Construction Resumes after Defects
June 28, 2013 —
CDJ STAFFWhen inspectors found defective bolts in the construction of the Media Arts Center at L. A. Mission College, the contractor walked off the job. The project had been underway for about eighteen months. After problems were found with welds and bolts, the contractor informed the school that it could not complete the job. The California Division of the State Architect then required inspection of every weld and joint, leading to a dispute as to who was going to pay for it.
At this point, only the first story has been inspected. Although the other two stories must be inspected, the new contractor is about to begin work on the building. James O’Reilly, the executive director for facilities, planning and development, said that “the main focus is on fixing the defective issues and getting construction completed so we can serve the Mission campus.” Still at question is how much SMC Construction received before they walked off the job.
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County Officials Refute Resident’s Statement that Defect Repairs Improper
August 27, 2014 —
Beverley BevenFlorez-CDJ STAFFManatee County, Florida officials stated that “they are confident construction defects at the Willowbrook subdivision being fixed by the builder KB Home are being properly supervised and repaired,” according to the Bradenton Herald. However, a resident told the Bradenton Herald previously that “mold remediation isn’t being done properly and good wood was being installed over rotted wood.”
John Barnott, director of the Manatee County Building & Development Services Department told the Bradenton Herald that the county building chief has been at the site “every week, three or four times a week.” Carroll Dupre, the county building chief, stated that the development “looks real good.” The commissioner, Vanessa Baugh, stated that she had not received any complaints from Willowbrook residents and that “she was ‘not pleased with the implications of the article.’”
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Construction Contract Language and Insurance Coverage Must Be Consistent
July 30, 2015 —
Craig Martin – Construction Contract AdvisorHow often do you review both the additional insured language in the contract and the insurance policy provided by a subcontractor? My guess is, unless the project has gone off the rails, NEVER. Well, perhaps you should to make absolutely sure the extent of the subcontractor’s insurance obligations and whether those obligations are being fulfilled.
This point was recently addressed in a recent DRI article analyzing the Deepwater Horizon/BP lawsuit. My partner, Anne Marie O’Brien, also blogged on this a few months ago.
As you will recall, Transocean’s Deepwater Horizon oil-drilling rig exploded, killing 11 workers, and polluted the Gulf of Mexico. BP demanded that Transocean’s insurer pay for the loss. Transocean’s insurer said no, and the litigation ensued, in state court, federal court, and the Texas Supreme Court. It was quite an odyssey of litigation.
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Craig Martin, Lamson, Dugan and Murray, LLPMr. Martin may be contacted at
cmartin@ldmlaw.com
Build Back Better Includes Historic Expansion of the Low-Income Housing Tax Credit Program
December 20, 2021 —
James M. Grosser & David W. Wright - Gravel2Gavel Construction & Real Estate Law BlogOn November 19, 2021, the U.S. House of Representatives passed the Build Back Better Act (H.R. 5376), a bill that represents a large portion of the Biden-Harris Administration’s agenda. Among other spending and tax measures, the bill includes an unprecedented expansion of the Low-Income Housing Tax Credit (LIHTC) program. Four proposals are headlining this expansion:
- Increasing the 9% LIHTC allocation cap by 10% plus inflation annually from 2022 to 2024. With this increase, the 2024 LIHTC allocation cap will rise to $3.97 per capita and a small state minimum of around $4.58 million, constituting a 41 percent increase in allocable LIHTC over current levels. The allocation cap would then decrease to $2.65 per capita and a small state minimum of $3.12 million in 2025 and would thereafter be indexed to inflation from the 2025 baseline.
- Reducing the 50% threshold for 4% tax-exempt bond-financed projects to 25% for five years, beginning in 2022.
Reprinted courtesy of
James M. Grosser, Pillsbury and
David W. Wright, Pillsbury
Mr. Grosser may be contacted at james.grosser@pillsburylaw.com
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Virtual Jury Trials: The Next Wave of Remote Legal Practice
July 13, 2020 —
David R. Zaslow & Mark Paladino - White and WilliamsOne of the most obvious and unavoidable results of the COVID-19 crisis has been the postponement of jury service and, by extension, all jury trials. Given the inherent difficulties of convening juries in a world of social distancing, it is likely that multiple jurisdictions will be unable to conduct live jury trials for at least the next several months.
Recognizing the mounting delay and substantial docket backlog that is attendant to several months without jury trials, one court most recently permitted the litigants, upon consent, to try a new innovation – the nation’s first virtual jury trial conducted entirely on the Zoom platform. More than two dozen potential jurors in Collin County, Texas attended jury selection from home by smartphone, laptop, and tablet, a process that was streamed live on YouTube. The presiding judge occasionally provided prospective jurors technical advice on how to best use their devices.
Once selected, the jurors virtually attended a one-day, “summary jury trial” of an insurance dispute in which they heard a condensed version of the case and delivered a non-binding verdict. The parties were then able to gauge how their cases would fare before a jury in a full-scale trial and, with that insight, agreed to proceed to a mediation in an attempt to reach a resolution. Court officials further touted the abbreviated, non-binding experience as an ideal test for the viability of remotely holding jury trials that would result in a final judgment. This real-world test, albeit in a non-binding exercise, may be an indication of things to come, as courts in Indiana and Arizona have already communicated an intention to conduct jury trials remotely once able.
Reprinted courtesy of
David R. Zaslow, White and Williams and
Mark Paladino, White and Williams
Mr. Zaslow may be contacted at zaslowd@whiteandwilliams.com
Mr. Paladino may be contacted at paladinom@whiteandwilliams.com
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Government Claims Act Does Not Apply to Actions Solely Seeking Declaratory Relief and Not Monetary Relief
March 25, 2024 —
Garret Murai - California Construction Law BlogPerhaps it should come as no surprise, but public entities get special treatment under the law, and when filing a claim against a public entity, in most cases, a claimant is required to file a claim with the public entity before filing suit under the Government Claims Act (Gov. Code §810 et seq.).
But, as the next case demonstrates, that’s not always the case. In Stronghold Engineering Incorporated v. City of Monterey, 96 Cal.App.5th 1203 (2023), the 6th District Court of Appeals examined whether a public works contractor that alleged an extended overhead claim was required to file a Government Claims Act claim before filing suit when its initial complaint was limited to a claim for declaratory relief.
The Stronghold Case
In December 2015, general contractor Stronghold Engineering Incorporated entered into a construction contract with the City of Monterey for the renovation of the City’s conference center and an adjacent city-owned plaza. The construction contract provided that any modification to the construction contract had to be approved by the City through a written change order. No surprise there.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Construction Needs Collaborative Planning
January 20, 2020 —
Aarni Heiskanen - AEC BusinessWhat makes construction different from manufacturing is its dynamic nature. Unlike a systemized production plant, a construction site is a mesh of interconnected processes that are far from optimized. The traditional top-down planning practice does not solve problems on the construction site, as recent research reveals. Making planning collaborative is a necessary step in making construction less wasteful.
Everybody in the industry has felt frustration with inefficiencies in construction, but seeing the data is still disconcerting. I’ve had the pleasure of attending several workshops organized by the Finnish Aalto University’s research teams. These eye-opening events both revealed how much waste we have in construction today and suggested solutions to this problem.
Four Aalto University graduate students shared insights from their research at a workshop of the Waste Workgroup of the Building 2030 consortium. They focused on projects where takt production, a lean construction method, had been used. Takt production breaks the work down into equally timed work batches and typically shortens project lead time considerably—up to 50%. However, even these well-planned projects included waste and unnecessary movement, as the researchers found out.
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi
Nevada Construction Defect Lawyers Dead in Possible Suicides
March 28, 2012 —
CDJ STAFFA number of news sources have reported on the recent death of Nevada construction defect attorney, Nancy Quon. Ms. Quon was implicated in a recent scandal in which a group conspired to control homeowner associations in order to divert construction defect lawsuits to the members of the conspiracy.
Ms. Quon was found dead in her bathtub. The details are still under investigations. She and her boyfriend were accused of a failed arson/suicide scheme in 2010. Ms. Quon survived an attempt to burn down her home. Subsequently, her boyfriend obtained some gamma-hydroxybutyric acid (GBH) for her, as part of another failed suicide attempt.
Subsequent to Ms. Quon’s death, David Amesbury was found in California dead by hanging. Mr. Amesbury took a plea deal in the case, and he had admitted his role in providing legal and construction contracts to firms in the conspiracy. He was accused of fixing HOA elections.
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