CAMBRIDGE MASSACHUSETTS BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Decline in Home Construction Brings Down Homebuilder Stocks

December 11, 2013 — CDJ STAFF
The main gains in October construction were in commercial construction. The stock market has reacted to the slow-down by selling off homebuilder stocks, leading to a drop in their price. Deutsche Bank did not expect this to be the long term situation in U.S. homebuilding. The bank expects that the dip in residential construction “should reverse course given the ongoing improvement in permits for new construction.” Read the court decision
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Ohio subcontractor work exception to the “your work” exclusion

August 11, 2011 — CDCoverage.com

In Mosser Construction, Inc. v. Travelers Indem. Co., No. 09-4449 (6th Cir. July 14, 2011)(unpublished), claimant project owner Port Clinton contracted with insured general contractor Mosser for the construction of a building.  Following completion, Port Clinton sued Mosser for breach of contract seeking damages because of physical injury to the project occurring after completion resulting from defective backfill material that settled improperly.

Mosser’s CGL insurer Travelers denied a defense and Mosser filed suit against Travelers seeking a declaratory judgment. Mosser and Travelers filed cross-motions for summary judgment on the issue of whether the supplier of the backfill material?Gerken?qualified as a subcontractor for purposes of the subcontractor work exception to the “your work” exclusion—exclusion l.—for property damage to or arising out of Mosser’s completed work.   Mosser had purchased the backfill material from Gerken pursuant to a purchase order specifying that Gerken was to supply Mosser with an industry standard grade of backfill for use in the Port Clinton project.

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Is It Time to Get Rid of Retainage?

June 15, 2020 — David K. Taylor - Construction Executive
Many debate the pros, cons and claims of retainage—when one party to a construction contract withholds a percentage (typically 5%-10%) from an otherwise approved contractor pay application, and which typically is not paid until a project is substantially complete. If an owner withholds retainage from a prime contractor, typically the contractor will in turn withhold retainage from its subcontractors. While retainage has been part of the construction industry for decades, its concept, use (and abuse) have been under more discussion during the past 10 years. Based on heavy lobbying from primary subcontractor groups, state legislatures have passed laws to regulate retainage in commercial projects. Lenders have become more careful about loans and are frequently involved in retainage discussions. Bonded projects are subject to criticism when a surety does not step in and, like the mythical insurance company, write a check. Reprinted courtesy of David K. Taylor, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Mr. Taylor may be contacted at dtaylor@bradley.com

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Musk Backs Off Plan for Tunnel in Tony Los Angelenos' Backyard

December 19, 2018 — Sarah McBride & Edvard Pettersson - Bloomberg
Elon Musk’s futuristic tunneling company, Boring Co., is no longer embroiled in a lawsuit with the residents of West Los Angeles. A May lawsuit aimed at stopping the Boring Co.’s proposed tunnel under Sepulveda Boulevard has been settled, according to a notice filed at the Superior Court of Los Angeles County. Neighbors in the Brentwood and Sunset Boulevard areas, near the proposed tunnel, had sued the City of Los Angeles over the Boring Co.’s plans to build a test tunnel without going through an environmental review process, as recommended in April by the city’s public works committee. Read the court decision
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Reprinted courtesy of Sarah McBride & Edvard Pettersson, Bloomberg

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General Partner Is Not Additional Insured For Construction Defect Claim

August 26, 2015 — Tred R. Eyerly – Insurance Law Hawaii
The court determined that the project owner's general partner was not an additional insured entitled to a defense and indemnity against claims for construction defects. St. Paul Fire & Marine Ins. Co. v,. Cypress Fairway Condo. Ass'n, 2015 U.S. Dist. LEXIS 94012 (M.D. Fla. July 20, 2015). Construction of the Cypress Fairway Condominium project took place in 1999 and 2000. Cypress Fairway Ltd. ("Cypress") was the owner and Vineland Partners , LLC ("Vineland") was its general partner. The general contractor was Winter Park Construction Company ("WPC"). Water intrusion and property damage occurred, but it was unclear when or whether the damage was known. Cypress' expert indicated that the damage began shortly after the end of construction. In 2004, the complex was sold to Cypress Madison Ownership Company. In 2010, the Cypress Fairway Condominium Association sued Cypress and Vineland. Count V of the underlying complaint asserted there were construction defects that Cypress and Vineland were responsible for when they owned and managed the project. Count VI alleged that Cypress and Vineland negligently supplied information which the Association relied on for the purchase of the condominiums. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

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Tokyo Building Flaws May Open Pandora's Box for Asahi Kasei

October 28, 2015 — Kathleen Chu, Joji Mochida & Katsuyo Kuwako – Bloomberg
Japanese real estate investment trusts are joining apartment owners and regulators in pushing Asahi Kasei Corp. for answers on an apartment building sagging sideways on the outskirts of Tokyo, as concerns are mounting that it may not be an isolated case. REITs including Advance Residence Investment, Nippon Accommodation Fund Inc., Daiwa House Residential Investment Corp. and Japan Rental Housing Investment Inc. have all asked Asahi Kasei for details on what other buildings might be flawed, according to the trusts. Asahi Kasei disclosed on Thursday the names of prefectures where the company has undertaken work in the past 10 years on more than 3,000 buildings, after the land ministry requested the data. The sites include 342 schools, 257 medical and health-care facilities, 696 housing complexes and 217 office buildings, the firm said. Asahi Kasei, the subcontractor of the project, said a unit didn’t properly install foundation piles at an apartment building in Yokohama, and the division falsified data on the work. The scandal has sent Asahi Kasei’s shares down more than 21 percent since Oct. 13, when news of the flawed building first emerged. Shares of Sumitomo Mitsui Construction Co., the contractor, plunged 25 percent and those of Mitsui Fudosan Co., which sold units at the Yokohama project in 2006, have tumbled 5 percent since then. All three companies said that the impact of the incident on their earnings is not yet clear. Reprinted courtesy of Bloomberg reporters Kathleen Chu, Joji Mochida and Katsuyo Kuwako Read the court decision
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Colorado Springs may be Next Colorado City to Add Construction Defects Ordinance

October 28, 2015 — Beverley BevenFlorez-CDJ STAFF
The Gazette reported that Colorado Springs city councilwoman Jill Gaebler stated that “she would bring a proposal to the council next month that would address the construction defects issue.” Gaebler told The Gazette: “We have gone back and forth with how best to address this issue. It is a statewide concern, so how do we bring forward something that is meaningful to our community without stepping on the toes of our legislators?” The state of Colorado has tried and failed to pass construction defects legislation three years in a row, according to The Gazette. If Colorado Springs adopts an ordinance, it will become the ninth city to pass construction defects laws. Read the court decision
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When is Construction Put to Its “Intended Use”?

October 10, 2013 — Brady Iandiorio — Higgins, Hopkins, McLain & Roswell, LLC.
Defining words and phrases in the law can be a tricky proposition. In everyday life one would presume to know what the phrase “intended use” would mean, but when it comes to litigation, oftentimes the definitions become much more nuanced. On March 12, 2013, in the Bituminous Cas. Corp. v. Hartford Cas. Ins. Co. v. Canal Ins. Co., WL 950800 (D. Colo. 2013) case, Senior District Court Judge Wiley Y. Daniel denied Third-Party Defendant Canal Insurance Company’s (“Canal”) motion to dismiss Third-Party Plaintiff Hartford Casualty Insurance Company’s (“Hartford”) third-party complaint. The case arose out of a liability insurance coverage dispute related to an underlying construction defect lawsuit. In the construction defect suit, a plaintiff homeowner’s association brought a suit against a developer and a general contractor (“GC”) among others. While the underlying action was settled, a dispute remained between Bituminous Casualty Corporation, which insured the GC, and Hartford, which insured the developer. Hartford asserted third-party claims against Canal seeking a declaration of Canal’s obligations and contribution in the event Hartford owed any defense or indemnity obligations to the GC. Hartford’s claims are based on the premise that Canal owed a duty to defend and/or indemnify the GC in the underlying action. Read the court decision
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Reprinted courtesy of Brady Iandiorio
Brady Iandiorio can be contacted at Iandiorio@hhmrlaw.com

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