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When a party to a construction contract is faced with nonperformance of another party, often the desire to keep the project moving takes precedence in responding to the performance default. Problems arise, however, when the party who is owed the performance acts without first considering the terms and conditions of the written instruments governing the parties’ relationship on the project. For example, a construction contract may require the posting of payment and performance bonds guaranteeing, among other things, the performance of the bonded contract work by obligating the guarantor – a surety – to arrange for the completion of the work.  Where a party fails to perform as promised, the party promised the performance should first review the language of both the construction agreement and any associated surety bonds before taking action, so as not to lose the benefits of the contract and/or bonds, as was the case in Arch Ins. Co. v. Graphic Builders, LLC, No. CV 19-12445-NMG, 2021 WL 534807 (D. Mass. Feb. 12, 2021).
Continue Reading Obtaining the Benefits of a Performance Bond: Tread Carefully

This post was published by High Profile magazine on May 27, 2020.

Governor Charlie Baker announced today that all construction projects in Massachusetts may reopen immediately, provided contractors and owners comply with new safety guidelines and compliance documentation requirements. These new requirements include, but are not limited to, the following:
Continue Reading Massachusetts Construction Projects May Reopen Immediately, Governor Announces; Boston to Follow May 25th

In an effort to prepare to restart construction on suspended projects after imposing pandemic-related restrictions on construction deemed nonessential, the City of Boston recently issued its revised “Temporary Guidance for Construction in the City of Boston,” which took effect on April 27, 2020.

Last week, the City indicated that this new policy is effective for active permitted projects, and for all future permit applications moving forward, including Alterations, Amendments, Erect Building, Use of Premises, Short Form, Electrical (Temp Service, Low Voltage, Fire Alarm, and general), Plumbing, Gas, Sprinkler, Sheet Metal and Trench permits.
Continue Reading Boston Issues New COVID-19 Guidelines Applicable to All City-Permitted Projects

As we began to describe on March 18, the economic impacts of the ongoing coronavirus/COVID-19 pandemic on the construction industry are becoming more severe as the pandemic continues and spreads. Substantial uncertainty remains, however – as of the date of this post, the “peak” of the pandemic in New York, Connecticut, and Massachusetts is expected to occur (depending on which reports you read) in mid-April, late-April or May, respectively. It appears increasingly likely that proactive, protective measures in these states, along with their restrictive effects on the economy and construction activity, will continue through the end of April and into May.
Continue Reading Ongoing Impacts of the Coronavirus Pandemic on Construction Projects in Major Markets

As the Coronavirus has encapsulated the world, government go-aheads to construction firms are welcome relief to the industry. Lenders’ collective reaction to the current economic concerns is another matter. Future financing is always imperative to ensure ongoing construction as well as new projects.

Government responses are changing by the day, but the Federal Reserve (the Fed) has acted decisively and thoroughly in response to the economic threats following the Coronavirus outbreak. Staying true to its Congressional mandate to “promote maximum employment and stable prices, along with its responsibilities to promote the stability of the financial system,” the Fed has devised numerous strategies to meet the persistent demand for redemptions and infuse money into the market. It has cut interest rates to zero, coordinated with other central banks to encourage purchases of the U.S. dollar, committed to purchasing an unlimited amount of U.S. Treasury’s and mortgage-backed securities, and explicitly encouraged banks to reduce their reserves held against demand deposits (by eliminating entirely reserve requirements).
Continue Reading The Federal Reserve’s Powers to Pave the Way for Continued Development and Construction Through COVID-19

As the coronavirus/COVID-19 pandemic continues to spread and the governmental and private sectors formulate their responses, it has become apparent that the associated economic impacts will be significant and affect all sectors of the economy, including construction. Robinson+Cole’s Construction Group has been monitoring these developments and is already seeing preliminary notices being sent out by…