The payment term is the most important provision of any subcontract. Subcontractors are not typically advanced money at the start of their work, requiring them to front the cost of construction based on the contractor’s contractual obligation to pay. But, a subcontractor must insure the contractor’s payment obligation is not illusory. Pay-if-paid and pay-when-paid provisions are frequently misunderstood. A pay-if-paid … Read More
AIA Releases 2017 Construction Contract Documents
The American Institute of Architects publishes the most widely used form document set in the construction industry. The AIA revises the construction contract documents approximately every 10 years to address legal opinions and current construction practices. On April 19, the American Institute of Architects released the 2017 version of its contract documents. The documents revised in the 2017 version include: A201™-2017 General Conditions of … Read More
It’s All in the Contract: Design Professionals
We’ve all been told to be careful what we ask for. And that is true. But for design professionals, it is also important to “be careful what you contract for.” Many design professional contracts contain standardized language that has been evaluated and addressed for many years, providing greater certainty as to the application of the contract language. However, sometimes owners … Read More
Prevailing Parties Get the Fees
Tennessee follows the “American Rule” concerning attorney fees. Accordingly, even if a party wins his case, he is not entitled to attorney fees unless there is a contract or statute providing a recovery. There are a few other narrow situations that provide attorney fees based on a recognized exception, but generally speaking, there will be no recovery of attorney fees … Read More
NLRB Changes Joint Employer Standard with Major Implications for General Contractors
The National Labor Relations Board (“NLRB”) recently issued its decision in Browning-Ferris Industries of California, Inc. In a 3-2 decision (along party lines), the NLRB changed the standard for who may be considered a joint employer under the National Labor Relations Act. In the construction industry, this decision could make it more likely that general contactors will be considered joint employers of … Read More
Design Professionals Need Intellectual Property Clauses in Contracts
“Just because you start, does not mean you will finish!” A recent case out of the Court of Appeals for the 5th Circuit reminds us of parties’ needs for careful contracting, particularly on the point of design ownership. In Hunn v. Dan Wilson Homes, Inc. 789 F.3d 573 (5th Cir. Tex. 2015), the Court of Appeals for the 5th Circuit ruled that a draftsman and … Read More