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Construction Law

The South Carolina Construction Law Blog

The Blog to discuss South Carolina Law on Mechanic's Liens, Delay Claims, Acceleration Claims, Lost Labor Productivity Claims, Construction Defect Claims, Construction Contracts and other issues involving Construction Law.

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Last Entry: January 13, 2011 at 20:16:00

Court Rules That Termination For Convenience May Not Be Enforceable If It Is For "Convenience" of Bid Shopping

Posted on February 07, 2010
A Maryland Court of Appeals in the case of Questar Builders, Inc. v. C.B. Flooring, LLC, 2009 MD.LEXIS627, considered the issue of whether private parties may terminate a contract for convenience whether a Termination for Convenience clause makes a contract voidable...

Contract Modifications May Trigger Disruption Claims

Posted on June 08, 2009
A government agency hired a general contractor to construct a laboratory building. Bell BCI Co. v. United States, 81 Fed. Cl. 617 (2008). After nine months from the beginning of construction, the government asked that an additional floor be added to the building...

Failure to Raise All Related Claims at Once May Preclude Parties from Bringing Any Remaining Claims Later

Posted on May 19, 2009
The legal doctrine of res judicata or claim preclusion precludes parties from bringing suit for claims they should have brought up in earlier suits...

Contractors, Remember to Perfect Your Mechanic's Lien to Stay Protected

Posted on May 13, 2009
Section 29-5-10 of the South Carolina Code of Laws Annotated allows providers of labor or materials for the repair, alteration, or erection of a structure to file a lien either on the structure or on the owner's interest in the land on which the structure is located...

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Exception to the Economic Loss Rule Extended to Commercial Construction

Posted on May 13, 2009
The economic loss rule is a court-created doctrine that bars liability in tort where the only damages are injuries to the defective product itself: this means no personal injuries or damages to other property exist...

Wrongful Conduct Found Not Covered by Insurance Policy

Posted on May 06, 2009
The City of Shawnee, Kansas, hired a contractor to perform work on a project. Utility lines ran throughout the job site. The bid solicitation documents indicated that the utility lines would be relocated not to interfere with the contractor's work...

U.S. Senate Expresses Concern over Chinese Drywall Issues

Posted on April 30, 2009
On March 30, 2009, Florida senator, Bill Nelson, introduced to the Senate Bill S.Res.91. The bill is entitled: "A Resolution Calling on the Consumer Product Safety Commission, the Secretary of the Treasury, and the Secretary of Housing and Urban Development to Take Action on Issues Relating to Drywall Imported from China...

No-Damages-For-Delay Clause May Be Unenforceable

Posted on April 13, 2009
Williams & Sons Erectors, Inc. v. South Carolina Steel Corp., 983 F.2d 1176 (2d Cir. 1993). The parties to a contract may choose how to share liability...

Short Contract Law Lesson

Posted on April 09, 2009
Construction projects usually involve many parties, many tasks, and consequently many different agreements. Thus, understanding basic concepts of contract law is very important...

A Promise by E-Mail Must be Supported by Consideration

Posted on April 07, 2009
Inland Constr. Co. v. Cameron Park II, Ltd., LLC, 640 S.E.2d 415 (2007). A contractor sued a corporation for money owed by the corporation under the terms of their construction contract...

When Does a Claim for Defective Work Arise?

Posted on April 06, 2009
Lee v. Prof?l Constr. Servs., 982 So. 2d 837 (La. Ct. App. 2008). A Louisiana Court of Appeal barred a claim against an engineer because it was brought beyond the limitations of the statute of repose...

Commercial General Liability Insurance Carrier Did Not Cover Liability for Professional Services

Posted on March 20, 2009
Wimberly Allison Tong & Goo, Inc. v. Travelers Prop. Casualty Co. of Am., 559 F. Supp. 2d 504 (D.C. N.J 2008). This case involved an architect who was sued by several parties who either sustained injuries or lost loved ones when a parking garage colapsed...

Obtain a Subcontractor's Proof of Insurance for Each Job

Posted on March 10, 2009
In February, 2009, in Hardee v. McDowell, the South Carolina Supreme Court addressed a contractor's ability to shift liability under the South Carolina Uninsured Employer's Fund...

An Architect Could Enforce Copyrights Several Years after the Statute of Limitations Expired

Posted on March 10, 2009
In Warren Freedenfeld Associates, Inc. v. McTigue et al., 531 F.3d 38 (1st Cir. 2008), the court of appeals reversed the trial court?s decision to dismiss an architect?s complaint because the period during which he could sue had expired...

Impact Claims Must Be Released Expressly

Posted on March 10, 2009
The United States Court of Federal Claims allowed a contractor to recover losses suffered due to over 200 contract modifications by the defendant, a government entity called the National Institutes of Health (NIH)...

Scope of Contractors' General Liability Insurance

Posted on March 10, 2009
Auto Owners Insurance Co. v. Newman, a 2008 case in the South Carolina Court of Appeals, involved a commercial general liability (CGL) insurance policy issued to a contractor. The subcontractor in the case installed stucco siding defectively, which allowed water to seep into the home and cause damage...

A Surety's Potential Liability

Posted on March 10, 2009
RLI Ins. Co. v. Indian River School Dist., 556 F. Supp. 2d 356 (D. Del. 2008). A surety was found responsible for a contractor?s financial obligations resulting from overpayment by owner...

Contractors, You Cannot Contract Out of Liability for Your Own Negligence

Posted on March 06, 2009

Employers, Keep in Mind Possible OSHA Inspections

Posted on February 24, 2009
Employers should be prepared for a possible workplace inspection by the Occupational Safety and Health Administration (OSHA). An inspection may be conducted because of a complaint, fatality in the facility, a scheduled inspection, or a follow-up visit...

Contractors, Consider Upgrading Your License Over Risking Disciplinary Action

Posted on February 23, 2009
In South Carolina, general and mechanical contractors have limitations on the amount of money a project they undertake may cost, unless the contractors qualify for the unlimited group...

A Contractor's Liability for Negligence

Posted on February 23, 2009
Contractors may be held liable for their negligent performance of a contract. Under the economic loss rule, economic loss alone precludes punitive damages?additional damages to punish for wrongful conduct...

Zoning Considerations: Developers' Reliance on Representations by the County

Posted on February 19, 2009
Quail Hill v. County of Richland, 379 S.C. 314 (Ct. App. 2008). Plaintiff bought property from the government in reliance on representations by County officers and staff regarding zoning...

A Lis Pendends, Without More, Will Not Provide Notice of Interest on Property!!!!

Posted on February 13, 2009
In its recent opinion, Horry County v. Ray, the South Carolina Court of Appeals held that a county's lis pendens alone did not give notice to a mortgagee of the county's interest on property...

The New South Carolina Illegal Immigration Reform Act!

Posted on February 11, 2009
While traditionally a federal issue, numerous states have taken the immigration matter in their own hands. South Carolina has recently adopted the Illegal Immigration Reform Act (?the Act?)...

Rights under the False Claims Act

Posted on February 10, 2009
Allison Engine Co. v. United States, 128 S.C. 2123 (2008) This appeal involved a claim under the False Claims Act (FCA)...

Trust Fund Statutes

Posted on February 09, 2009
Officers of a closely-held construction company usually first pay debts for which shareholders may be found personally liable such as employment taxes or personally guaranteed debts...

A Contractor Must Pay a Subcontractor All Undisputed Amounts Due

Posted on February 06, 2009
A contractor did not meet the requirements of the Texas Prompt Payment Act when the contractor wrongly withheld undisputed amounts owed to the subcontractor. ARCO Construction Company, Inc...

Residential Property Disclosure Statement

Posted on February 05, 2009
McLaughlin v. Williams, 379 S.C. 451 (Ct. App. 2008). A purchaser could not bring a claim for fraud and negligent misrepresentation when the purchaser had notice of the defects from the inspection reports...

Attorney's Fees in a Mechanic's Lien Action

Posted on February 04, 2009
The South Carolina Court of Appeals affirmed the lower court's ruling of limiting awarded fees and costs to the amount of the mechanic's lien. Mozingo & Wallace Architects, L...

Subcontractors, Be Prepared to Deal with Your Contractor's Bankruptcy - Know Your Rights, but Also Your Obligations!

Posted on February 03, 2009
As a subcontractor, you should understand the challenges that come with a contractor?s bankruptcy. Authors Jay Clark and Larry Longsdon discussed the many issues to consider when a contractor files bankruptcy in The Contractor's Compass journal...

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