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New York Construction Law

Category Archives: Construction Contracts

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The Risky Business of Warranties

Posted in Architects & Engineers, Construction Contracts

Owners and contractors beware! The warranty you get may not be what you bargained for.

Many construction contracts, including widely used industry form contracts, contain two distinct warranties, a general warranty and a call-back warranty.  For example, the general warranty contained in the American Institute of Architects, AIA Document A201 – 2007, General Conditions of the Contract of Construction, … Continue Reading

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Public Private Partnerships: Securing Payment for Labor and Materials

Posted in Construction Contracts

What happens to contractors and subcontractors who are without lien rights when a private developer who is building on public land with private money defaults on the project? A recent court decision clarified the parties’ rights and obligations for those projects that are privately funded on publicly owned land, i.e., Public Private Partnerships (“PPP”).

Under New York’s Mechanics’ Lien Law, … Continue Reading

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Subcontractor Required to Strictly Comply with General Contractor’s Contractual Claim Provisions

Posted in Construction Contracts

In construction, incorporating a “prime contract” by reference into a subcontract is commonplace. Recently the Courts have broadly construed such “incorporation” provisions, often to the detriment of subcontractors. 

In Schindler Elevator Corp. v. Tully Const. Co, Inc., 139 A.D.3d 930 (1st Dept. 2016) the Plaintiff Schindler Elevator Corp. (“Schindler”) entered into a subcontract with the Defendant Tully Construction Co., Inc. … Continue Reading

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NY State Finance Law §137: Guidelines for Posting a Payment Bond under the “Little Miller Act”

Posted in Architects & Engineers, Construction Contracts

State Finance Law §137, modeled after the federal Miller Act, the father of all public project-bonding statutes, requires general contractors on most public works projects to purchase payment bonds. Unlike a construction performance bond, which guarantees that construction work will be completed as per the terms of the contract, a construction payment bond is meant to protect an owner … Continue Reading

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Condo Board Lacks Capacity to bring Construction Defect Action for Failure to Follow Bylaws

Posted in Construction Contracts, Real Property Law 339-dd

In a July 2, 2014 Commercial Division decision by Justice Demarest, the court granted the defendant’s motion to dismiss the complaint. The plaintiff board of managers of a Brooklyn condominium commenced the action, alleging significant construction defects against the condo’s sponsor. Among the arguments raised in the defendant’s motion was that the plaintiff lacked capacity to sue at the time … Continue Reading

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Plato v DASNY: Narrowing Exceptions to the Enforceability of No-Damage for Delay Clauses

Posted in Construction Contracts

“No-damages-for-delay” or “exculpatory” clauses in construction contracts between owners and general contractors are designed to protect owners from exposure caused by the delays that often occur on construction projects.  Contractors and subcontractors, in turn, often include such clauses to protect themselves from like exposure.

The Court of Appeals generally affirmed the enforceability of such clauses more than 25 years ago … Continue Reading

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