Contractor’s Claim against CGL Insurance Company Dismissed Because It Failed to Give Company Timely Notice of Plaintiff’s Claim Related to Defective Work
ConstructionRisk.com Report Vol. #13, Issue #9
See article in the following topic indices:
CGL,Insurance Coverage Disputes,Notice Requirements
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Where plaintiff, homeowner, filed a complaint against the general contractor , the failure of the contractor to provide its Commercial General Liability (CGL) Insurance Company with notice of the claim for almost two years entitled the insurance company to summary judgment on its denial of coverage due to prejudice suffered. The defects alleged involved work [...]
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Contractor Suit Dismissed for Failure to Follow Claim Procedures of Contract
Change Orders,Claims,Contract Procedural Requirements,Notice Requirements,Time Limit
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A homebuilder’s lawsuit against a city and its architectural firm for refusing to grant change orders for additional costs was rejected by a court because the contractor failed to comply with a contractual requirement that it give written notice to the architect of its breach of contract claims against the city before initiating litigation. In [...]
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Failure to Request Change Order Bars Contractor Recovery for Excess Units
Change Orders,Notice Requirements,Unit Pricing,Unjust Enrichment
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Contractor that performed significantly greater unit quantities of paving work than anticipated was barred from an equitable adjustment because although it adequately documented the increased quantities and costs, and the project owner was aware of the same, the contractor failed to submit a change order for approval by the owner in advance of incurring the [...]
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Multi-Million Dollar Claim Invalidated by Court Due to Contractor’s Failure to Give Timely Notice
Claim Procedures,Notice Requirements
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Where construction contracts contain language obligating the contractor to submit claims for extras or changes to the owner or higher-tier contractors within a certain period of time after it incurs increased costs or delay. In addition, many contracts also require the contractor to notify the owner or higher-tier contractors of its intention to ultimately make [...]
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Architect’s Decision Final where Contractor Failed to Satisfy Arbitration Filing Requirements
Arbitration,Contract Procedural Requirements,Finality of Architects Decision,Notice Requirements
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Where a contractor failed to comply with arbitration notice and filing requirements, the architect’s decision became final and binding, and the contractor had no further recourse to arbitrate or litigate its dispute with a homeowner. The AIA form contract that was at issue in the case of Martel v. Bulotti, 65 P.3d 192 (2003), provided [...]
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Sureties Walk Fine Line Between Contractor Default and Claim Investigation
Default,Notice Requirements,Performance Bond,Sureties,Termination
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By: Robert J. MacPherson, Esq. Surety bonds are contracts and the rights and obligations of the parties will be determined in accordance with basic principles of contract law. The size of the claims and complexity of the project will not impact the result. That is proven by a recent court decision of the New York [...]
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No Damage for Delay" Clause Not Enforceable
Construction Management,Damages,Delay,No-Damage-for-Delay,Notice Requirements
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Where an electrical contractor was delayed in completing its work, the project owner, school district, asserted that the contractor’s claim for delay damages was barred by a “no damages for delay” clause in the contract. The trail court concluded that the clause did not bar the plaintiff’s claim, and the appellate court agreed. Delays were [...]
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