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… Continue Reading
“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… Continue Reading