Construction

Subscribe to Construction

Under Washington law, prime contractors perform construction for consumers, while speculative builders construct on property they own. The differentiation between these classifications is important because prime contractors are subject to Washington’s business and occupation (“B&O”) tax and retail sales tax, while speculative builders are not. In Lanzce G. Douglass, Inc. v. Department of…

In a case of first impression in Washington, the Washington State Supreme Court held that a landowner may satisfy its duty to guard an invitee “against known or obvious dangers on the premises by delegating the duty of protection to an independent contractor.”  Eylander v. Prologis Targeted U.S. Logistics Fund, LP, 539 P.3d…

Parties negotiating a design and construction contract for a large project will often leave for the end discussions of a few provisions that one side or the other has characterized as “deal-breakers.” Though the deal may be doomed to fail, one of the parties may also make a concession or concessions, have its bluff called…

Purchase agreements for construction, development, or real estate-related projects frequently offer parties the option of early mediation for settling a dispute before proceeding to arbitration or court litigation. While in my experience early mediation sessions tend to fail, additional mediation sessions held months later have a better chance of succeeding. In my latest column for…

Washington’s construction lien statute, RCW 60.04, balances the interests of persons performing work to improve real property with the interests of property owners in avoiding the necessity of paying for the same work twice. An unpaid contractor can assert a lien against property it has improved, but the owner has a right to notice that the work is taking place. On commercial projects, a contractor that is not under contract with the owner or prime contractor (a “lower-tier” subcontractor) usually must give a pre-claim notice to the owner to preserve its lien right. A contractor supplying only labor is expressly exempt from this requirement, though there has been some question regarding whether a lower-tier subcontractor providing both labor and materials is subject to the notice requirement.

Over this past summer, our colleague Mario R. Nicholas penned an article for the Daily Journal of Commerce entitled “Can Artificial Intelligence Be Trusted to Draft a Construction Contract?”  It is a great read, and we borrow from it here in many places.

In his article, Mario principally focused on why chatbots like…

Construction contracts generally outline when and how contractors should notify parties about potential claims for additional compensation and/or time. These provisions are intended to provide project stakeholders with the information necessary to address unforeseen circumstances and streamline claim resolutions within the project rather than resorting to legal actions. However, in some cases, the contract provisions…