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    Ambiguity Kills in Construction Contracting

    May 27, 2019 —
    Well, I’m back and hope to have a more consistent publishing schedule moving forward. I appreciate the continued readership through what has been a busy time for my solo construction practice over the last couple of months. Now, back to our program. . . Here at Construction Law Musings, I have often beaten the drum of a solid contract that leaves as little as possible to chance or the dreaded “grey areas” where we construction lawyers like to make money. An example of the issues that can arise from ambiguity can be found in a case from 2017 in the Western District of Virginia, W.C. English, Inc. v. Rummel, Klepper & Kahl, LLP et al In this case, English, a general contractor, entered into a contract for Quality Assurance (QA) functions with RK&K, the defendant, on a contract English entered into with the Virginia Department of Transportation (VDOT). Needless to say, because this would not be a post at Musings otherwise, there were issues with the QA performed by RK&K leading to additional costs for English to correct certain work that did not comply with the contract documents between VDOT and English. English sued for breach of contract based upon a term sheet, signed by the parties, from RK&K that required RK&K to indemnify English for claims by VDOT that related to RK&K’s work (the English Term Sheet). RK&K moved to dismiss the complaint based upon a different term sheet, also signed by the parties, which stated that RK&K could not be held responsible for English’s failure to perform pursuant to the contract documents (the RK&K Term Sheet). 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

    Blackstone Said in $1.7 Billion Deal to Buy Apartments

    January 21, 2015 —
    Blackstone Group LP (BX), the biggest owner of U.S. single-family houses, agreed to buy 36 apartment properties across the country for about $1.7 billion as it expands its rental business, according to two people with knowledge of the transaction. The low-rise, garden-style properties are being sold by Praedium Group, a New York-based real estate investment firm, and contain about 11,000 apartments, said the people, who asked not to be identified because the deal is private. About half of the buildings are in California, Washington, D.C., and Boston, with the rest located around the U.S., they said. Read the court decision
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    Reprinted courtesy of Hui-yong Yu, Bloomberg
    Hui-yong Yu may be contacted at hyu@bloomberg.net

    Construction Defect Notice in the Mailbox? Respond Appropriately

    August 04, 2011 —

    Recently, I have seen a rash of ignored construction defect notices. What is a construction defect notice? It’s a statutorily required notice, sent from a homeowner to a contractor, listing a number of defects found at their property. If you get one, don’t ignore it.

    The Revised Code of Washington includes a number of provisions intended for residential construction disputes. Among them is the “Notice to Customer” requirement in RCW 18.27.114, which can preempt a contractor’s lien rights, and the “Notice of Construction Defects” found in RCW 64.50.020.

    The Notice of Construction Defects is a standard notice mandated by RCW 64.50, a chapter in the Revised Code of Washington, intended to provide a pre-litigation resolution process for contractors and consumers. The chapter applies only to those losses “caused by a defect in the construction of a residence or in the substantial remodel of a residence.”(See “Action” RCW 64.50.010).

    Unfortunately, many contractors will simply ignore these notices or tell the homeowner to make a warranty claim. But, the notice actually provides a contractor with a forty-five (45) day window to alleviate the dispute.

    Read the full story…

    Reprinted courtesy of Douglas Reiser of Reiser Legal LLC. Mr. Reiser can be contacted at info@reiserlegal.com

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    Reprinted courtesy of

    Insurer Beware: Failure to Defend Ends with Hefty Verdict

    June 01, 2011 —

    Served with a lawsuit that you turned over to your insurer? Insurer refusing to defend you? Well, find some hope in this news. Washington’s IFCA has the claws to ensure that insurers perform their duties.

    Contractors heavily rely on the defense provisions of their Commercial General Liability (CGL) policies. In construction, a legal dispute can easily rear its head when you least expect it. Luckily, Washington registered contractors are required to maintain CGL insurance. That insurance often provides contractors with adequate legal defense in the event that they are sued.

    But, what if your insurer turns down the defense request? They might be staring at massive damages. A current Reiser Legal client, Australia Unlimited, Inc., recently won a large verdict against Hartford Insurance, after the insurer unreasonably denied their claim. The firm who represented Australia Unlimited Inc. in that case, Hackett Beecher and Hart, were successful in procuring a $5.43 Million verdict

    Read the full story…

    Reprinted courtesy of Douglas Reiser of Reiser Legal LLC. Mr. Reiser can be contacted at info@reiserlegal.com

    Read the court decision
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    Reprinted courtesy of

    Eminent Domain Bomb Threats Made on $775M Alabama Highway Project

    July 03, 2022 —
    Multiple bomb threats have been made against Alabama transportation officials, law enforcement and others in reaction to eminent domain plans for a major highway expansion project. Reprinted courtesy of Derek Lacey, Engineering News-Record Mr. Lacey may be contacted at laceyd@enr.com Read the full story... Read the court decision
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    Reprinted courtesy of

    New England Construction Defect Law Groups to Combine

    November 13, 2013 —
    The lawyers of Little Bulman Medeiros & Whitney PC will be joining Pierce Atwood on December 9, 2013. The combined firm will have a larger construction litigation practice. Little Bulman is already recognized for its handling of construction disputes. Pierce Atwood is one of the largest firms in New England. Their combined forces intended to create a strong presence in construction litigation throughout New England. Gloria Pinza, a managing partner at Pierce Atwood said of Little Bulman that “their exceptional credentials in the construction law area will combine with our strong construction practice to create a regional practice that will provide highly competitive expertise, depth and value throughout New England and beyond. Read the court decision
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    Reprinted courtesy of

    State-Fed Fight Heats Up Over Building Private Nuclear Disposal Sites

    August 03, 2022 —
    The U.S. Nuclear Regulatory Commission and Interim Storage Partners, a joint venture that gained a federal license last year to build an interim storage facility for spent commercial nuclear fuel at a Texas site, have until Aug. 3 to answer a federal lawsuit claim by state officials that a new U.S. Supreme Court decision eliminates the federal agency’s licensing authority. Reprinted courtesy of Mary B. Powers, Engineering News-Record and Debra K. Rubin, Engineering News-Record Ms. Rubin may be contacted at rubind@enr.com Read the full story... Read the court decision
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    Who Is To Blame For Defective — And Still LEED Certified — Courthouse Square?

    September 01, 2011 —

    Remember Courthouse Square? I sure do. We have talked about the closed and evacuated LEED certified building a couple of times here on Builders Counsel. Well, it’s back in the news. This time building professionals are pointing fingers — but there is some talk about a fix. Still, its LEED certification remains.

    If you read my past articles about Courthouse Square, you can get caught up on this mess. The short of it is that Salem, Oregon had the five-story government building and bus mall completed in 2000 for $34 Million. It was awarded LEED certification during the USGBC’s infancy. Last year, it became public that the building had significantly defective concrete and design. The Salem-Keizer Transit District worked with the City of Salem to shut the building down, and it has not been occupied since.

    Last fall, Courthouse Square failed thorough forensic testing leading to a lengthy bout with a number of insurers.  The contractors and designers had been hauled into court, but the Transit District was able to settle with the architect and contractors. The only remaining party involved in the lawsuit appears to be the engineering firm, Century West Engineering. Most expert reports have pinned the responsibility for the poor design and materials on Century West’s shoulders.

    Read the full story…

    Reprinted courtesy of Douglas Reiser of Reiser Legal LLC. Mr. Reiser can be contacted at info@reiserlegal.com

    Read the court decision
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    Reprinted courtesy of