Construction Law Newsletters

ADDITIONAL INSURED PROVISIONS IN CONSTRUCTION CONTRACTS

When a general contractor requires a subcontractor to obtain insurance for the subcontractor's work under a construction contract, the general contractor often requires the subcontractor to include the general contractor as an additional insured under the subcontractor's insurance policy. Similarly, when an owner requires a general contractor to obtain insurance for his or her work, the owner may also require the general contractor to include the owner as an additional insured under the general contractor's insurance policy.

ALLOCATION OF RISKS IN A PRIVATIZED CONSTRUCTION PROJECT

As with all risks that are inherent to a construction project, the risks of a privatized construction project, that is, a public project that is built and financed with private funds, are usually allocated among the parties who are involved in the project. The three ways of allocating the risks are avoiding or reducing the risks, assuming or retaining the risks, or transferring or sharing the risks.

Enforcement of Subcontractor Bids to the General Contractor

General contractors (aka prime contractors) do not normally perform all the work on a construction project. Rather, it is parceled out to various subcontractors with specialities in the necessary areas. In order to submit its own bid to the owner for a construction project, the general contractor will utilize the chosen bids from each of the subcontractors.

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.

"SICK BUILDINGS"

Recent litigation regarding construction defects have included defects that involve "sick buildings." "Sick buildings" are generally defined as building that make people sick. These types of buildings include buildings that are associated with air quality problems, which problems cause various diseases or allergic reactions that are traced to airborne contaminants.