Reminder About the Upcoming Mechanic’s Lien Form Change
August 26, 2019 —
Christopher G. Hill - Construction Law MusingsAs July 1, 2019 approaches with its inevitable changes to the Virginia Code, I wanted to remind you once again that the statutory form for a Virginia mechanic’s lien will change as of that date.
HB2409 passed both houses of the General Assembly and has been signed by the Governor. This bill reconciled the language found in Virginia Code Sec. 43-4 with the various forms for general contractor, subcontractor and sub-subcontractor/supplier forms found in later sections of the code. As you will see if you download the .pdf of the bill as signed, this involved some tweaks to 43-4 and some updates to the mechanic’s lien forms that are in the code. The recent Desai case from the Virginia Supreme Court made it clear that such action was necessary.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Safety Versus a False Sense of Security: Challenges to the Use of Construction Cranes
March 18, 2019 —
Christopher Machut - Construction ExecutiveThe history of safety is, in part, the history of resistance to safety. From transportation and travel to sports and entertainment, the safeguards taken for granted were once too allegedly controversial or costly for companies to grant to consumers. Imagine driving a car without a seatbelt or being a passenger in a minivan without side-impact airbags or anti-lock brakes, or playing football without a helmet or riding a roller coaster without a shoulder harness. Imagine, too, pulling out of parking space without a rear-view camera, unable to see passing cars or pedestrians.
Cameras are now as common among compact cars as on the most uncommonly expensive sports cars and sedans.
And yet, the technology that earns drivers a discount on car insurance is the same or mostly similar technology that insurers refuse to cover elsewhere. The technologies that makes parallel parking easier or easing a car into traffic a cinch is considered an extravagance on construction equipment, despite the dangers crane operators face but cannot see, despite what workers on the ground can see but not forecast, despite what cameras can record and capture.
Reprinted courtesy of
Christopher Machut, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Bill would expand multi-year construction and procurement authority in Georgia
March 06, 2023 —
David R. Cook Jr. - Autry, Hall & Cook, LLPA bill introduced in the General Assembly would modify the authority of state and local governments, as well as school systems, to enter multi-year contracts for construction and procurement. In many prior posts, we have addressed state and local governments’ authority to enter guaranteed energy savings performance contracts and multi-year contracts.
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David R. Cook Jr., Autry, Hall & Cook, LLPMr. Cook may be contacted at
cook@ahclaw.com
Illinois Court Determines Duty to Defend Construction Defect Claims
March 22, 2021 —
Tred R. Eyerly - Insurance Law HawaiiGiven the underlying allegations of damage to personal property, the court determined the insurer had a duty to defend. Certain Underwriters at Lloyd's London v. Metropolitan Builders, Inc., 2019 Ill. App. LEXIS 979 (Ill. Ct. App. Dec. 18, 2019).
Metropolitan was hired as the general contractor for construction, renovation and demolition at contiguous properties - the 1907 Property, 1909 Property, and 1911 Property. During construction activities, the structures on the 1907 Property and 1909 Property collapsed. The existing structures on the properties were later deemed unsafe and were demolished by the city of Chicago.
AIG insured the owner of the buildings and paid over $1.8 million for repairs and associated expenses arising from the collapse. AIG then invoked its rights of subrogation against Metropolitan by filing suit. Metropolitan tendered the suit to its insurer, Lloyd's, who denied coverage and filed for a declaratory judgment. The trial court found the underlying complaint alleged property damage, but not an occurrence. Summary judgment was awarded to Lloyd's.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. 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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Cultivating a Company Culture Committed to Safety, Mentorship and Education
March 19, 2024 —
David Frazier - Construction ExecutiveThe construction industry is aging. Valuing the significance of promoting a culture that enhances safety, mentorship and educational opportunities is essential to recruiting and retaining top talent to keep the industry thriving.
According to the U.S. Department of Labor, one in five worker deaths in the U.S. occurs in the construction industry. Additionally, construction workers are statistically at a higher risk for mental-health issues than virtually every other profession. According to a study conducted by CIRP, 83% of construction workers have struggled with mental-health disorders.
Today’s leaders must be dedicated to listening to employees' voices to shape the construction industry, as future leaders will be formed by a culture committed to employees' mental and physical health, safety, professional growth and overall workplace culture.
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David Frazier, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Think Twice About Depreciating Repair Costs in Our State, says the Tennessee Supreme Court
July 09, 2019 —
Andres Avila - Saxe Doernberger & Vita, P.C.Tennessee’s Supreme Court recently held that an insurer may not withhold repair labor costs as depreciation when the policy definition of actual cash value is found to be ambiguous. Tennessee joins other states like California and Vermont that prohibit the depreciation of repair labor costs in property policies.
In Lammert v. Auto-Owners (Mut.) Ins. Co., No. M201702546SCR23CV, 2019 WL 1592687, the Lammerts and other insureds sought property damage coverage from Auto Owners Insurance for hail damage to a home and other structures they owned in Tennessee.
Auto-Owners Insurance agreed to settle the claims on an actual cash value basis (ACV), which is a method of establishing the value of insured property that must be replaced to determine the indemnity by the insurer. There are multiple methods to calculate ACV. Auto-Owners decided to use the ACV calculation method of deducting depreciation from the cost to repair or replace the damaged property. Depreciation is the decline in value of a property since it was new because of use, age or wear. The rationale behind this method is that an insured should not make a profit by recovering the cost of, for example, a new roof for a damaged roof that was ten years old, and thus depreciation is deducted from the indemnity.
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Andres Avila, Saxe Doernberger & Vita, P.C.Mr. Avila may be contacted at
ara@sdvlaw.com
California Enacts New Claims Resolution Process for Public Works Projects
January 19, 2017 —
Garret Murai – California Construction Law BlogIf you’re a public entity or contractor involved in public works construction you should be aware of a new law,
AB 626, which took effect on the first of this year and establishes a new mandatory claims resolution process for disputes on public works projects. Here’s what you need to know:
What is the new law and where is it codified at?
AB 626 added new Public Contract Code Section 9204 that according to the bill’s author, Assemblymember David Chiu of San Francisco, establishes “a claim resolution process applicable to any claim by a contractor in connection with a public works project.”
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Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com