Fairfield Connecticut Building Expert Directory

Not a Waiver for All: Maryland Declines to Apply Subrogation Waiver to Subcontractors

September 23, 2024 — Gus Sara - The Subrogation Strategist
In Lithko Contr., LLC v. XL Ins. Am. Inc., No. 31, Sept. Term, 2023, 2024 Md. LEXIS 256, the Supreme Court of Maryland considered whether a tenant who contracted for the construction of a large warehouse facility waived its insurer’s rights to subrogation against subcontractors when it agreed to waive subrogation against the general contractor. The court ultimately decided that the unambiguous language of the subrogation waiver in the development agreement between the parties did not extend to subcontractors. The court also held that the tenant’s requirement that subcontracts include a subrogation waiver did not, in this case, impose a project-wide waiver on all parties. The court, however, found that the requirement that the subcontracts include a similar, but not identical, waiver provision rendered the subcontract’s waiver clauses ambiguous and remanded the case to the lower court to determine if the parties to the development agreement – i.e., Duke Baltimore LLC (“Duke”) and Amazon.com.dedc, LLC (“Amazon”) – intended that the waiver clause in the subcontracts covered claims against subcontractors. This case involved roof and structural damage to a warehouse in Baltimore, Maryland that Duke owned. In March 2014, Amazon entered into a development agreement with Duke for the construction of the warehouse. Amazon also agreed to subsequently lease the warehouse from Duke. Although Amazon essentially owned and/or developed the project, the development agreement identified Duke as “Landlord” and Amazon as “Tenant.” Read the court decision
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Reprinted courtesy of Gus Sara, White and Williams
Mr. Sara may be contacted at sarag@whiteandwilliams.com

Preparing the Next Generation of Skilled Construction Workers: AGC Workforce Development Plan

November 08, 2017 — David R. Cook Jr. - Autry, Hanrahan, Hall & Cook, LLP
In August, Associated General Contractors (AGC) and Autodesk released the results of their 2017 Construction Workforce Shortage Survey. Of the more than 1,600 survey respondents, 70 percent said they are having difficulty filling hourly craft positions. Craft worker shortages are the most severe in the West, where 75 percent of contractors are having a hard time filling those positions, followed by the Midwest where 72 percent are having a hard time finding craft workers, 70 percent in the South and 63 percent in the Northeast. Tight labor market conditions are prompting firms to change the way they operate, recruit and compensate workers. Most firms report they are making a special effort to recruit and retain veterans (79 percent); women (70 percent), and African Americans (64 percent). Meanwhile, half of construction firms report increasing base pay rates for craft workers because of the difficulty in filling positions. Twenty percent have improved employee benefits for craft workers and 24 percent report they are providing incentives and bonuses to attract workers. Read the court decision
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Reprinted courtesy of David R. Cook, Autry, Hanrahan, Hall & Cook, LLP
Mr. Cook may be contacted at cook@ahclaw.com

The Problem With Building a New City From Scratch

May 10, 2022 — Nolan Gray - Bloomberg
From California to Miami and points in between, housing costs in the U.S. are skyrocketing, bringing bidding wars in hot markets and fears of a fresh surge in homelessness as renters scramble for an affordable place to live. The deepening housing crunch — and the intractable resistance that residents often put up when the prospect of new housing emerges nearby — has led some observers to ask: Why don’t we just make new cities? “When China needs new places for people to live, they just build a new city,” Nathan J. Robinson recently wrote in Current Affairs, contemplating all the undeveloped land in between California’s costly major urban areas. “They’ve built 600 of them since 1949.” At first blush, it might seem obvious. But history is full of failed, unfinished or underperforming scratch-built city projects, in California and elsewhere, and more are in the pipeline. To learn more about how we might best approach building new cities, CityLab talked to a person who’s had a hand in planning a few of them: Alain Bertaud, a fellow at the Marron Institute for Urban Management and a globetrotting former city planner at the World Bank. Our conversation has been edited for length and clarity. Read the court decision
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Reprinted courtesy of Nolan Gray, Bloomberg

This Is the Most Remote and Magical Hotel on Earth

May 12, 2016 — Sarah Hepola – Bloomberg
There are no signs leading to the Fogo Island Inn. That’s how hard it is to miss the place. Designed by architect Todd Saunders, who grew up in nearby Gander, the building takes its inspiration from the fishing shacks that dot the shoreline, sagging on old wooden stilts, but it was also made with the dimensions of a cruising vessel. Three hundred feet long by 30 feet wide. Like a ship that’s just sailed into harbor. For decades, the flow of traffic in this community off the Newfoundland coast had moved in one direction: away. Fewer than 2,500 people live on an island four times the size of Manhattan. But the inn, the brainchild of Fogo Island native and tech millionaire Zita Cobb, reversed that trend when it was completed in 2013. Strangers now come from around the world to see the island, whose unspoiled landscape makes it a coveted spot for the under-the-radar traveler. Read the court decision
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Reprinted courtesy of Sarah Hepola, Bloomberg

“Incidental” Versus “Direct” Third Party Beneficiaries Under Insurance Policies in Which a Party is Not an Additional Insured

April 18, 2023 — Garret Murai - California Construction Law Blog
As they say, when it rains, it pours. Indemnity and insurance are the “Big Two” when it comes to risk avoidance on construction projects. The next case, LaBarbera v. Security National Security Company, 86 Cal.App.5th 1329 (2022), involves both. It’s an interesting case, which I think could have gone either way, involving claims by a higher-tiered party that they were a third party beneficiary under an insurance policy in which they were not named as an additional insured. The LaBarbera Case The Indemnity Provision and Insurance Policy In June 1016, Chris LaBarbera hired Richard Knight doing business as Knight Construction to remodel his house in Carmichael, California. The construction contract included an indemnity provision which provided that Knight would defend and indemnify LaBarbera from all claims arising out the remodeling work except for claims arising from LaBarbera’s sole negligence and willful misconduct. Read the court decision
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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

Building on New Risks: Construction in the Age of Greening

February 20, 2023 — Blanca Berruguete - Construction Executive
Fire and explosions remain the No. 1 cause of construction and engineering insurance claims, accounting for 27% of the value of insurance claims over the last five years, according to industry claims data analysis conducted by global commercial insurer AGCS. Natural catastrophes, such as hurricanes or floods, account for almost a fifth of claims by value (19%), followed by defective products (10%). Faulty workmanship or maintenance (8%) and machinery breakdown (7%) round out the top five causes of construction and engineering losses, according to the value of claims. The Risks and Benefits of Greening The analysis was conducted on 22,705 insurance claims made worldwide between January 2017 and December 2021. The claims were worth approximately $13.9 billion in value and include the share of other insurers as well as AGCS. But if there is an impression that the risks remain in stasis, that is not the case. Reprinted courtesy of Blanca Berruguete, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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No Repeal Process for Rejected Superstorm Sandy Grant Applications

February 12, 2014 — Beverley BevenFlorez-CDJ STAFF
Even though it’s been revealed that “faulty data” was used to reject many New Jersey recovery grants for victims of Superstorm Sandy, the state has announced that it’s too late to appeal, according to The Wall Street Journal. “The applicants were informed by letter that they weren't eligible,” state officials told The Wall Street Journal, “and it should have been clear that they needed to appeal last year, so the application process won't be reopened.” The majority of the rejected applicants that did appeal within the open period were found to be eligible for the grant: “Nearly 80% of people who appealed their rejections ended up winning their cases, according to data released by the Fair Share Housing Center, a public-interest law firm critical of the Christie administration. And of the 8,007 applicants rejected from both programs, 5,583 didn't appeal, or 70%, according to Fair Share Housing Center's analysis.” U.S. Representative Bill Pascrell called for “an independent monitor” to be “appointed to oversee the state’s storm spending ‘to ensure there isn’t further mismanagement.’” Read the court decision
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FBI Makes Arrest Related to Saipan Casino Construction

April 05, 2017 — Matthew Campbell & Greg Farrell - Bloomberg
The Federal Bureau of Investigation arrested one person in connection with the death of a construction worker at Imperial Pacific International Holdings Ltd.’s casino on the remote U.S. island of Saipan, according to an agency spokeswoman. “The FBI conducted a search and made an arrest in response to the recent death of an individual working at the construction site of the Imperial Pacific Resort,” Michele Ernst, a spokeswoman in the FBI’s Honolulu field office, said in an email Friday. “The investigation is related to allegations of a federal violation of the workplace visa system, including reports the company was systematically harboring individuals who are out of status and in violation of federal statutes." Reprinted courtesy of Matthew Campbell, Bloomberg and Greg Farrell, Bloomberg Read the court decision
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