COVID-19 and Mutual Responsibility Clauses
June 01, 2020 —
Joseph M. Leone - ConsensusDocsAs everyone knows, there is a tremendous amount of uncertainty in the construction industry due to the COVID-19 pandemic. Schedules, productivity, safety processes, and seemingly everything else are being affected. In these difficult times, most contractors are making every effort to work together to solve the problems caused by COVID-19. But what happens when differences arise between project owners, contractors, and subcontractors as to the effect of COVID-19 on a project? One party may want to continue pushing the schedule, others may want to slow down, or, more likely, not be able to keep up with the original schedule because of some reason related to COVID-19. As between a prime contractor and a subcontractor, a mutual responsibility clause can provide some clarity or, unfortunately, depending on how the subcontract is written, confusion.
Almost all subcontracts have a clause which flows down the prime contractor’s obligations on a project to the subcontractor as applicable to the subcontractor’s work. Known as “flow-down” clauses, this clause works in one direction; obligations of the prime contractor “flow-down” to the Subcontractor. A mutual responsibility clause, in essence, works in both directions. The subcontractor is required to perform its obligations consistent with the prime contractor’s obligations to the owner and the subcontractor is granted the same rights against the prime contractor which the prime contractor has against the owner. Obligations flow down and rights flow up. The rights and obligations flowing through the prime contractor include, the obligation to perform the work in accordance with the plans and specifications, the obligation to meet the schedule constraints in the prime agreement, and the right to extensions of time and change orders to the extent the prime contractor obtains the same.
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Joseph M. Leone, Drewry Simmons Vornehm, LLP Mr. Leone may be contacted at
jleone@dsvlaw.com
Avoid Delay or Get Ready to Pay: The Risks of “Time-Is-of-The-Essence” Clauses
August 29, 2018 —
Stephen Orlando - Gordon & Rees Construction Law BlogLike death and taxes, construction delays are inevitable. Even the most cautious, diligent contractor may face subcontractor disputes, supply shortages, or inclement weather which slows down a project. Even if the contractor avoids unexpected problems, the sheer complexity of a job may cause a contractor to exceed the deadlines proposed in a contract.
Fortunately, courts recognize the practical reality of construction projects and the unavoidable delays which may arise. Therefore, as a general rule, a contractor is only liable for delayed completion of a project if the delay resulted from the contractor’s unreasonable performance of his or her work. Reasonable performance will typically serve as a defense to a claim of delayed completion. This defense is a vital asset when a contractor surpasses the project’s expected timeframe.
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Stephen Orlando, Gordon & Rees Scully Mansukhani
New Jersey Appeals Court Ruled Suits Stand Despite HOA Bypassing Bylaw
January 22, 2014 —
Beverley BevenFlorez-CDJ STAFFIn the case Port Liberte II Condominium Association v. New Liberty Residential Urban Renewal Company, a New Jersey appeals court ruled that a homeowners association (HOA) could bypass a bylaw that requires unit owners to approve litigation before it is filed, the New Jersey Law Journal reported. Two construction-defect suits were reinstated by the appeals court, and both had been “dismissed based on alleged violation of the bylaws.” The first suit “claimed the defendants' negligence contributed to major construction defects at the 225-unit condominium development, which was completed in 2004” while “the second suit claimed that one section of the development is sinking into the ground because of a failure to properly investigate soil conditions at the former industrial site where the buildings sit.”
According to the New Jersey Law Journal, the HOA did not obtain approval from the unit owners prior to commencing litigation because “the statute of limitations was about to expire.” However, the HOA met with the residents in October of 2009 and a vote was cast “72 to 3 to pursue litigation.” In May of 2011 the second suit was dismissed because defendants stated “approval of residents was not obtained.” Another meeting of residents occurred, and another vote cast ratified “both suits by a vote of 65 to 1.” However, Judge Baber, who had previously dismissed both suits, refused to reinstate them.
“The Appellate Division said in its ruling that the Condominium Act, N.J.S.A. 46:8B-1, gives the association the exclusive authority to file suit against builders and other third parties for damage to common areas in the community,” the New Jersey Law Journal reported. “Given its legal responsibility for upkeep of common areas, and its statutory authorization to sue for damages to such areas, the association had standing to file suit, the appeals court said.”
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A New Digital Twin for an Existing Bridge
May 01, 2023 —
Aarni Heiskanen - AEC BusinessThe smartBRIDGE Hamburg project devised a digital twin of a 1970s bridge using open BIM technologies. Allplan and Solibri were instrumental in developing the twin that enables the Hamburg Port Authority, HPA, to maintain the critical infrastructure asset predictively.
Built in 1974, the Köhlbrand Bridge is Germany’s second-longest road bridge and one of its busiest. The cable-stayed bridge serves around 36,000 vehicles daily, thus being crucial to the local economy.
The age of the bridge and the amount of daily traffic it supported meant that continuous real-time monitoring was the best way to identify repairs and minimize disruption to traffic.
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi
As Climate Changes, 'Underwater Mortgage' May Take on New Meaning
August 20, 2014 —
James Tarmy – BloombergLooking to buy a house? That’s great, unless you’re in your 20s and 30s and regularly read climate reports. They tend to project dramatic changes to the climate over the next 50 years, and given that current life expectancy is hovering around 80, we’ll likely be around to see it.
So. If you’re looking to settle down for the long haul, where’s the best place to do it?
Great Plains? You're looking at higher temperatures and more demand for water and energy.
The Southeast, perhaps? The region may suffer from (at least) 60 days with 95-plus degree weather by 2070, according to the 2014 National Climate Assessment.
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James Tarmy, Bloomberg
Renovate or Demolish Milwaukee’s Historic City Hall?
July 02, 2014 —
Beverley BevenFlorez-CDJ STAFFMilwaukee, Wisconsin’s City Hall, which according to the New York Times is “one the largest of its kind in the country,” is “slowly sinking.” However, residents are debating whether it is worth the millions to renovate—especially considering that despite $76 million spent in 2006 to restore the building’s exterior, a terra cotta urn fell into the street in 2011 resulting in a lawsuit against the contractor.
The main problem with the building is that “old wooden pilings that support the base of City Hall, timbers anchored deep into the marshy soil more than a hundred years ago, are decaying,” the New York Times reported. “So far, the northeast corner of the aging structure has ‘settled’ 2.16 inches over the past three decades — a small change, but serious enough to raise concerns about the possibility of more structural problems.”
However, proponents of renovation mention the building’s rich history. In 1895 when the City Hall was built, it was “the third-tallest structure in the country at the time, behind the Philadelphia City Hall and the Washington Monument.” The German Renaissance Revival building features a 400-foot clock tower, which “is most fondly remembered for its role in the opening credits of the sitcom ‘Laverne & Shirley.’”
“Buildings like this are salvageable,” Dennis Barthenheier, a contractor who has used concrete to reinforce the pilings of nearly two dozen sinking structures in downtown Milwaukee, told the New York Times. “But it’s not a cheap date.”
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Owners Bound by Arbitration Clause on Roofing Shingles Packaging
December 04, 2018 —
David Adelstein - Florida Construction Legal UpdatesIn today’s age, you are probably familiar with terms such as a shrinkwrap contract (terms and conditions), which is a boilerplate contract included with a retained product, or a clickwrap contract (terms and conditions), which is generally a boilerplate contract that is digitally accepted when purchasing software or an electronic product. These are are boilerplate terms from manufacturers or vendors of products or software. Arbitration provisions in these types of agreements have generally found to be enforceable.
In the recent ruling by the Eleventh Circuit Court of Appeals in Dye v. Tamko Building Products, Inc., 2018 WL 5729085 (11th Cir. 2018), the court held that an arbitration provision included in a product-purchase limited warranty agreement on the package of every roofing shingles binds a homeowner to arbitrating disputes over the opened and retained product with the manufacturer, irrespective of whether the shingles were purchased by an owner’s roofer. The shingles do not have to be purchased and opened by the owner for the arbitration provision to apply. If the roofer uses or retained the shingles for purposes of the owner’s home, such knowledge of the product-purchase limited warranty agreement on the packaging of the shingles is imputed to the owner (end-user of the shingles).
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Toolbox Talk Series Recap - Guided Choice Mediation
November 05, 2024 —
Douglas J. Mackin - The Dispute ResolverIn the September 26, 2024 edition of Division 1's Toolbox Talk Series,
Clifford Shapiro presented on Guided Choice Mediation (“GCM”) and how it can lead to better outcomes in construction disputes.
GCM is an approach to mediation that focuses on early and efficient dispute resolution, which prominent mediators created as a public interest project.
Shapiro described his particular variant of GCM based on his experience while acknowledging that other Guided Choice Mediators’ processes may differ from his in various ways. Shapiro’s brand of GCM focuses on ensuring that parties have reasonable expectations and appropriate settlement authority prior to arriving at a mediation. Some of the strategies to help accomplish these noble goals are (i) early mediator engagement, (ii) mediator facilitation of information exchange, (iii) mediator involvement with insurance issues (particularly important in construction defect cases, especially those with multiple defendants), (iii) pre-mediation ex parte meetings, and (iv) mediator participation in risk analysis. These strategies are not typical in the more traditional/historic approach to mediation in which mediation is scheduled based on a scheduling order, mediation statements are sent to the mediator roughly a week before the scheduled mediation (and sometimes not even shared with anyone other than the mediator), and the parties speak with the mediator for the first time on the day of the mediation.
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Douglas J. Mackin, Cozen O’ConnorMr. Mackin may be contacted at
dmackin@cozen.com