The usual measure of damages for breach of a construction contract is the cost to repair the defects or finish the incomplete work. But what if the cost to repair or compete is grossly disproportionate to the value that the additional work would create? In that case, some courts will instead measure damages based on diminution
A recent order from the Civilian Board of Contract Appeals in Zhang v. General Services Administration offers important guidance on the scope of discovery obligations in federal contract disputes — particularly where responsive records are held not by the respondent agency, but by a separate federal entity.
The decision merits attention for its analysis of
We all have legal duties. Some arise from contracts that we choose to enter. Others are spelled out in statutes or regulations. Still others are imposed by the common law. One of the most basic common law duties is the duty to exercise reasonable care to avoid injury to others. What constitutes reasonable care varies
We previously reported on the dispute between AECOM and Exxon over work performed at Exxon’s refinery in Montana. AECOM claimed it was owed roughly $100 million for extra work performed during a plant turnaround in 2019 that lasted 17 weeks instead of seven weeks as planned. Exxon disputed that it owed additional money and counterclaimed
In basketball there is a shot clock. Once a team has the ball, it must shoot within 30 seconds. We’re obviously talking about college basketball since its March, but the NBA has a similar 24-second shot clock. Failure to shoot within the required time automatically gives the ball back to the other team. The law’s
The Eighth Circuit Court of Appeals has affirmed a jury verdict finding that a developer and its founder defrauded a contractor by misrepresenting the availability of construction funding. See Selective Ins. Co. of Am. v. Heritage Const. Cos. et al, Case No. 24-2333, 2026 WL 263591 (D. Minn. Feb. 2, 2026). The case involves construction of a
Recent reports and contractor experiences suggest that the U.S. Agency for International Development (USAID) has, in some instances, failed to timely pay contractors for work that has already been performed and accepted. While payment delays are not unprecedented in federal contracting, prolonged or systemic nonpayment raises serious legal and practical concerns — particularly for contractors
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