The Business of Engineering: An Interview with Matthew Loos
July 15, 2019 —
Aarni Heiskanen - AEC BusinessMatthew Loos is an experienced project manager in the civil engineering industry. He works as a project engineer at Jones|Carter in Fort Worth, Texas. In this interview, we discuss Matt’s new book, The Business of Engineering.
It is not very common that an engineer writes a non-technical book. What inspired you to do so?
Have you ever gotten an idea stuck in your head that you just couldn’t let go of? A time when you couldn’t go to sleep because the idea was consistently begging for your attention?
That’s what happened to me. The idea for this book hits me right before bed, as most good ideas do. I couldn’t go to sleep after the idea struck me. I spent half of the night writing the chapters of this book in my mind. I had been thinking about the idea of engineering and how it relates to other career fields, even the non-technical ones. I was disenchanted with the trifling number of classes I took that prepared me for the business world. These were the initial thoughts that eventually led me down the road into thinking about engineering as a profession going forward.
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi
Mediation in the Zero Sum World of Construction
September 26, 2022 —
Christopher G. Hill - Construction Law MusingsConstruction is a zero sum game. What do I mean by that? I mean that even where you, a construction professional with a great construction lawyer, have reviewed and edited a subcontract presented to you or provided a well-drafted contract to the other party that contains an attorney fees provision, every dollar that you spend on litigation is a dollar less of profit.
Couple the fact that no construction company can or should bid or negotiate work with an eye toward litigation (aside from having a well written contract that will be enforced to the letter here in Virginia). Particularly on “low bid” type projects, contractors and subcontractors cannot “pad” their bids to take into account the possibility of attorney fees, arbitration, or litigation. Furthermore, the loss of productivity when your “back office” personnel are tied up dealing with discovery, phone calls, and other incidents of litigation that do nothing but rehash a bad project and increase the expense sap money from the bottom line. While the possibility of a judgment including attorney fees may soften this blow, you are still out the cash.
All of this said, if you are in commercial construction for any significant period of time disputes will arise and I have discussed the process in some detail at other places here at Construction Law Musings. As a construction litigator, I am fully aware of this fact of life. Efficient management of these disputes is key, particularly when they escalate to the point where some form of outside “help” (read arbitrator or judge) is necessary.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Policy's One Year Suit Limitation Does Not Apply to Challenging the Insurer's Claims Handling
October 07, 2024 —
Tred R. Eyerly - Insurance Law HawaiiThe California Supreme Court held that the policy's suit limitation of one year, consistent with the statute requiring suit be file within twelve months after a loss, did not apply to claims alleging violation of the state's unfair competition law (UCL). Rosenberg-Wohl v. State Farm Fire and Cas. Co., 2024 Cal. LEXIS 3806 (Cal. July 18, 2024).
Plaintiff held a homeowners policy issued by State Farm that provided coverage for all risks except those specifically excluded under the policy. The suit limitation provision provided, "Suit Against Us. No action shall be brought unless there has been compliance with the policy provision.The action must be started within one year after the date of loss or damage."
On two occasions in late 2018 or early 2019, plaintiff's neighbor stumble and fell as she descended a staircase at plaintiff's residence. Plaintiff discovered that the pitch of the stairs had changed, and replacement of the stairs was required to fix the issue. She contacted State Farm on or around April 23, 2019. On August 9, 2019, plaintiff submitted a claim to State Farm, seeking reimbursement for what she paid to repair the staircase. State Farm denied the claim, advising there was no coverage and identifying several exclusions as potentially applicable.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Joint Venture Dispute Over Profits
January 28, 2019 —
David R. Cook, Jr. - Autry, Hall, & Cook, LLPA recent Georgia Court of Appeals case demonstrates the risk of joint ventures failing to carefully define accounting rules in their joint venture agreement. Two trade contractors teamed up to accomplish certain tasks on a job at a wastewater lift station at Fort Gordon. A joint venture agreement provided for an equal split of the profits and losses. Unfortunately, the parties did not define “profit,” and particularly did not define what cost would be deducted in calculating profit. They disputed in particular whether certain large payments to individuals and 15% overhead charges should be deducted in calculating profits.
One party presented the expert testimony of an accountant while the other did not. The party presenting expert testimony asked the court to dismiss the other party’s claim because it was not supported by expert testimony of an accountant. The trial court granted the motion and dismissed the claim.
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David R. Cook, Jr., Autry, Hall, & Cook, LLPMr. Cook may be contacted at
cook@ahclaw.com
Harsh New Time Limits on Construction Defect Claims
April 26, 2011 —
Scott F. Sullan, Esq., Mari K. Perczak, Esq., and Leslie A. Tuft, Esq.A recent Colorado Supreme Court decision, Smith v. Executive Custom Homes, Inc., 230 P.3d 1186 (Colo. 2010), considerably shortens the time limit for bringing many construction defect lawsuits. Homeowners and homeowner associations risk losing the right to seek reimbursement from builders, developers and other construction professionals unless they carefully and quickly act upon discovery of evidence of any potential construction defect.
The Statute of Limitations for Construction Defect Claims
Colorado’s construction defect statute of limitations limits the time for homeowners and homeowners associations to bring lawsuits for construction defects against “construction professionals,” including developers, general contractors, builders, engineers, architects, other design professionals, inspectors and subcontractors. The statute requires homeowners and associations to file suit within two years “after the claim for relief arises.” A claim for relief “arises” when a homeowner or association discovers or reasonably should have discovered the physical manifestation of a construction defect.
The two-year time limitation applies to each construction defect separately, and will begin to run upon the appearance of a “manifestation” of a construction defect (which may include, for example, a condition as simple as a roof leak or drywall cracks), even if the homeowner or association does not know the cause of the apparent problem.
The Smith Opinion and its Effect on the Statute of Limitations
In Smith v. Executive Custom Homes, Inc., the plaintiff homeowner, Mrs. Smith, slipped on ice that had accumulated on her sidewalk because of a leaking gutter and suffered injury. When she first noticed the leak, she reported it to her property manager, who reported it to the builder. The builder attempted to repair the gutter, unbeknownst to Mrs. Smith, and she did not notice further problems until approximately one year after she first observed the leak, when she fell and suffered serious injury. She sued the builder within two years of her injury, but nearly three years after she first learned of the leak.
The Colorado Supreme Court dismissed Mrs. Smith’s claims as untimely and held that under the construction defect statute of limitations, the two-year period for suing for injuries due to construction defects begins when the homeowner first observes the physical manifestation of the defect, even if the resulting injury has not yet occurred. The court acknowledged that this ruling could result in “unfair results,” especially if a serious and unforeseeable injury occurs more than two years after the first time the homeowner noticed the problem, and as a result the victim is unable to seek redress from those responsible for the defect.
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Reprinted courtesy of Scott F. Sullan, Esq., Mari K. Perczak, Esq., and Leslie A. Tuft, Esq. of Sullan2, Sandgrund, Smith & Perczak, P.C., and they can be contacted through their web site.
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Contractor Prevailing Against Subcontractor On Common Law Indemnity Claim
June 29, 2020 —
David Adelstein - Florida Construction Legal UpdatesCommon law indemnity is not an easy claim to prove as the one seeking common law indemnity MUST be without fault:
Indemnity is a right which inures to one who discharges a duty owed by him, but which, as between himself and another, should have been discharged by the other and is allowable only where the whole fault is in the one against whom indemnity is sought. It shifts the entire loss from one who, although without active negligence or fault, has been obligated to pay, because of some vicarious, constructive, derivative, or technical liability, to another who should bear the costs because it was the latter’s wrongdoing for which the former is held liable.
Brother’s Painting & Pressure Cleaning Corp. v. Curry-Dixon Construction, LLC, 45 Fla. L. Weekly D259b (Fla. 3d DCA 2020) quoting Houdaille Industries, Inc. v. Edwards, 374 So.2d 490, 492-93 (Fla. 1979).
Not only must the one seeking common law indemnity be without fault, but there also needs to be a special relationship between the parties (indemnitee and common law indemnitor) for common law indemnification to exist. Brother’s Painting & Pressure Cleaning Corp., supra (citation omitted). A special relationship has been found to exist between a general contractor and its subcontractors. Id. at n.2.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Environmental Justice Legislation Update
May 17, 2021 —
Anthony B. Cavender - Gravel2GavelEnvironmental Justice, as an urgent priority of the Federal Government, dates back to 1994, and President Clinton’s issuance of Executive Order 12898. This order directed federal agencies to identify and address, as appropriate, the disproportionately high and adverse human health and environment effects of its many programs, policies and procedures on minority populations and low-income populations. The primary legal basis for this order was Title VI of the Civil Rights Act of 1964, in particular, Sections 601 and 602, which prohibit discrimination in programs and activities receiving federal financial aid and assistance. Over the years, the Supreme Court has reviewed the scope and importance of Title VI. In Alexander v. Sandoval, decided in 2001, the Court concluded that while private parties could sue to enforce Section 601 or its implementing regulations, as written, Section 601 only prohibits intentional discrimination. Noting that disproportionate impact is not the sole touchstone of invidious racial discrimination. Moreover, the Court also ruled in Sandoval that private parties cannot sue to enforce regulations implementing Section 602. Perhaps as an acknowledgement of these shortcomings, the Environmental Protection Agency (EPA) has established an administrative system to process environmental justice complaints at 40 CFR Part 7. Without strengthening the statutory base of environmental justice, the program may continue to be the subject of countless symposiums and seminars. However, this may change soon.
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Anthony B. Cavender, PillsburyMr. Cavender may be contacted at
anthony.cavender@pillsburylaw.com
Effective Strategies for Reinforcing Safety Into Evolving Design Standards
July 02, 2024 —
Ethan Harris - Construction ExecutiveFrom design/build condos to built-to-suit warehouses, one factor remains the highest priority regardless of the project type—the approach to upholding the highest level of safety. Safety exists as a core value across all areas of the construction industry, but the increased risk of serious injuries or fatalities persists. Ranked fourth on the United States Bureau of Labor Statistics’ list of occupations with the most fatality rates, construction workers put their lives in danger each time they step onto the jobsite.
Considering this risk, it’s important for every team member—from subcontractors to superintendents—to take responsibility for safety compliance, empowering their workforce to take ownership of their own actions and hold others accountable for theirs. To help enhance safety efforts from start to completion, safety leaders are focusing on ways to implement safety standards within each component of a building’s design. Although this approach requires more comprehensive planning and strategizing on the front end, it is intended to reduce and mitigate hazards before they become larger issues. Keeping this idea in mind, here are a few actionable methods for managing projects designed around safety compliance.
ASSESS FIRST
No two jobsites are the same. From crowded pedestrian walkways to dangerous existing infrastructure, each project requires specific layouts, materials and processes to be fully functional both during and after construction. Given the unique nature of each site, a detailed risk assessment must be conducted before any other design and/or building activities begin. During this initial assessment, careful consideration should be placed on the overall flow as it relates to the people, processes and equipment located on or near the construction site.
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Ethan Harris, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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