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Showing posts with the label prime contractor

Surety and Arbitration Provision in Subcontract

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A surety is not bound by an arbitration provision contained in a subcontract agreement between the prime contractor and subcontractor.  Because the surety did not sign the agreement, the surety is not bound by the arbitration provision.  Graham Contracting, Inc. v. Flagler County , 458 So.2d 418 (Fla. 5th DCA 1984).   Trenton H. Cotney Board Certified in Construction Law Trent Cotney, P.A. 1207 N Franklin St, Ste 222 Tampa, FL 33602 (813) 579-3278 www.trentcotney.com

Contractor's Responsibility for Subcontractor OSHA Violations

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A prime contractor is responsible for all violations it could reasonably be expected to prevent or detect because of its supervisory capacity over the site regardless of whether it or a subcontractor created the hazard.  Future blog posts will discuss the exceptions to this general rule. Trenton H. Cotney Florida Bar Board Certified Construction Lawyer Glenn Rasmussen Fogarty & Hooker, P.A. 100 S Ashley Dr., Suite 1300 Tampa, FL 33602 (813) 229-3333 http://www.glennrasmussen.com

Res judicata Applied to Contractor's Defenses

In W&W Lumber of Palm Beach, Inc. v. Town & Country Builders, Inc. , 35 So.3d 79 (Fla. 4th DCA 2010), the general contractor had filed suit against a window installation subcontractor for breach of contract damages.  The subcontractor counterclaimed for nonpayment.  The prime settled with the manufacturer of the windows and subsequently dismissed its claims against the subcontractor with prejudice.  The prime sought to amend to add additional defenses based on setoff.  The Court held that the doctrine of res judicata barred the prime's ability to add the setoff defense because it dismissed the claim giving rise to the setoff with prejudice.   Trenton H. Cotney Board Certified in Construction Law Trent Cotney, P.A. 1207 N Franklin St, Ste 222 Tampa, FL 33602 (813) 579-3278 www.trentcotney.com

Flow Down Provisions and Delay Damages

In CC-Aventura, Inc. v. Weitz Co., LLC, 2009 WL 230155 (S.D. Fla. 2009), the Court analyzed the effect of the prime contract on subcontract terms.  The prime contractor sought consequential damages from the subcontractor.  The subcontractor argued that the prime contract was incorporated by reference, and that a provision in the prime contract precluded the owner from seeking non-delay damages.  The Court held that the subcontract specifically defined the types of damages that contractor could seek against its sub, and as such, the subcontract provision controlled.  However, the Court noted that another provision in the subcontract stated that the prime could seek damages from the sub to the same extent that the owner could seek damages from the prime.  Accordingly, the Court could not determine the types of damages recoverable until it was determined the scope of damages the owner could seek from the prime. Trenton H. Cotney Board Certified in Constr...

Recent CILB Order: Mechanical Contractor Cannot Hook Up Sewer Lines

CILB issued an order that was filed on March 18, 2011, on the Petition for Declaratory Statement filed by Steven Markel, Complete Environmental Solutions, finding that a mechanical contractor may NOT hook up sanitary or sewer lines, but could potentially be allowed to operate as a prime contractor for such work. Trenton H. Cotney Board Certified in Construction Law Trent Cotney, P.A. 1207 N Franklin St, Ste 222 Tampa, FL 33602 (813) 579-3278 www.trentcotney.com