Blog

Unfortunate (and Unexpected) Restriction on Additional Insured Status

The New York Court of Appeals, in a split decision, has focused on one word in deciding that a owner’s construction manager was not entitled to additional insured status on the general contractor’s policy. The contract required the GC to include the owner, DASNY, the State of New York, and the owner’s construction manager as…
Read more

Payment Bond Does Not Cover Claim for Lost Work Opportunity

A subcontractor claiming that the general contractor failed to use and pay for a minimum number of workers made a claim against the GC’s payment bond, for the value of the workers not hired. A federal court has held that the Miller Act bond does not cover that claim. It may be a valid breach…
Read more

Licensing Board Review Is Not Limited by Contracted Scope of Services

A Vermont licensing board refused to adopt a registered engineer’s argument, that his professional services were circumscribed by a contract scope of work, in assessing whether he had “failed to conform to the essential standards of acceptable and prevailing practice.” The Vermont Supreme Court has upheld the licensing board’s approach. Thus, the licensing agency, supported…
Read more

Inherent Limitations in Some Anti-Indemnity Laws

A majority of states have enacted anti-indemnity laws in various forms, protecting subcontractors (in most states with such laws) and prime contractors (in a lesser number of states) from overbroad indemnity clauses. But some clauses target sectors of the construction market and do not apply universally to construction projects. One such limitation featured prominently in…
Read more