Contract Interpretation

Many subcontracts contain a catch-all provision requiring the subcontractor to do everything the prime contractor is obligated to do under the prime contract. This is known as an “incorporation” clause because it adopts or incorporates legal rights and duties spelled out elsewhere. Here is an example of an incorporation clause: “The Subcontractor shall be

The Texas Supreme Court recently provided new guidance in interpreting force majeure language in an oil and gas drilling dispute. In Point Energy Partners Permian, LLC v. MRC Permian Company, the court held that the oil and gas lessee’s scheduling error linked to a well collapse 60 miles from the lease site at issue

Last week we saw the Menard court reject the use of an indemnity clause to shift fees in a dispute between contracting parties. This week, a very recent decision from Nevada highlights another creative way to shift fees where there is no statute or contract provision on point: offers of judgment (see Helix Electric of

In Texas, many master service agreements (MSAs) related to the oil and gas industry typically contain provisions related to mandatory minimum insurance coverage and indemnity obligations. The Texas Supreme Court recently held the terms of an MSA may not be read into an insurance policy unless there is a “clear-manifestation” in the insurance policy the

The “American Rule” on attorneys’ fees is that each party pays its own lawyers, even if you win. As with almost any rule, there are exceptions. Sometimes there is a statute that requires the losing party to pay the prevailing party’s fees. For example, many states have enacted Prompt Pay laws that include a fee-shifting provision

Many contracts contain provisions requiring that changes to a contract be in writing and signed by a particular authorized person. Under such provisions, work done without proper written authorization will not be reimbursed. So, what happens when, in the rush to get the job done, work is done without prior written authorization? 

In Patriot Construction v.

Here’s the Scenario: Try explaining the concept of “retainage” to a businessperson unfamiliar with the construction industry at your next holiday party. Here’s the typical response as she spits out her eggnog: “Wait a minute: are you telling me that when work and materials timely supplied on a private commercial project are approved, the contractor

Here’s the Scenario: After months of working with a new national developer (and providing hours of unreimbursed value engineering), you get the draft prime contract and see that the named “owner” will not be the hugely successful developer, but a specially created “limited liability company” that’s sole “asset” is the land upon which the project

Here’s the Scenario:

After months of working with a new developer client (and providing hours of unreimbursed value engineering) and hard negotiations over the cost plus GMP contract (fighting over indemnity/escalation/savings/liquidated damage clauses), you have a deal. You pop a cork with all involved since the developer has said this is one of many

Any time a contractor receives a notice to cure, it should tread carefully and review its contract to determine its response. Recently, the Georgia Court of Appeals evaluated a case in which the general contractor terminated the subcontractor’s contract for failure to provide adequate labor to the project. The court determined that the general contractor