Fairfield Connecticut Building Expert Directory

Construction Spending Had Strongest Increase in Four Years

January 13, 2014 — CDJ STAFF
The Commerce Department announced a 1% gain in construction spending, from October to November, which is the biggest gain that construction has seen since March 2009, according to The Spokesman-Review. The gain brought construction spending to an adjusted annual rate of $934.4 billion. The Spokesman-Review further reports that residential construction rose 1.9% in November, while commercial construction rose 2.7%. Government construction, on the other hand, fell 1.8%. Read the court decision
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AAA Revises its Construction Industry Arbitration Rules and Mediation Procedures

April 02, 2024 — Garret Murai - California Construction Law Blog
This one is for the lawyers. Or for those of you who are claims-minded . . . Effective March 1, 2024, the American Arbitration Association (“AAA”) revised its Construction Industry Arbitration Rules and Mediation Procedures. For those involved in construction, this is important since the AAA Rules are the default arbitration rules contained in AIA form contracts and are often the arbitration rules referenced in other construction contracts as well. So, what are the changes?

General: Fax numbers have gone the way of the Dodo bird and replaced by email addresses for all parties. Also, while already done in practice, preliminary hearings may now be held via videoconference in addition to telephone and in-person (Rule R-23).

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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

Recovering Unabsorbed Home Office Overhead Due to Delay

May 30, 2022 — David Adelstein - Florida Construction Legal Updates
In the preceding article, I discussed the use of a retrospective as-built delay analysis in a case before the Civilian Board of Contract Appeals (CBCA). This case also discussed a damages component in certain delay claims known as unabsorbed home office overhead—a challenging damages component to recover because this deals with indirect costs as opposed to direct costs. Unabsorbed home office overhead is a damages component when the contractor is on standby, but this is NOT as easy as just claiming standby thereby you are automatically entitled to unabsorbed home office overhead. There are requirements that MUST be met.

To obtain an equitable adjustment for unabsorbed home office overhead as compensation for being on standby, [the contractor] must initially show “[1] a government-caused delay of uncertain duration,” that “[2] the delay extended the original time for performance” or precluded the contractor from finishing earlier than scheduled, and that “[3] the contractor [was] on standby and unable to take on other work during the delay period. CTA I, LLC v. Department of Veteran Affairs, CBCA 5826, 2022 WL 884710 (CBCA 2022) quoting Nicon, Inc. v. U.S., 331 F.3d 878, 883 (Fed. Cir. 2003).

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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

The EEOC Targets Construction Industry For Heightened Enforcement

May 15, 2023 — Meghan Douris & Andrew Scroggins - The Construction Seyt
Seyfarth Synopsis: On January 10, 2023, the Equal Employment Opportunity Commission (EEOC) released for public comment its draft 2023-2027 Strategic Enforcement Plan (“SEP”)—a document that will guide the Commission’s enforcement priorities for the next five years. The EEOC’s prior Strategic Plan described how it would pursue its enforcement goals. (See our earlier blog on the Strategic Plan here). The Strategic Enforcement Plan, on the other hand, describes what the EEOC’s enforcement priorities will be. Earlier actions by the EEOC suggested that it might be turning its attention to the construction industry. In the SEP, the EEOC makes its intentions explicit, putting the construction industry—and especially those receiving federal funding—squarely in its sights. History of the SEP The EEOC’s first SEP covered Fiscal Years 2013-2016 (the EEOC’s fiscal years begin on October 1) and identified six broad subject-matter priorities. The EEOC’s second SEP set the course for enforcement priorities for FY2017-2022. The latest proposed SEP, published in the Federal Register for comment for the first time, provides notable additional details that put the employer community on notice of the Commission’s intentions for FY2023-2027.[1] Reprinted courtesy of Meghan Douris, Seyfarth and Andrew Scroggins, Seyfarth Ms. Douris may be contacted at mdouris@seyfarth.com Mr. Scroggins may be contacted ascroggins@seyfarth.com Read the court decision
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When Every Drop Matters, Cities Turn to Watertech

November 25, 2024 — James B. Bobotek - Gravel2Gavel Construction & Real Estate Law Blog
We all need water to survive—but access to the liquid lifeline isn’t always a given. With a shifting climate and ever-increasing agricultural and industrial demands on this limited commodity, UNICEF predicts that by 2025, half of the world’s population could be living in areas facing water scarcity. On top of the obvious resource drains, many countries are losing surprising amounts of potable water to leaks. For example, in the United States alone, an estimated 6 billion gallons of treated drinking water seep out of its supply every day due to aging pipelines and undetected leaks. “Smart” water innovations may offer conservation solutions, though. As part of an overall smart city scheme, where internet of things (IoT) devices work hand-in-hand with AI to improve daily life, many municipalities are giving their water systems a makeover. From new meters to irrigation and pipeline maintenance, we look at some of the key intelligent technologies that endeavor to improve how we harness our water supply. Read the court decision
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Reprinted courtesy of James B. Bobotek, Pillsbury
Mr. Bobotek may be contacted at james.bobotek@pillsburylaw.com

Construction Law Client Alert: California Is One Step Closer to Prohibiting Type I Indemnity Agreements In Private Commercial Projects

June 15, 2011 — Haight Brown & Bonesteel, LLP

On June 1, 2011 by majority vote, the California Senate passed Senate Bill 474, which would amend Civil Code section 2782, and add Civil Code section 2782.05. The passage of this new law is a critical development for real estate developers, general contractors and subcontractors because it will affect how these projects are insured and how disputes are resolved.

Civil Code section 2782 was amended in 2007 to prohibit Type I indemnity agreements for residential projects only. Since 2007, various trade associations and labor unions have lobbied to expand those very same restrictions to other projects. These new provisions apply to contracts, entered into after January 1, 2013, that are not for residential projects, and that are not executed by a public entity. The revisions provide that any provision in a contract purporting to indemnify, hold harmless, and defend another for their negligence or other fault is against public policy and void. These provisions cannot be waived.

A provision in a contract requiring additional insured coverage is also void and unenforceable to the extent it would be prohibited under the new law. Moreover, the new law does not apply to wrap-up insurance policies or programs, or a cause of action for breach of contract or warranty that exists independently of the indemnity obligation.

The practical impact of this new law is that greater participation in wrap-up insurance programs will likely result. While many wrap-up programs suffer from problems such as insufficient limits, and disputes about funding the self-insured retention, the incentive for the developer or general contractor to utilize wrap-up insurance will be greater than ever before because they will no longer be able to spread the risk of the litigation to the trades and the trade carriers.

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Reprinted courtesy of Steve Cvitanovic of Haight Brown & Bonesteel, LLP.

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Understanding Indiana’s New Home Construction Warranty Act

April 30, 2014 — Beverley BevenFlorez-CDJ STAFF
Marisa L. Saber on the Subrogation & Recovery Law Blog, discussed Indiana’s New Home Construction Warranty Act, and how it can benefit both builders and plaintiffs in construction defect cases. Saber stated that the “Indiana New Home Construction Warranty Act (the “Act”) (see Indiana Code §32-27-2-1 et. seq.) allows a builder to provide specific warranties and disclaim all implied warranties if the text of the statute is followed.” Furthermore, the warranties must be backed by an insurance policy. Saber answers the question as to why a builder would choose to provide express warranties: “The likely answer is that it allows the builder to have control over its liability if a construction defect occurs.” For instance, “[i]f a builder provides express warranties via the Act, it is assured that any warranty liability will be covered by insurance.” This benefits a plaintiff working in a subrogation case, “as there will be guaranteed insurance for the construction defect if the builder complies with the Act.” Read the court decision
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Buy America/Buy American, a Primer For Contractors

March 23, 2020 — John P. Ahlers - Ahlers Cressman & Sleight PLLC
President Trump has promoted his campaign agenda—bringing manufacturing jobs back to the United States (especially jobs relating or pertaining to the steel industry.) To do this, he has strengthened domestic preferences through the Buy America and Buy American Acts.[1] 1. Buy America Act: The Buy America Act refers to a collection of domestic contract restrictions pertaining to the U.S. Department of Transportation/Federal Highway Administration projects (highway, mass transit and other transportation projects). The USDOT grants provided to state and local governments prohibit the federal government from obligating funds unless the steel, iron and manufactured products used in the projects are produced in the U.S. Generally, Buy America applies to projects where USDOT provides part of the funding, applies to steel, iron and manufactured products, and requires that “all manufacturing processes, including application of a coating, for these materials…occur in the United States.”

Buy American: Buy American is critical for construction contractors because FAR 52.225-9 requires that all federal construction contracts under approximately $7 million[2] contain a clause which mandates that contractors use “only domestic construction material in performing [the] contract.” [Note: This requirement is not limited to steel and steel products, as the Buy America Act is.]

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Reprinted courtesy of John P. Ahlers, Ahlers Cressman & Sleight PLLC
Mr. Ahlers may be contacted at john.ahlers@acslawyers.com

FAIRFIELD CONNECTICUT BUILDING EXPERT DIRECTORY AND CAPABILITIES