DELAY CLAUSES IN CONSTRUCTION CONTRACTS

No Damage for Delay

Advertisements

Newman II Decision and SC Construction Defect Law

South Carolina has served as a mystery in its application of Comprehensive General Liability policies within the construction industry. Auto Owners v. Virginia Newman provided the Supreme Court of South Carolina an opportunity to clear up a seminal issue regarding coverage provided to contractors: Does the defective work of a subcontractor constitute an insurable loss within the insuring agreement which binds a General Contractor and its insurer. The much anticipated opinion might have served to further muddy the waters as the court relied on an obscure exclusion within the policy, rather than the much broader "subcontractor exclusion" to rule that coverage for some damages caused by a subcontractor's work is not covered.