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MASSACHUSETTS CONSTRUCTION LAW
TABLE OF CONTENTS
 

MASSACHUSETTS CONSTRUCTION LAW TABLE OF CONTENTS ABOUT THE AUTHORS ................................................................................i
ACKNOWLEDGMENTS ................................................................................ii
PREFACE ................................................................................iii

PART 1 – BEFORE THE HAMMERS AND NAILS…………….5
CHAPTER 1. BUSINESS ENTITIES…………………………5
1.1 The Start-Up: Business Entities and Related Considerations………………………………………………5
1.2 Corporations and Limited Liability Companies…...7
1.3 Tax Considerations…………………………………24

PART 1 – BEFORE THE HAMMERS AND NAILS…………..27
CHAPTER 2. DESIGN PROFESSIONALS AND CONTRACTOR LICENSING……………………………………27
2.1 Regulation of Design Professionals…………………27
2.2 Construction Supervisor License and Licenses of Related Trades……………………………………………..29
2.3 M.G.L. c. 142A – Home Improvement Contractor Act 29 2.4 Minority and Women Enterprise Business (M/WBE) Certification………………………………………………...42

PART 2. PROCUREMENT OF PUBLIC CONTRACT FOR CONSTRUCTION PROJECTS IN MASSACHUSETTS……….49
CHAPTER 3 – BIDDING PUBLIC CONTRACTS FOR DESIGN PROFESSIONALS…………………………………………………49
3.1 Introduction………………………………………….49
3.1.1 Two Types of Construction Projects: The Statutory Differentiation Between “Vertical” Construction under M.G.L. c. 149 §§ 44A-44H versus “Horizontal” Work under M.G.L. c. 30 § 39M………………………………….50
3.2 Selection of Design Professionals for Traditional Construction Methods……………………………………...52
3.3 Selection Criteria: Public Works versus Public Building Projects……………………………………………52
3.4 The Designer Selection Board (DCAMM)…………52
3.5 Selection Criteria with the Massachusetts School Building Authority…………………………………………61
3.6 Owner’s Project Manager (OPM)………………….66

CHAPTER 4 – BIDDING PUBLIC CONTRACTS FOR CONTRACTORS…………………………………………………..71
4.1 Introduction…………………………………………71
4.2 M.G.L. c. 30 § 39M – Public Works Construction Contract…………………………………………………….71
4.3 M.G.L. c. 149 § 44A-44L - Public Building Construction Contract…………………………………….75
4.4 Alternative Project Delivery Methods for Public Projects; Design-Build Method……………………………98
4.5 Bid Protests…………………………………………115

PART 3. UNDERSTANDING KEY PROVISION OF CONSTRUCTION CONTRACTS………………………………119
CHAPTER 5 – UNDERSTANDING KEY PROVISION OF CONSTRUCTION CONTRACTS FOR PUBLIC PROJECTS.119
5.1 Introduction………………………………………...119
5.2 Scope of Work………………………………………119
5.3 Change Orders; Equitable Adjustments to the Contract……………………………………………………120
5.4 Substantial Completion……………………………132
5.5 Prompt Payment for Subcontractors and Demands for Direct Payment…………………………………….…133
5.6 Indemnification…………………………………….134
5.7 “Or Equal” Specifications…………………………134

CHAPTER 6 – UNDERSTANDING KEY PROVISION OF CONSTRUCTION CONTRACTS FOR PRIVATE PROJECTS………………………………………………………..135
6.1 Standard Form Contracts Forms…………………135
6.2 Changed Conditions Clauses under the AIA Contract…………………………………………………..136
6.3 Indemnification Clauses…………………………..139
6.4 Massachusetts Prompt Payment Act……………...139

PART 4. CLAIMS AND DAMAGES………………………..147
CHAPTER 7 – CONTRACT CLAIMS…………………………147
7.1 Introduction………………………………………...147
7.2 Performance and Breach………………………….147
7.3 Default & Termination…………………………….149
7.4 Defaults Under Federal Contracts……………….150
7.5 Warranties………………………………………….155
7.6 Changes and Claims for Extra Work; Delay Damages…………………………………………………..157
7.7 Contractual Damages Provisions…………………164
7.8 Limitation of Liability Clauses……………………168
7.9 Bond Claims………………………………………..170
7.10 Mechanic’s Liens…………………………………..181
7.11 Statutory Limitations of Claims against Awarding Authorities; Sovereign Immunity……………………….190

CHAPTER 8 – NEGLIGENCE CLAIMS; CONSTRUCTION DEFECTS………………………………………………………….193
8.1 Negligence…………………………………………..193
8.2 The Economic Loss Doctrine……………………..193
8.4 Statute of Limitation………………………………195
8.5 Insurance……………………………………………196

CHAPTER 9 – PIERCING THE CORPORATE VEIL………..203
9.1 Introduction………………………………………..203
9.2 By Agreement: Personal Guarantees…………….203
9.3 By Statute…………………………………………..204
9.4 Equity: The doctrine of corporate disregard…….214

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