Cambridge Massachusetts Building Expert Directory

Contract’s Definition of “Substantial Completion” Does Not Apply to Third Party for Purposes of SOL, Holds Court of Appeal

June 15, 2020 — Garret Murai - California Construction Law Blog
Those of you in the construction industry know that the two primary statutes of limitation are the 4-year year statute of limitations for patent defects and 10-year statute of limitations for latent defects. Both statutes begin to run on “substantial completion.” In Hensel Phelps Construction Co. v. Superior Court of San Diego, Case No. D076264 (January 22, 2020), the 4th District Court of Appeal examined whether the term “substantial completion,” as used in Civil Code section 941, which applies to residential construction, can be defined by the parties’ contract and applied to third-parties. The Hensel Phelps Case Hensel Phelps Construction Co. entered into a prime construction contract with the owner and developer of a mixed-use project in San Diego. Hensel Phelps was the general contractor on the project. The project included a residential condominium tower which would eventually be managed and maintained by Smart Corner Owners Association. Smart Corners was not a party to the contract. Read the court decision
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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

Housing Bill Threatened by Rift on Help for Disadvantaged

April 09, 2014 — Cheyenne Hopkins and Clea Benson - Bloomberg
Efforts to overhaul the U.S. housing-finance system could hinge on how far Congress is willing to go to ensure that young, low-income and minority homebuyers can get mortgages. A bipartisan bill drafted by Senate Banking Committee leaders Tim Johnson and Mike Crapo relies on incentives to persuade financiers to lend to groups with higher risk profiles. Consumer and civil-rights organizations are pushing instead for a mandate that those groups must be served, a concept that has become a political flash point since the housing bubble burst. Key Democrats on the banking panel whose support is needed to pass the measure may vote against a bill that doesn’t include a mandate, especially as mortgage borrowing has dropped among blacks, Latinos and first-time buyers. Ms. Hopkins may be contacted at chopkins19@bloomberg.net; Ms. Benson may be contacted at cbenson20@bloomberg.net Read the court decision
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Reprinted courtesy of Cheyenne Hopkins and Clea Benson, Bloomberg

Builder Survey Focuses on Green Practices of Top 200 Builders

October 01, 2014 — Beverley BevenFlorez-CDJ STAFF
Builder magazine reported that the 2013 Builder 100/Next 100 survey provided data on how many builders constructed homes using a certified third-party green rating system. They discovered that nearly half of the 200 top U.S. builders constructed 100% of its homes to a third-party standard, while 38.5% reported that some of the homes were constructed using a third-party standard, while 12.5% stated that none of their homes were built to a third-party standard. “The decision to offer homes that are high-performance, energy-efficient, non-toxic, sustainable--whatever the preferred term--involves many considerations and builders must weigh expenses and impediments against potential benefits,” according to Builder magazine. Read the court decision
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Condo Owners Allege Construction Defects at Trump Towers

April 28, 2016 — Beverley BevenFlorez-CDJ STAFF
The Daily Business Review reported that three lawsuits have been filed against the developers of Trump Towers in Sunny Isles Beach, Florida alleging cracked pool decks, sloping roofs, water intrusion, among other construction defects. While Gary Mars, the attorney for the associations, did not have an estimate of repair costs, an engineer hired by the unit owners listed over 300 defects in two of the towers, according to the Daily Business Review. Attorney Peri Rose Huston-Miller of Derrevere Hawkes Black & Cozad, counsel for Steven Feller (a defendant), stated their client is "aware of the complaints that have been filed and is confident the parties will work together toward a resolution of the issues alleged.” Read the court decision
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Statutory Bad Faith and an Insured’s 60 Day Notice to Cure

April 11, 2018 — David Adelstein - Florida Construction Legal Updates
A recent case came out in favor of an insured and against a first-party property insurer in the triggering of a statutory bad faith action. Florida’s Fifth District Court of Appeal in Demase v. State Farm Florida Insurance Company, 43 Fla. L. Weekly D679a (Fla. 5th DCA 2018) held that if an insurer pays a claim after the 60-day notice to cure period provided by Florida Statute s. 624.155(3), this “constitutes a determination of an insurer’s liability for coverage and extent of damages under section 624.155(1)(b) even when there is no underlying action.” Read the court decision
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Reprinted courtesy of David Adelstein, Florida Construction Legal Updates
Mr. Adelstein may be contacted at dadelstein@gmail.com

AB5 Construction Exemption - A Checklist to Avoid Application of AB5's Three-Part Test

May 18, 2020 — Blake A. Dillion - Payne & Fears
Construction companies have a unique opportunity to avoid the application of the restrictive new independent contractors' law that took effect this year. This article provides a checklist that will help construction companies determine whether their relationships with subcontractors qualify for this exemption. California’s Assembly Bill 5 (“AB5”), which went into effect Jan. 1, 2020, enacts into a statute last year’s California Supreme Court decision in Dynamex Operations West, Inc. v. Superior Court, 4 Cal. 5th 903 (2018), and the Court’s three-part standard (the “ABC test”) for determining whether a worker may be classified as an employee or an independent contractor. Certain professions and industries are potentially exempt from this standard, including the construction industry. The ABC test does not apply to the relationship between a contractor and an individual performing work pursuant to a subcontractor in the construction industry if certain criteria are met. In order for the “construction exemption” to apply, the contractor must demonstrate that all of the following criteria are satisfied. Read the court decision
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Reprinted courtesy of Blake A. Dillion, Payne & Fears
Mr. Dillion may be contacted at bad@paynefears.com

NYC’s Next Hot Neighborhoods Targeted With Property Funds

August 20, 2014 — Jonathan LaMantia – Bloomberg
New York’s real estate world is filled with tales of ordinary people who bought property decades ago and saw values skyrocket to the millions. Seth Weissman is seeking investors to get in early on the next hot neighborhoods. The veteran of Goldman Sachs Group Inc. (GS) and hedge fund Perry Capital LLC started CityShares, which enables participants to reap rewards from increasing apartment demand in gentrifying areas. Investors who pledge at least $100,000 to one of the program’s neighborhood-focused funds become partial owners of a group of buildings and share in the rental income. The first pool is more than halfway toward its target of $5 million, which will be used to buy properties in Brooklyn’s Bedford-Stuyvesant. Harlem in upper Manhattan is next, with a goal of as much as $20 million. Additional funds are planned for Bushwick, Crown Heights and Sunset Park, all in Brooklyn. Renters are pushing into those more-distant areas after getting squeezed out of the borough’s waterfront communities, where leasing costs rival Manhattan’s. CityShares is the first program of its kind and offers a way to invest in burgeoning markets that are poised to grow as New York’s workforce expands, Weissman said. Read the court decision
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Reprinted courtesy of Jonathan LaMantia, Bloomberg
Mr. Lamantia may be contacted at jlamantia1@bloomberg.net

Federal Public Works Construction Collection Remedies: The Miller Act Payment Bond Claim

July 30, 2015 — William L. Porter – The Porter Law Group Bulletin
Federal public work construction projects are unique in that there are no Stop Payment Notice or Mechanics Lien remedies available. Furthermore, although a remedy is available by proceeding against the original contractor’s payment bond under a federal law known as the “Miller Act” and its corresponding Federal Regulations (40 USCS 3131 et seq. and 48 CFR 28.101-1 et seq.), this remedy is not available to all subcontractors or suppliers. In addition, there are circumstances where a different form of security can be substituted for the payment bond (40 USCS 3131(b)(2)). Among those who generally cannot sue on the Miller Act Payment Bond are third-tier subcontractors and suppliers to suppliers. (See J.W. Bateson Company v. Board of Trustees, 434 U.S. 586 (1978)). As a general rule, every subcontractor, laborer, or material supplier who deals directly with the prime contractor may bring a lawsuit against the bond company providing the Miller Act Payment Bond. Further, every subcontractor, laborer, or material supplier who has a direct contractual relationship with a first tier subcontractor may bring such an action. Read the court decision
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Reprinted courtesy of William L. Porter, The Porter Law Group
Mr. Porter may be contacted at bporter@porterlaw.com

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