Fairfield Connecticut Building Expert Directory

Surety's Settlement Without Principal's Consent Is Not Bad Faith

January 05, 2017 — Tred R. Eyerly – Insurance Law Hawaii
The Sixth Circuit found that the surety did not act in bad faith when it settled the general contractor's claims against the State of Michigan over delays on a construction project. Great Am. Ins. Co. v. E.L. Bailey & Co., 2016 U.S. App. LEXIS 20018 (6th Cir. Nov. 7, 2016). Bailey, the general contractor, entered into a surety agreement under which Great American would issue surety bonds on behalf of Bailey in the construction of a kitchen at a State prison. Bailey, the principal, paid Great American (GAIC), the surety, to provide bonds guaranteeing contract performance to the State, the obligee or owner. GAIC provided a performance bond, guaranteeing performance of the contract work, and a payment bond, guaranteeing payments to subcontractors and suppliers. Under the agreement, Bailey would indemnify GAIC for all payments or other expenses GAIC incurred due on either bond, and would pay upon demand collateral in an amount to be determined by GAIC. In the event of an alleged breach by Bailey, the agreement assigned to GAIC all Bailey's rights under its contract with the State and well as all its claims against any party. Bailey never finalized completion, and GAIC reached agreement with the State for another contractor to complete the project. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Beam Cracks Cause Closure of San Francisco’s New $2B Transit Center

October 09, 2018 — David Suggs – Bert L. Howe & Associates, Inc.
After two billion dollars and two decades, San Francisco’s newest transportation hub opened on August 11th of this year only to be closed a month later, on September 25th, after a cracked beam was discovered, according to The Real Deal. Later, workers found an additional, though smaller, crack in another beam parallel to the first. The Real Deal described the crack in the first beam: “The Transbay Joint Powers Authority (TJPA) – which built and now operates the center – said the tear was 2.5 feet long and 4.5 inches deep on a 60-foot beam that holds a 5.4-acre rooftop park above a bus deck.” Steel supports are now being installed to reduce the pressure on the beams. While officials have not discovered the cause of the problem, The Real Deal reported several possibilities, including “fabrication problems, installation error, too much weight, or an issue in the initial design.” Read the court decision
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Boston Construction Bands With Health Care to Fight COVID-19

January 11, 2021 — Scott Van Voorhis - Engineering News-Record
Trade union leaders, construction executives and international health care experts are teaming up in Boston o stop the spread of COVID-19 in the city’s booming construction sector. The coalition unveiled a program called Construction Stops COVID on Dec. 22. The testing, tracing and treatment initiative targets tens of thousands of hard-hatted workers toiling on construction sites across the city. Reprinted courtesy of Scott Van Voorhis, Engineering News-Record ENR may be contacted at ENR.com@bnpmedia.com Read the full story... Read the court decision
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Huh? Action on Construction Lien “Relates Back” Despite Notice of Contest of Lien

May 01, 2023 — David Adelstein - Florida Construction Legal Updates
Not every case law you read makes sense. This sentiment goes to the uncertainty and grey area of certain legal issues. It is, what you call, “the nature of the beast.” You will read cases that make you say “HUH?!?” This is why you want to work with construction counsel to discuss procedures and pros / cons relative to construction liens. An example of a case that makes you say “HUH” can be found in Woolems, Inc. v. Catalina Capstone Creations, Inc., 2023 WL 2777506 (Fla. 3d DCA 2023) dealing with a construction lien foreclosure dispute. Here, a contractor filed a lawsuit against a subcontractor with a summons to show cause why the subcontractor’s construction lien should not be discharged. This is a specific complaint filed under Florida Statute s. 713.21(4). This statute requires the lienor to essentially foreclose on its construction lien within 20 days after it was served with a “show cause” summons. The subcontractor filed its answer and counterclaim but did NOT assert a claim to foreclose its construction lien. Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

Miller Act CLAIMS: Finding Protections and Preserving Your Rights

November 29, 2021 — Diana Lyn Curtis McGraw - ConsensusDocs
The Miller Act (the “Act”), which requires the prime contractor to furnish a performance bond and a payment bond to the government, protects “all persons supplying labor and materials carrying out the work provided for in the contract.”[1] Despite its broad language, courts have limited the parties who may actually assert a claim under the Act. This article introduces general background of the Act, identifies subcontractors who may qualify for protections under the Act, and suggests ways to preserve the rights as prime contractors. Brief Background of the Miller Act Under the Miller Act, there are two types of bonds the prime contractor furnishes to the government in a federal construction contract of more than $100,000[2] 1. Performance Bond A performance bond protects the United States and guarantees the completion of the project in accordance with the contract’s terms and conditions.[3] This bond must be with a surety that is satisfactory to the officer awarding the contract and in the amount the officer considers adequate for government protection.[4] If a contractor abandons a project or fails to perform, the bond itself will cover the government’s cost of substitute performance. Thus, the performance bond disincentivizes contractors from abandoning projects and provides the government with reassurance that an abandonment will not create delays or additional expenses. Read the court decision
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Reprinted courtesy of Diana Lyn Curtis McGraw, Fox Rothschild LLP
Ms. McGraw may be contacted at dmcgraw@foxrothschild.com

Design-Assist, an Ambiguous Term Causing Conflict in the Construction Industry[1]

December 02, 2019 — John P. Ahlers - Ahlers Cressman & Sleight PLLC
“Design-Assist” is one of the recent cost-saving trends being touted for construction projects and, in particular, construction projects utilizing alternative procurement methods. If an internet search for the term, “design-assist” is made, the result will be numerous construction industry articles and white papers lauding “design-assist” as a recent cost-saving trend in construction procurement. From a legal perspective, however, the term “design-assist” is notably absent from court opinions and most state licensing laws. With the exception of the ConsensusDocs, few standard form contracts even include the term “design-assist” in their text. The ConsensusDocs agreement provides examples of the Constructor’s obligations to perform “assisting activities” (the term “design-assist” is not used) and states that, notwithstanding the performance of such “assisting activities” by the Constructor, the responsibility of the design remains with the Designer unless otherwise stated in the Contract:

Article 4.5 DESIGN PROFESSIONAL’S RESPONSIBIITIES The Designer shall furnish or provide all design and engineering services necessary to design the Project in accordance with the Owner’s objectives … the Designer shall draw upon the assistance of Constructor and others in developing the design, but the Designer shall retain overall responsibility for all design decisions….
Article 4.6 CONSTRUCTOR’S RESPONSIBILITIES [T]he Constructor shall assist the Designer in the development of the Project Plan and Project Design but shall not provide professional services which constitute the practice of architecture or engineering unless the Constructor needs to provide such services in order to carry out its responsibilities … or unless specifically called for by the Contract Documents.

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

US Court Disputes $1.8B AECOM Damage Award in ‘Remarkable Fraud’ Suit

April 26, 2021 — Mary B. Powers - Engineering News-Record
A federal appeals court has thrown out a $1.8-billion award granted by a lower court three years ago to an AECOM unit in a bizarre legal battle involving a Nevada company that claimed to have won multiple contracts using the name of Morrison Knudsen—the former well-known Boise-based construction contractor that was sold in 1996, and through acquisitions, became part of design-build giant AECOM in 2014. Reprinted courtesy of Mary B. Powers, Engineering News-Record ENR may be contacted at ENR.com@bnpmedia.com Read the full story... Read the court decision
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San Diego County Considering Updates to Green Building Code

August 06, 2014 — Beverley BevenFlorez-CDJ STAFF
The San Diego County Board of Supervisors is meeting today to discuss “proposed building code amendments designed to promote energy efficiency in new homes,” according to Times of San Diego. Possible recommendations include “install electrical panels large enough to accommodate future improvements; put in a conduit that could be used for future roof-mounted solar panels; reserve space on south-facing roofs where solar panels might be added later;” and others. If the recommendations are approved, the “staff would draft detailed building code amendments and return early next year to get them adopted.” Read the court decision
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FAIRFIELD CONNECTICUT BUILDING EXPERT DIRECTORY AND CAPABILITIES