Arizona Court of Appeals Confirms “Subcontractor Exception” to “Your Work” Exclusion Does Not Apply to Additional Insured General Contractor Seeking Coverage For Defective Work of Named Insured Subcontractor
In Double AA Builders, Ltd. v. Preferred Contractors Insurance Company, LLC, --- P.3d ----, 2016 WL 7508079, *1 (Ariz. Ct. App. Dec. 30, 2016), the Arizona Court of Appeals reversed the trial court’s grant of summary judgment in favor of an Additional Insured General Contractor and found the “subcontractor exception” to the & … Read More
How Pay if Paid Clauses Work in Arizona Construction Law
Hi, I'm Mark Bogard, I'm a construction law attorney with the law firm Jaburg Wilk.
What is a "Pay-if-paid" Clause?
A "pay-if-paid" clause is a condition precedent, at least those are the fancy words that we give it in the courtroom. A condition precedent is simply a condition or something that must occur before something else can happen. In a "pay-if-paid" or a "pay-when-paid" clause … Read More
Significant Changes to AAA's Construction Arbitration Rules Effective July 1, 2015
Mark D. Bogard
The American Arbitration Association (AAA) recently issued several significant revisions to its Construction Industry Arbitration Rules, which became effective July 1, 2015. The revised rules apply to construction arbitration cases initiated on or after July 1, 2015. For contracts entered prior to July 1, 2015, most of the revised Rules apply retroactively if the contract contains an arbitration … Read More
Critical Change for Serving Preliminary 20-Day Notices for Arizona Public Projects
Cemex v. Falcone Bros.
On April 30, 2015, Arizona's most common construction industry practice for serving a Preliminary Twenty Day Notice ("Prelim") on an Arizona public project—first class mail with certificate of mailing—was invalidated by the Arizona Court of Appeals in Cemex Construction Materials South, LLC v. Falcone Brothers & Associates, Inc. In Falcone Bros., the … Read More
Arizona’s New Construction Defect Law is Effective the Summer of 2015
On March 23, 2015, Arizona Governor, Doug Ducey, signed into law House Bill 2578. This new legislation relates specifically to Arizona's construction defect claims and revises the Purchaser Dwelling Actions statute - ARS § 12-1361, et al. The new law is effective the summer of 2015.
The intent of this new law is to limit the number of construction defect lawsuits brought by homeowners. However, expansion of … Read More
When Bankruptcy Beckons
Little attention has been devoted to the relationship between the Registrar of Contractor's Recovery Fund and bankruptcy. The recession required new attention to the interplay between bankruptcy and the ROC.
II. The Customer's Options
First of all, even before that customer receives formal notice of a bankruptcy filing, if you have received word informally, you need to immediately confirm … Read More
The "Nine Commandments" for Getting Paid; Thou Shalt . . .
1. If the Registrar of Contractors requires you to have a contractor's license, obtain the applicable license and do not enter into contract until the license is in good standing (in Arizona, failure to have such a license may prevent you from suing for amounts owed);
2. Have a written contract sufficient to addresses reasonably anticipated complexities of the project. At a minimum, the contract should … Read More