Contract Clauses Archives

WE HAVE A GREAT CONTRACT, SO WHY ARE WE STILL DEALING WITH CLAIMS IN COURT (Part 3 of 3)

On behalf of Kaplin Stewart Meloff Reiter & Stein, P.C. posted in Contract Clauses on Sep 14, 2016.

In the first 2 posts of this series, we talked about why even the best of contracts don’t prevent all litigation and provided some tips on how to manage risk in a way that minimizes the chances of seeing the inside of a courtroom. In reality, the best approach is an integrated one that includes preparing the most appropriate contract possible (understanding there is no such thing as a perfect one), providing good leadership, and managing the risk in the field. It is this last component that is the subject of this final post.

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WE HAVE A GREAT CONTRACT, SO WHY ARE WE STILL DEALING WITH CLAIMS IN COURT? (Part 2 of 3)

On behalf of Kaplin Stewart Meloff Reiter & Stein, P.C. posted in Contract Clauses on Jun 15, 2016.

Part 2 of a 3 part series on risk management My previous post in this series addressed the most obvious reason why a construction company’s contract is not keeping it out of court: the contract simply isn’t good enough. It bears repeating that no contract is perfect; and even the best contracts, which allocate risk as opposed to eliminate it, can’t prevent every possible lawsuit. Because the contract itself cannot completely insulate a company from litigation, the next logical question becomes whether there is anything else that can be done.

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WE HAVE A GREAT CONTRACT, SO WHY ARE WE STILL DEALING WITH CLAIMS IN COURT? (Part 1 of a 3)

On behalf of Kaplin Stewart Meloff Reiter & Stein, P.C. posted in Contract Clauses on Jun 13, 2016.

Part 1 of a 3 part series on risk management In my years as a construction attorney, I have had countless conversations with contractors who are frustrated by the “drag” created by litigation. Many of those with whom I have spoken have expressed confusion over the fact that their contract – perhaps even one prepared by a lawyer – is good and should be keeping them out of Court; and they cannot understand why they still find themselves in costly and time consuming litigation. This 3 part series will endeavor to provide some answers to this dilemma and some ideas about how to cut down on some of that frustration.

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The Bester v. Essex Crane Problem: What is it?

On behalf of Kaplin Stewart Meloff Reiter & Stein, P.C. posted in Contract Clauses on Jun 8, 2016.

One of the most misunderstood concepts in construction contracts is the interplay between indemnification clauses and the immunity provided for employers under the Pennsylvania Workers’ Compensation Act. Because it is almost always the case – emphasis on almost – contractors and subcontractors assume they are immune from further liability as soon as payments are made to an injured employee under the workers’ compensation policy. The statute and Pennsylvania case law, however, say otherwise.

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Tips On Getting Paid For Your Construction Work

On behalf of Kaplin Stewart Meloff Reiter & Stein, P.C. posted in Contract Clauses on Nov 16, 2015.

There is at least one universal truth in businesses of all kinds: no one likes to work for free. The risk of non-payment in the construction industry can be greater than in others because of the significant financial outlay that is required just to perform the work. Reimbursement for labor and material costs are required just to avoid losing money (not profit) on a job. And we all know what happens to companies that don’t at least break even most of the time.

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General Contractor Has Duty To Deal With Subcontractor In Good Faith According to Pennsylvania District Court

On behalf of Kaplin Stewart Meloff Reiter & Stein, P.C. posted in Contract Clauses on Jan 6, 2014.

A recent decision in the Eastern District of Pennsylvania added some clarity and protection for contractors and subcontractors in their dealings with owners and contractors respectively. As part of a 117 page opinion, the Court held in Nippo Corporation/International Bridge Corp. v. AMEC Earth and Environmental, Inc., that the duty of good faith and fair dealing in a commercial transaction includes the duty not to hinder the other party’s performance of the contract.

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UPDATE: United States Supreme Court Decides Construction Contract Case

On behalf of Kaplin Stewart Meloff Reiter & Stein, P.C. posted in Contract Clauses on Dec 16, 2013.

We previously reported that the case of Atlantic Marine Construction Company, Inc. v. United States District Court for the Western District of Texas was to be decided by the Supreme Court. This case addressed a contractual provision requiring that all litigation arising as a result of the project be brought in Norfolk, Virginia. The project was located at Ft. Hood in Texas.

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U.S. Supreme Court Considering Construction Contract Case

On behalf of Kaplin Stewart Meloff Reiter & Stein, P.C. posted in Contract Clauses on Oct 29, 2013.

It is admittedly rare for the United States Supreme Court to consider a case that implicates construction contracts directly. The Court, in its new term, has just heard oral argument on a construction contract issue that could have a far reaching impact on the construction industry though.

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