Kushnick | Pallaci PLLC Attorney At Law

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Contractor terminated for not paying subcontractors

In American Curtain Wall v. NTD Construction Corp. a contractor sued for breach of contract.  The defendant filed a motion to dismiss and argued that the contract was validly terminated because the contractor failed to pay its subcontractors

End of Quarter Tips

Its already April and the first quarter of 2011 is behind us.  As we enter the second quarter and the construction busy season I offer the following tips to help contractors avoid problems and get paid in full

Contracts indemnifying third parties may be voided by law

The New York legislature has proposed bill A05026 wherein General Obligations Law Section 5-322.1 would be amended to forbid an agreement to indemnify a promisee for damages caused by third party negligence.  Section 5-322.1 already forbids indemnification agreements

Legislature may make retainage work for you

Assembly bill A05023, if passed, would require owners to deposit retainage sums into an escrow based interest bearing account.  The law would allow owners to keep the security of retainage until the project is complete and signed off

Mobilization and Demobilization in New York Contracts

Generally, contractors are not entitled to an additional/separate payment for mobilization and demobilization costs.  Presumably, when you bid the project you included your expected mobilization and demobilization costs in your price.  However, mobilization and demobilization costs can become

Limits on Retainage

Retainage on a contract is often a subject of bitter dispute between parties to a construction contract.  The partying that is receiving payment always wants the retainage to be minimal or eliminated all together.  The party that is

Kushnick | Pallaci PLLC Attorney At Law​

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