Section Newsletter Articles on Construction Law

The “construction exemption” for contractor unfunded pension withdrawal liability By Stanley N. Wasser Construction Law, October 2014 A look at some of the basic concepts that must be understood for advising construction contractor clients whether the “construction exemption” will protect their client from unfunded pension withdrawal liability.
The year in legislation By Samuel H. Levine Construction Law, October 2014 Recent legislation of interest to construction law practitioners.
Contractor’s material breach of construction contract dooms mechanics’ lien and breach of contract claims By Paul B. Porvaznik Construction Law, September 2014 In Kasinecz v. Duffy, a contractor suffered a three-pronged defeat in his lawsuit against a homeowner.
Court stretches to find fabricator owed coverage as an additional insured By Bruce H. Schoumacher Construction Law, September 2014 A summary of Illinois Emcasco Insurance Co. v. Waukegan Steel Sales, Inc.
Substantial performance doctrine: Contractor defeats finicky homeowners in construction case By Paul B. Porvaznik Construction Law, September 2014 The case of Wolfe Construction should and will likely give property owners pause before they declare a default and fail to pay a contractor.
CASE NOTE: Fonseca v. Clark Construction Group – Summary judgment for general contractor By John L. Nisivaco and Kendra Piercy Tort Law, July 2014 The First District Appellate Court recently determined that a general contractor must retain control over incidental aspects of a subcontractor’s work, not just general supervisory control, to be held liable for the subcontractor’s torts.
The year in legislation By Samuel H. Levine Real Estate Law, July 2014 Legislation proposed and sponsored by the Construction Law Section.
Court refuses to enforce liquidated damages clause By Joshua T. Barney Construction Law, June 2014 Recently, in GK Development v. Iowa Malls Financing Corp., the Illinois appellate court struck down a liquidated damages clause as a penalty.
Section 34 of the Illinois Mechanics Lien Act By Howard M. Turner Construction Law, June 2014 The Mechanics Lien Act is strictly construed. It can be a trap for the unwary. Extra care should be taken in serving Section 34 notices and in responding to them.
The year in legislation By Samuel H. Levine Construction Law, June 2014 Legislation proposed and sponsored by the Construction Law Section.
Forest Preserve District of Cook County v. Urban Builders, Inc By Sarah Flohr Construction Law, January 2014 In this case the court rejected defendant’s claim for rescission because it waited too long to assert the claim and could have discovered the errors before submitting its bid.
J.S. Riemer v. Village of Orland Hills By Sarah Flohr Construction Law, January 2014 In this case the Village of Orland Hills brought a third-party action against the architect for fraud and breach of contract.
7th Circuit tackles pay-if-paid clause in construction contract By Paul B. Porvaznik Real Estate Law, December 2013 Pay-if-paid and pay-when-paid contract terms raise multiple questions. Such as: while they are often used interchangeably in the caselaw and in construction parlance, is the pay-if-paid vs. pay-if-paid distinction anything more than semantic hair-splitting? And are they even enforceable?
Illinois court enforces exculpatory and damage limitations provisions in construction contract By Paul B. Porvaznik Real Estate Law, November 2013 Plaintiff and defendant each had the power to define the limits of their respective obligations and this power extended to the parties’ allocation of the risk of loss.
In Weather-Tite’s wake—Fourth District limits owner’s exposure to subcontractor claims stemming from faulty contractor affidavits By Nathan B. Hinch Construction Law, October 2013 Four years later, the effects ofWeather-Tite are still being sorted out, and the recent decision of the Illinois Appellate Court, Fourth District, in Gerdau Ameristeel US, Inc. v. Broeren Russo Construction, Inc. is one of those cases.
So you want to go into the insurance business? Really???? By Geoff Bryce Construction Law, October 2013 A look at what happens if no insurance is provided, or if the insurance provided does not match what is required by the construction contract.
To bond or not to bond: Why is there a Question? By Paul Peterson Construction Law, October 2013 House Bill 2804, which will be reintroduced in the fall, will allow Illinois to join 48 other states that allow interested parties to post a statutory bond to substitute for real estate as security for paying a mechanics lien claim.
Cypress Creek decision legislatively reversed By Paul Peterson Commercial Banking, Collections, and Bankruptcy, July 2013 When all is said and done, it is likely that after PA 97-1165 (signed February 11th of this year), construction lenders will be more cautious in their construction lending and will charge an increased interest rate to cover the increased risk of additional mechanics lien losses in Illinois.
Implied warranty of habitability waiver to developer not enforceable against contractor By Justin L. Weisberg Construction Law, June 2013 The First District Appellate Court released an opinion on June 21, 2012 which has a significant impact on many residential construction defect claims alleging a breach of the implied warranty of habitability.
Cypress Creek decision legislatively reversed By Paul Peterson Construction Law, May 2013 The practical effect of PA 97-1165 is that lien claimants will be paid their contract amount on most completed jobs whether or not they have priority over the construction lender.
Protecting contractor rights in bankruptcy By Samuel H. Levine Construction Law, May 2013 A discussion of the bankruptcy issues most often encountered in the construction setting.
Subcontractor rights under the Miller Act: A case study By Joshua Atlas Construction Law, May 2013 In Capital Computer Group, LLC v. The Gray Insurance Company, the Eleventh Circuit Court of Appeals determined that a subcontractor who sub-subcontracted 100% of its scope of work was entitled to assert a claim under the Miller Act because the subcontractor still had obligations on the project, and a substantial and important relationship still existed with the general contractor, even if the subcontractor did not actually perform any work.
Just because it says so, doesn’t make it so Construction Law, March 2013 The lesson from Westfield Insurance Co. v. FCL Builders, Inc. is that general contractors need to be more proactive in securing coverage than just obtaining a certificate of insurance.
Public sector qualifications based selection of design professionals in Illinois By Bruce S. Bonczyk Construction Law, March 2013 Illinois is one of several states that uses a statutory system of qualifications based selection for design professionals seeking projects on the state and local levels.
Contractor may delegate safety duty to subcontractor By Ghazal Sharifi Construction Law, December 2012 The recent case of Oshana v. FCL Builders, Inc. held that a contractor may now delegate the safety obligations contained in its contract to a subcontractor and thus avoid liability for any injuries to a subcontractor employee.
“The devil is in the details”: Coverage issues to consider in light of Westfield Insurance Company v. FCL Builders Construction Law, December 2012 If your client is an “additional insured” instead of a “named insured,” your client will have greater coverage protection, will be subject to fewer exclusions, will not be obligated to pay the deductible, and will not subject to reporting requirements.
The leaky “pay-if-paid” clause: A fluid story of the “ifs” and “whens” of contingent payments By Nicholas J. Johnson Construction Law, December 2012 Subcontractors and contractors would both be well served in making themselves aware of the proper means of creating a “pay-if-paid” clause, and the various ways it might be circumvented.
ACORD insurance certificate changed By Bruce H. Schoumacher Construction Law, May 2012 When drafting construction contracts, attorneys and their clients must be aware of the limitations of revised ACORD 25. They will have to develop contract provisions which recognize those limitations.
ARRA domestic source requirements: “Buy American”—A complex maze having serious non-compliance consequences By Stanley N. Wasser Construction Law, May 2012 This article is intended to provide you with basic guidance for what you will find is a complex issue having potential serious non-compliance consequences.
The Illinois sworn contractor’s statement: An owner’s defense and an owner’s obligation By Paul Peterson Construction Law, May 2012 Acceptance of a statutory sworn contractor's statement that does not meet the requirements of Section 5 may leave the owner with obligations and no corresponding benefits.