NORTH CAROLINA CONSTRUCTION  LAW

 

TABLE OF CONTENTS

PREFACE

ACKNOWLEDGEMENTS

ABOUT THE AUTHORS

CHAPTER ONE LICENSING
I. INTRODUCTION
II. LICENSING REQUIREMENTS
A. “What is Contracting?”
B. Residential and General Contractors
1. Licensing Requirements for Limited Contractors
2. Licensing Requirements for Unlimited Contractors
3. Qualifying Agents for Business Organizations
4. Licensing Exam
5. Fees
6. Penalties for Non-Compliance
III. TRADE CONTRACTORS
A. Electrical Contractors
B. B. Plumbers
1. Decisions
C. Conditioned Air Contractors
D. High Voltage Contractors
E. Utility Contractors
F. Highway Contractors
IV. RECIPROCITY

CHAPTER TWO BIDDING
I. INTRODUCTION
II. PUBLIC PROJECTS
A. Competitive and Open Bidding
B. State Agencies
C. Types of Delivery Systems
1. Design-Bid-Build
2. Construction Manager/General Contractor
3. Design-Build
D. State Procurement Laws
1. State Procurement Act
2. The Bidding Process
3. Counties and Municipalities
4. North Carolina Department of Transportation (NCDOT)
III. PRIVATE PROJECTS
IV. WITHDRAWAL, MODIFICATION, RELEASE, AND EXPIRATION OF BIDS
A. Withdrawal of Bids
1. Generally
2. Before Formal Acceptance
3. Consideration of Other Bids After Withdrawal/Resubmitting Bids
4. Modification of Bids
B. Expiration of Bids
1. Competitive Sealed Bids
2. Competitive Sealed Proposals
C. Bid Bonds (Generally)
1. Bids on Private Projects
V. BID PROTESTS
A. Administrative Remedies
B. Right to Reject Bids
C. Standing to Bring a Protest
1. Low Bidders
2. Rejected Proposer
D. Available Due Process
1. Hearing for Prospective Bidders
2. Available Relief

CHAPTER THREE ARCHITECT AND ENGINEER
I. INTRODUCTION
II. STATE REGULATION OF ARCHITECTS AND ENGINEERS
A. Architects
1. Licensing Requirements
B. Engineers
1. Licensing Requirements
III. POTENTIAL LIABILITY FOR DESIGN PROFESSIONALS
A. Sources of Liability
1. Contractual Liability
2. Negligent Design
3. Negligent Supervision
4. Liability to third parties for duties created by law or accepted industry standard
IV. CONTRACTUAL LIMITATIONS OF LIABILITY

CHAPTER FOUR CONTRACTS
I. INTRODUCTION
II. INTERPRETING CONTRACTS
III. IMPORTANT CONTRACT CLAUSES
A. Payment Clauses
B. Termination Clauses
1. Termination for Convenience
2. Termination for Cause
C. Force Majeure
D. Warranty of Plans and Specifications
1. The Spearin Doctrine
2. The Builder’s Warranty
3. Express Warranties
4. Disclaimers
E. Provisions Relating to the Timing of Performance
F. No Damages for Delay
G. Flowdown Provisions
H. Waiver of Jury Trial
I. Indemnification Clauses
IV. BREACH OF CONTRACT ACTIONS
A. Substantial Performance
B. The Acceptance Doctrine
C. Attorneys' Fees

CHAPTER FIVE CHANGE ORDERS AND EXTRA WORK
I. INTRODUCTION
II. WHAT IS EXTRA WORK?
III. CARDINAL CHANGE
IV. DEDUCTIVE CHANGE ORDERS
V. RECOVERY IN QUANTUM MERUIT
VI. NOTICE AND PROCEDURE REQUIREMENTS
A. Does the notice provision apply?
B. Was notice sufficient?
C. Is there actual notice?
D. Did the owner waive the notice or written change order requirement?
E. Can an oral change order be enforced?

CHAPTER SIX DIFFERING SITE CONDITIONS
I. SHIFTING OF RISK
II. DIFFERING SITE CONDITIONS CLAIMS TYPES
III. DEFENSES
A. Exculpatory Clauses
B. Notice Requirements
IV. CHANGED CONDITIONS ABSENT CONTRACT CLAUSES

CHAPTER SEVEN DELAY AND DISRUPTION
I. INTRODUCTION
II. DELAY
A. Time is of the Essence
B. Inexcusable, Excusable, and Compensable Delay
C. Notice Requirements Associated with Project Delay
D. Concurrent Delay
E. No Damages for Delay
F. Delay Damages
1. Liquidated Damages
2. Delay Damages Available to the Contractor
G. Incorporation by Reference
H. Liquidating Agreements
I. Acceleration and Constructive Acceleration
III. DISRUPTION

CHAPTER EIGHT LIMITATIONS OF ACTIONS
I. STATUTES OF LIMITATION
A. Contract Actions
B. Tort Actions
1. Actions for Injuries to Persons
2. Actions for Damage to Real Property
II. STATUTE OF REPOSE

CHAPTER NINE RISK MANAGEMENT: INSURANCE AND INDEMNIFICATION
I. INTRODUCTION
II. INDEMNIFICATION CLAUSES
III. INSURANCE
A. Types of Insurance
1. The Commercial General Liability Policy
2. Umbrella Liability Coverage
3. Builder’s Risk
4. Professional Liability Coverage
5. Contractor’s Pollution Coverage
B. Considerations When Selecting an Insurance Carrier
C. Exclusion Issues
1. Claims-Made/Claims-Occurrence Exclusions
2. Contractor/Project-Type Exclusions
3. Contractual Liability Exclusions
4. Damage Exclusions
5. Cost of Defense Exclusions
D. The Additional Insured

CHAPTER TEN BONDS
I. INTRODUCTION
II. PAYMENT BONDS
A. Statute of Limitations
B. Remedies
III. PERFORMANCE BONDS
A. Remedies

CHAPTER ELEVEN LIENS
I. HISTORY AND PURPOSE
II. ENTITLEMENT TO LIEN RIGHTS
A. Property/Property Interests Subject To Liens
III. BURDEN OF PROOF/STANDARD OF REVIEW
IV. BURDEN TO BRING SUIT
V. BURDEN OF PROOF/USE OF MATERIALS
VI. BURDEN – PAYMENT DISPUTE
VII. PROPERTY INTERESTS SUBJECT TO LIENS
VIII. STATUTORY REQUIREMENTS
A. Notice of Lien
B. Notice to Lien Agent
IX. PERFECTING A CLAIM OF LIEN
A. Damages/What is Lienable
X. CONCLUSION

CHAPTER TWELVE LITIGATION AND ALTERNATIVE DISPUTE RESOLUTION
I. INTRODUCTION
II. MEDIATION
III. NORTH CAROLINA ARBITRATION CODE
A. General Statutory Provision
B. The Scope of Arbitration
1. Specific Issues Reserved for Arbitration
2. Gateway/Threshold Issues for Arbitrating
3. Enforcing an Arbitration Provision
4. Discovery
5. The Hearing
6. Determination of an Award
7. Change of an Award by the Arbitrators
8. Court’s Confirmation of an Arbitration Award and Entry of Judgment
9. Court’s Vacatur of an Arbitration Award
10. A Court’s Modification of an Arbitration Award
IV. FEDERAL ARBITRATION ACT
A. General Statutory Provision
B. Gateway/Threshold Issues
1. Arbitrability Involving Parties to a Contract
2. Arbitrability Involving Nonsignatories to a Contract
3. Waiver of Right to Arbitrate
C. The Scope of an Arbitration Agreement
1. Transactions Involving Commerce
D. Enforceability of an Arbitration Provision
1. Based on the Agreement
2. Restrictions on Enforceability
E. Enforcing an Arbitration Provision
1. Application for Enforcement
2. Stay of Pending Litigation
F. Arbitration Procedure
1. Choosing an Arbitrator
2. The Hearing
G. A Court’s Confirmation of an Arbitration Award and Entry of Judgment
H. A Court’s Vacatur of an Arbitration Award
1. Notice of Motion to Vacate an Award
2. Cannot Serve as a Collateral Attack on a Motion to Confirm an Award
3. Grounds for Vacating an Award
4. Rehearing upon a Vacated Award
5. Appealing a District Court’s Vacatur Decision
I. A Court’s Modification/Correction of an Arbitration Award
J. Appeals of District Court Arbitration Decisions
1. Order to Compel Arbitration is a Final Order Subject to Appeal
2. Stay of Litigation Pending Appeal
3. Standard of Review for Order to Compel Arbitration
V. CHOICE OF LAW /PREEMPTION
A. General Principle
B. Enforceability of an Arbitration Provision
C. Choice of Law Provision
D. Confirming an Award
E. Vacating an Award
F. Insurance Claims

TABLE OF LAWS & RULES

TABLE OF CASES

INDEX