CAMBRIDGE MASSACHUSETTS BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Arizona Purchaser Dwelling Actions Are Subject to a New Construction

September 04, 2019 — William L. Doerler - The Subrogation Strategist
Arizona recently amended its Purchaser Dwelling Action statute to, among other things, involve all contractors in the process, establish the parties’ burdens of proof, add an attorney fees provision, establish procedural requirements and limit a subcontractor’s indemnity exposure. The governor signed the bill—2019 Ariz. SB 1271—on April 10, 2019, and the changes go into effect and apply, retroactively “to from and after June 30, 2019.” The following discussion details some of the changes to the law. Notice to Contractors and Proportional Liability Under the revised law, a “Seller” who receives notice of a Purchaser Dwelling Action (PDA) from a residential dwelling purchaser pursuant to A.R.S. § 12-1363* has to promptly forward the notice to all construction professionals—i.e. architects, contractors, subcontractors, etc., as defined in A.R.S. § 12-1361(5)—that the Seller reasonably believes are responsible for an alleged construction defect. A.R.S. § 12-1363(A). Sellers can deliver the notice by electronic means. Once construction professionals are placed on notice, they have the same right to inspect, test and repair the property as the Seller originally placed on notice. A.R.S. § 12-1362(B), (C). To the extent that the matter ultimately goes to suit, A.R.S. § 12-1632(D) dictates that, subject to Arizona Rules of Court, construction professionals “shall be joined as third-party defendants.” To establish liability, the purchaser has the burden of proving the existence of a construction defect and the amount of damages. Thereafter, the trier of fact determines each defendant’s or third-party defendant’s relative degree of fault and allocates the pro rata share of liability to each based on their relative degree of fault. However, the seller, not the purchaser, has the burden of proving the pro rata share of liability for any third-party defendant. A.R.S. § 12-1632(D). Read the court decision
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Reprinted courtesy of William L. Doerler, White and Williams LLP
Mr. Doerler may be contacted at doerlerw@whiteandwilliams.com

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OSHA’s Multi-Employer Citation Policy: What Employers on Construction Sites Need to Know

September 09, 2019 — Phillip C. Bauknight - Construction Executive
Multi-employer worksites are a frequent occurrence in the construction industry as employees from various companies often occupy the same site while a project is being completed. While the need for employees from different companies may be necessary to perform the various tasks required by a project, the presence of multiple employers, and their employees, on the same worksite can result in an increased risk of safety hazards. Companies performing construction work should be, and generally are, aware of OSHA’s ability to issue citations for workplace safety violations. What many companies may not know, however, is that OSHA’s ability to cite employers is not limited to workplace conditions that are unsafe only to that employer’s direct employees. Rather, OSHA also has the ability to cite an employer, and often does issue such citations, for conditions that could result in injury or death to another company’s employees. The policy which provides OSHA with this citation ability is CPL 02-00-124 and is called the Multi-Employer Citation Policy (the “Policy”). Under the language of the Policy, OSHA has the ability to cite multiple employers for violations of the Occupational Safety and Health Act for the same hazardous workplace condition. Critically, responsibilities under the Policy do not depend on the employer’s job title but are determined by the employer’s role. Reprinted courtesy of Phillip C. Bauknight, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Mr. Bauknight may be contacted at pbauknight@fisherphillips.com

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Contractor Liable for Soils Settlement in Construction Defect Suit

February 10, 2012 — CDJ STAFF

The California Court of Appeals ruled on January 9 in Burrow v. JTL Dev. Corp., a construction defect case in which houses suffered damage due to improperly compacted soil, upholding the decision of the lower court.



Turf Construction entered into a deal with JTL to develop a parcel they acquired. A third firm, Griffin Homes, withdrew from the agreement “when a geotechnical and soils engineering firm reported significant problems with soil stability on 14 of the lots.” Turf Construction then took over compacting and grading the lots. Turf “had never compacted or graded a residential tract before.” Robert Taylor, the owner of Turf, “testified he knew there was a significant problem with unstable soils.”



After homes were built, the plaintiffs bought homes on the site. Shortly thereafter, the homes suffered damage from soil settlement “and the damage progressively worsened.” They separately filed complaints which the court consolidated.



During trial, the plaintiff’s expert said that there had been an inch and a half in both homes and three to five inches in the backyard and pool areas. “He also testified that there would be four to eight inches of future settlement in the next fifteen to twenty years.” The expert for Turf and JTL “testified that soil consolidation was complete and there would be no further settlement.”



Turf and JTL objected to projections made by the plaintiffs’ soil expert, William LaChappelle. Further, they called into question whether it was permissible for him to rely on work by a non-testifying expert, Mark Russell. The court upheld this noting that LaChappelle “said that they arrived at the opinion together, through a cycle of ‘back and forth’ and peer review, and that the opinion that the soil would settle four to eight inches in fifteen to twenty years was his own.”



Turf and JTL contended that the court relied on speculative damage. The appeals court disagreed, stating that the lower court based its award “on evidence of reasonably certain damage.”



Turf also that it was not strictly liable, since it did not own or sell the properties. The court wrote that they “disagree because Turf’s grading activities rendered it strictly liable as a manufacturer of the lots.” The court concluded that “Turf is strictly liable as a manufacturer of the lots.”



Judge Coffee upheld the decision of the lower court with Judges Yegan and Perren concurring.

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China Home Glut May Worsen as Developers Avoid Price Drop

August 06, 2014 — Zhang Dingmin - Bloomberg News
The biggest immediate risk facing China’s economy is about to get worse. A reluctance among some developers to sell units at prices lower than they could fetch just months ago threatens to cause a swelling in unsold properties. The worsening glut would extend a slide in construction that’s already put a drag on the world’s second-largest economy, and counter policy makers’ efforts to stimulate the real-estate industry with loosened rules. In Nanjing, eastern China, nine housing projects originally planned for sale in the first half of 2014 were held for later this year, consulting firm Everyday Network Co. says. The number of homes added to the market in July in 21 major cities dropped 25 percent from June, according to Centaline Group, parent of China’s biggest real-estate brokerage. Read the court decision
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Reprinted courtesy of Zhang Dingmin, Bloomberg News
Zhang Dingmin may be contacted at dzhang14@bloomberg.net

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Wonder How 2021 May Differ From 2020? Federal Data Privacy May Be Enacted - Be Prepared

February 22, 2021 — Joshua Bevitz - Newmeyer Dillion
State data privacy laws, which are far from uniform, are on the rise. To address that, as well the public’s increasing concern with protecting their private information, it is expected that there will be a serious effort in Congress this year to enact federal data privacy legislation. Here is what you need to know to ensure your business is ready for potential federal regulation. Applicable State Laws As is widely known, some states have recently enacted data privacy legislation to protect consumers. For example, in early 2020, California’s new privacy law, the California Consumer Privacy Act (CCPA), took effect, giving consumers more discretion regarding over how companies share and use their personal information. (For years, California already had in place its Database Security Breach Notification Act.) More recently, California enacted the California Privacy Rights and Enforcement Act (CPRA), which amends and strengthens the CCPA. Other states, such as Maine, Nevada, New York, Oregon, and Washington, have enacted their own data privacy legislation. Read the court decision
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Reprinted courtesy of Joshua Bevitz, Newmeyer Dillion
Mr. Bevitz may be contacted at joshua.bevitz@ndlf.com

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In Pricey California, Renters Near Respite From Landlord Gouging

September 16, 2019 — Noah Buhayar - Bloomberg
The housing crisis engulfing California has state lawmakers racing to pass bills that would boost construction and stop corporate landlords from egregiously jacking up rents. The bills overcame key hurdles last week and are due for final votes before the legislature adjourns on Sept. 13. The hardest-fought measure would set a higher standard for evictions and cap annual rent increases at 5% plus the rate of inflation. While that’s below the typical pace of lease hikes -- and the bill has many caveats for landlords -- it would still mark the state’s most significant new protection for tenants in decades. Read the court decision
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Reprinted courtesy of Noah Buhayar, Bloomberg

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Repairs Commencing on Defect-Ridden House from Failed State Supreme Court Case

October 15, 2014 — Beverley BevenFlorez-CDJ STAFF
In the Windmill Harbour area of Hilton Head Island, South Carolina, Danielle Smith is repairing her home after “spending almost $25,000 on unsuccessful legal battles and two years to secure a loan,” according to the Beaufort Gazette. The contractor who custom built the home was unlicensed, and “[t]he synthetic stucco used to build the house was faulty, causing water damage throughout that will cost $500,000 and six months to repair.” Back in 2008, Smith’s case reached the state Supreme Court. The court ruled against her, reasoning “that the former owner, who had hired subcontractors to build the house, could not be held liable for the damage because he built it as a private home and had originally intended to never sell it.” Read the court decision
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Read Before You Sign: Claim Waivers in Project Documents

July 06, 2020 — William E. Underwood - ConsensusDocs
Not all claim waivers are appropriately titled “Waiver of Claims.” In fact, claim waivers can be found “hiding” without any advertisement or fanfare in a number of project documents, including change orders and applications for payment. So although getting work quickly approved and paid for is important, taking time to read the specific language in your project documents is just as important. Failure to pay close attention to this language could result in the waiver of key, unresolved project claims. Further, and although it should go without saying, it is also just as important to read all of the terms of your contract. Important waiver language might not exist on the face of form project documents, but rather might be contained in the general and/or supplemental conditions of your contract and automatically incorporated into your form project documents. And these types of incorporated waivers can be just as enforceable. So it is critically important to understand what you are signing and the implications it might have on future claims. This article will explore some of the common types of claim waivers that can be found in project documents so that you are better positioned to avoid inadvertently waiving claims in the future. Read the court decision
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Reprinted courtesy of William E. Underwood, Jones Walker LLP
Mr. Underwood may be contacted at wunderwood@joneswalker.com

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