Narberth Mayor Urges Dubious Legal Action
June 15, 2017 —
Wally Zimolong - Supplemental ConditionsWhen I left Philadelphia, I thought I had largely left NIMBY zoning disputes behind. However, I quickly learned that the Main Line NIMBY is simply a tiger of a different stripe (and better financed and represented than their Philadelphia brethren).
One dispute that recently caught my attention concerns the proposed demolition of a 120 year old church in Narberth. A developer wishing to demolish a church and develop apartments and drawing the ire of certain neighbors is something that is routine in Point Breeze or Fishtown. However, apparently the same is true on the Main Line. At issue in the case, is a restriction contained in a 1891 deed that apparently states that only a church can be built on the property. (The article discussing the case does not quote the precise language of the purported restriction.)
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Wally Zimolong, Zimolong LLCMr. Zimolong may be contacted at
wally@zimolonglaw.com
Classify Workers Properly to Avoid Expensive Penalties
April 25, 2022 —
Martin C. McCarthy - Construction ExecutiveBusiness owners must carefully consider how the people working for them are classified. There is a fine line between being identified as a contractor or employee on the job. Owners must know the difference to avoid being penalized.
Worker classification determines if an employer must withhold income taxes and pay Social Security, Medicare taxes and unemployment tax on wages paid to an employee. Businesses do not have to withhold or pay any taxes on payments to independent contractors. The earnings of a person working as an independent contractor are subject to self-employment tax.
There are federal and state rules for determining if a person is an employee or contractor. Employers must follow both sets of guidelines when classifying workers.
Reprinted courtesy of
Martin C. McCarthy, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Mr. McCarthy may be contacted at marty.mccarthy@mcc-cpas.com
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Harvey's Aftermath Will Rattle Construction Supply Chain, Economists Say
September 07, 2017 —
Tim Grogan - Engineering News-RecordHurricane Harvey’s immediate impact on the construction sector will be a disruption in the supply chain for key materials, along with scheduling problems for projects that were under construction. As the cleanup and eventual rebuilding proceed, increased demand for materials and labor will push costs upward and contractors will be scrambling to secure supplies and workers.
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Tim Grogan, ENRENR may be contacted at
ENR.com@bnpmedia.com
Blindly Relying on Public Adjuster or Loss Consultant’s False Estimate Can Play Out Badly
May 03, 2021 —
David Adelstein - Florida Construction Legal UpdatesInsurance policies, particularly property insurance policies, have a concealment or fraud provision that, in essence, gives the insurer an out if the insured submits a fraudulent claim, a false claim, or conceals material facts. Unlike a traditional fraud claim where a party needs to prove intent, the provision is broad enough that it does not require any intent behind making a false statement. See Mezadieu v. Safepoint Ins. Co., 46 Fla.L.Weekly D691c (Fla. 4th DCA 2021). For this reason, and as exemplified below, do NOT blindly rely on a public adjuster or loss consultant’s estimate that contains false statements because those false statements, particularly if you know they are false, can play out badly for you! Review the estimate and ask questions about it to make sure you understand what is being included in the loss or damages estimate.
In Mezadieu, a homeowner submitted a claim to her property insurance carrier due to a second-floor water leak emanating from her bathroom. She submitted an estimate from her public adjuster that included damages for her kitchen cabinets directly below the second-floor bathroom, as well as other items on her first-floor. Her carrier denied coverage based on the exclusion that the policy excludes damage caused by “[c]onstant or repeated seepage of water or steam…which occurs over a period of time.”
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Taking Service Network Planning to the Next Level
July 22, 2019 —
Aarni Heiskanen - AEC BusinessCities and municipalities are basically systems for delivering services for the benefit of their citizens. An experimental project demonstrated how improving the flow of data between these services could save a lot of time and taxpayer money.
Emilia Rönkkö is an architect who worked for the Finnish city of Kuopio. Besides that, she is a Docent of Urban Planning at the University of Oulu.
“In Kuopio, my job included doing architectural programming for public investments and service network reviews. More specifically, surveys about Growth and Learning Services that were focused on daycares and schools,” Rönkkö explains. “Typically, a service network review with manual data collection procedures takes place every three to five years. I and other functionaries involved in the process wondered if there might be a better, more efficient way to do the reviews.”
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi
Construction Lien Waiver Provisions Contractors Should Be Using
January 06, 2020 —
Jason Lambert - Construction ExecutiveIt is common in construction for a subcontractor or material supplier of any tier to be required to provide a lien waiver when receiving payment. But not all lien waivers are created equal. While at a minimum, a lien waiver, by definition, needs to include a release of liens, it can also include many other terms that can tie up loose ends or resolve potential problems before they begin.
Additional Releases
A typical lien release is going to release any liens and right to claim liens on the subject property. But a lien waiver can also include releases of any claims against surety bonds, other statutory rights or claims, and at its broadest, claims against the paying party. One example of a provision that could help accomplish this is a release of “any right arising from a payment bond that complies with a state or federal statute, any common law payment bond right, any claim for payment, and any rights under any similar ordinance, rule, or statute related to claim or payment rights.” Broad release language can also be used to effectively preclude any claims arising prior to the date of the release.
Payment Representations and Warranties
A typical lien release has no representations or warranties about payment to subcontractors or material suppliers of a lower tier. But contractors can include language requiring the company receiving payment to represent and warrant that all subcontractors of a lower tier have been paid or will be paid within a certain timeframe using the funds provided and that these are material representations and inducements into providing payment. On a related note, if the contract requires subcontractors to provide lien releases from lower tier subcontractors in addition to their own release when seeking payment, contractors can require the sub-subcontractor releases to include representations that they have been paid by the subcontractor to try and tie up payment loose ends all around.
Reprinted courtesy of
Jason Lambert, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Mr. Lambert may be contacted at
jason.lambert@nelsonmullins.com
Subcontractor Exception to "Your Work" Exclusion Does Not Apply to Coverage Under Subcontractor's Policy
January 26, 2017 —
Tred R. Eyerly – Insurance Law HawaiiThe Arizona Court of Appeals overturned the trial court's determination that the general contractor was entitled to coverage under the subcontractor's exception to the "Your Work" exclusion. Double AA Builders v. Preferred Contrs. Ins. Co., 2016 Ariz. App. LEXIS 294 (Ariz. Ct. App. Dec. 30, 2016).
Harkins Theatres hired Double AA Builders, Ltd. to serve as general contractor to build a theater complex. Double AA subcontracted with Anchor Roofing, Inc. to install the roof. Anchor was the "Named Insured" under a policy issued by Preferred Contractors Insurance Company, LLC. Double AA was an "Additional Insured" under the Preferred policy.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Virginia General Assembly Tweaks Pay-if-Paid Ban
April 03, 2023 —
Christopher G. Hill - Construction Law MusingsLast year, the Virginia General Assembly passed into law a ban on the so-called pay-if-paid clauses, effective January 1, 2023. I shared my thoughts and concerns with the legislation as drafted at the time of its passage. During this most recent legislative session, and among some other construction-related bills, the General Assembly sought to clarify its past enactment.
The enrolled bill fills in certain gaps in the law as follows:
- For both private and public contracts, the General Contractor, if it has good reason to withhold any payment, now has a maximum of 50 days from receipt of a proper invoice to notify its subcontractor of the reason for the withholding, including the contractual noncompliance, the amount to be withheld, and the lower-tier subcontractor responsible for the contractual noncompliance.
- For private contracts, the Owner now has 45 days in which to provide any written notice of intention to withhold payment. This notice must include the specific contractual non-compliance and the dollar amount to be withheld. NB- Owners do not need to specify the subcontractor responsible for the non-compliance.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com