Fairfield Connecticut Building Expert Directory

Contractual Warranty Agreements May Preclude Future Tort Recovery

January 11, 2022 — Taylor Ostrowski - Colorado Construction Litigation Blog
When a buyer purchases a product that is later discovered to be defective, the court offers a remedy to make the buyer whole. Such remedies can arise either out of a contract, including express and/or implied warranties, or under common law through a tort theory. However, what happens when a buyer has already received the remedy specified in the contractual warranty, only to discover the product manufacturer misrepresented the quality of its product by failing to disclose a defect? Can the buyer subsequently recover for the same product under a tort theory of recovery? The Colorado Court of Appeals analyzed such questions in its December 2021 decision in Dream Finders Homes, LLC v. Weyerhaeuser NR Co., 2021 COA 143. In Dream Finders, the court examines the rights of sophisticated buyers who purchased defective products and received a warranty from the product manufacturer with purchase. The court specifically determines whether such buyers may recover under the tort theory product misrepresentation and failure to disclose when the buyers have already received the remedy specified and the warranty expressly excludes the type of damage the buyer now seeks. Read the court decision
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Reprinted courtesy of Taylor Ostrowski, Higgins, Hopkins, McLain & Roswell, LLC
Ms. Ostrowski may be contacted at ostrowski@hhmrlaw.com

Understand and Define Key Substantive Contract Provisions

March 23, 2020 — Phillip L. Sampson Jr. & Richard F. Whiteley, Construction Executive
The following contract provisions should be clearly understood before undertaking any construction project commences. Force Majeure Often referred to as an “Act of God,” a force majeure is an event, typically beyond the parties’ control, that prevents performance under a contract. To determine if a contractor need a force majeure clause in its contract, it should ask whether there may be instances where events beyond the contractor’s control could impact its contractual performance? If so, it will want this clause. Courts currently treat force majeure as an issue of contractual interpretation, focusing on the express language in the contract. Consequently, the scope and applicability of a force majeure clause depends on the contract’s terms. Using broad language in a force majeure clause may help protect against unforeseen events. But to the extent possible, parties should describe with particularity the circumstances intended to constitute a force majeure. The law relating to force majeure also fairly consistently provides that parties cannot avoid contractual obligations because performance has become economically burdensome. Courts have refused to apply force majeure clauses where an event only affects profitability. Recent attempts to categorize tariffs on construction materials as a force majeure have failed. Unless a tariff or tax is specifically listed as a force majeure event, it is unlikely to constitute a force majeure because it only affects profitability. Reprinted courtesy of Phillip L. Sampson Jr. & Richard F. Whiteley, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Part II: Key Provisions of School Facility Construction & Design Contracts

July 21, 2018 — David R. Cook - Autry, Hall & Cook, LLP
In Part I of this article, published in late April, we discussed the performance risk and time risk involved with construction and design contracts, and in Part II, we will cover cost risk and political risk. Cost Risk School budgets are limited for many reasons, and the construction budget is no exception. As a result, contracts should guard against unwarranted cost increases and claims. In the absence of a written change order signed by the appropriate officer, the contract should absolutely prohibit additional compensation for changes in the work. It should forbid claims for all events except those within the school authority’s sole control. Even for permitted claims, the contractor must provide written notice so that the authority might alleviate the problem and control its costs. To encourage the contractor to limit costs and claims, the contract could include a shared-savings clause, which grants an incentive payment for completion within the budget. Read the court decision
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Reprinted courtesy of David R. Cook, Autry, Hall & Cook, LLP
Mr. Cook may be contacted at cook@ahclaw.com

Spearin Doctrine 100 Years Old and Still Thriving in the Design-Build Delivery World

January 09, 2019 — John P. Ahlers - Ahlers Cressman & Sleight PLLC
The Supreme Court’s ruling in United States v. Spearin, [1] also referred to as the Spearin doctrine, is a landmark construction decision.[2] The Spearin doctrine provides that the Owner impliedly warrants the information, plans and specifications which an Owner provides to a General Contractor. If a Contractor is bound to build according to plans and specifications prepared by the Owner, the Contractor will not be responsible for the consequences of defects in the plans and specifications. Read the court decision
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Reprinted courtesy of John P. Ahlers, Ahlers Cressman & Sleight PLLC
Mr. Ahlers may be contacted at john.ahlers@acslawyers.com

Aurora Joins other Colorado Cities by Adding a Construction Defect Ordinance

September 03, 2015 — Beverley BevenFlorez-CDJ STAFF
According to the Aurora Sentinel, the city council of Aurora, Colorado, approved an ordinance targeted at making it more difficult for homeowners to sue builders over construction defect claims. Similar to other recent Colorado city construction defect measures, “the new rule gives builders the right to repair defects before the litigation is pursued, requires that the majority of home owners in a home owners association – as opposed to just a majority of HOA board members – approve of any lawsuits, and allows builders to offer monetary settlements to homeowners in lieu of repairs.” Read the court decision
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Nebraska Joins the Ranks—No CGL Coverage for Faulty Work

September 17, 2014 — Craig Martin – Construction Contractor Advisor
The Nebraska Court of Appeals has ruled that a home builder that fails to adequately compact the soil does not have insurance coverage to repair damages to the home caused by the settling soil. In “insurance speak”, there was no occurrence to trigger coverage. In this case, Cizek Homes, Inc. v Columbia National Insurance Company, a home builder contracted with a buyer to build a house. A lot was selected and the home was built. After the buyer moved in, the house started to settle, causing damage to the house. The buyer told the builder about these problems and the builder agreed to fix the problems. The builder also contacted its insurance company and requested coverage for the buyer’s claim. The insurer rejected the claim, determining that the buyer’s claim was not covered by the builder’s Commercial General Liability (CGL) insurance. The insurer then filed suit asking the court to interpret the insurance policy and to determine whether the CGL insurance covered the claim. The court looked to the buyer’s allegations that the builder failed to construct the home in accordance with accepted construction and industry standards and that the builder was negligent in designing and constructing the home. The builder admitted that it was obligated to pay for the costs of repairs, but denied that it was negligent in constructing the home. Read the court decision
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Reprinted courtesy of Craig Martin, Lamson, Dugan and Murray, LLP
Mr. Martin may be contacted at cmartin@ldmlaw.com

Legal Disputes Soar as Poor Information Management Impacts the AEC Industry

July 03, 2022 — Ideagen Plc
Managers in Architecture, Engineering and Construction (AEC) are facing more disruptive disputes in 2022 compared to last year according to the latest independent research from regulatory compliance company Ideagen. The survey of business leaders from AEC firms in the US and UK revealed that 78% of respondents experienced some kind of dispute in the business, compared to 63% in 2021, with information accessibility and visibility, caused largely by high staff turnover, the main root causes. With the challenges that the industry continues to face following COVID and increasing costs of materials, this is an added but unnecessary challenge facing the industry. Stuart Rowe, Vice President of Collaboration Strategy at Ideagen, whose customers include the US Navy, Gensler, Arup and Ramboll, said: "The working world has continued to change in the last 12 months, which is reflected in the AEC industry's evolving priorities. The COVID-19 pandemic led to a huge shift to remote working which saw an increased need for effective collaboration tools, however, this year is appears that hybrid working is the new normal in the industry. "Four-fifths of the people we spoke to said email is still king for project correspondence. This is a huge concern as most project scope changes reside in email inboxes. Failing to properly manage all information and records also prevents a Golden Thread, or a Single Source of Truth, across projects and businesses." Ideagen undertook the independent survey to support developments to their Mail Manager software, used by 2,500 architecture, engineering and construction firms in 16 countries worldwide. It revealed a number of insights into how the industry is managing changing work patterns. Download the full research here. Read the court decision
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Pulling the Plug

December 13, 2022 — Todd R. Regan - Construction Executive
As a contractor, you may have wondered if your contract can be terminated by the owner for cause after the project has reached substantial completion. The answer is yes. Under certain circumstances it may be permissible—or even necessary—for a project owner to terminate the contract for cause after the project has reached substantial completion. Although the rights of the parties in any case will depend in large part on the specific contract language, the fact that a project has reached substantial completion is not an absolute bar to termination for cause, particularly when the owner intends to pursue a performance-bond claim. Completion Versus Performance Following substantial completion, a contractor typically will have outstanding contractual obligations such as paying its subcontractors and suppliers, bonding off any mechanic’s liens, completing the punch list, remediating defective work, testing and commissioning equipment, providing manufacturer’s warranties and performing its own warranty obligations. Reprinted courtesy of Todd R. Regan, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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FAIRFIELD CONNECTICUT BUILDING EXPERT DIRECTORY AND CAPABILITIES