Appeals Court Decision Contradicts Kentucky’s Strong Public Policy Protecting Lien Rights
A Kentucky Court of Appeals ruling in a case involving the construction of a condominium and garage in Covington, Ky., contradicts the Commonwealth’s strong public policy that those who furnish construction materials or labor under written agreements must receive just compensation, the American Subcontractors Association told the Supreme Court of Kentucky. The appeals court’s ruling precluded steel subcontractors from recovering payment for their extra-contractual work under a “pay-if-paid” contract clause and permitted the project owner to benefit from valuable extra-contractual work provided by subcontractors without payment, known as “unjust enrichment.” The appeals court decision, if left standing, could have a profound impact across Kentucky, where billions of dollars of construction work is either in planning or in progress.
In an amicus brief, filed on July 18, ASA urged the Supreme Court of Kentucky to reverse the appeals court’s decision in Superior Steel, Inc. and Ben Hur Construction Company, Inc. vs. the Ascent at Roebling’s Bridge, LLC, Corporex Development & Construction Management, LLC, Dugan & Meyers Construction Company and Westchester Fire Insurance Company.
Subcontracts typically contain numerous “boilerplate” and other clauses that many subcontractors overlook and fail to negotiate before contract’s signing. These clauses should leave a nagging feeling in the back of subcontractors’ minds, which, quite reasonably, should be disturbing to their sleep. Conversely, the subcontractor who properly negotiates these clauses may sleep well at night.
In this webinar, Daniel F. McLennon, Esq., Smith, Currie & Hancock, LLP, San Francisco, Calif., will examine some seemingly innocuous contract clauses and explain how to remove their hidden dangers.
In a new video-on-demand from the Foundation of the American Subcontractors Association, Eric Travers, Esq., Kegler, Brown, Hill & Ritter, Columbus, Ohio, ASA’s legal counsel, examines the ASA Subcontract Documents Suite and explains how construction subcontractors can use these valuable tools to negotiate from a position of strength. This suite of model contract documents—exclusively available for ASA members as a no-cost member benefit—includes the: ASA Subcontractor Bid Proposal, ASA Subcontract Addendum, ASA Short-Form Subcontract Addendum, ASA Wrap-up Insurance Subcontract Conditions, and ASA Wrap-up Insurance Bid Conditions.
On Aug. 30, ASA will offer a complimentary webinar on the Department of Labor’s new overtime rule, which modifies the exemptions to the Fair Labor Standards Act overtime rules for white-collar employees (executive, administrative, professional, computing and outside sales positions) and highly-compensated employees. Jamie Hasty, SESCO Management Consultants, Bristol, Tenn., will examine the new rule and explain what employers should be doing to prepare for compliance. This live, 90-minute webinar will begin at 12:00 p.m. Eastern time/9:00 a.m. Pacific time.
Construction subcontracts typically contain numerous “boilerplate” and other clauses that many subcontractors overlook and fail to negotiate before signing the contract.
Construction subcontractors are learning how to identify these seemingly innocuous contract clauses and how to remove their hidden dangers with the new video-on-demand, “Sleeper Clauses: Contract Clauses That’ll Make You Lose Sleep at Night,” available from the Foundation of the American Subcontractors Association.
ASA Vision: The American Subcontractors Association is recognized as the united voice dedicated to improving the business environment in the construction industry.
ASA Mission: The American Subcontractors Association amplifies the voice of and leads trade contractors to improve the business environment for the construction industry and to serve as a steward for the community.
ASA Values: The ideals and beliefs of ASA are ethical and equitable business practices, quality construction, a safe and healthy work environment, integrity and membership diversity.