence), when the essence of the plaintiff’s claim is for failure to live up to the terms of a contract.

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Appellate Court Upholds Contractor Indemnification

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.

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5 Reasons that may Justify the Termination of your Construction Agreement

This is a general information article and should not be construed as legal advice or a legal opinion. Readers are encouraged to seek counsel from a construction lawyer for advice on a particular circumstance.

When homeowners are ready to get the ball rolling with their new construction project, excitement and happy emotions usually take over when signing the construction agreement. With that said, however, there is an important relationship from start through final completion with your contractor, and significant issues could develop. When advising in breach of contract and contract termination cases, there are five examples all homeowners should look out for before pulling the trigger, that may justify your agreements termination. Continue reading “5 Reasons that may Justify the Termination of your Construction Agreement”

Alternative Dispute Resolution An Option For Construction Contractors Under NY’S Prompt Payment Act

Perhaps the most common construction-related dispute is the refusal of a party to make payment to its contractors or subcontractors. While litigation is the traditional avenue for resolving such disputes, methods of alternative dispute resolution such as arbitration and mediation are enjoying growing importance in the field of construction law.

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NY Supreme Court Strikes Contractor Liability Limitation Provision

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.

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Construction Warranty vs. Statute of Limitations Between Builder and Owner

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.

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