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September 2012 Archives

Be Careful Or You May Have to Indemnity Others For Their Own Negligence

Indemnity obligations are often found in construction contracts. The function of these undertakings, generally speaking, is to pass liability through from one party to the other where one party is actively liable and the other party is vicariously liable. In the construction context, such agreements or clauses may be drafted by a general contractor with the intention of passing through to a subcontractor the liability the general contractor owes to an owner for a loss. This is certainly fair where the indemnitor is actually the party that caused the loss. There exists a common law duty of indemnity where one (e.g. subcontractor) causes the loss and the other (e.g. contractor) is responsible for the loss by contract but did nothing to create the loss. More difficult to accept is an undertaking to indemnify someone from their own negligence. Florida Statute 725.06 imposes a requirement of a commercially reasonable monetary limit with respect to enforceability of the indemnity undertaking by contractors and subs by contract for the other's negligence.  Read more...

But I Thought We Had a Deal - A Lesson in Termination for Convenience

So you enter into a subcontract to furnish improvements for a set cost, everyone agrees, and then your subcontract is terminated for no reason, except that the general contractor has found someone who is willing to perform at a cheaper cost. Is that bad faith? Can the general contractor just cast you aside without repercussion? If your subcontract contains a termination for convenience clause, they most likely can.  Continue reading...

Can I Recover Attorney Fees On My Bond Claim?

Rules, more rules, exceptions to the rules, and an infinite number of exceptions to the exceptions - this may be the popular belief about what civil law is made of. Whether that perspective is accurate or not, understanding those rules, exceptions, etc., can translate into having more of the bottom line: $$$. Wondering whether those rules allow you to recover attorney fees incurred on your bond claim, click here to find out.....

Green Construction Success Story?

With electricity prices expected to increase substantially, some in the construction industry are actively looking for ways to offset that historically-fixed cost. Some have gone even further than just offsetting the cost by seeking to eliminate it entirely.

Green Construction Success Story?

With electricity prices expected to increase substantially, some in the construction industry are actively looking for ways to offset that historically-fixed cost. Some have gone even further than just offsetting the cost by seeking to eliminate it entirely.

Even when the bond says no, you may be entitled to lost profits for unperformed work!

In The Plumbing Service Company v. Progressive Plumbing, Inc., Case No. 5D09-3171 (Fla. 5th DCA Oct. 22, 2010), The Plumbing Service Company ("Plaintiff") had sub-subcontract with Progressive Plumbing, Inc. ("Subcontractor"). Plaintiff sued Subcontractor alleging that Plaintiff had completed its work on 15 of 230 condominium units when Subcontractor breached the agreement by ejecting Plaintiff from the project before Plaintiff had time to complete its work under the contract. Plaintiff had successfully recovered for the unpaid work performed against a surety that had issued a payment bond for the project.

Permit Process Discussion Group

With permit fees at an all time high, and the process of obtaining approvals sometimes difficult to maneuver, this blog has been created to allow industry professionals to discuss ways of improving the system as a group, without being concerned of jeopardizing individual standing with municipalities.  All comments are welcome.  Let's try and fix this system together!

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