“Pay-If-Paid Clause” Enforced as Condition Precedent to Subcontractor Right to Payment

by Kent Holland | Jan 12, 2012 | Newsletter Article

A “pay-if-paid” clause was enforceable to deprive a subcontractor (Sub) to sue the general contractor (GC) for withheld retainage where the project owner, a condominium developer, failed to pay the balance it owed to the general contractor which would have included...

Contractor Permitted to Sue Architect for Implied Warranty of Specifications

by Kent Holland | Jan 4, 2012 | Newsletter Article, standard of care

A Builder/Contractor that was building a house for a client/homeowner, used architectural plans that were drafted by an architect under contract with the homeowner, was permitted to sue the architect (with whom it had no independent contract) for breach of implied...

Assignee of Contract Indemnification Rights under a Design-Build Contract Stands in Shoes of Indemnitee and is Entitled to Recover Defense Costs

by Kent Holland | Jan 3, 2012 | indemnification clause, Newsletter Article

Where  a firm (Parsons Infrastructure) entered into a contract to design and construct a soda ash processing plant for Kerr-McGee Chemical Corp (KM) and agreed to provide KM with a defense and indemnity against losses arising out of negligent performance of its work, ...

Expert Survey of Small Sample of Walls Sufficient to Justify Opinion that Much Larger Area of Walls Must be Torn out and Replaced by Design-Builder for Failing to Meet Specifications for Rebar

by Kent Holland | Jan 3, 2012 | Newsletter Article

Where a design-builder filed suit against the project owner (animal fee manufacturing plant) to collect the balance of fee that was being withheld, the owner countersued for almost $2 million alleging that contractor breached the contract’s requirements for concrete...

Liquidated Damages in Design-Build subcontract Are Enforceable Even Where Far Exceeding Actual Damages

by Kent Holland | Jan 3, 2012 | Newsletter Article

Where a contractor entered into a design-build contract with the U.S. Navy to build four buildings at the Pensacola Naval Air Station, and included a liquidated damages (LD) provision in the subcontract with its subcontractor, that LD provision was enforceable despite...

Design-Builder Entitled to Contractual Indemnity from Subcontractor for Damages to Turbines

by Kent Holland | Jan 3, 2012 | indemnification clause, Newsletter Article

Black & Veatch (“B & V”) contracted with Portland General Electric (“PGE”) to engineer, procure and construct a power generating facility called the Port Westward Power Plant, and it subcontracted to a specialty subcontractor to install the combustion turbine...