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… Continue Reading
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
A recent decision by a judge in a Brooklyn, New York court, highlights the inability of a condominium to sue the sponsor’s architect for design and construction defects arising from the construction of a new luxury condominium. The condominium sued the sponsor and the architect claiming that it began receiving complaints from unit owners subsequent to the closing on the … Continue Reading… Continue Reading