Make Your Business Great Again: Steven Cvitanovic Authors Construction Today Article
April 20, 2017 —
Steven M. Cvitanovic - Haight Brown & Bonesteel LLPThere is a lot of uncertainty regarding how President Trump’s immigration and trade policies will affect the construction industry. In his Construction Today article, Partner Steven Cvitanovic discusses how businesses can remain competitive and profitable during this period of uncertainty, including updating contract documents, recruiting and retaining employees, and increasing cybersecurity efforts.
“If you do not know when your contract documents were last updated, it’s probably been too long,” writes Cvitanovic. “Unlike wine, contract documents only get worse with age.” Cvitanovic advises teams to sit down together and review contracts to see if they still meet the firm’s needs.
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Steven M. Cvitanovic, Haight Brown & Bonesteel LLPMr. Cvitanovic may be contacted at
scvitanovic@hbblaw.com
Hawaii Federal District Rejects Another Construction Defect Claim
November 30, 2020 —
Tred R. Eyerly - Insurance Law HawaiiThe Federal District Court, District of Hawaii, continued it long line of cases finding no coverage for claims of faulty workmanship. Nautilus Ins. Co. v. Summary Judgment RMB Enters., 2020 U.S. Dist. LEXIS 200468 (D. Haw. Oct. 28, 2020).
Property owners entered a construction contract with RMB Enterprises to develop and construct residential structures and a pond. The pond walls enclosed residential spaces, providing structural foundations for the walls of the building. After completion of the project, the pond leaked into its pump room. RMB performed remedial work by injecting epoxy into cracks. Later, water from the pondleaked into the interior of a residence near a staircase. Water also leaked into the master bedroom area causing musty odor, mood growth, and increased humidity.
The owners sued RMB asserting breach of contract, breach of warranty, misrepresentation, and negligence claims. Nautilus denied coverage. The policy provided that faulty workmanship did not constitute an "occurrence." But when faulty workmanship caused property damage to property other than "your work," then such property damage would be considered caused by an occurrence.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Building Down in November, Even While Home Sales Rise
January 17, 2013 —
CDJ STAFFThe Chicago Sun-Times reports that construction saw a small decline in November, the first since the spring. Happily, though this was the first dip in eight months, construction spending dropped only 0.3 percent, compared to October. The Sun-Times noted that the level of construction is well below what is considered healthy for the economy, while still being above the low of February 2011.
While fewer homes (and other buildings) were built, sales of new homes were up 4.4 percent in November. Home purchases were at their highest rate in more than two years.
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Storm Debby Is Deadly — Because It’s Slow
September 16, 2024 —
Brian K Sullivan - BloombergTropical Storm Debby has killed at least five people as it churns across the US East, where it’s expected to inflict $1 billion or more in damage and losses.
One reason for the storm’s destructive power: It’s moving very slowly.
Although Debby came ashore with hurricane-strength winds, its rainfall — forecast to exceed two feet in some areas — is even more dangerous.
The St. Marys River in northern Florida rose more than 10 feet in one day, while New York will likely see downpours from Debby later in the week. Homes, businesses and farms may be deluged, putting crops and infrastructure at risk.
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Brian K Sullivan, Bloomberg
"My Bad, I Thought It Was in Good Faith" is Not Good Enough - Contractor Ordered to Pay Prompt Payment Penalties
February 23, 2016 —
David A. Harris & Jesse M. Sullivan – Haight Brown & Bonesteel LLPRetention clauses are almost always included in California construction contracts and permit an Owner to withhold a portion of what is owed to the General Contractor as security to ensure the proper completion of the work. General Contractors pass the withholding of retention down to the subcontractors. Thus, if the subcontractor fails to complete its work, or fails to correct deficiencies, the Owner/General Contractor can use the retention to pay the costs of completing or correcting the subcontractor’s work.
The contractor must release any retention it receives from the owner within ten days unless a “good faith dispute exists between the direct contractor and the subcontractor.” (Civil Code section 8814.) Where there is a good faith dispute, the contractor “may withhold from the retention to the subcontractor an amount not in excess of 150 percent of the estimated value of the disputed amount.” (Civil Code section 8814(c).) If the contractor wrongfully withholds retention, it must not only pay the retention but must also pay the subcontractor “a penalty of 2 percent per month on the amount wrongfully withheld.” The contractor must also pay the subcontractor’s costs and reasonable attorney’s fees incurred in collecting the retention. (Civil Code section 8818.)
Reprinted courtesy of
David A. Harris, Haight Brown & Bonesteel LLP and
Jesse M. Sullivan, Haight Brown & Bonesteel LLP
Mr. Harris may be contacted at dharris@hbblaw.com
Mr. Sullivan may be contacted at jsullivan@hbblaw.com
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Colorado Requires Builders to Accommodate High-Efficiency Devices in New Homes
December 14, 2020 —
David M. McLain – Colorado Construction LitigationStarting in 2009, the Colorado Legislature began adding requirements that builders offer certain options to accommodate high-efficiency devices. These requirements started with solar prewire options in 2009, then water-smart home options in 2010. In 2020, the Legislature added requirements for electric vehicle charging and heating systems. These sections apply to unoccupied homes serving as sales inventory or a model home or manufactured homes, as defined by Colorado law. While the Legislature has only required builders to include options to accommodate these devices, it may be just a matter of time until builders must install the prescribed devices themselves.
In 2009, the Legislature passed C.R.S. 38-35.7-106, which was amended this year by HB 20-1155. As it now reads, Colorado law requires every builder of single-family detached residences to offer to have the home’s electrical or plumbing system, or both, include:
- A residential photovoltaic solar generation system or a residential thermal system, or both;
- Upgrades of wiring or plumbing, or both, planned by the builder to accommodate future installation of such systems; and
- A chase or conduit, or both, constructed to allow ease of future installation of the necessary wiring or plumbing for such systems.
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David McLain, Higgins, Hopkins, McLain & RoswellMr. McLain may be contacted at
mclain@hhmrlaw.com
Herman Russell's Big Hustle
May 20, 2024 —
Maggie Murphy - Construction Executive“Any person that I knew of in the city of Atlanta who did anything ran it by Herman before they did anything else.”
These are the words of Anthony Dixon, senior project manager and 47-year veteran employee with H. J. Russell & Company. But ask anyone who knows anything about H. J. Russell, and they’ll say the same thing: The story of the company is the story of Herman J. Russell himself.
From humble beginnings in Atlanta’s Summerhill neighborhood came a young man with an unbreakable entrepreneurial spirit, who used that drive to forge an unlikely path to success in the Jim Crow–era South. What began as a plastering company in 1952 is today one of the largest Black-owned contractors in the United States, with Herman’s children—Donata Russell Ross, H. Jerome Russell and Michael B. Russell Sr.—at the helm (a natural fit for the family-focused firm).
Over its 72-year history, H. J. Russell has grown exponentially, contracted when necessary and persevered through segregation, the turbulence of the Civil Rights Movement and multiple economic downturns. Now, in the next five years, they’re poised to become a billion-dollar company.
But long before any of that, there was just a boy and a dream.
Reprinted courtesy of
Maggie Murphy, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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First Circuit: No Coverage, No Duty to Investigate Alleged Loss Prior to Policy Period
May 18, 2020 —
Eric B. Hermanson & Austin D. Moody - White and WilliamsOn April 1, 2020, the First Circuit, applying Massachusetts law, issued a potentially useful decision addressing the Montrose “known loss” language in ISO Form CGL policies. In Clarendon National Insurance Company v. Philadelphia Indemnity Insurance Company,[1] the court applied this language to allow denial of defense for claims of recurring water infiltration that began before the insurer’s policy period, and it found an insurer had no duty to investigate whether the course of property damage might have been interrupted, or whether other property damage might have occurred during the policy period, so as to trigger coverage during a later policy.
In the underlying dispute, a condominium owner (Doherty) asserted negligence claims against her association’s property management company (Lundgren) stemming from alleged water infiltration into her condominium. The complaint said leaks developed in 2004 in the roof above Doherty’s unit, and repairs were not made in a timely or appropriate manner. The following year, the complaint said, a Lundgren employee notified Doherty that the threshold leading to her condominium's deck was rotting. In February 2006, Doherty discovered a mushroom and water infiltration on the threshold and notified Lundgren. At that time, Lundgren asked its maintenance and repair contractor (CBD) to replace the rotting threshold. According to the complaint, CBD did not do this repair in a timely manner and left debris exposed in Doherty’s bedroom.
In March 2006, the complaint said, a mold testing company hired by Lundgren found hazardous mold in Doherty's unit, caused by water intrusions and chronic dampness. Lundgren’s attempts at remediation were ineffectual. In September 2008, Doherty's doctor ordered her to leave the condominium and not to return until the leaks were repaired and mold was eliminated.
Reprinted courtesy of
Eric B. Hermanson, White and Williams and
Austin D. Moody, White and Williams
Mr. Hermanson may be contacted at hermansone@whiteandwilliams.com
Mr. Moody may be contacted at moodya@whiteandwilliams.com
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