Residential subcontractors will be obligated to indemnify a general contractor only in proportion to the fault caused by the indemnifying subcontractor. Governor Ducey’s April 10, 2019, signing of Senate Bill 1271 ended [...]
Category: Construction Law
Payment and Performance Bonds Are Incorporated into Federal Construction Project Contracts, Even If Not Expressly Stated
March 6, 2019
Construction Law
The U.S. Court of Appeals for the Federal Circuit recently held, in K-Con v. Secretary of the Army, that the standard bond requirements in federal construction contracts were incorporated into K-Con’s contract by [...]
Case Law Update
January 7, 2019
Construction Law
Court opinions have been issued in two recent Arizona cases regarding judgments. The first opinion, In Re Casillas, Sr., addressed the deadline to renew federal judgments under Arizona law and the impact of a pending [...]
A Homeowner’s Insurer Has a Duty to Defend a Builder Vendor Against a Claim for Negligent Excavation Brought by the Homebuyer
June 10, 2018
Construction Law
For contractors, the significance of this case is the reaffirmance of an Arizona builder’s common law duty to construct a home as a reasonable builder would. A property owner named Teufel hired Carmel Homes Design Group [...]
Lawyers are like doctors: You usually don’t visit them unless there is a problem. Below are some of the top construction-related problems we encounter. Avoid these potentially costly mistakes and you will improve your [...]
Arizona’s Prompt Pay Act Does Not Apply to Federal Construction Projects
February 10, 2018
Construction Law
In Zumar Industries, Inc. v. Camus Corporation, the Arizona Court of Appeals was asked to determine whether Arizona’s Prompt Pay Act governing contractor and subcontractor payment disputes applied to federal projects. [...]
Attorney Fees Are Now Recoverable in a Breach of Warranty Claim Against a Contractor by Subsequent Homeowners
October 10, 2017
Construction Law
Now that subsequent purchasers can recover their attorney fees should they prevail, that may lead to an increase in subsequent purchasers joining in multi-plaintiff construction defect lawsuits. The Wunderlichs contracted [...]
Arbitrator Alert: Awarding of Attorney’s Fees in Implied Warranty Cases
August 18, 2017
Construction Law
The Arizona Supreme Court’s Sirrah decision is likely to bring a new volume of cases before arbitrators and change the dynamics of arbitrable construction defect cases. In early August, our Supreme Court upended a [...]
Are Liquidated Damage Clauses in Construction Contracts at Risk of Being Declared an Unenforceable Penalty?
August 14, 2017
Construction Law
In the wake of an Arizona Supreme Court ruling, a liquidated damage clause may not stand up in court if it fails to reasonably estimate the parties’ construction-related damages at the commencement of the construction [...]
Should Res Judicata or Collateral Estoppel Bar Civil Actions or Issues after a Final ROC Decision and Order?
March 20, 2017
Construction Law
Should res judicata or collateral estoppel bar civil actions or issues after a final ROC Decision and Order? This article was prepared in conjunction with Sharon Shively’s March 3, 2017, presentation at “Arizona [...]