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Construction Law

The South Carolina Construction Law Blog

The Blog to discuss South Carolina Law on Mechanic's Liens, Delay Claims, Acceleration Claims, Lost Labor Productivity Claims, Construction Defect Claims, Construction Contracts and other issues involving Construction Law.

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Last Entry: January 13, 2011 at 20:16:00

Interpreting Contract Terms Concerning Allocation of Risk

Posted on February 01, 2009
The Armed Services Board of Contract Appeals rejected a contractor's argument that it could charge the government an "equipment" price for what was in fact a cost for weather-damaged materials (ASBCA No...

Differing Site Conditions and Were They Differing After All?

Posted on January 31, 2009
A contractor was unsuccessful in appealing a denial of its claim for equitable adjustment based on differing site conditions, commercial impractibility, undisclosed superior knowledge, and failure to cooperate theories in front of the Armed Services Board of Contract Appeals (ASBCA No...

Get Help with Obtaining Government Bonds

Posted on January 30, 2009
Small business contractors can use the U.S. Small Business Administration?s (SBA) Surety Bond Guarantee (SBG) program to obtain government bonds...

Florida District Court Holds that Satute of LImitations on Construction Defect Case Did Not Begin to Run until After Transfer of Control to Association

Posted on January 30, 2009
A Florida district court found that a condominium association had 4 years during which it could bring action against a contractor, developer, and architect for construction defects...

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Contractors, pay your taxes or get disbarred from Federal contracting!!!

Posted on January 29, 2009
Contractors should think twice when choosing not to pay or when disregarding federal taxes. Regulation 52.209-5 provides an additional certification that all contractors must make when bidding for federal contracts...

Concurrent Delay Damages, Award and Allocation

Posted on January 28, 2009
Michael and Daniel Drewry discussed the downstream allocation of concurrent delay damages in the ABA newsletter Under Construction...

Existing Home Sales Increase by 6.5% in December

Posted on January 26, 2009
According to the National Association of Realtors, sales of existing homes increased by 6.5% in the month of December. �Read article.

Comply with Construction Trust Fund Statutes to Avoid Personal Liability!

Posted on January 22, 2009
Officers of a closely-held construction company usually first pay debts for which shareholders may be found personally liable such as employment taxes or personally guaranteed debts...

No Mechanic's Lien on Property for Which Materials Have Been Fabricated but Not Delivered

Posted on January 21, 2009
The South Carolina Code provides: ?A person to whom a debt is due for ? materials furnished and actually used in the erection, alteration or repair of a building ? by virtue of an agreement with ? the owner ? shall have a lien upon the building ?...

Rules Established by the FAA for Vacating, Modifying, or Correcting Arbitration Awards Are the Exclusive Grounds for Modifying an Arbitration Award and Cannot be Modified by the Parties

Posted on July 06, 2008
The case Hall Street Assocs., LLC v. Mattel, Inc., 128 S.Ct 1396 (2008), arose from a dispute concerning the responsibility for clean-up of a manufacturing site when excessive levels of pollutants were found in the property?s well water...

Homeowner's Refusal to Make One Payment in a Construction Installment Contract Constitutes a Substantial Breach of the Contract

Posted on July 03, 2008
The South Carolina Court of Appeals recently decided that a homeowner's refusal to make an installment under construction contract constituted a substantial breach of the contract. See Silver v. Aabstract Pools, 376 S.C. 585, 658 S...

Proper Measure of Damages For a Claim Against Title Insurance for Newly Discovered Encumbrance is the Difference Between the Value of the Entire Tract While Encumbered and the Value of the Entire Tract Without Encumbrances.

Posted on July 01, 2008
In a recent case before the S.C. Supreme Court, Stanley v. Atlantic Title Ins. Co., 377 S.C. 405, 661 S.E.2d 62 (2008) a landowner purchased lakefront property, a portion of which, unbeknownst to the purchaser and title insurance company, served as a drain field for a neighboring tract of land...

Award of Statutory Attorney?s Fees Disallowed in the Absence of a Formal Fee Agreement

Posted on July 01, 2008
In the case of Williamson v. Middleton, an employee and employer came to an agreement that the employer owed the employee $906.62 in back commission at the time of the employee?s departure from the employer?s business. After starting a new job, the employee continued seeking the commission and enlisted the service of a close friend and lawyer that had previously assisted the employee in an unrelated matter free of charge...

Arbitration Clause Stricken for Unconscionability

Posted on June 30, 2008
In the case of Simpson v. MSA of Myrtle Beach, Inc., 644 S.E.2d 663 (S.C. 2007), an issue over the validity of the arbitration clause arose. The additional terms and agreements section of a consumer automobile purchase contract contained a broad arbitration clause...

Not Incorporated? Consider Forming a Limited Liaility Company

Posted on June 29, 2008
S.C. law permits the creation of a Limited Liability Company (LLC). LLCs allow member(s) to be taxed like a sole proprietorship or partnership. LLCs provide limited liability as corporations do - members or managers of a LLC are generally not liable for the obligations of the LLC...

?Opt-out? Class Action and Notification Procedure is the Exclusive Method of Class Action Litigation in South Carolina

Posted on June 29, 2008
In a recent decision, the S.C. Supreme Courtheld that the?Opt-out? class action and notification procedure is the exclusive method of lass action litigation in South Carolina. See Salmonsen v. CGD, Inc., 377 S.C. 442, 661 S...

What is Float Time, and Who Owns It?

Posted on June 28, 2008
Float Time is the period in Critical Path Method scheduling that allows the contractor to an excusable delay when the original contract schedule allows more than enough time to perform the work. In other words, the float is the maximum delay allowed before a delay will cause a slow-down in completion of the whole project...

?Or Equal? or Not

Posted on June 27, 2008
This article was contributed by R. Bryan Barnes of my law firm. Bid specifications frequently contain the identification of a product to be provided by the bidder but, then allow an "or equal". Bidders who receive the contract may find themselves in the position of being unable to provide the product specified because the product manufacturer has discontinued the line, gone out of business or only provided a limited supply...

Basis for Liens and Assessments Under the S.C. Horizontal Property Act

Posted on June 27, 2008
Liens for non-payment of assessments to a community association can arise under two different situations. First, the S.C. Horizontal Property Act provides a statutory basis for the creation of liens in the case of condominiums only...

Owner Who Builds His Own Home Offers No Implied Warranty of Workmalike Service nor Owes Duty of Care to Future Purchaser

Posted on June 26, 2008
In the recent case of Smith v. Breedlove, 377 S.C. 415, 661 S.E.2d 67, the SC Supreme Court held that a private individual who built a home as his personal residence, acting as his own general contractor, was not considered the builder or general contractor when a subsequent buyer sued for breach of implied warranty of workmanlike service...

SC Supreme Court Allows Low Bidder on Government Project to Increase Bid after Bid Opening

Posted on April 16, 2008
This article was contributed by R. Bryan Barnes of my law firm. The State of South Carolina launched into uncharted territory when it disallowed the bid protest of the second low bidder in the case of Martin Engineering, Inc...

FCC Issues Order Banning Exclusivity Contract with Cable Providers

Posted on April 02, 2008
On March 19, 2008 the Federal Communications Commission (FCC) voted unanimously to issue an order banning exclusivity contracts between cable operators (and other multi-channel video programming distributors) and multiple dwelling unit developments...

FCC Issues Order Banning Exclusivity Contract with Cable Providers

SC Courts Will Not Enforce Arbitration of Unforseen and Outrageous Torts

Posted on April 01, 2008
In Chassereau v. Global-Sun Pools, 644 S.E.2d 718 (S.C. 2007),a buyer and seller entered into a contract for the purchase of a swimming pool. The contract contained an agreement to arbitrate any disputes arising out of the contract...

SC Courts Will Not Enforce Arbitration of Unforseen and Outrageous Torts

Social Security Administration: No "No -Match Letters" in 2007

Posted on November 24, 2007
The SSA announced that it will not issue any "no-match letters" in 2007 as a result of a court challenge to the rule. The SSA has indicated that it will resume issuing "no-match letters" in 2008. This site and any information contained herein is intended for informational purposes only and should not be construed as legal advice...

New Final Rule from OSHA Requires Employer to Pay for All Safety Equipment Costs

Posted on November 24, 2007
On November 15, 2007, OSHA issued a new final rule requiring employers to pay for all safety equipment costs. The new rule goes into effect February 13, 2008 and full compliance is required by May 18, 2008. Click here to read the final rule...

Developers Have a Fiduciary Duty to Property Owners Associations

Posted on November 24, 2007
In Concerned Dunes West Residents, Inc. v. Georgia-Pacific Corporation, 349 S.C. 251, 562 S.E.2d 633 (2002),the South Carolina Supreme Court held that a developer has a duty to ensure that the roads and other common areas are in good repair at the time ownership of the common areas are transferred to a property owner?s association or to provide the association with sufficient funds to bring those common areas up to standard as of the date of the transfer...

New Construction Contract Documents, ConsensusDOCS, to be Released on September 28, 2007

Posted on September 27, 2007
20 construction associations collaborated to create a new series of form construction contract documents. The Associated General Contractors (AGC) and Construction Owners Association of America (COAA) are folding their form contract documents into the new ConsensusDOCS form contract documents...

Do You Know What the Statute of Limitations is for Your Subcontract?

Posted on September 13, 2007
The statute of limitations for a breach of a subcontract is three years. See S.C. Code Ann. � 15-3-530. However, subcontracts?contracts executed usually between general contractors and subcontractors?can become subject to a six year statute of limitations under the Uniform Commercial Code (UCC) if a court deems the subcontract to be for a sale of goods as opposed to a service contract...

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