2017 Legislative Changes Affecting the Construction Industry
July 13, 2017 —
Melinda S. Gentile – Peckar & Abramson, P.C.The 2017 Florida Legislative Session recently concluded, and a number of important construction-related House Bills (HB) and Senate Bills (SB) were presented during the Session, most notably SB 204/HB 377. These Bills may impact General Contractors and Construction Managers in a number of ways, not the least of which is the period of time that a cause of action may be initiated for the design, planning or construction of an improvement.
The following construction-related Bills passed in both the House and Senate and will become law if approved by the Governor.
Senate Bill (SB) 204/House Bill (HB) 377: Relating to the Statute of Repose for causes of action based on design, planning or construction of an improvement to real property. This bill passed both the House and the Senate and was approved by the Governor on June 14, 2017. This bill becomes effective on July 1, 2017.
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Melinda S. Gentile, Peckar & Abramson, P.C.Ms. Gentile may be contacted at
mgentile@pecklaw.com
Negligence Claim Not Barred by Gist of the Action Doctrine
February 18, 2015 —
Tred R. Eyerly – Insurance Law HawaiiThe Pennsylvania Supreme Court held that the insureds' negligence claim survived because it was not based upon breach of a duty created by the policy, but upon the alleged breach of a duty imposed by tort law. Bruno v. Erie Ins. Co,, 2014 Pa. LEXIS 3319 (Dec. 15, 2014).
After purchasing their home, the insureds obtained a homeowner's policy from Erie. A separate endorsement covered loss to the property caused by "fungi," which was included as any form of mold. The endorsement obligated Erie to pay up to $5,000 for loss caused by mold. The policy required Erie to pay the cost of testing the air to confirm the absence or presence of mold. If mold was present, Erie was to pay for the cost of removal, including the cost of tearing out any part of the property needed to gain access to the mold.
While renovating the basement, the insureds discovered two areas of black mold in close proximity to leaking water pipes. Erie was notified and sent an adjuster to view the mold. The adjuster took no action, but returned a couple of days later with an engineer. The adjuster and engineer informed the insureds that the mold was harmless and that health problems associated with mold were a media frenzy and overblown.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
The Role of Code Officials in the Design-Build Process
November 16, 2023 —
Grace Calengor - Construction ExecutiveBuilding codes are an integral part of the design-build process, but what role do building code professionals play throughout that process? Kevin McOsker, vice president of technology services for the government relations department at the International Code Council, breaks it down, from basic design to groundbreaking ideas to incorporating new technology and retrofitting older builds.
McOsker, whose experience includes serving as building official for the city of Las Vegas, is no stranger to striking architecture and the safety protocols that go along with it. He believes that safety protocol starts before the contractors begin building and that contractors should be involved throughout the entire journey.
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Grace Calengor, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Home Sales Topping $100 Million Smash U.S. Price Records
May 07, 2014 —
Prashant Gopal – BloombergThe U.S. trophy-home market is shattering price records this year as an increasing number of residential properties change hands for more than $100 million.
Barry Rosenstein, founder of hedge fund Jana Partners LLC, has purchased an 18-acre (7.3-hectare) beachfront property in East Hampton, New York, for $147 million, according to the New York Post. That would break the U.S. single-family price record of $120 million set last month with the sale of a Greenwich, Connecticut, waterfront estate on 51 acres. In Los Angeles, a 50,000-square-foot (4,600-square meter) home sold in February for $102 million in cash after a bidding war.
The world’s richest people are moving cash to real estate as they seek havens for their wealth. In the U.S., an improving economy and stocks at a record are bolstering confidence among the affluent. Home purchases of $2 million or more jumped 33 percent in January and February from a year earlier to the highest level for the two-month period in data going back to 1988, according to an analysis by DataQuick.
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Prashant Gopal, BloombergMr. Gopal may be contacted at
pgopal2@bloomberg.net
District Court Allows DBE False Claims Act Case to Proceed
February 23, 2017 —
Wally Zimolong – Supplemental ConditionsLast week, I posted about how whistleblowers continue to receive large settlements related to DBE fraud. A somewhat recent case from the federal court in Maryland shows how whistleblowers are ferreting out DBE fraud on construction projects receiving any form of federal funding.
The Case
The case involves a bridge painting project in Maryland that was let by the Maryland State Highway Administration. The contract required the prime contractor to meet a 15% DBE participation goal. The prime contractor submitted a bid stating it would have 15.12% DBE participation. After it was awarded the contract, the prime contractor – as is typical – submitted additional forms certifying to the MSHA that 15.12% of its contract price would be performed by a DBE firm. The prime contractor indicated that one DBE subcontractor, Northeast Work and Safety Boats, LLC (“NWSB”), would perform the 15.12% of the work.
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Wally Zimolong, Zimolong LLCMr. Zimolong may be contacted at
wally@zimolonglaw.com
Appeals Court Explains Punitive Damages Awards For Extreme Reprehensibility Or Unusually Small, Hard-To-Detect Or Hard-To-Measure Compensatory Damages
November 10, 2016 —
Christopher Kendrick & Valerie A. Moore – Haight Brown & Bonesteel LLPIn Nickerson v. Stonebridge Life Ins. Co. (No. B234271A, filed 11/3/16), (“Nickerson II”) a California appeals court outlined the requirements for complying with the single-digit multiplier annunciated as a Constitutional limitation on punitive damages by the United States Supreme Court in State Farm Mut. Automobile Ins. Co. v. Campbell (2003) 538 U.S. 408, for awards of punitive damages against insurers in cases of extreme reprehensibility or unusually small, hard-to-detect or hard-to-measure compensatory damages.
Reprinted courtesy of
Christopher Kendrick, Haight Brown & Bonesteel LLP and
Valerie A. Moore, Haight Brown & Bonesteel LLP
Mr. Kendrick may be contacted at ckendrick@hbblaw.com
Ms. Moore may be contacted at vmoore@hbblaw.com
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Contract’s Definition of “Substantial Completion” Does Not Apply to Third Party for Purposes of SOL, Holds Court of Appeal
June 15, 2020 —
Garret Murai - California Construction Law BlogThose of you in the construction industry know that the two primary statutes of limitation are the 4-year year statute of limitations for patent defects and 10-year statute of limitations for latent defects. Both statutes begin to run on “substantial completion.”
In Hensel Phelps Construction Co. v. Superior Court of San Diego, Case No. D076264 (January 22, 2020), the 4th District Court of Appeal examined whether the term “substantial completion,” as used in Civil Code section 941, which applies to residential construction, can be defined by the parties’ contract and applied to third-parties.
The Hensel Phelps Case
Hensel Phelps Construction Co. entered into a prime construction contract with the owner and developer of a mixed-use project in San Diego. Hensel Phelps was the general contractor on the project. The project included a residential condominium tower which would eventually be managed and maintained by Smart Corner Owners Association. Smart Corners was not a party to the contract.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Is Safety Compliance Putting Your Project in Jeopardy? Examining the Essentials of DOE’s Worker Safety and Health Program
July 02, 2024 —
Lucas T. Daniels & Benjamin J. Hochberg - ConsensusDocsMost contractors are familiar with the myriad of labor and safety regulations intended to safeguard the health and safety of workers. Many contractors will be equally familiar with the maze of forms and reports, the maintenance of safety personnel, safety walks and talks, and the many other measures intended to prevent and prepare for accidents. Less known among contractors and construction industry leaders is the regulatory framework establishing safety requirements and the ramifications of ignoring safety-related rules. Knowing and understanding the jurisdiction and authority of the agencies monitoring safety compliance on your project is critical to avoiding administrative ordeals and audits that could add days or weeks to your schedule and frustrate your staff.
The Department of Energy’s Worker Safety and Health Program
Under the Occupational Safety and Health Act of 1970, as amended (OSH), the Department of Labor’s Occupational Safety and Health Administration (OSHA) issues and enforces occupational health and safety regulations. OSHA, or a state with approval from OSHA, regulates the occupational health and safety of private sector employees unless another federal agency has and exercises its statutory authority to regulate. Several federal agencies have developed their own safety programs and conduct their own enforcement of those regulations independent of OSHA. For example, projects receiving funding from the Department of Energy (DOE) are subject to additional oversight of their safety programs by this agency. DOE directly manages its own Worker Safety and Health Program (WSHP), codified at 10 C.F.R. § 851, et seq., and will enforce compliance with its WSHP at all DOE sites. A “DOE site” is defined as a DOE-owned or -leased area or location or other area or location that DOE controls, where a contractor performs activities and operations in furtherance of a DOE mission. This broad definition encompasses a wide range of facilities and operations, including those not directly managed by the DOE but still under its control. The contractor at such a site must be aware of the specific requirements and procedures of the DOE under the WSHP and the ramifications of violating these regulations.
Reprinted courtesy of
Lucas T. Daniels, Peckar & Abramson, P.C and
Benjamin J. Hochberg, Peckar & Abramson, P.C
Mr. Daniels may be contacted at ldaniels@pecklaw.com
Mr. Hochberg may be contacted at bhochberg@pecklaw.com
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