Seattle Washington Building Expert Directory

Three Reasons Late Payments Persist in the Construction Industry

December 22, 2019 — Patrick Hogan - Construction Executive
Construction professionals are all too familiar with the payment issues that plague the construction industry. Contractors, subcontractors and material suppliers often have to deal with payment delays and even nonpayment—affecting cash flow and their ability to meet expenses. According to an Atradius study, a quarter of all B2B invoices issued in North America are overdue. The construction industry accounted for one-third of those past-due invoices, and many contractors and construction business owners do not have a positive outlook on the industry's payment issues. The same survey found 55% of U.S. firms think there will be no change in the industry’s payment practices over the coming months—one-third even expects an increase in late payments. These findings show that managing cash flow is a significant challenge in the construction industry. Having a negative cash flow will push the company toward financial trouble, which may ultimately lead to its demise. Understanding the reasons why payment issues persist in construction will help contractors protect their business, prevent these issues from happening or at least minimize their effect on the current operations. Reprinted courtesy of Patrick Hogan, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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With an Eye Already in the Sky, Crane Camera Goes Big Data

February 02, 2017 — Jeff Rubenstone - Engineering News-Record
It started simple enough: a wireless camera mounted on the hook block of a tower crane, allowing the operator in the cab to see the rigger on the ground and the area around the hook. But just a few years later, Netarus’ HoistCam is part of a method to generate point-cloud images of jobsites from the highest perch around. Read the court decision
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Reprinted courtesy of Jeff Rubenstone, ENR
Mr. Rubenstone may be contacted at rubenstonej@enr.com

Conflicting Exclusions Result in Duty to Defend

October 21, 2015 — Tred R. Eyerly – Insurance Law Hawaii
The Seventh Circuit affirmed the district court's finding that the insurer had a duty to defend in light of conflicting endorsements in the policy. Panfil v. Nautilus Ins. Co., 2015 U.S. App. LEXIS 14621 (7th Cir. Aug. 20, 2015). JRJ Ada, LLC was a contractor. JRJ's two members, Joe Panfil and Renee Michelon, had a CGL policy with Nautilus. The employee of JRJ's subcontractor, Astro Insulation, fell through a hole while performing insulation work, injuring himself. The employee sued JRJ, who sought a defense from Nautilus. Nautilus refused to defend because JRJ was not an insured under the policy. Further, Nautilus relied upon the policy's Contractor-Subcontrated Work Endorsement and Employee Exclusion to deny coverage. Panfil and Michelon sued Nautilus. Cross-motions for summary judgment were filed and the court granted plaitniffs' motion while denying Nautilus' motion. The district court first found that the policy should be reformed to inlcude JRJ as an insured. Nautilus did not appeal this determination. The court also found that Nautilus breached its duty to defend and was therefore estopped from asserting policy defenses to coverage. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

The Risk of A Fixed Price Contract Is The Market

August 03, 2022 — David Adelstein - Florida Construction Legal Updates
When performing work on a fixed price or unit, there is risk that is being assumed on your end. One risk is the market. You are ultimately banking on the fact that the market is not going to make your fixed prices unprofitable. That’s not an unforeseeable occurrence because the market shifts and that shift can have a negative ripple effect. In a recent case out of the Federal Circuit, U.S. Aeroteam, Inc. v. U.S., 2022 WL 243176 (Fed.Cir. 2022), this market risk played a role in a fixed price contract. Here, a contractor was hired by the federal government to produce ground support trailers. A key component of these trailers was a running gear. The contractor relied on a vendor for these running gears. Due to financial difficulties, the vendor had to raise its unit price for the running gears. Based on the increased price, the contractor elected to manufacture the running gears itself. The contractor asked the government if this was ok and the government approved the request. Once the contractor started manufacturing these running gears, it had an “awe” moment – the manufacturing costs were higher than anticipated. The contractor submitted a request for equitable adjustment which the government denied. The Contractor than sued the government raising three arguments to support its entitlement to additional costs: (1) constructive change; (2) cardinal change; and (3) commercial impracticability. The contractor lost on all arguments. It probably should have lost on all arguments. Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

Supreme Court Addresses Newly Amended Statute of Repose for Construction Claims

June 26, 2023 — David R. Cook Jr. - Autry, Hall & Cook, LLP
We have been following the protracted legal battle concerning Southern States Chemical, Inc. v. Tampa Tank & Welding, Inc. This case had been litigated at the Supreme Court and resulted in legislation. In the latest round, the Supreme Court answered whether Georgia’s statute of repose for construction claims applies to claims arising or brought before the statute was amendment in 2020. What is a Georgia’s statute of repose? Under the statute, “[n]o action to recover damages: (1) For any deficiency in the survey or plat, planning, design, specifications, supervision or observation of construction, or construction of an improvement to real property; (2) For injury to property, real or personal, arising out of any such deficiency; or (3) For injury to the person or for wrongful death arising out of any such deficiency shall be brought against any person performing or furnishing the survey or plat, design, planning, supervision or observation of construction, or construction of such an improvement more than eight years after substantial completion of such an improvement.” The case began ten years ago when Southern States suited Tampa Tank and Corrosion Control for alleged defects in renovating a 24-foot tall, 130-foot wide storage tank. The tank renovation was completed in 2002, and in 2011, the tank was found to leak sulfuric acid. Read the court decision
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Reprinted courtesy of David R. Cook Jr., Autry, Hall & Cook, LLP
Mr. Cook may be contacted at cook@ahclaw.com

OSHA Investigating Bridge Accident Resulting in Construction Worker Fatality

October 29, 2014 — Beverley BevenFlorez-CDJ STAFF
SI Live reported that “[t]he federal Occupational Safety and Health Administration has opened a probe into an early-morning truck accident at the Verrazano-Narrows Bridge that left a construction worker dead Wednesday.” The accident occurred in New York “when a truck laying asphalt backed into [the worker] and crushed him.” Ted Fitzgerald, OSHA spokesman, stated, “OSHA did respond and has opened an inspection to determine whether or not there were violations of workplace safety standards in connection with this fatality,” as quoted by SI Live. Read the court decision
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Bank Window Lawsuit Settles Quietly

October 02, 2013 — CDJ STAFF
The Federal Reserve Bank of St. Louis has filed a motion to dismiss its breach of contract lawsuit over the windows McCarthy Building installed in the bank’s building. The bank alleged that the 498 windows were defective and needed to be replaced at a cost of about $1.5 million. But on September 11, the bank acted to dismiss the suit following a settlement with the defendants. The terms of the settlement was not disclosed. All parties will be covering their own legal costs. Read the court decision
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Pennsylvania Supreme Court Rules in Builder’s Implied Warranty of Habitability Case

September 03, 2014 — Beverley BevenFlorez-CDJ STAFF
According to an article in JD Supra Business Advisor (written by Mark S. DePillis, Carl G. Roberts, Benjamin M. Schmidt, and Matthew White of Ballard Spahr LLP), “The Pennsylvania Supreme Court ruled that a builder’s implied warranty of habitability extends only to the initial buyer of a home, and not to subsequent purchasers.” This reversed an earlier ruling in Conway v. The Cutler Group, Inc. “that created more expansive liability for home builders.” DePillis, Roberts, Schmidt, and White suggested that “builders should monitor possible future legislation addressing the public policy issues that the Supreme Court identified as falling squarely within the legislature’s domain.” Read the court decision
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