Stephanie Cooksey | Texas Contractor Imagine a project where you are unable to reach final completion due to an unresolved subcontractor claim. If the project owner is responsible for the claim, and both the owner and subcontractor are entrenched in their positions, how would you resolve this dispute? The default option is a three-party lawsuit… Continue reading Resolving Subcontractor Disputes with Pass-Through Claims and Liquidation Agreements
Tag: Pass-Through Claim
Covenant of Good Faith and Fair Dealing Applied to Pass-Through Agreements
Scott D. Cessar | Construction Executive Pass-through claims are claims by a party that has suffered damages but does not have a contractual relationship with the entity that caused the damages. In the construction industry, subcontractors commonly have claims for additional costs based on actions or inactions by the owner. However, since the subcontractor is not… Continue reading Covenant of Good Faith and Fair Dealing Applied to Pass-Through Agreements
Pass-Through Subcontractor Claims, Liquidating Agreements, and Avoiding a Two-Front War
Bradley Sands | ConsensusDocs Subcontractor claims happen. When those subcontractor claims are prompted by owner actions or responsibilities, the general contractor must always be vigilant to plan for and work to avoid a two-front war in which the general contractor is pushing the owner for recovery while at the same time disputing the subcontractor’s entitlement.… Continue reading Pass-Through Subcontractor Claims, Liquidating Agreements, and Avoiding a Two-Front War
Subcontractor Certification of Pass-Through Claim — Defective but Correctable
Eric A. Frechtel and Lee-Ann C. Brown | Buildsmart In June, the Armed Services Board of Contract Appeals (ASBCA) addressed whether it had jurisdiction where a subcontractor pass-through claim was certified under the Contract Disputes Act (CDA) by the subcontractor’s president, not the prime contractor’s representative. In its motion to dismiss, the government argued that under the… Continue reading Subcontractor Certification of Pass-Through Claim — Defective but Correctable
A Case for Expanding the Use of Pass-Through Claims
Benton T. Wheatley & Jessica Neufeld – April 18, 2012 In construction cases, owners must often deal with claims made against it by contractors, despite the fact that the claim may really be a design professional’s fault. Common contracts may also prevent all three parties — contractor, owner, and design professional — from resolving the… Continue reading A Case for Expanding the Use of Pass-Through Claims