Fairfield Connecticut Building Expert Directory

World Green Building Council Calls for Net-Zero Embodied Carbon in Buildings by 2050

November 18, 2019 — Nadine M. Post - Engineering News-Record
The World Green Building Council’s latest maneuver in its war against greenhouse gas emissions is a rallying cry for embodied-carbon reduction in buildings that involves global collaboration, communication, education, innovation and regulation. WGBC’s ambitious aim is to get to net-zero EC in all new construction and renovations by 2050. Reprinted courtesy of Nadine M. Post, Engineering News-Record Ms. Post may be contacted at postn@enr.com Read the full story... Read the court decision
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Express Warranty Trumping Spearin’s Implied Warranty

March 06, 2022 — David Adelstein - Florida Construction Legal Updates
Be mindful of that express warranty provision in your contract. It could result in an outcome that you did not consider or factor when submitting your proposal or agreeing to your contract amount. An express warranty could have the effect of eviscerating the argument that you performed your scope of work pursuant to the plans and specifications. In other words, the applicability of the Spearin doctrine could be rendered moot based on express warranty language in your contract that is fully within your control because you do not have to agree to that language. Under the Spearin doctrine:

[W]hen 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 specification.’ Spearin and its progeny set forth a default rule of fundamental fairness that when a general contractor requires a subcontractor to follow certain plans and specifications, the general contractor impliedly warrants that those plans and specifications are ‘free from design defects.’ Put simply, Spearin protects subcontractors from liability for simply following the general contractor’s direction and requirements. However, the implied warranty set forth in Spearin and its progeny may be overcome by express agreement. Where a general contractor and subcontractor expressly agree to allocate the risk of a defective product to the subcontractor, that express agreement must prevail over Spearin’s implied warranty. Lighting Retrofit International, LLC v. Consellation NewEnergy, Inc., 2022 WL 541156 (D. Md. 2022) (internal citations omitted).

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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

Survey Finds Tough Labor Market Top-of-mind for Busy Georgia Contractors

July 30, 2019 — Scott Hazy - Construction Executive
In February 2019, the results of the third Annual Georgia Construction Outlook Survey were released. The survey respondents includes general contractors (44%), specialty contractors (53%) and heavy contractors (3%) with gross revenue size that ranged from in excess of $1 billion to less than $5 million. Three-quarters of respondents reported revenues of less than $25 million. Here’s what they had to say about the state of construction in Georgia. Financial Performance and 2019 Outlook It was no surprise to see the majority of respondents reporting increased revenues and margins in 2018. Average gross margins from all respondents increased to 11.3%, up from 9.33% in the prior year. Overall, 72% of respondents saw their gross margins increase and/or remain the same. The largest decrease in margins was seen in the heavy contractor sector, with 33% of respondents reporting a decrease in margins. When it comes to backlog, Georgia is seeing a record number of months in the pipeline and 57% of respondents reported higher backlogs than in the previous year. The increase in backlog helps explain why 84% of respondents are expecting increase in revenues in 2019 over 2018. Interestingly, of those expecting increase in revenue, 40% are anticipating an increase of more than 10% from the prior year. So, the overall financial health of Georgia contractors looks to remain strong at least through 2019. Reprinted courtesy of Scott Hazy, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Mr. Hazy may be contacted at scott.hazy@btcpa.net

Vinny Testaverde Alleges $5 Million Mansion Riddled with Defects

January 15, 2014 — Melissa Zaya-CDJ STAFF
Former Tampa Bay Buccaneers quarterback Vinny Testaverde and his wife Mitzi filed suit December 20, 2013 claiming breach of contract and building code violations on their $5 million, Odessa, Florida mansion, according to the Tampa Tribune. The Testaverdes allege that their six-year old, 6,700 square foot home has multiple defects, including “wet floors and walls when it rains and a grand staircase leading to the front door that is sinking, taking with it two columns that support the porch roof,” The Tampa Tribune reports. Gray Homes of Tampa Bay were contracted by the couple to build their mansion on Lake Keystone. The Tampa Tribune stated that several months before filing suit, the Testaverdes sent a certified letter to Gray Homes stating they had uncovered “a series of defects.” According to the article, Gray Homes had not yet responded to the Tampa Tribune’s message asking for a comment. Read the court decision
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Drop in Civil Trials May Cause Problems for Construction Defect Cases

August 27, 2013 — CDJ STAFF
Over the last fifty years, the number of lawsuits that have been settled by trial have dropped sharply, according to Kenneth Childs, writing in the Idaho Business Review. Childs notes that in 1962, 11.5% of federal civil cases were resolved at trial, but in 2002, only 1.8 % percent went to trial. He makes the supposition that, due to their complexity, construction defect trials are even less likely to be resolved at trial. Instead, they are being resolved in mandatory arbitration. Views on arbitration have changed over the years and the courts have gone from what he describes as “somewhat hostile to it” to embracing, encouraging, and even mandating it. Childs notes there are some problems to this climate of arbitration. He notes that arbitrators can “operate by their own rules and according to their own standards.” The decisions made by arbitrators “are not subject to appellate review,” which allows arbitrators “to ignore the law entirely.” Read the court decision
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Colorado Federal Court Confirms Consequetial Property Damage, But Finds No Coverage for Subcontractor

November 01, 2022 — Tred R. Eyerly - Insurance Law Hawaii
A recommended decision from the Magistrate Judge of the Federal District Court for the District of Colorado found there was no coverage for the subcontractor's faulty workmanship, but recognized that Colorado finds consequential damages to be property damage. Indian Harbor Ins. Co. v. Houston Cas. Co., 2022 U.S. Dist. LEXIS 117857 (D. Colo. July 5, 2022). The insured, Tripp Construction, was a subcontrator for contructing balconies at an apartment complex. The owner complained that Tripp failed to properly install balconies. The defective installation of certain balcony components damaged other, non-defective components. The general contractor had an OCIP policy issued by Houston Casualty Company (HCC). The general contractor also had a Subcontractor Default policy issued by Indian Harbor. 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

Effective Allocation of Damages for Federal Contract Claims

October 25, 2021 — Dirk D. Haire, Joseph L. Cohen & Jane Han - ConsensusDocs
Federal construction contracts law generally recognizes four basic methods for pricing damages: (1) Actual Cost Method (ACM); (2) Total Cost Method (TCM); (3) Modified Total Cost Method (MTCM); and (4) Jury Verdict Recovery Method (JVRM). In practice, it is difficult to obtain significant recoveries on TCM and JVRM claims, and only marginally easier on MTCM claims. That is because the courts and boards that hear federal government contracts cases have developed a clear preference for the ACM. Despite this preference, many contractors do not have systems in place to maximize their opportunity to recover damages under the ACM. This article introduces various strategies for tracking and allocating damages during project performance in a manner that will support an ACM analysis if a federal construction claim is litigated. Background: Four Basic Methods for Pricing Damages The four methods for pricing damages are described, below: 1. Actual Cost Method The actual cost method claims damages based on records of “actual costs” that were documented during the performance of the contract. All additional costs must be separately recorded from the costs incurred in the normal course of contract performance. Because contractors provide the court or board with documented underlying expenses under the actual cost method, courts and boards prefer this method. However, the actual cost method may not always be feasible where a contractor is confronted with drastic changes early and often in a project. Reprinted courtesy of Dirk D. Haire, Fox Rothschild LLP, Joseph L. Cohen, Fox Rothschild LLP and Jane Han, Fox Rothschild LLP Mr. Haire may be contacted at dhaire@foxrothschild.com Mr. Cohen may be contacted at jlcohen@foxrothschild.com Read the court decision
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Texas Public Procurements: What Changed on September 1, 2017? a/k/a: When is the Use of E-Verify Required?

October 11, 2017 — Timothy D. Matheny – Peckar & Abramson, P.C.
Every contractor that does business with the federal government is familiar with the requirement to use of E-Verify in order to document the employability of a contractor’s employees. But, when is a contractor required to use E-Verify in Texas? And, does this requirement to use E-Verify extend to the contractor’s subcontractors? All contractors and each of their subcontractors will be required to use E-Verify for a variety of goods and services contracts with state agencies. Failure to understand these requirements could lead to your company losing out on the award of the next Texas public procurement contract. Read the court decision
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Reprinted courtesy of Timothy D. Matheny, Peckar & Abramson, P.C.
Mr. Matheny may be contacted at tmatheny@pecklaw.com

FAIRFIELD CONNECTICUT BUILDING EXPERT DIRECTORY AND CAPABILITIES