In construction defect claims, failure to preserve the “scene” can be fatal to either a valid claim or a strong defense.  Indeed, when a defect or failure is discovered, it is important to do two things, as soon as possible: (1) secure the “scene” and related items and documents; and (2) notify any individuals or entities that may be involved in a claim concerning the defect or failure, and provide them with reasonable opportunity to inspect and…

Like many states, Tennessee law requires that a contractor performing work on a state or local project having a contract price of $100,000 or more to post a bond to secure the contractor’s payment for all the labor and materials used by the contractor, or any immediate or remote subcontractor under the contractor. T.C.A. §12-4-201. The purpose of the bond is to afford protection to both the government owner, as well as furnishers of…

A contractor’s “preferred contractor” relationship with an insurance company does not necessarily mean the insurance company can recover under a breach of contract theory when it seeks relief in subrogation from the contractor for faulty work. Such a claim has to be clearly specified as a breach of contract in the insurance company’s complaint. Recently in Tennessee Farmers Mutual Insurance Company v. Southern Damage Appaisals, LLC, the Tennessee Court of Appeals applied the subrogation…

While most of modern commerce and our daily lives have seen a dramatic increase in the use of automation and/or robots, construction sites have been one area where robots were slow to arrive. However, that does not appear to be the case any longer. A recent article published by the Associated Press highlighted the trend toward robotics and automation at construction sites in the U.S. This article (“Robots break new ground in construction industry”, by…

The payment term is the most important provision of any subcontract.  Subcontractors are not typically advanced money at the start of their work, requiring them to front the cost of construction based on the contractor’s contractual obligation to pay.  But, a subcontractor must insure the contractor’s payment obligation is not illusory.  Pay-if-paid and pay-when-paid provisions are frequently misunderstood. A pay-if-paid provision shifts the risk of nonpayment from the contractor to the subcontractor.  If the contractor…

With a Government Shutdown Looming, There are a Few Things Contractors Should Know The failure of Congress to reach an agreement on a short-term spending bill before the end of the day will cause the United States to start the weekend with a government shutdown.  Needing 60 votes to advance the spending bill in the Senate, Republicans face opposition to the current bill because it fails to offer protections for young undocumented immigrants or address …