Slow Payment Costs General Contractors And Subcontractors Billions

A new study found slow payments to general contractors and subcontractors cost $64 billion in 2019 – a nearly $25 billion increase from 2018 with general contractors added to the report. The 2019 study, conducted by Rabbet (formerly Contract Simply) through a partnership with Procore Technologies, collected data from general contractors and subcontractors to evaluate the rising costs of slow payments in construction. Rabbet’s results show the average 51-day payment turnaround is particularly hard […]

By | February 25th, 2020 ||

Dealing With Condominium Construction Loan Defaults

Numerous reports have documented the softening condominium market in New York and other large cities resulting from the excess capacity of expensive units. The softening could lead to developers not meeting their repayment milestones and ultimately to defaults, workouts or foreclosures. Because of the unusual nature of condominium construction lending, lenders need to be cognizant of certain issues unique to condominium financing.

Condominium financing is different from most other kinds of lending, particularly in New […]

By | February 24th, 2020 ||

McMillin Homes Constr., Inc. v. Nat’l Fire & Marine Ins. Co.

In McMillin Homes Constr., Inc. v. Nat’l Fire & Marine Ins. Co., 35 Cal. App. 5th 1042 (2019), the appellate court reversed the trial court’s judgment, finding that a subcontractor’s insurer owed a duty to defend the additional insured general contractor in a construction defect suit even though the additional insured endorsement excluded coverage for “property in the care, custody or control of the additional insured.”

McMillin Homes Construction, Inc. (“McMillin”) was the developer and general […]

By | February 23rd, 2020 ||