Tag Archives: subcontract

Penny Wise, Pound Foolish – Defenses and Affirmative Relief Sought Under a Construction Contract

Construction contracts serve a vital role in every project to protect the interests of parties and dictate the roles and obligations of each interested entity. Parties to a contract must review and understand each term within a contract and the interplay such terms may have with one another. But what happens when a lawsuit is filed and in response a party raises both defenses and affirmative relief they are rightfully entitled to under a contract, although such defenses and rights may otherwise be inconsistent with one another. CONTINUE READING...

Flow-Down Provisions: “Subject To” Language, Standing Alone, May Not Be Enough

If a general contractor-subcontractor dispute arises where the subcontract has a different dispute resolution provision than that of the prime contract, which clause governs? For example, the prime contract requires disputes to be litigated in state court, but the subcontract requires arbitration of disputes. Whether a court will enforce the dispute resolution clause in the prime contract as valid and binding on the subcontractor may depend on the existence and specific language of a “flow-down” provision. CONTINUE READING...

Is the Foreign Venue Provision in Your Contract Enforceable?

Contracts often contain a provision stating that the venue for all claims arising out of the contract shall lie solely and exclusively in a certain location or that the contract shall be enforced in the courts of a specific state. This typically is advantageous to the party that prepared the contract. The question is—is it enforceable? CONTINUE READING...

Who’s Bound by a Forum Selection Clause? Contractors, Subcontractors, and Sureties?

Could a party end up litigating related claims in two separate forums if not all parties are bound by a forum-selection clause? To ensure efficiency and avoid inconsistent verdicts, all intertwined claims should be litigated together in the same forum, writes Sarah D. Rodriguez. CONTINUE READING...