Construction Law Blog
Construction Law Blog
Doused Expectations: Contractor Liability Arises in New Places
Bowie & Jensen Case Law and Legal Update: A recent appellate decision makes clear that contractors owe a duty of care to prevent damage to the tangible personal property of third parties. In June, the Maryland Court of Special Appeals held that an unrelated third party may be awarded damages arising from the contractor’s negligence,…
Read MoreTeaming Agreement Nothing More Than an Agreement to Negotiate
Bowie & Jensen Case Law and Legal Update: In Advance Telecom Process v. DS Federal, the Maryland Court of Special Appeals affirmed the dismissal of a breach of contract action arising out of a “teaming agreement” between two government contractors. A subcontractor had filed suit claiming that the prime contractor had breached the teaming agreement…
Read MoreMatthew Hjortsberg Named Chair-Elect for Construction Law Section of the MSBA
Bowie & Jensen is proud to announce that its managing partner, Matthew Hjortsberg, has been named Chair-Elect of the Construction Law Section of the Maryland State Bar Association (MSBA). The MSBA Construction Law Section sponsors educational programs, updates members on legal and legislative developments and provides various resources for lawyers who practice construction litigation or…
Read MoreConstruction Market Now Booming After a Slow First Quarter
After seeing minimal activity in the first quarter of 2015, the construction market has picked up its performance and experienced significant action to date. The greatest amount of activity was seen in the building of commercial properties, especially offices and hotels. The American Institute of Architects’ (AIA) semi-annual Consensus Construction Forecast, a survey of the nation’s…
Read MoreRemedies Vary for Wrongful Termination of a Construction Contract
Sufficient justification of the termination of a construction contract must exist or the terminating party may be liable for damages arising out of the wrongful termination. The results of any such termination typically are governed by termination clauses, or in their absence, Maryland statute. On occasion, owners or general contractors will terminate a construction contract,…
Read MoreConstruction Workers in Confined Spaces Will Come Under New Protection Rule
The Labor Department’s Occupational Safety and Health Administration recently announced that construction workers who work in confined spaces such as tanks and manholes will come under a new rule that will provide them with increased protection. In an effort to prevent deaths on the job, multiple employers at a work site will be required to…
Read MoreThe General Assembly Passes a New Law Regarding Contracts for the Sale of New Homes
On April 4, 2015, the General Assembly of Maryland passed a new law under the Maryland Home Builder Registration Act, which states that contracts for the sale of new homes must include a written commitment for a loan secured by the property unless other provisions regarding the financial contingency are expressed. If the contract shall…
Read MoreRemedies for Wrongful Termination of a Construction Contract
On occasion, owners or general contractors will terminate a construction contract, alleging the lower-tiered contractor has failed to meet its contractual obligations on a project. The basis for termination will range from failure to perform or arrange to have performed any duties under the contract to the refusal to make any payments to subcontractors or…
Read MoreCritical Construction Clauses: Termination for Cause
As a follow-up to the previous article Critical Construction Clauses: Termination for Convenience, this focuses on the effects of another means of contract termination, termination for cause by the owner in a construction project in Maryland. A right of termination for cause is standard in public and private construction projects, permitting a party to terminate…
Read MoreMaryland’s Favorable Retention Laws for Contractors
In recent years, the Maryland Legislature has passed several laws addressing the issue of retention on construction contracts. Historically, an owner would hold back, or retain, ten percent of the balance due on an invoice to secure final completion. As a result, this ten percent hold back flowed down to each subcontractor and supplier. Through…
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