Under Construction - September 2016


Letter from the Editor

Welcome to the Fall 2016 edition of our Under Construction newsletter. We hope your summer has left you relaxed and refreshed to successfully finish out the remainder of the year.

Most states have implemented laws governing the qualification and licensing of contractors. Therefore, we will first examine the contractor’s license requirements of three states (Arizona, California and Utah). As the article explains, contractors failing to comply with these licensing requirements could face the harsh penalty of losing their right to receive payment for work done or, worse, the more draconian penalty of disgorgement of all amounts the contractor has been paid for work done. It is obviously imperative to comply with the controlling licensing statutes in the jurisdiction where work is being performed.

We will then take a look at how to navigate prospective price redeterminations under the Federal Acquisition Regulations. These price redeterminations are used in long-term federal construction contracts. The next article describes how a recent California case helps provide guidance on how California courts may resolve the frequent battle on construction projects between the contract forms used by material suppliers versus the contract forms of contractors and whether prejudgment interest can be recovered on a construction claim. From there, we address whether resultant damages are covered by insurance policies governed by Colorado law. Finally, we wrap things up by taking a look at Nevada’s Notice of Non-Responsibility and whether the owner could nevertheless be responsible for work done by a contractor for the owner’s tenant, even when the construction contract is only between the contractor and the tenant. Some, or all of these articles, cover topics which may significantly impact your company.

We hope you will find these articles informative and enlightening on these very important subjects. Please let us know if you want us to address a specific construction issue in a future newsletter. We hope you have a profitable, busy and safe fall season!

Jim Sienicki

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