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The steep and steady rise of tuition for their children may drive some parents to bankruptcy and put the completed payment itself in jeopardy. Tuition payments made by parents to their child’s private school, college or university may be subject to claw-back when the parents later file for bankruptcy. Those sizable tuition payments are becoming…

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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,…

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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…

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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…

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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…

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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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