SEATTLE WASHINGTON BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Carillion Fallout Affects Major Hospital Project in Liverpool

October 30, 2018 — Peter Reina - Engineering News-Record
Managers of a 90%-complete, 646-bed hospital in Liverpool will take charge of the project after unravelling a public-private partnership with the contractor Carillion Plc, which collapsed ignominiously in January (ENR 1/22 p. 12). Following cancellation of the contractor’s other large U.K. hospital P3, near Birmingham, project lenders face large losses. Read the court decision
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Reprinted courtesy of Peter Reina, ENR
Mr. Reina may be contacted at reina@btinternet.com

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Warranty of Workmanship and Habitability Cannot Be Disclaimed or Waived Under Any Circumstance

May 01, 2023 — Jason Feld & Stephanie Wilson - Kahana & Feld LLP
Arizona residential construction and single-family home production is growing at a rapid pace. And just as fast as the homes are sold, homeowners are constantly seeking warranty repairs from their homebuilders. Despite having strong purchase documents with express warranty language, the Arizona Supreme Court in Zambrano v. M & RC, II LLC, 254 Ariz. 53 (2022) adopted a bright line rule that regardless of the contract, the implied warranty of workmanship and habitability (“implied warranty”) cannot be disclaimed or waived under any circumstance. The Arizona Supreme Court opinion provides clear guidance of the law in this area on the scope of the implied warranty in contracts between homebuyers and builder/vendors, specifically on the issue of whether an express warranty can negate and effectively waive the common law implied warranty – which is a definitive violation of public policy. The Zambrano decision involved a licensed real estate broker who bought a new single family home for herself in a newly constructed master planned community in Surprise, AZ. Zambrano entered into a valid sales contract with Scott Homes (homebuilder) which contained a stand-alone 45-page pre-printed form express warranty. The express warranty was to be the “only warranty applicable to the home.” The contract further clarified that the buyer was expressly disclaiming (and, thus, waiving) the implied warranty. The sales documents and express warranty were signed and authorized by Zambrano. A short time later, the home developed alleged “design and construction defects” that were “either time barred or outside the coverage” of the express warranty. Zambrano filed suit for the alleged defects based on the implied warranty. Scott Homes filed summary judgment based on the Zambrano’s waiver and disclaimer of the implied warranty in the purchase agreement. The trial court granted summary judgment and the matter was appealed up to the Arizona Supreme Court. Reprinted courtesy of Jason Feld, Kahana & Feld LLP and Stephanie Wilson, Kahana & Feld LLP Mr. Feld may be contacted at jfeld@kahanafeld.com Ms. Wilson may be contacted at swilson@kahanafeld.com Read the court decision
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CGL Coverage Dispute Regarding the (J)(6) And (J)(7) Property Damage Exclusions

April 18, 2023 — David Adelstein - Florida Construction Legal Updates
A new insurance coverage opinion dealing with a commercial general liability’s (CGL) duty to defend involved exclusions commonly known as the (j)(6) and (j)(7) property damage exclusions (and in certain policies known as the (j)(5) and (j)(6) exclusions). These are the exclusions that apply during ongoing operations. Exclusion (l), or the “your work” exclusion, applies post-completion, i.e., it is an exclusion for “property damage” to “your work” included in the “products-completed operations hazard.” Exclusions (j)(6) and (j)(7) in the policy at-issue exclude coverage for property damage to:

(j)(6) That particular part of real property on which any insured or any contractors or subcontractors working directly or indirectly on your behalf are performing operations, if the “property damage” arises out of those operations; (j)(7) That particular part of any property that must be restored, repaired or replaced because “your work” was incorrectly performed on it.

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

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Apprentices on Public Works Projects: Sometimes it’s Not What You Do But Who You Do the Work For That Counts

September 17, 2015 — Garret Murai – California Construction Law Blog
If you’re a public works contractor in California you’re familiar with prevailing wages. The Prevailing Wage Law, a Depression era law designed to encourage the hiring of local labor, sets a minimum wage that employers must pay to workers on public works projects. But because the Prevailing Wage Law sets a floor on wages it also limits the opportunity for lesser-skilled workers to gain experience. To address this, the Prevailing Wage Law permits contractors to pay apprentices a lower “apprentice wage” if the apprentice is enrolled in a state-approved apprenticeship program and requires contractors who hire workers in an “apprenticeable craft or trade” to hire a certain number of apprentices. But are particular apprentices required to be hired depending on the type of work being performed? In Henson v. C. Overaa & Company, Case No A139966 (June 29, 2015), the California Court of Appeals for the First District held that apprentices are required to be hired based on the craft or trade of the journeymen performing work not based on the type of work being performed. Read the court decision
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Reprinted courtesy of Garret Murai, Wendel Rosen Black & Dean LLP
Mr. Murai may be contacted at gmurai@wendel.com

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Contractor Removed from Site for Lack of Insurance

October 28, 2011 — CDJ STAFF

The MetroWest Daily News reports that a demolition firm was told to leave the construction site at Natick High School since their failure to have workers compensation insurance makes them unable to work on the project. The contractor, Atlantic Dismantling and Site Construction, Inc. may have been working illegally since September.

The equipment that Atlantic had rented for the job was repossessed in August. Brait Builders Corp, the general contractor for the site had rented equipment so Atlantic could continue their work.

Their lack of insurance was discovered when a worker had a minor job-related injury. The state had issued a stop-work order for the firm and they could not legally bid on public projects. The school system did not receive any notice of this, and the school’s facilities director said of the general contractor, “chances are Brait never heard of anything either.”

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Statutory Time Limits for Construction Defects in Massachusetts

November 27, 2013 — CDJ STAFF
Construction defect claims are governed by a section of the Massachusetts laws and allow for three years after the work was completed, unless the defect is “inherently unknowable,” according to a post by John Shaffer on the web site of his firm, Marcus, Errico, Emmer & Brooks, a New England law firm that specializes in condominium law. Those “inherently unknowable” defects fall into the six-year statute of repose. If, for example, a roof doesn’t show “significant water leakage” until after the end of the statutory period, “the association is out of luck and the responsible parties are off the hook,” writes Mr. Shaffer. “Even if the association could prove conclusively that the roof was improperly constructed and caused significant damage, the association’s claim will be barred.” One problem condominium associations can face is that defects in the earliest phases of building can sometimes become apparent while the developer still controls the board. “While a developer in control of a board has the same fiduciary obligation as owner-elected trustees to protect the association’s interests, it is probably safe to assume that few developers will be inclined to sue themselves.” Here, Mr. Shaffer notes that owners can join together and either “hasten the transition to owner control of the association” or “convince them to correct the identified deficiencies.” Mr. Shaffer notes that some questions concerning the statute of repose haven’t been answered by the Massachusetts courts. He does assure readers that “developers will no doubt argue that the statute of limitations has expired on defects because the association discovered or ‘should have discovered’ their existence more than three years before the lawsuit was started.” He advises condominium associations to calculate “their filing deadlines as conservatively as possible.” Read the court decision
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Are Contracting Parties Treated the Same When it Comes to Notice Obligations?

June 25, 2019 — G. Scott Walters - Smith Currie
Overview Experienced project delivery team members know too well the importance of timely and proper notice during a construction project. Ideally, contractual notice provisions, and any penalties for non-compliance, should apply equally to all of the contracting parties. For example, failure to comply with a notice provision concerning contract changes could bar a party from pursuing claims. And, untimely or improper notice can, likewise, prevent certain defenses to claims. Nowhere is notice more scrutinized than in the federal government contracting arena. Recently, the United States Court of Federal Claims issued two separate decisions involving the same construction project and the same parties and dealing with two specific aspects of notice in the federal government contracting process. The court’s decisions on the notice issues may, at first, appear to contradict each other or to favor one party over the other. A closer look at these two decisions reveals that notice requirements, in the context of federal government construction contracts, can come in multiple forms and notice is not a “one size fits all” proposition. Read the court decision
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Reprinted courtesy of G. Scott Walters, Smith Currie
Mr. Walters may be contacted at gswalters@smithcurrie.com

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I’m Sorry Ms. Jackson, I [Sovereign Immunity] am For Real

June 08, 2020 — Greggory Jacobs - Florida Construction Law News Blog
The Supreme Court of Florida issued its opinion in Florida Highway Patrol v. Jackson, 2020 Fla. LEXIS 108 (Fla. Jan 23, 2020), which answered the following certified question of great public importance: Does rule 9.130 [(A)(3)(C)(XI)] permit an appeal of a non-final order denying immunity if the record shows that the defendant is entitled to immunity as a matter of law but the trial court did not explicitly preclude it as a defense? The Court’s answer to this question was “no.” But this opinion stands for much more than just a negative answer to a certified question. Indeed, this opinion has significant implications upon procedural and substantive areas of construction law, which may affect agents of the state of Florida, including Construction Engineering and Inspection professionals and consultants (“CEI”). Procedurally, the Court recognizes that Fla. R. App. P. 9.130 insufficiently protects the public and governmental interests as “it leaves too great a risk that erroneous denials of operational sovereign immunity will go unreviewed until it is too late.” Id. at * 19. By extension of this risk, the Jackson Court announced that “courts should determine entitlement to sovereign immunity as early as the record permits.” Id. at * 18. In fact, on that basis, courts can address a motion for summary judgment asserting entitlement to sovereign immunity even if there are outstanding disputes as to, say, the existence of a duty of care. Id. at 17-18. Accordingly, and in an effort to remedy the risk of erroneous denials going unreviewed until it is too late, the Court amended Fla. R. App. P. 9.130 to expand appellate review of nonfinal orders denying sovereign immunity. Jackson, 2020 Fla. LEXIS 108 at * 19; In re Amendments to Fla. Rule of Appellate Procedure 9.130, No. SC19-1734 (Fla. Jan. 23, 2020). The new form of Fla. R. App. P. 9.130 cements the policy mentioned above because it allows an appeal of a nonfinal order denying a motion for summary judgment due to entitlement to sovereign immunity. Meanwhile, under the old rule, the order was only appealable if the trial court order determined – as a matter of law – that a party was not entitled to sovereign immunity. As such, the new rule focuses on what was argued in the motion as opposed to what was written in the order. Read the court decision
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Reprinted courtesy of Greggory Jacobs, Cole, Scott & Kissane, P.A.
Mr. Jacobs may be contacted at greggory.jacobs@csklegal.com

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