Fairfield Connecticut Building Expert Directory

Is Modular Construction Destined to Fail?

March 11, 2024 — Aarni Heiskanen - AEC Business
The construction sector is a harsh environment for innovation. I’ve been following the story of one Finnish innovative contractor, Lehto Group, over the years with enthusiasm. I was saddened to hear that the group’s three significant subsidiaries joined the ranks of many Finnish contractors who have filed for bankruptcy over the last six months. Lehto developed industrialized building concepts and had its own production facilities. The company had a promising start but eventually ran into problems. Was the industrial approach a mistake, or were other factors contributing to the firm’s fall? Three Contributing Factors Lehto Group’s collapse was not a surprise to its competitors, who had observed warning signs years prior. The company’s order book plummeted in 2024 despite still employing around 500 workers. Rakennuslehti, the leading construction magazine in Finland, asked three experienced industry professionals to give their views on Lehto’s failure. The interviewees spoke anonymously due to the small size of the Finnish market and the sensitive nature of commenting on a competitor’s matters. Read the court decision
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Reprinted courtesy of Aarni Heiskanen, AEC Business
Mr. Heiskanen may be contacted at aec-business@aepartners.fi

California Contractors – You Should Know That Section 7141.5 May Be Your Golden Ticket

February 18, 2020 — Amy L. Pierce, Mark A. Oertel & John Lubitz - Lewis Brisbois Bisgaard & Smith LLP
Under California’s Contractors’ State License Law, Cal. Bus. & Prof. Code §§ 7000 et seq., all contractors’ and subcontractors’ licenses expire two years from the last day of the month in which the license issued, or two years from the date on which the renewed license last expired. The Contractors State License Board (CSLB) sends licensees a renewal application 60 to 90 days prior to the date the license is set to expire. Most contractors have various controls in place to make sure that the renewal application is timely filed and the required fee paid. Even so, we are only human and mistakes are made, and a renewal application filing deadline can be missed for a variety of reasons, e.g., the licensee’s mailing address has not been updated on the CSLB’s records, the individual responsible for filing the license renewal is out on leave, there has been a death in the family or a serious health issue, etc. Quoting Robert Burns, even “[t]he best-laid schemes of mice and men go oft awry” (To a Mouse, 1786). General contractors should be cognizant of both their and their subcontractors’ license renewal obligations and deadlines. If a licensee missed timely filing its renewal application, Business & Professions Code Section 7141.5may provide some relief. Section 7141.5 provides that the Registrar of Contractors,

“may grant the retroactive renewal of a license if the licensee requests the retroactive renewal in a petition to the registrar, files an application for renewal on a form prescribed by the registrar, and pays the appropriate renewal fee and delinquency fee prescribed by this chapter. This section shall only apply for a period not to exceed 90 days from the due date and only upon a showing by the contractor that the failure to renew was due to circumstances beyond the control of the licensee.”

Reprinted courtesy of Lewis Brisbois Bisgaard & Smith LLP attorneys Amy Pierce, Mark Oertel and John Lubitz Ms. Pierce may be contacted at Amy.Pierce@lewisbrisbois.com Mr. Oertel may be contacted at Mark.Oertel@lewisbrisbois.com Mr. Lubitz may be contacted at John.Lubitz@lewisbrisbois.com Read the court decision
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Deck Collapse Raises Questions about Building Defects

July 31, 2013 — CDJ STAFF
The Inquisitor reports that twenty-one people were injured when a deck collapsed at a rental apartment in Ocean Isle Beach, North Carolina. Most of the injuries were not serious. The mayor of Ocean Isle Beach attributed the problem to more people crowding onto it than it was designed for. “I do not think the N.C. building code anticipates 20 to 30 to people in a small deck at one time,” she said. Read the court decision
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Illinois Court of Appeals Addresses Waiver and Estoppel in Context of Suit Limitation Provision in Property Policy

February 05, 2024 — James M. Eastham - Traub Lieberman
In Naperville Hotel Partners, LLC v. Liberty Mut. Fire Ins. Co., 2023 IL App (3d) 220440-U the Illinois Third District Court of Appeals addressed whether failure to include reference to a limitations provision in reservation of rights correspondence to an insured can be deemed a waiver of the provision or otherwise estop the insurer from relying on the provision. The claim involved water damage sustained at the Insured’s motel as a result of numerous rain events that occurred between 2015 and 2020. Liberty Mutual issued an insurance policy that covered several buildings including the subject hotel. The policy required that any legal action based on the coverage had to be brought "within two (2) years after the date on which the physical damage occurred, extended by the number of days between the date you submitted the statement of loss to us and the date we deny the claim in whole or in part." Plaintiffs filed their claim with Liberty Mutual in May 2019. In June of 2019 Liberty Mutual sent a reservation of rights letter to the Insured which requested more information and listed the "immediate written notice of loss" provision as a potential basis for excluding coverage but did not list the two-year time-limitation on legal action. Liberty Mutual also did not mention the provision in subsequent communications with the Insured. Read the court decision
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Reprinted courtesy of James M. Eastham, Traub Lieberman
Mr. Eastham may be contacted at jeastham@tlsslaw.com

Oregon Supreme Court Confirms Broad Duty to Defend

November 21, 2017 — Theresa A. Guertin - Saxe Doernberger & Vita, P.C. Blog
Originally published by CDJ on January 13, 2017 The Supreme Court of Oregon issued a decision at the end of last year which perfectly illustrates the lengths to which a court may go to grant a contractor’s claim for defense from its insurer in a construction defect suit. In West Hills Development Co. v. Chartis Claims, Inc.,1 the Court held that a subcontractor’s insurer had a duty to defend a general contractor as an additional insured because the allegations of a homeowner’s association’s complaint could be interpreted to fall within the ambit of coverage provided under the policy—despite the fact that the policy only provided ongoing operations coverage, and despite the fact that the subcontractor was never mentioned in the complaint. The decision is favorable to policyholders but also provides an important lesson: that contractors may avoid additional insured disputes if those contractors have solid contractual insurance requirements for both ongoing and completed operations risks. Read the court decision
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Reprinted courtesy of Theresa A. Guertin, Saxe Doernberger & Vita, P.C.
Ms. Guertin may be contacted at tag@sdvlaw.com

Uniwest Rides Again (or, Are Architects Subject to Va. Code Section 11-4.1?)

October 16, 2018 — Christopher G. Hill - Construction Law Musings
In 2010, the Virginia Supreme Court held in Uniwest Const., Inc. v. Amtech Elevator Servs., Inc., that Va. Code Sec. 11-4.1 renders completely void and unenforceable any indemnification provision in a construction contract between a contractor and subcontractor that seeks to indemnify the indemnified party from its own negligent acts. In short, the Virginia Supreme Court stated that such overly broad provisions violate Section 11-4.1. A recent case out of the Eastern District of Virginia Federal District Court examined a provision in a contract between a designer/architect and a contractor or owner on a project. In Travelers Indem. Co. of Conn. v. Lessard Design Inc. the Court examined the application of Section 11-4.1 to the following provision of a design contract where Lessard, the indemnitor, agreed to:

[i]ndemnify, defend and hold the Owner, Owner’s Developer, and Owner’s and Owner’s Developer’s wholly owned affiliates and the agents, employees and officers of any of them harmless from and against any and all losses, liabilities, expenses, claims, fines and penalties, costs and expenses, including, but not limited to reasonable attorneys’ fees and court costs relating to the services performed by the Architect hereunder . . .

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Reprinted courtesy of Christopher G. Hill, The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

Temporary Obstructions Are a Permanent Problem Under the Americans with Disabilities Act

March 12, 2015 — Max W. Gavron and Keith M. Rozanski – Haight Brown & Bonesteel LLP
Boxes, ladders, furniture or other objects commonly placed in aisles, walkways or paths may not be temporary obstructions and may be actionable under the Americans with Disabilities Act (ADA) according to a recent ruling by the Ninth Circuit Court of Appeals in Chapman v. Pier 1 Imports (U.S.), Inc. DBA Pier 1 Imports #1132, No. 12-16857 (filed March 5, 2015). Many property and business owners have long operated under the assumption that they are not violating ADA regulations requiring minimum clear widths for accessible routes (“[t]he minimum clear width of an accessible route shall be 36 in[ches]” (28 C.F.R. pg. 36, app. A, § 4.3.3)) when they place objects that can easily be removed in aisles or pathways such as trash cans, ladders, plants, signs and the like because temporary obstructions are not considered violations of the ADA (28 C.F.R. § 36.211(b)). Reprinted courtesy of Max W. Gavron, Haight Brown & Bonesteel LLP and Keith M. Rozanski, Haight Brown & Bonesteel LLP Mr. Gavron may be contacted at mgavron@hbblaw.com Mr. Rozanski may be contacted at krozanski@hbblaw.com Read the court decision
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Real Estate & Construction News Roundup (06/28/23) – Combating Homelessness, U.S. Public Transportation Costs and the Future of Commercial Real Estate

August 07, 2023 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
In our latest roundup, we examine the Supreme Court’s ruling regarding water supply responsibilities, the federal reserve chair’s reaction to possible banking losses, several analyses of the future of commercial real estate, and more!

California Representative Maxine Waters has introduced several pieces of legislation aimed at combating homelessness and fixing the increasingly tumultuous affordable housing situation. (Eliza Relman, Business Insider)
The Supreme Court ruled in favor of the federal government in a case that decided responsibility over water supply as well as the overall dissemination of water usage for the Navajo Nation. (Ariane de Vogue, CNN)
Unlike other nations with similar construction, the United States’ public transportation has extremely high costs. (Darian Woods, Corey Bridges, Viet Le, NPR)

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Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team

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