Absent Contractual Allocation of Risk of Delay, Subcontractor Cannot Recover Delay Damages from General Contractor Who was not Responsible for their Occurrence

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In Re: Regional Building Sys., Inc. v. The Plan Comm., 320 F.3d 482 (4th Cir. 2003), a federal court held that under New York law, absent a contract term to the contrary, a subcontractor cannot recover delay damages from its general contractor when the general contractor is not responsible for the delay. In the underlying [...]

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When to Stop Work for Non-payment

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EVERY SUBCONTRACTOR has had to deal with slow payment by general contractors who claim that it’s not their fault – the customer hasn’t paid them and, in a slow economy, this refrain is heard more and more frequently. As sympathetic as the sub might feel, the unfairness of being held up due to a problem [...]

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Limitation of Liability in Agreement Not Applicable to Causes of Action Arising Out of Contract Addendum

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Where a limitations of liability (LoL) clause was located in an Agreement, the clause was held not to bar recover for damages incurred by a contractor due to work being suspended pursuant to a suspension of work clause that was located in the addendum to the contract. In this interesting case, the contractor (Perini Corporation) [...]

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