An Administrator's Guide to California Private School Law

Chapter 17 – Construction

recover damages for delays on the project caused by the contractor or its subcontractors without having to prove each element of damages. Second, if an appropriate liquidated damages amount is assessed, liquidated damages may encourage the contractor to make timely progress and complete the project on time.  Requirement that school is not liable for any loss or damage that may happen to the construction project.  Indemnification, defense, and hold harmless provisions.  Performance and payment bonds, including the surety’s duty to take over the project if contractor fails to perform (see discussion in Section 7).  Insurance requirements (see discussion in Section 6).  Contractor’s acknowledgment it currently holds all required valid contractor’s licenses.  School’s right to carry out the work if the contractor refuses or fails to perform, and to withhold payments from the contractor.  School’s right to issue joint checks to minimize risk that contractor will fail to pay its subcontractors and suppliers.  Requirement that contractor shall continue to perform work on the project even during a dispute with the school. This prevents and discourages a contractor from refusing to work in order to leverage a certain resolution during disputes with the school.  School’s right to withhold payments to the contractor (see Section 8.B).  Terms and conditions regarding retention withholdings and releases.  Requirement that the contractor will keep the project free of all stop payment notices and mechanics liens and will defend and indemnify the school for any stop payment notice or mechanics lien litigation.  School’s right to terminate for cause or convenience and suspend work on the project.  Requirement that contractor pay for damages to property of school or third parties, and upon contractor’s failure or refusal to do so, provision permitting the school to withhold payments from the contractor.  Provision that upon termination of contract, the school can complete the project “by any means deemed expedient.”  Dispute resolution procedure. This may facilitate resolution of disputes between the school and the contractor, and prevent costly litigation.

An Administrator’s Guide to California Private School Law ©2019 Liebert Cassidy Whitmore 564