Seattle Washington Building Expert Directory

Construction Termination Part 2: How to Handle Construction Administration When the Contractor Is Getting Fired

August 01, 2023 — Melissa Dewey Brumback - Construction Law in North Carolina
If you’ve been working as a design professional for any length of time, you know that you must be a chameleon on the construction project. You need to “step into the skin” of both the Owner and the Contractor to determine who is at fault, and who should pay. You are usually the Initial Decision Maker (IDM), and so you have a duty under the AIA documents to act fairly and impartially in making those decisions. See AIA B101§3.6.2.4. Even if you are not under an AIA contract, you still have that duty if you are the IDM or handling construction administration for the project. More often than not, however, it will be the owner asking you to support its termination of the contractor “for cause.” Should you do so? Read the court decision
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Reprinted courtesy of Melissa Dewey Brumback, Ragsdale Liggett
Ms. Brumback may be contacted at mbrumback@rl-law.com

Hurry Up and Wait! Cal/OSHA Hits Pause on Emergency Temporary Standards for COVID-19 Prevention

June 14, 2021 — Michael Studenka & Jasmine Shams - Newmeyer Dillion
Employers scrambling to prepare for the June 15th Reopening announced by Governor Newsom have spent the last week pouring over the revised Emergency Temporary Standards for COVID-19 Prevention (“Revised ETS”) approved by the Cal/OSHA Standards Board on June 3, 2021. After last night’s meeting of the Standards Board, however, it’s time to hit pause. Last night, the Cal OSHA Standards Board held a specialty meeting to reconsider its Revised ETS in light of the latest guidance on face coverings issued by the California Department of Public Health (“CDPH”) on June 7, 2021. Following a presentation by the CDPH and extensive public comment, the Cal OSHA Standards Board voted unanimously to withdraw the Revised ETS and to take up the issue again at its next scheduled meeting on June 17, 2021. The net result in the interim is that California employers who intend to reopen on June 15 must initially comply with all of the requirements of the Cal/OSHA Standards Board Emergency Temporary Standards for COVID-19 Prevention as originally issued on November 20, 2020, including but not limited to, its social distancing, physical partitioning and mask wearing requirements. Reprinted courtesy of Michael J. Studenka, Newmeyer Dillion and Jasmine Shams, Newmeyer Dillion Mr. Studenka may be contacted at michael.studenka@ndlf.com Ms. Shams may be contacted at jasmine.shams@ndlf.com Read the court decision
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Chicago Debt Document Says $8.5B O'Hare Revamp May Be Delayed

October 26, 2020 — Jeff Yoders - Engineering News-Record
The $8.5-billion revamp of O'Hare International Airport may have to be delayed because of COVID-19 related economic impacts, according to documents included in paperwork to refinance existing airport debt. The city forcefully disagreed with that summation, however, and says the project will move forward and is not endangered. Reprinted courtesy of Jeff Yoders, Engineering News-Record Mr. Yoders may be contacted at yodersj@enr.com Read the full story... Read the court decision
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Florida Passes Tort Reform Bill

April 10, 2023 — William Doerler - The Subrogation Strategist
On Friday, March 24, 2023, Florida’s governor, Ron DeSantis, signed into law a tort reform bill, HB 837. The bill impacts, among other things, bad faith actions and attorney’s fee awards. Of particular importance to subrogation professionals are provisions impacting comparative fault, the statute of limitations and premises liability with respect to the criminal acts of third persons. With respect to the statute of limitations, the bill amended Fla. Stat. § 95.11(3) and (4), to reduce the statute of limitations for negligence actions from four (4) years to two (2) years. As for comparative fault, Fla. Stat. § 768.81 was amended to move Florida from a pure comparative fault jurisdiction for negligence actions to a modified comparative fault jurisdiction. Pursuant to § 768.81(6), as revised, in a negligence action subject to that section, “any party found to be greater than 50 percent at fault for his or her own harm may not recover any damages.” Section 768.81(6), however, does not apply to actions for damages for personal injury or wrongful death arising out of medical negligence. Read the court decision
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Reprinted courtesy of William Doerler, White and Williams LLP
Mr. Doerler may be contacted at doerlerw@whiteandwilliams.com

Disruption: When Did It Start and Where Will It End?

June 25, 2019 — Brian Gallagher - Construction Executive
If change is the only constant—as was famously observed by a Greek philosopher circa 500 B.C.—then why single out some changes as “disruption”? Disruption is about more than just technology; it’s about more, even, than the rapid rollout and development of technology in the past couple of decades. The word disruption refers to processes or products that are fundamentally different from what is currently in use and that render unforeseen, large-scale changes. Early discussions of disruption (the term was coined by Harvard Business School professor Clayton M. Christensen in a 1995 Harvard Business Review article) compared incremental change in existing systems, which are usually supported by established corporations, to innovations that start out as something completely fresh, limited in their appeal and flawed in initial iterations. The construction industry was—and still is—late to adopt most technologies and late in experiencing overall disruption. It also lags behind other industries when it comes to efficiency and productivity. McKinsey reported that construction is one of the “least digitized industries in the world,” despite employing approximately 7% of the world’s working-age population and representing one of the world economy’s largest sectors. Disruption is likely to be fast approaching now, even for the construction industry. But its delay may confer the benefit of allowing construction companies to learn from other industries’ mistakes. Reprinted courtesy of Brian Gallagher, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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No Coverage For Construction Defect Under Illinois Law

January 28, 2015 — Tred R. Eyerly – Insurance Law Hawaii
The court followed precedent in Illinois and upheld the insurer's denial of coverage for construction defects that did not damage other property. Design Concrete Founds., Inc. v. Erie Ins. Prop. & Cas. Co., 2014 Ill. App. Unpub. LEXIS 2684 (Ill Ct. App. Nov. 26, 2014). In 2005, the homeowners contracted with the general contractor to build a home. The general contractor hired Design to do the foundation work. Design performed its work in August 2005. After the work was completed, cracks formed in the foundation, allowing water to enter the basement and an inward shifting of the foundation. The homeowners sued the general contractor and Design. The complaint alleged that Design failed to build the foundation in a workmanlike manner, resulting in the development of cracks in the foundation. 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

Motion to Dismiss Insureds' Counterclaim on the Basis of Prior Knowledge Denied

September 04, 2018 — Tred R. Eyerly - Insurance Law Hawaii
The insurer unsuccessfully moved to dismiss portions of the insureds' counterclaim based upon prior knowledge. Hudson Spec. Ins. Co. v. Talex Enter., 2018 U.S. Dist. LEXIS 105598 (S. D. Miss. June 25, 2018). The insureds' building collapsed in McComb, Mississippi. Pubic utilities were damaged and traffic disrupted. The City sued the insured, alleging that the building collapsed because there was too much water gathered on its roof. The City further alleged that the insureds knew too much water was on the roof because they had been told by someone hired to clean the drain that it was clogged and by a contractor that the roof was so damaged that it could not safely be repaired. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Brazil Builder Bondholders Burned by Bribery Allegations

October 22, 2014 — Paula Sambo and Sabrina Valle – Bloomberg
Brazil’s biggest construction companies are leaving bondholders with losses in the wake of allegations they bribed Petroleo Brasileiro SA to win contracts. Queiroz Galvao SA’s $700 million of notes due 2019 have dropped 2.5 percent since Oct. 9, when the Department of Justice made available video in which former Petrobras head of refining Paulo Roberto Costa alleged that builders formed a cartel to overcharge for projects and divert money to politicians. OAS SA’s $875 million of 2019 notes have slumped 1.9 percent in that span, versus a 0.1 percent loss for emerging markets. Ms. Sambo may be contacted at psambo@bloomberg.net; Ms. Valle may be contacted at svalle@bloomberg.net Read the court decision
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Reprinted courtesy of Paula Sambo and Sabrina Valle, Bloomberg

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