Seattle Washington Building Expert Directory

COVID-19 Impacts on Subcontractor Default Insurance and Ripple Effects

April 20, 2020 — Smith Currie
Subcontractor default insurance (“SDI”) may be described as an alternative to bonding subcontractors. SDI is first-party insurance that compensates the general contractor insured in the event a covered subcontractor fails to fulfill its contractual obligations. Under SDI policies, general contractor insureds are obligated to develop and implement rigorous subcontractor prequalification procedures. Basic questions and answers about how SDI might come into play and impact the construction industry in response to COVID-19 follow: Who may make a claim on an SDI policy? The general contractor may make a claim. An Owner may make a claim if the general contractor becomes insolvent in many cases. Subcontractors may not make claims on SDI policies. Read the court decision
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Reprinted courtesy of Smith Currie
The Smith Currie firm may be contacted at info@smithcurrie.com

Eleventh Circuit Finds No Coverage for Faulty Workmanship Claims

November 15, 2021 — Tred R. Eyerly - Insurance Law Hawaii
The Eleventh Circuit affirmed the district court's grant of summary judgment to the insurer on the general contractor's claims for damages due to faulty workmanship. Tricon Dev. of Brevard v. Nautilus Ins. Co., 2021 U.S. App. LEXIS 27317 (11th Cir. Sept .10, 2021). Tricon was the general contractor for a condominium project in Florida. Tricon hired a subcontractor to fabricate and install metal railings for the project. The subcontractor was insured by Nautilus under two CGL policies. The policies had endorsements to add Tricon as an additional insured. The subcontractor fabricated some of the railings, but they had defects and damage. Further they were not installed properly and did not meet the project's specifications. Tricon found another manufacturer to fabricate new railings to satisfy the projects' requirements. Tricon agreed to pay the cost of removing the subcontractor's railings and fabricating and installing new ones. If submitted a claim to Nautilus to cover these costs. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

CSLB Begins Processing Applications for New B-2 License

June 21, 2021 — Garret Murai - California Construction Law Blog
As we wrote about in our 2021 Construction Law Update, one of the new laws to take effect on January 1, 2021 was the enactment of SB 1189 which created a new B-2 Residential Remodeling Contractor’s license. The new license is available to contractors working on existing homes with residential wood frame structures requiring at least three (3) unrelated trades or crafts under a single contract. Beginning June 1, 2021, the Contractors State License Board began accepting applications for the B-2 Residential Remodeling Contractor’s license. According to a press release from the CSLB:

The B-2 classification provides a pathway to licensure for many unlicensed people who are currently working on remodeling and small home improvement projects that don’t qualify for a B-General Building License because the contracted work does not include framing or rough carpentry. Consumers employing a licensed contractor have reduced liability and greater consumer protection. Licensees benefit from licensure as they have opportunities to lawfully advertise, and compete on a level playing field for jobs.

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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

New York Developer gets Reprieve in Leasehold Battle

March 19, 2014 — Beverley BevenFlorez-CDJ STAFF
According to The Real Deal, a “Manhattan Supreme Court judge granted an injunction in favor of Tribeca Mews developer Thurcon Properties, which is fighting to keep the leasehold on several adjacent parcels in connection with a certificate of occupancy.” In 2013, Thurcon Properties was sued by the condo board, who claimed “the certificate of occupancy was pushed back at the building due to a number of construction defects.” The Real Deal further reported that the condo board “claimed the developers sold about 10 units to an outside buyer, and took some of the proceeds for themselves.” Recently, a judge “ordered Feldman Heritage, owner of the ground lease at 125 Church and several adjacent sites, to appear in court on April 30,” because he wants the lease owner “to show why Thurcon should not be given the chance to cure the alleged lease default.” Read the court decision
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Reprinted courtesy of

Protect Workers From Falls: A Leading Cause of Death

August 14, 2018 — Mark McGhiey - Construction Executive
One of the leading causes of death for construction workers is falls from elevated surfaces, according to the Bureau of Labor Statistics. In 2016, these accidents accounted for more than 30 percent of all construction fatalities. The top four causes of worker deaths (excluding highway collisions) in the private sector construction industry are:

falls: 384 (38.7%);
struck by object: 93 (9.4 percent);
electrocutions: 82 (8.3 percent); and
caught-in/between:1 72 (7.3 percent).

One of the most common — and costly — causes of claims occur when construction workers fall from elevated surfaces. These accidents represent more than 30 percent of all construction claim payments. Reprinted courtesy of Mark McGhiey, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Federal Court Predicts Coverage In Utah for Damage Caused By Faulty Workmanship

April 03, 2013 — Tred Eyerly
The federal district court predicted that the Utah Supreme Court would find that damage to property other than the insured's work product is unexpected and arises from an occurrence. Cincinnati Ins. Co. v. AMSCO Windows, 2013 U.S. Dist. LEXIS 15999 (D. Utah Feb. 5, 2013). The insured, AMSCO Windows, installed windows in new homes constructed in Nevada. A number of homeowners asserted claims against the contractors who built their homes, alleging numerous construction defects, including the windows, and that the defects caused property damage to their homes. The contractors, in turn, asserted claims against AMSCO. The insurer, Cincinnati Insurance Company, filed for a declaratory judgment that it had no duty to defend or indemnify AMSCO. Read the court decision
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Reprinted courtesy of Tred Eyerly
Tred Eyerly can be contacted at te@hawaiilawyer.com

U.S. Architecture Firms’ Billing Index Faster in Dec.

February 05, 2015 — Bloomberg News
(Bloomberg) -- Billings at U.S. architecture firms grew at a higher rate in December, according to the American Institute of Architects. Billings at architecture firms, tracked by the Work-on-the-Boards survey, measured 52.2 in December compared to 50.9 a month earlier. The inquiry index, which tracks a firm’s capacity to take on additional work, moved to 58.2. Read the court decision
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Reprinted courtesy of Bloomberg News

Inspired by Filipino Design, an Apartment Building Looks Homeward

May 22, 2023 — Sarah Holder - Bloomberg
Austerity and efficiency aren’t the first words that come to mind when you see the angled sawtooth bays of Tahanan Supportive Housing, or catch a glimpse of a rainbow through its lobby. But the dramatic exterior and joyful interior of this San Francisco building are both products of their constraints. When David Baker Architects was approached to design the six-story development, the goal was aggressive: Produce 145 units of permanent supportive housing at under $400,000 a unit, and have the operation up and running in less than three years. The firm accepted the challenge, and by 2022, Tanahan was fully leased to residents, all of whom are San Franciscans who have struggled with chronic homelessness. In a city where affordable units typically cost $600,000 to $700,000 each to construct, keeping in budget and meeting the deadline meant turning to the modular building company Factory OS. It also meant keeping variation at a minimum. The studios are identical, like Lego blocks; instead of being mirrored across a hallway, they’re just rotated 180 degrees. But nothing else about the building feels utilitarian. Read the court decision
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Reprinted courtesy of Sarah Holder, Bloomberg

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