Under Construction - December 2017


Letter From the Editor

Welcome to the final 2017 edition of our Under Construction newsletter. It is hard to believe that 2018 is right around the corner!

In this issue, we highlight several topics affecting the construction industry not just today, but as we move into the new year. Our first article addresses that things are looking good overall for construction in 2018. This article points out that as the U.S. economy continues to improve, corporate tax liability and regulation are expected to decline and private and public projects are anticipated to thrive nationwide. Therefore, it will be important to monitor and understand some of the most prevalent issues that will impact the construction industry next year. Our first article provides some thoughts on legal topics that will probably dominate construction in 2018 based on the author’s consultations with our clients, colleagues and industry experts.

As you know, construction contracts almost always include deadlines. One way to emphasize and ensure compliance with contractual deadlines is to include a “time is of the essence” clause, but that may not always be enough. Our next article provides analysis to those who rely solely on this clause and how they may want to protect themselves by having key deadlines enforced.

Another article describes a recent case where the Arizona Court of Appeals declined to enforce Arizona’s prompt pay protections to a subcontractor on a federal project. Since payment is the cornerstone of the construction industry, this article is essential reading.

Other interesting cases covered in this edition include a California Appellate Court case that clarified prevailing wage law for public works projects, another run-of-the-mill insurance coverage case in the California Appellate Court that turned out to not be so run-of-the-mill and provides additional arrows for obtaining insurance coverage in a construction defect case, and a recent Colorado liquidated damages case that just made the issue more complicated.

We hope you will find these articles informative and enlightening. Please let us know if you want us to address a specific construction issue in a future newsletter. We hope your year has been good to your family, your company and you as we wrap up these remaining few weeks of 2017. Hoping that 2018 is your best year yet!


Jim Sienicki

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