Recent Construction Legislation and Cases

North Carolina’s Anti-Indemnification Statute is Amended

In 2019, the North Carolina General Assembly re-wrote the primary statute governing the enforceability of indemnity provisions in construction and design contracts. The legislation, signed into law by Governor Roy Cooper on July 8, 2019, both expanded and restricted the permissible scope of certain indemnity agreements.House Bill 871 (ratified as S.L. 2019-92) amended N.C. Gen.  … Continue Reading

Legislature Creates Deadlines for Director’s Decisions on Verified Claims Submitted to the North Carolina Office of State Construction

On June 21, 2019 Governor Roy Cooper signed into law the first significant changes to the State’s “Verified Claims” process in over 30 years.Senate Bill 255 (ratified as S.L. 2019-39) amended N.C. Gen. Stat. §143-135.3. The legislation was titled “An act providing the time period in which the Director of the Office of State Construction  … Continue Reading

Legislature Creates New Requirements for Prequalification of Bidders (October 2014)

In the Summer of 2014, the North Carolina Legislature enacted vast changes to the process by which prospective bidders on public construction contracts are prequalified. N.C. Sess. Laws 2014-42, amending N.C. Gen. Stat. § 143-135.8. Prequalification is defined as “[a] process of evaluating and determining whether potential bidders have the skill, judgment, integrity, sufficient financial  … Continue Reading

North Carolina Court of Appeals Distinguishes “Equitable Adjustment” Clause From “No-Damages-For-Delay” Clause

It is not unusual to see a “no-damages-for-delay” provision in a construction contract. But what happens if the contract also includes a separate provision entitling one party to an equitable adjustment for cost increases incurred after the project’s scheduled completion date? In Southern Seeding Service, Inc. v. W.C. English, Inc., 719 S.E.2d 211 (N.C. App.  … Continue Reading