Federal Contractors – Double Check the Terms of Your Contract Before Performing Ordered Changes
July 08, 2019 —
Jonathan Schirmer - Ahlers Cressman & Sleight PLLCAs federal contractors may be aware, the general rule when performing a contract for the federal government is that only the contracting officer (“CO”) can bind the government. Often, the CO delegates responsibility to a contracting officer’s representative (“COR”). While in some cases a COR may be able to bind the federal government, the contract may limit that ability exclusively to the CO.
Important for our clients, it is the responsibility of the contractor to determine whether the COR can legally bind the federal government when ordering changes to the scope of work. [1] This is true even when a COR possesses apparent authority to order changes to the work, and when the project is almost exclusively overseen by COR’s. [2]
A recent case highlights the dangers of a contractor relying on the orders of a COR when performing work outside the scope of a contract. In Baistar Mechanical Inc., a contractor was awarded a maintenance and snow removal contract with the federal government. The contract expressly stated that only the CO had contracting authority regarding additional or changed work. [3] However, Baistar, the contractor, argued it was directed by the contracting officer’s representatives to perform work outside of the contract.
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Jonathan Schirmer, Ahlers Cressman & Sleight PLLCMr. Schirmer may be contacted at
jonathan.schirmer@acslawyers.com
Blackstone Said to Sell Boston Buildings for $2.1 Billion
May 21, 2014 —
Hui-yong Yu – BloombergBlackstone Group LP (BX) agreed to sell five office properties in Boston to a venture led by Toronto-based Oxford Properties Group for about $2.1 billion, according to two people with knowledge of the transaction.
The buildings total almost 3.3 million square feet (306,000 square meters) and are mostly in downtown Boston, said the people, who asked not to be named because the sale is private. The sale is Blackstone’s largest of U.S. office properties since the real estate market crash.
Oxford plans to purchase 100 High St. and 125 Summer St., and team with JPMorgan Chase & Co. (JPM)’s asset-management unit to buy three other properties: 60 State St., 225 Franklin St. and One Memorial Drive in nearby Cambridge, the people said. Blackstone also is selling its roughly half-stake in Boston’s Rowes Wharf to part-owner Morgan Stanley (MS) for about $200 million, according to one of the people.
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Hui-yong Yu, BloombergHui-yong Yu may be contacted at
hyu@bloomberg.net
After Restoring Power in North Carolina, Contractor Faces Many Claims
August 10, 2017 —
Jim Parsons - Engineering News-RecordHaving successfully helped to restore power to two North Carolina barrier islands, PCL Civil Constructors now faces the fallout from a July 27 construction incident that forced a week-long evacuation of 60,000 visitors, putting a potential multimillion-dollar dent in the region’s tourism-dependent economy.
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Jim Parsons, ENRENR may be contacted at
ENR.com@bnpmedia.com
White House Seeks $310M To Fix Critical San Diego Wastewater Plant
December 04, 2023 —
James Leggate - Engineering News-RecordThe Biden administration’s $55.9-billion
supplemental funding request to Congress for disaster response and other issues includes $310 million for a project to repair and expand the ailing South Bay International Wastewater Treatment Plant in San Diego, Calif. The plant is part of a
repeatedly overwhelmed wastewater treatment system on the U.S.-Mexico border that has allowed untreated sewage flows to foul area beaches.
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James Leggate, Engineering News-Record
Mr. Leggate may be contacted at leggatej@enr.com
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Are Untimely Repairs an “Occurrence” Triggering CGL Coverage?
November 16, 2020 —
Christopher G. Hill - Construction Law MusingsAll Class A commercial contractors in Virginia are required to have a minimum level of Commercial General Liability (CGL) coverage. As a general rule, this insurance is there for damage to property or persons arising from an “occurrence” that is covered by the policy. Many cases that are litigated relating to coverage for certain events under a CGL policy turn on the definition of “occurrence” and whether the event leading to a request for coverage constitutes an “occurrence.”
A recent case in Fairfax County, Virginia, Erie Insurance Exchange v. Spalding Enterprises, et al., is just such a case. In the Spalding Enterprises case, the Court considered the following scenario. A homeowner, Mr. Yen contracted with Spalding Enterprises to fix some fire damage at his home. Spalding promised the repairs would be complete in October of 2019. However, after Mr. Yen paid a $300,000.00 deposit, Spalding Enterprises stated that the work would not be completed until November of 2019. Yen then fired Spalding Enterprises and sued for breach of contract, constructive fraud, and violation of the Virginia Consumer Protection Act. Spalding Enterprises sought coverage from Erie Insurance for the claim and Erie denied coverage and sought a declaratory judgment that the events alleged in the Complaint by Mr. Yen did not fall under the definition of “occurrence” in the CGL policy held by Spalding Enterprises.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Number of Occurrences Is On the Agenda at This Year's ICLC Seminar
February 05, 2015 —
Tred R. Eyerly – Insurance Law HawaiiThis year's Insurance Coverage Litigation Committee's CLE Seminar will be conducted in Tucson, Arizona, from March 4-7, 2015. Each year, the conference offers informative, cutting-edge sessions on a variety of insurance-related topics. Participants from across the country with varying perspectives on insurance coverage, including lawyers, judges, risk managers, and insurance professionals, will be attendance. The seminar's brochure is attached
here.
"Number of Occurrences" will be the topic my panel presents on March 7. We will be honored to have on our panel Alaska Supreme Court Justice Peter Maassen, my old skiing and running buddy from my Alaska days. Justice Maassen's opinion in United Servs. Auto. Ass'n. v. Neary, 307 P.3d 907 (Alaska 2013) was the genesis for our topic.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Florida’s Construction Defect Statute of Repose
August 24, 2017 —
David Suggs – Bert L. Howe & Associates, Inc.Butler Weihmuller of Katz Craig LLP discussed Florida’s 10-year statute of repose law: “Under § 95.11(3)(c), the action must commence within 10 years after the date of actual possession by the owner, the date of the issuance of a certificate of occupancy, the date of abandonment of construction if not completed, or the date of completion or termination of the contract between the professional engineer, registered architect, or licensed contractor and his or her employer, whichever date is latest.”
However, Weihmuller explains that parties may disagree on the specific date For instance, in Busch v. Lennar Homes, LLC, Florida’s 5th DCA recently “reversed a trial court’s dismissal of a homeowner’s construction defect claim that was filed just beyond 10 years after the closing date on the property.” The previous decision had been based on the notion that the contract had been completed upon the date of closing. The 5th DCA declared that “a contract is not completed until both sides of a contract have been performed” and “pointed to the ‘inspection and punch-list clause’ of the contract.” The clause indicated that “[a]ny remaining items that Seller has agreed to correct will be corrected by Seller at Seller’s sole cost and expense prior to closing or at Seller’s option within a reasonable time after closing.” Since not all punch-list items had been completed prior to closing, the 5th DCA held that the contract had not been completed at closing, and therefore the statute of repose did not begin until the punch-items had been accomplished.
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HOA Group Speaking Out Against Draft of Colorado’s Construction Defects Bill
April 30, 2014 —
Beverley BevenFlorez-CDJ STAFFEd Sealover of the Denver Business Journal reported on a homeowner association group that has spoken out against the recent draft of Colorado’s Construction Defects bill. According to Sealover’s article, Senator Jessie Ulibarri claimed that the “proposed bill…would mandate that homeowners alleging that owner-occupied multi-family structures have major construction defects go through mediation or arbitration before a lawsuit can be filed.” Furthermore, the bill would require “written consent from a majority of unit owners” before the “executive board of a homeowners association files such a lawsuit.”
The bill originated due to findings that “[l]ess than 2 percent of new housing stock being built in Colorado is in the form of condos, an anomaly that developers attribute to state laws that allow condo owners to file multi-million-dollar class-action lawsuits even if only a few of them want to move forward with the legal action.”
However, Molly Foley-Healy, chairwoman of the Community Associations Institute (CLAC), spoke out against the bill: “Senator Ulibarri’s stated goal is to create more affordable housing, but this bill has nothing to do with affordable housing. Instead, it hurts the very people he said he wanted to help. It effectively blocks homeowners from holding builders responsible for their shoddy construction and leaves homeowners living in HOAs to pick up the tab for repairing the defects.”
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