Trade Contract Revisions to Address COVID-19
August 23, 2021 —
David R. Cook Jr. - Autry, Hall & Cook, LLPMany trade contracts contain a clause that may protect trade contractors from catastrophic events like pandemics. These clauses are known as force-majeure clauses (covering acts of God). They basically say if these unavoidable events happen, the contractor is relieved of its obligations to the extent of the impact.
However, many common industry forms have not been updated to specifically address COVID-19. (They may be waiting to see how the courts treat their existing language first.) So to ensure impacts from COVID-19 are covered, a trade contractor should consider expressly adding it to the force-majeure clause. See the example below.
Notably, typical force-majeure clauses do not say the trade contractor gets more money. So an escalation clause could be added to the force-majeure clause.
Read the court decisionRead the full story...Reprinted courtesy of
David R. Cook, Autry, Hall & Cook, LLPMr. Cook may be contacted at
cook@ahclaw.com
Roni Most, Esq., Reappointed as a City of Houston Associate Judge
November 06, 2023 —
Linda Carter - Kahana FeldYesterday, Roni M. Most, Esq., was reappointed as an Associate Judge for the City of Houston. Mr. Most is the Managing Partner of Kahana Feld’s Houston office, chairs the firm’s Corporate Compliance & Transaction group, and heads the Texas division of Kahana Feld’s National Appellate Strategy & Advocacy group. Mr. Most was first appointed as an Associate Municipal Court Judge of the City of Houston in 2012 and he continues to serve in this position. The Most name has been a fixture in Harris County courts, with Judge Most being a third-generation attorney, his family has advocated for their client’s causes for over five decades.
Mr. Most received his Bachelor of Liberal Arts degree from the University of Texas at Austin and went on to graduate with his J.D. from the South Texas College of Law in 2000. Upon graduating, Mr. Most started The Most Law firm, and then went on to become one of the founding partners of Gerber & Most, PLLC. Mr. Most joined Kahana Feld as a Partner in January 2021. He brings over 20 years of experience in general civil litigation (property & casualty) and appeals, state and federal corporate litigation, collections, construction law, and real estate, as well as providing general business counsel.
Read the court decisionRead the full story...Reprinted courtesy of
Linda Carter, Kahana FeldMs. Carter may be contacted at
lcarter@kahanafeld.com
An Occurrence Under Builder’s Risk Insurance Policy Is Based on the Language in the Policy
April 03, 2023 —
David Adelstein - Florida Construction Legal UpdatesBuilder’s risk insurance coverage is a vital property insurance coverage during the course of construction. Builder’s risk insurance is not a one-size-fits-all product so please make sure you are working with your insurance broker to procure this product that factors in and covers risk associated with the project.
Builder’s risk insurance is typically an occurrence-based policy. No different than other occurrence-based policies (such as commercial general liability), a dispute may arise as to the occurrence. This could be due to the triggering of the actual policy during the coverage period or it could be due deductible obligations, as in the case discussed below. When dealing with a builder’s risk insurance policy–again, no different than any policy–the language in the policy matters. Definitions used in the policy to define specific terms matter and, in numerous cases, the ordinary dictionary meanings of terms matter. But it all starts with the policy language.
In KT State & Lemon, LLP v. Westchester Fire Insurance Co., 2023 WL 2456499 (M.D.Fla. 2023), a builder’s risk policy provided coverage from April 2018 through the end of November 2019. There was a $50,000 per occurrence deductible for loss caused by or from water damage. An extension to the builder’s risk policy was negotiated through the end of January 2020 that increased this water damage deductible to $250,000 per occurrence. During construction and the testing of the fire suppression (sprinkler) system, leaks started to occur resulting in water damage. Two leaks occurred in September 2019, one leak in October 2019, one leak in November 2019, and two leaks in December 2019 (during the extension and higher water damage deductible period).
Read the court decisionRead the full story...Reprinted courtesy of
David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
How Contractors Can Prevent Fraud in Their Workforce
August 13, 2019 —
Sarah Hofmann - Construction ExecutiveThe word fraud might conjure up images of Wall Street executives led out to police cars in cuffs, or sleazy conmen with slicked-back hair. While these ideas might be popular in movies and TV, and often in the news, many small and large businesses fall victim to fraud. Whether it’s a trusted site manager who needed a little extra cash to cover an unexpected bill or the accountant who’s been on board for years and has been slowly siphoning an extra paycheck through a ghost employee each month, fraud might be hitting businesses without them even knowing it.
The construction industry is hardly immune to such schemes. According to the ACFE’s 2018 Report to the Nations on Occupational Fraud and Abuse, organizations lose an estimated 5% of their revenue each year to fraud. The median amount lost per instance of fraud was $130,000 across all industries, but fraud cases in the construction industry cost almost twice that much at $227,000 per fraud. They also last longer on average: fraud schemes in the construction industry continue for 24 months before being detected versus the overall median average of 16 months. The more time a scheme continues, the more money is lost for organizations.
What types of fraud schemes are most common in the construction industry?
The construction industry is more susceptible to certain types of fraud than other industries due to the nature of the work. The companies may be smaller in size leading to fewer resources to combat fraud and more trust among employees. Also, construction companies inherently deal with many vendors, subcontractors, bidding organizations and other various third parties, which can all pose fraud risks.
Reprinted courtesy of
Sarah Hofmann, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Read the court decisionRead the full story...Reprinted courtesy of
Legal Disputes Soar as Poor Information Management Impacts the AEC Industry
July 03, 2022 —
Ideagen PlcManagers in Architecture, Engineering and Construction (AEC) are facing more disruptive disputes in 2022 compared to last year according to the latest independent research from regulatory compliance company Ideagen.
The survey of business leaders from AEC firms in the US and UK revealed that 78% of respondents experienced some kind of dispute in the business, compared to 63% in 2021, with information accessibility and visibility, caused largely by high staff turnover, the main root causes. With the challenges that the industry continues to face following COVID and increasing costs of materials, this is an added but unnecessary challenge facing the industry.
Stuart Rowe, Vice President of Collaboration Strategy at Ideagen, whose customers include the US Navy, Gensler, Arup and Ramboll, said: "The working world has continued to change in the last 12 months, which is reflected in the AEC industry's evolving priorities. The COVID-19 pandemic led to a huge shift to remote working which saw an increased need for effective collaboration tools, however, this year is appears that hybrid working is the new normal in the industry.
"Four-fifths of the people we spoke to said email is still king for project correspondence. This is a huge concern as most project scope changes reside in email inboxes. Failing to properly manage all information and records also prevents a Golden Thread, or a Single Source of Truth, across projects and businesses."
Ideagen undertook the independent survey to support developments to their Mail Manager software, used by 2,500 architecture, engineering and construction firms in 16 countries worldwide. It revealed a number of insights into how the industry is managing changing work patterns. Download the full research
here.
Read the court decisionRead the full story...Reprinted courtesy of
Concrete Worker Wins Lawsuit and Settles with Other Defendant
December 04, 2013 —
CDJ STAFFHildo De Franca was injured in 2010 while pouring concrete for a residence in Perkasie, Pennsylvania. According to the lawsuit, when a concrete line plugged, the truck operator increased pump pressure, despite this not being the appropriate procedure. Mr. De Franca was injured when the hose snapped back after the clog burst free. Mr. De Franca sued both the Trans-Fleet Concrete Inc. and Albino Concrete Construction. Mr. De Franca was employed by a third party, Girafa Construction Inc., which had been hired by Albino.
Albino Construction settled with Mr. De Franca for $500,000. Trans-Fleet did not settle. The judgment against them was for $2.25 million, of which $2 million was for pain and suffering. As a result of the accident, Mr. De Franca suffered a mild brain injury and a compression fracture in his spine.
Read the court decisionRead the full story...Reprinted courtesy of
Hawaii Appellate Court Finds Appraisers Limited to Determining Amount of Loss
April 25, 2023 —
Tred R. Eyerly - Insurance Law HawaiiThe Hawaii Intermediate Court of Appeals determined that appraisers cannot decide what amount is owed by the insurer after loss, but are limited to finding the amount of the loss. Krafchon v. Dongbu Ins. Co., Ltd., 2023 Haw. App. LEXIS 43 (Haw. Ct. App. Feb. 17, 2023).
The insureds owned three structures on the property on Maui: the Villa; the Cottage; and the Garage. The three structures were insured under homeowners and dwelling fire policies issued by Dongbu. When the structures were damaged by wildfire, Dongbu tendered over $300,000 under a reservation of rights, pending preparation of a final settlement. There was disagreement over the total amount of the loss.
The insureds invoked the appraisal provision of the policies. When Dongbu failed to appoint an appraiser, the insureds sued. The trial court granted the insureds' motion to compel appraisal.
Read the court decisionRead the full story...Reprinted courtesy of
Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Colorado Senate Revives Construction Defects Reform Bill
March 01, 2017 —
Beverley BevenFlorez-CDJ STAFFA re-booted construction defects reform bill recently passed its first Senate committee, according to the Denver Business Journal. Next, Senate Bill 156, sponsored by Sen. Owen Hill, R-Colorado Springs, heads to the Senate floor for debate.
SB 156 “would require that condominium owners alleging construction defects take their disputes to arbitration or mediation if requested by builders,” the Denver Business Journal reported. “It also would require that homeowners be informed of the consequences of filing legal actions over purported disputes and that a majority of all owners in a condominium complex vote to proceed with legal action, rather than just a majority of homeowners association board members.”
However, it is almost identical to the failed measures that were introduced in 2014 and 2015.
Homeowners association group members and owners of defective condominiums argued against the measure, stating “that the effort would not improve the quality of building in the state, but simply would block aggrieved Coloradans from taking their complaints before a jury of their peers.”
Proponent of the bill, Tom Clark, CEO of Metro Denver Economic Development Corp., said “that Denver’s housing costs have risen since the first bill was introduced in 2013 to the sixth-most-expensive in the country – and are tops for any metro area not on a coast.”
Read the court decisionRead the full story...Reprinted courtesy of