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On federal government construction projects, the prime contractor provides the government with a performance bond (pursuant to the Miller Act) guarantying the prime contractor’s performance under the prime contract. Under normal course and in accordance with the Federal Acquisition Regulations (“FAR”), the performance bond is triggered when the government terminates the prime ...
I have written articles regarding the statute of limitations and statute of repose relating to construction disputes governed under Florida Statute s. 95.11(3)(c): Within Four Years. An action founded on the design, planning, or construction of an improvement to real property, with the time running from the date of actual possession by the owner, the date of the issuance of ...
Here is a great opinion and insurance coverage dispute about the interaction between a CGL policy, and particularly one provided under an Owner’s Controlled Insurance Program, and a subcontractor default insurance policy / subguard policy. In Pavarani Construction Co. v. Ace American Insurance Co., 2015 WL 6555434 (S.D.Fla.
There are two types of statutory payment bonds that can be furnished on private construction projects in Florida: (1) unconditional payment bonds issued pursuant to Florida Statute s. 713.23 and (2) conditional payment bonds issued pursuant to Florida Statute s. 713.245. With an unconditional payment bond, an owner’s real property is exempt from construction liens from subc ...
In a prior posting, I discussed how federal courts have discretion to stay a subcontractor’s lawsuit against a payment bond surety pending an arbitration between the subcontractor and general contractor. This posting did not pertain to a Miller Act payment bond. However, low and behold, this same rationale would apply to a subcontractor’s lawsuit against a Miller Act payment bond. In U.S.
What is a fraudulent lien? Just because a construction lien is recorded does not mean the lien is a fraudulent lien. In fact, getting a lien declared a fraudulent lien is not an easy feat. A fraudulent lien is defined in Florida’s Lien Law. Florida Statute s. 713.31(2)(a) states: “Any lien asserted under this part in which the lienor has willfully exaggerated the amount f ...
Previously, I discussed the concept of “statutory employer” in the framework of workers compensation. Again, this concept is based on language in Florida Statute s. 440.10(1)(b) that provides: In case a contractor sublets any part or parts of his or her contract work to a subcontractor or subcontractors, all of the employees of such contractor and subcontractor or subcontra ...
I have previously discussed the challenges a subcontractor has in proving a lost productivity / inefficiency claim. Besides being difficult to prove, subcontractors generally enter into subcontracts that include onerous provisions that foreclose a subcontractor’s right to pursue lost productivity / inefficiency claims.
Contractors working on federal projects should be familiar with the Davis Bacon Act (40 USC s. 3142 and formerly cited as 40 U.S.C. 276a). This Act requires contractors to pay, at a minimum, prevailing wage rates including fringe benefits for labor as determined by the Secretary of Labor. The wage rate for select workers is oftentimes an exhibit to the contract.
To follow-up on the article Workers Compensation—Tidbits on Construction Projects, the recent opinion in Roof Painting By Hartzell, Inc./Summit Holdings-Claims Center v. Hernandez, 2015 WL 641199 (Fla. 1st DCA 2015) touches upon the application of a statutory employer in the construction context. Here, a contractor was hired to provide pressure cleaning and related services.
The Davis Bacon Act is a prevailing wage federal statute that applies to contractors and subcontractors performing work on federally assisted or federally funded projects in excess of $2,000 for the construction, alteration, or repair, including painting and decorating, of a public project. 40 U.S.C. s. 3142.
Oh boy! When it comes to workers compensation immunity, suppliers, particularly rental equipment suppliers, better watch out as they are not entitled to the same safeguards as subcontractors when it comes to injuries on a construction project! The Fourth District Court of Appeals in Ciceron v. Sunbelt Rentals, Inc., 40 Fla. L. Weekly D897a (Fla.
On sophisticated construction projects (federal, Florida public, or Florida private projects), it is not uncommon for a prime (general) contractor to require that certain subcontractors furnish the prime contractor a payment bond. When the subcontractor furnishes the prime contractor a payment bond, this bond is a common law bond because it is not a bond furnished in accordan ...
There is an affirmative defense referred to as betterment in construction defect cases. This is a defense raised to challenge the amount of damages incurred by the plaintiff when the plaintiff performs repairs BETTER than the original design / contract documents. See Grossman v. Sea Towers, Ltd., 513 So.2d 686, 688 (Fla.
If you are an owner and discover construction or design defects, you are going to want consult with a lawyer to make sure you know your rights under Florida Statutes Chapter 558. This includes sending a written notice of the construction or design defects identifying the defects with sufficient detail to the potentially responsible parties.
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