Construction Law

   In a recent federal court decision, Dynamic Drywall, Inc. v. Walton Construction Company, US District Court for the District of Kansas, No. NO06-280-JTM, January 18, 2007, the court held that a subcontract that incorporated a contract between the owner and general contractor determined venue.

   This case highlights the need for subcontractors to carefully review all documents that are incorporated by reference into a subcontract. Many times subcontractors carefully review the subcontract only but fail to review other documents incorporated by reference into the subcontract. This can be dangerous as terms that are not specifically included in the subcontract can sneak into the subcontract. Failing to review contracts incorporated by reference into a subcontract is the same as not reviewing a portion of the contract.

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