Seattle Washington Building Expert Directory

Pass-Through Subcontractor Claims, Liquidating Agreements, and Avoiding a Two-Front War

April 26, 2021 — Bradley Sands, Jones Walker LLP - ConsensusDocs
Subcontractor claims happen. When those subcontractor claims are prompted by owner actions or responsibilities, the general contractor must always be vigilant to plan for and work to avoid a two-front war in which the general contractor is pushing the owner for recovery while at the same time disputing the subcontractor’s entitlement. Cooperation between the general contractor and the subcontractor and avoiding that two-front war can be accomplished through pass-through claims and ideally liquidating agreements. A pass-through claim is a claim by the subcontractor who has suffered damages by the owner with whom it has no contract, presented by the general contractor. A liquidating agreement or subcontract “liquidating language” goes a step further than simply a pass-through claim by “liquidating” the general contractor’s liability for the subcontractor’s claim and limiting the general contractor’s liability to the value recovered against the owner. The distinction between pass-through claims generally and use of liquidating agreements or language is described in greater detail below. Pass-through subcontractor claims are routine in construction and an important, common sense approach to deal with ever-present changes and the unexpected that can have cost and time implications. Despite the common sense basis for subcontractor pass-through claims, there are important legal considerations that must be addressed, and critical planning required, starting with the subcontract clauses. Read the court decision
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Reprinted courtesy of Bradley Sands, Jones Walker LLP
Mr. Sands may be contacted at bsands@joneswalker.com

New ConsensusDocs 242 Design Professional Change Order Form Helps Facilitate Compensation for Changes in Design Services

November 05, 2024 — Brian Perlberg - ConsensusDocs
ConsensusDocs is publishing a new ConsensusDocs 242 Change in Services and Compensation, a change order for design services by a design professional. In the design and construction industry, one thing is certain – change. The work scope included in basic design services an architect or engineer provides occurs somewhat regularly. Previously, ConsensusDocs did not have a standard contract document for changing design professionals’ prices. As a result of user feedback, the ConsensusDocs Contract Content Advisory Council (CCAC) drafted this new architect/engineer change order. The CCAC unanimously approved the new contract document and publication is set for October 14, 2024. The document will be available for most ConsensusDocs subscribers. The full, owner, design-professional, and short-form subscription packages will include the document. A subscription package can be purchased through ConsensusDocs here. The design professional change order helps owners of construction projects keep track of additional services their design professionals perform. The design professional must provide itemized labor breakdowns for each invoice. The new ConsensusDocs 242 has options for compensation to be actual hours at the billing rate or a lump sum. The new contract document form also has a table for the remaining project deliverables and their respective due dates. Read the court decision
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Reprinted courtesy of Brian Perlberg, ConsensusDocs Coalition
Mr. Perlberg may be contacted at bperlberg@ConsensusDocs.org

Beware of Design Pitfalls In Unfamiliar Territory

September 05, 2022 — Brad Shefrin - Engineering News-Record
$250,000. $1.5 million. $12 million. These are the litigation damage estimates that plaintiffs sought to recover against design professionals who failed to familiarize themselves with local site conditions. Reprinted courtesy of Brad Shefrin, Engineering News-Record ENR may be contacted at enr@enr.com Read the full story... Read the court decision
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Case Alert Update: SDV Case Tabbed as One of New York’s Top Three Cases to Watch

January 10, 2018 — Richard W. Brown - SDV Blog
Argument before the Court of Appeals has now been scheduled for February 7, 2018, in Gilbane Building Co. v. St. Paul Insurance, with a long anticipated decision by New York’s highest court to be issued shortly thereafter. In its September 18, 2017 edition, Law360.com highlighted three major cases with significant implications on insurance coverage that will soon be decided by the New York Court of Appeals. Gilbane presents an opportunity for the Court to address the growing number of divergent decisions regarding the prerequisites for qualifying as an additional insured, as it considers an Appellate Division’s holding that a construction manager is not entitled to coverage as an additional insured under a contractor’s policy because the two companies did not enter into a direct contract. Read the court decision
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Reprinted courtesy of Richard W. Brown, Saxe Doernberger & Vita, P.C.
Mr. Brown may be contacted at rwb@sdvlaw.com

Trial Date Discussed for Las Vegas HOA Takeover Case

February 04, 2014 — Beverley BevenFlorez-CDJ STAFF
Jeff German of the Las Vegas Review-Journal reported that Justice Department attorneys filed papers January 28th demanding the trial involving 11 defendants charged in a scheme to take over the Las Vegas Valley homeowners associations to be held no later than September 2nd. The prosecutors claimed “they have gone out of their way to ease the burden on the defense as they have turned over mountains of evidence in the past year.” However, the defense attorneys allege that they need “at least a year and likely more time” to go through the “more than 3 million pages of documents” and to create a trial strategy, according to German. The defense “asked for an initial late January 2015 trial date.” The case involves charges against “lawyers, former police officers and corrupt board members” for “packing HOA boards to gain legal and construction defect contracts for themselves.” Read the court decision
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Stop Losing Proposal Competitions

December 10, 2024 — Christopher G. Hill - Construction Law Musings
For this week’s Guest Post Friday here at Musings, we welcome back Matt Handal. Matt (@matthandal) provides proposal writing strategies that actually work at www.howtowritetheproposal.com. He is the author of Proposal Development Secrets, contributing editor of SMPS Marketer, and co-author of the Marketing Handbook for the Design & Construction Professional. His latest experiment is on business letters. It’s frustrating. You’re a great designer or contractor. Clients love you. The problem is you spend hours producing great proposals, but keep losing. Not only that, most of the time you don’t even get short listed. To make matters worse, the clients keep choosing firms you know you’re better than. So they get the contract and you’re left scrambling for work. Even though these firms frustrate you, imagine what it’s like to be them. They’re not the best, or most qualified firm, yet they walk away with the contract. They are not scrambling for work. They’ve got a healthy backlog. Imagine how it must feel to be them. Read the court decision
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Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

The Quiet War Between California’s Charter Cities and the State’s Prevailing Wage Law

April 20, 2016 — Garret Murai – California Construction Law Blog
Behind the scenes a quiet war is raging. A war pitting local sovereignty, on one hand, against a Depression-era law intended to help those working on state and local public works projects, on the other. California’s Prevailing Wage Law Beginning in 1929 and continuing through the late 1930s, the Great Depression is widely considered to be the longest, most widespread depression of the 20th century. In 1931, the federal government enacted the Davis-Bacon Act to help workers on federal construction projects. The Davis-Bacon Act, also known as the federal prevailing wage law, sets minimum wages that must be paid to workers on federal construction projects based on local “prevailing” wages. The law was designed to help curb the displacement of families by employers who were recruiting lower-wage workers from outside local areas. Read the court decision
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Reprinted courtesy of Garret Murai, Wendel Rosen Black & Dean LLP
Mr. Murai may be contacted at gmurai@wendel.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. Read the court decision
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