Construction Law Newsletters

UNIFORM LAWS REGARDING GLOBAL CONSTRUCTION PROJECTS

Although there are no international laws that have been enacted for global construction projects, there are some international uniform laws that may apply to the projects. These uniform laws include the International Restatement of Contract Law; the United Nations' Model Law on Procurement of Goods, Construction, and Services; the Uniform Commercial Code; and the International Chamber of Commerce's Uniform Customs and Practice for Documentary Credits and Uniform Rules for Contract Guarantees.

INSURANCE ISSUES IN CONSTRUCTION DEFECT CASES

Contractors usually protect themselves from liability to third parties by purchasing general liability insurance policies. General liability insurance policies protect the contractors from damages for accidental bodily injury or for property damage. Most general liability insurance policies contain exclusions for damages as a result of the contractors' own work or products.

Progress Payments

Interim payments throughout construction, known as progress payments, are designed to not only ensure prompt payment to the contractor but also provide an incentive for steady and incremental completion of construction phases. Even though progress payments may be made, the owner will not usually pay one hundred percent of the amount due. Rather, a percentage of the amount due will be rendered with a small portion being withheld until final completion.

TYPES OF WARRANTIES IN CONSTRUCTION CONTRACTS

A warranty is a representation or a promise that a certain fact is true. The two types of warranties in construction contracts are express warranties and implied warranties. Express warranties are representations or promises that are specifically set forth in a construction contract. Implied warranties are representations or promises that are imposed on a contractor by operation of law.

LICENSING EXEMPTIONS

In most states, contractors, architects, and engineers are required to be licensed in order to perform construction work. Some states have enacted statutes that provide exemptions for license requirements. However, these exemptions are extremely limited and are strictly interpreted by the courts.