Seattle Washington Building Expert Directory

Margins May Shrink for Home Builders

November 06, 2013 — CDJ STAFF
Home builders are worried that the rising prices of new homes might not rise enough and be caught by the rising costs of building them, cutting into the profit margin. “If builders say the trajectory of margins is beginning to peak, then in a cyclical business, people tend to go from thinking the best to thinking the worst,” Stephen Kim, a Barclays analyst told the Wall Street Journal. As of the end of October, the U.S. Home Construction Index was 21% below its highest point in 2013, set back in May. Margins are still over those of last year. Meritage Homes saw a gross margin of 22.8% in 2013’s third quarter, when the same quarter in 2012 had a gross margin of 18.6%. Steven Hilton, the firm’s Chairman and CEO, predicted little or no growth and a decline toward 20% or 21%. On the other hand, with margins at 20.6%, Ryland Homes sees itself at a normal point. Larry Nicholson, the President and CEO of Ryland, said “there’s not a lot of room for it to grow.” Read the court decision
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Another Defect Found on the Bay Bridge: Water Leakage

February 11, 2014 — Beverley BevenFlorez-CDJ STAFF
According to the San Francisco Chronicle, the eastern span of the Bay Bridge has dealt with alleged “defective welds” and “cracked steel rods,” and now there are reports of leakage. The Chronicle stated that rainwater “is dripping into the steel structure beneath the road deck on the suspension stretch of the span, which,” according to Caltrans “is supposed to be watertight.” Water corrosion on a bridge could cost $6.4 billion, the San Francisco Chronicle claimed. Caltrans said that they “are going to have teams of engineers and inspectors there this weekend to assess the problem.” Read the court decision
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Toll Brothers Snags Home Builder of the Year Honors at HLS

May 13, 2014 — Beverley BevenFlorez-CDJ STAFF
Builder magazine named Toll Brothers as their Builder of the Year during their Housing Leadership Summit in Laguna Niguel, California, according to Big Builder: “The Builder of the Year, BUILDER’s highest honor each year, is recognized for its excellence in successful business strategy, its achievements, and its corporate leadership.” “The company’s up-market price-point, lifestyle segmentation positions, and its best-of-breed execution set it apart from competitors in production home building and development as one of housing’s most powerful and promising brands,” BUILDER editorial director John McManus said while presenting the award, as quoted by Big Builder. “Toll Brothers one day will be a globally recognizable luxury housing and hospitality trademark along the lines of Four Seasons or Ritz-Carlton.” Read the court decision
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Contractor Walks Off Job. What are the Owner’s Damages?

September 25, 2018 — David Adelstein - Florida Construction Legal Updates
What are your damages as the result of a breach of the construction contract? This is an important question, right? It is probably the most important part of your case. If you didn’t have damages, you wouldn’t be in a dispute. So, I repeat, what are your damages as the result of a breach of the construction contract? The below case explains dealing with a contractor that elected to walk off the job mid-construction. In Forbes v. Prime General Contractors, Inc., 43 Fla.L.Weekly D20194a (Fla. 2d DCA 2018), owners hired a contractor to perform a residential renovation job for $276,000. The owners were to pay the contractor in five draw payments (common for residential jobs) where the third draw payment was due upon the contractor’s completion of the dry-in (as defined in the contract). After the contractor received the first two draw payments totaling $138,000 plus an additional $6,000 for updated architectural plans, the contractor claimed the job doubled in price and demanded that the owners pay the contractor the third draw payment immediately (before it was due) plus an additional $31,450. The contractor refused to continue unless the owners agreed to its terms, and then walked off the job when the owners would not agree to these terms (nor should the owners agree to those terms). At the time the contractor walked off the job, the owners’ home was not habitable due to the construction. Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris
Mr. Adelstein may be contacted at dma@kirwinnorris.com

Be Careful with Mechanic’s Lien Waivers

June 09, 2016 — Christopher G. Hill – Construction Law Musings
Mechanic’s liens are near and dear to my heart here at Construction Law Musings. These powerful tools can and should be properly used to help you, as a construction professional, get paid for your good work. Of course, the correct steps toward perfecting one of these liens must be followed, including being sure to meet the stringent lien deadlines. I’ve discussed the steps for filing such a lien and the various pitfalls relating to the very picky statutory requirements for recording an enforceable memorandum of lien in Virginia. One important area that I have not discussed as thoroughly as these basic requirements (and an area of which I have been reminded by my pals at the Construction Payment Blog) is the area of mechanic’s lien waivers. While the Virginia General Assembly has ended the days of pre-payment contractual waiver of mechanic’s lien rights for subcontractors and suppliers, mechanic’s lien waivers that waive rights either simultaneous with or after receipt of progress and final payments are still valid and used on a regular basis. Read the court decision
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Reprinted courtesy of Christopher G. Hill, Law Office of Christopher G. Hill, PC
Mr. Hill may be contacted at chrisghill@constructionlawva.com

Sixth Circuit Finds No Coverage for Faulty Workmanship Under Kentucky Law

December 30, 2013 — Tred Eyerly — Insurance Law Hawaii
Following Kentucky law, the Sixth Circuit determined there was no coverage for a construction defect claim. Liberty Mut. Fire Ins. Co. v. Kay & Kay Contracting, LLC, 2013 U.S. App. LEXIS 23587 (6th Cir. Nov. 19, 2013). Walmart hired a contractor to build a new store. The contractor hired Kay and Kay to perform site preparation work and construct the building pad for the new store. After Kay and Kay completed the building pad and the store was erected, cracks were noticed in the building's walls. Walmart contended there was settling in the some of the fill areas. Kay and Kay denied liability, but demanded coverage under its CGL policy with Liberty Mutual. Read the court decision
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Reprinted courtesy of Tred Eyerly
Tred Eyerly can be contacted at te@hawaiilawyer.com

Another Law Will Increase Construction Costs in New York

May 29, 2023 — Bill Wilson - Construction Law Zone
New York recently enacted legislation known as Carlos’ Law, which increases penalties for corporate liability for the death of, or serious injury to, an employee. The bill, S.621B / A.4947B, was named after Carlos Moncayo, a construction worker killed in a trench collapse on a New York City construction project. Moncayo’s employer repeatedly flouted safety rules and ignored warnings of dangerous conditions on its construction site before failing to properly support the trench that collapsed and killed Moncayo. Moncayo’s employer was convicted for his death, but the penalty was light. The company was sentenced to pay only $10,000, the maximum penalty at the time for any company convicted of a felony in New York State. The legislature responded with Carlos’ Law, which increases accountability for “employers,” and expands the scope of “employees” covered. The corporate criminal law, NY Penal § 20.20(2)(c)(iv), imposes liability on an employer when “the conduct constituting the offense is engaged in by an agent of the corporation while acting within the scope of his employment and on behalf of the corporation, and the offense is . . . in relation to a crime involving the death or serious physical injury of an employee where the corporation acted negligently, recklessly, intentionally, or knowingly.” An “agent” of an employer is any “director, officer or employee of a corporation, or any other person who is authorized to act on behalf of the corporation.” § 20.20(a). An “employee” now includes any person providing labor or services for remuneration for a private entity or business within New York State without regard to an individual’s immigration status, and includes part-time workers, independent contractors, apprentices, day laborers and other workers. § 10.00 (22). The penalties for criminal corporate liability for the death or serious injury of an employee now include maximums of $500,000 when centered on a felony, and $300,000 when centered on a misdemeanor. § 80.10(1)(a) and (b). Read the court decision
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Reprinted courtesy of Bill Wilson, Robinson & Cole LLP
Mr. Wilson may be contacted at wwilson@rc.com

Medical Center Builder Sues Contracting Agent, Citing Costly Delays

March 19, 2014 — Beverley BevenFlorez-CDJ STAFF
The Pennsylvania firm Bedwell Co. “has sued the Camden County Improvement Authority, saying it is owed $4.6 million for construction of [the Cooper Medical School of Rowan University]” in Camden, New Jersey, according to the Courier-Post. The Bedwell Co. alleges that its expenses exceeded fifty million, “but that it has been paid only $46 million.” The lawsuit states, as quoted by the Courier-Post, “From its inception, the project was plagued by delays due to defects in the design document and other circumstances that were beyond Bedwell’s control.” Furthermore, there were “an abnormally large quantity of design changes, schedule disputes, schedule disruptions and work-activity interference.” “Representatives of the CCIA and HDR could not be reached for comment Wednesday,” according to the Courier-Post. “Bedwell declined to comment on the allegations in the suit.” Read the court decision
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SEATTLE WASHINGTON BUILDING EXPERT DIRECTORY AND CAPABILITIES