A contract is an exchange of promises that a court will enforce. In the fast-paced world of construction, disputes often arise over whether the parties actually formed a legally enforceable contract. The general rule is that to form a contract the parties must reach a meeting of the minds on the contract’s essential terms. Whether there is
Most construction contracts include a provision stating that the contractor or subcontractor is an independent contractor and not an employee of the owner or contractor. That should settle the matter, right? Wrong. Depending on the context and jurisdiction, such contractual provisions may mean little or nothing at all.
In 2024, the Minnesota Legislature passed a
A federal judge in Oregon has tossed a subcontractor’s unjust enrichment or “quantum meruit” claim against the owner because the subcontractor did not first exhaust its contractual remedies against the contractor.
Exhaustion of remedies is a common legal doctrine that generally requires parties to pursue relief in a particular order. In dealing with appeals from a
A federal judge in Michigan last week rejected a contractor’s efforts to avoid a jury trial this fall in its dispute with the owner of the Ludington Pumped Storage Hydro plant. The case involves a project to overhaul the 50-year-old plant, which uses electricity during periods of low demand (i.e. at night) to pump
Many construction contracts include a provision that prohibits the parties from recovering “consequential” damages in the event of a breach. Sometimes parties will negotiate and agree to a waiver of consequential damages that identifies and describes what damages are considered consequential damages. For example, the parties may agree that prohibited consequential damages include such damages as
A federal judge in Oklahoma last week ruled against an electrical subcontractor who quit work before finishing because it was allegedly unsafe to continue. The court found that the subcontractor was simply losing money, and that the safety excuse was a “post-hoc fabrication” to justify “jumping ship.”
The case involves construction of a renewable natural gas
Construction law in the United States consists of two main bodies of legal rules. The first, federal law, applies to contracts involving the U.S. government and its agencies. The second, state law, applies to pretty much everything else. While each state is different, all states generally have two types of laws: (1) common law and
The Oklahoma Supreme Court has rejected a contractor’s performance bond claim due to the lack of adequate notice to the subcontractor’s surety (see Flintco LLC v. Total Installation Management Specialists, Inc., No. 120,100 (Okla. May 28, 2025)). The case involves the construction of three student housing buildings on the campus of Oklahoma State in Stillwater. During
For construction lawyers, the Battle of the Forms presents a familiar fact pattern. A material supplier/seller provides a potential buyer with a price quote along with its standard terms. The buyer, usually a contractor or subcontractor, responds with a form purchase order that includes its own standard terms, which differ from the seller’s terms. The
Court Affirms $1 Nominal Damage Award in Wind Farm Construction Dispute
The general contractor on the 60-turbine wind farm project in Good Hope, Illinois, is entitled to collect a whopping $1 on its cost-to-complete claim against its terminated subcontractor. We previously reported on the court’s entry of summary judgment in favor of the general contractor