Fairfield Connecticut Building Expert Directory

More on Fraud, Opinions and Contracts

February 06, 2019 — Christopher G. Hill - Construction Law Musings
Here at Construction Law Musings, I have discussed the interaction between fraud and contracts on many occasions. Recently, I got to put my advice into action. I am counsel for the plaintiff in the matter of Environmental Staffing Acquisition Corp. v. Beamon, et. al. in the Portsmouth, VA Circuit Court and recently got a great opinion (.pdf) right on point that was recently featured in Virginia Lawyers Weekly. The basic facts are these. My client, Environmental Staffing (En-Staff) filed a Little Miller Act claim and a claim for breach of contract for Beamon’s failure to pay for temporary staffing that En-Staff provided it at the Jeffry Wilson housing project demolition in Portsmouth, VA. Beamon then counterclaimed for fraud and breach of contract claiming that some statements to the effect that a particular supervisor was qualified along with presentation of the individual’s resume constituted fraud. My client demurred to the two fraud counts (actual and constructive). Read the court decision
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Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

Labor Shortages In Construction

December 04, 2023 — Jason Feld & Chris Bates - Kahana Feld
Similar to other industries, the ongoing labor shortage crisis in the United States is detrimentally impacting construction activities in both the residential and commercial sector. According to the Bureau of Labor Statistics, the turnover rate for the construction industry since 2021 has risen to 56%. And while the national unemployment rate ranges between 0.4% to 7.5%, the unemployment rate for construction is roughly four times the national average (See, Associated Builders and Contractors, Markenstein Advisors Report dated July 28, 2023). 73% of workers preferred to stay in a remote work environment, and another 40% of the global workforce has elected to voluntarily remove themselves from the workplace. (See, 2021 Microsoft Work Index). In particular with the construction industry, employment rates have returned to pre-pandemic levels hovering around 12% unemployment in 2020 to 6% in 2022. (See, Joint Center for Housing Studies at Harvard University, Carlos Martin). So where did all the workers go? During the height of the 2020 Covid-19 Pandemic and for the next few years, the county experienced what most people are calling “The Great Resignation”. May people took jobs with better pay and better alignment with their values. Approximately 40% stated a new business. Many elected to become stay-at-home parents forgoing a paycheck to raise their families while the other spouse works, especially due to the rising costs of childcare. About 1 in every 4 baby-boomers retired. Others took part-time employment, entered military service or left the workforce due to disability or injury. (See, Bloomberg Businessweek). Reprinted courtesy of Jason Feld, Kahana Feld and Chris Bates, Kahana Feld Mr. Feld may be contacted at jfeld@kahanafeld.com Mr. Bates may be contacted at cbates@kahanafeld.com Read the court decision
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Commercial Development Nearly Quadruples in Jacksonville Area

December 04, 2013 — CDJ STAFF
Construction is up in the Jacksonville area, and no sector is doing better than commercial construction. During the first ten months of 2012, there was $21.2 million of commercial construction, but during the first ten months of 2013, there was been $73.2 million of commercial construction, helped along by a $13.7 million medical complex. In addition to the massive growth in commercial construction, residential construction is up, but by a comparatively modest 52%. Read the court decision
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Can a Non-Union Company Be Compelled to Arbitrate?

August 02, 2017 — Wally Zimolong - Supplemental Conditions
Some of the most viewed topics on this blog are those concerning double breasted company. That is a two separate firms, commonly owned, one that is a signatory to a union and the other that is merit shop. An issue frequently encountered with double breasted construction companies is an union arbitrator’s jurisdiction over the non-signatory firm. The issue usually goes something like this. A signatory employer’s collective bargaining agreement contains language prohibiting double breasting (which could be invalid). The collective bargaining agreement also contains an arbitration provision requiring all disputes concerning a breach of the agreement (a grievance) be decided by an arbitrator in private arbitration. The union files a demand for arbitration claiming that the union signatory has breached the collective bargaining agreement’s anti-dual shop provision. The union names the non-union firm as a party to the arbitration based on its status as an alleged “single employer.” Read the court decision
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Reprinted courtesy of Wally Zimolong, Zimolong LLC
Mr. Zimolong may be contacted at wally@zimolonglaw.com

When is Construction Put to Its “Intended Use”?

July 31, 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

Maria Latest Threat to Puerto Rico After $1 Billion Irma Hit

September 20, 2017 — Brian K. Sullivan & Ezra Fieser - Bloomberg
Hurricane Maria was on course to hit Puerto Rico just two weeks after Irma caused as much as $1 billion in damages on the bankrupt island. Maria’s top winds were at 155 miles (250 kilometers) an hour, the National Hurricane Center said in a notice around 6 a.m. New York time. At Category 5, the strongest classification on the five-step Saffir-Simpson scale, Maria was about 35 miles southeast of San Juan in Puerto Rico. Reprinted courtesy of Brian K. Sullivan, Bloomberg and Ezra Fieser, Bloomberg Read the court decision
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Why Do Construction Companies Fail?

February 14, 2023 — The Hartford Staff - The Hartford Insights
If a construction company takes on a lot of work, it’s a good thing, right? Not exactly. In fact, overextension is one of the primary reasons why contractors fail. And it’s something that contractors should consider as a priority for their risk management plan. Of the 43,277 construction businesses that started in March 2011, only 37.6% of companies survived 10 years later.1 “The construction industry has a high rate of failure,” explains Tim Holicky, senior executive underwriter in The Hartford’s construction central bond team. “And more often than not, it’s because of too much work, rather than too little of it. The key to a contractor’s long-term survival is knowing when to say no.” Read the court decision
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Reprinted courtesy of The Hartford Staff, The Hartford Insights

Get Creative to Solve Your Construction Company's Staffing Challenges

February 25, 2024 — Kit Dickinson - Construction Executive
Construction projects are on the rise due to a generational investment in infrastructure spending. The Infrastructure Investment and Jobs Act passed by Congress in August 2021 includes around $550 billion in new federal investment in America’s roads and bridges, water infrastructure and more to be allocated over the next five years. Because of the influx of federal funds for infrastructure, construction firms that previously focused on local, private sector clients are incentivized to pursue public projects in other states and regions. There are a couple of bumps in the road, however. Payroll becomes more complex when you’re paying across multiple jurisdictions and at different pay rates, and reporting requirements for government work make managing projects and controlling costs trickier. Add to this the changes in the Davis-Bacon Act prevailing wage rules which went into effect on October 23, 2023. To capture this business and make it worthwhile, construction professionals need technology built specifically for the industry. Reprinted courtesy of Kit Dickinson, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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