CAMBRIDGE MASSACHUSETTS BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Terminating the Notice of Commencement (with a Notice of Termination)

July 19, 2017 — David Adelstein - Florida Construction Legal Updates
The notice of commencement is important for purposes of construction lien priority. Stock Bldg. Supply of Florida, Inc. v. Soares Da Costa Const. Services, LLC, 76 So.3d 313, 317 (Fla. 3d DCA 2011) (“[A] notice of commencement serves to determine the priority of liens under the Construction Lien Law.”). A lien relates back in time to the date the notice of commencement was recorded assuming the notice of commencement is still in effect when the lien is recorded (or an amended noticed of commencement is recorded). Lien priority is very important and the reason why a contractor should always want to ensure there is an effective notice of commencement in place rather than an expired notice of commencement. For the same reasons why a contractor wants to ensure there is an effective notice of commencement, there are times an owner wants to terminate a notice of commencement. An owner may want to terminate the potential priority of a construction lien. For instance, say the owner is refinancing or obtaining a construction loan in the midst of construction. A lender will want to ensure its mortgage maintains first priority and certainly priority over a potential construction lien. Otherwise, why would a lender finance the construction if it does not maintain first priority. It generally will not. Thus, an owner needs to terminate the notice of commencement so that the closing occurs on the loan and the mortgage recorded before a new notice of commencement is recorded and construction continues. Read the court decision
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Reprinted courtesy of David Adelstein, Florida Construction Legal Updates
Mr. Adelstein may be contacted at Dadelstein@gmail.com

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California Contractor Tests the Bounds of Job Order Contracting

March 01, 2021 — Garret Murai - California Construction Law Blog
Most contractors have heard of design-bid-build, design-build, construction manager at risk, and even public private partnerships, various project delivery methods, which, at their heart, focus on balancing the interests of the various parties involved in a construction project, from owners, to design professionals, to contractors. There’s one project delivery method you may not be as familiar with though: Job Order Contracting, also known by its acronym JOC. JOC contracting is a project delivery method used on public works projects and has been authorized to be used by California K-12 school districts, community colleges, CalState universities, and the Judicial Council of California, which, among other things, is responsible for the construction of California state courts. It is intended to be used on smaller, independent, long-horizon project typically involving maintenance, repair and refurbishment. Think periodic maintenance of facilities. JOC contracts are administered by public entities issuing a request for proposals. The public entity then awards a JOC contract to the lowest responsible bidder. The lowest responsible bidder then enters into a JOC contract with the public entity. JOC contracts typically have a duration of one (1) year and are limited to a total construction value of $4.9 million increased annually based on the Consumer Price Index. When entering into a JOC contract, a JOC contractor agrees to perform work at prices set forth in a Construction Task Catalog also known as a unit price book which includes current local labor, material and equipment costs. Unit prices are then adjusted by a “bid adjustment factor” based on the JOC contractor’s bid. When work is needed, the public entity will then issue a job order to the JOC contractor. Read the court decision
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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

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Overtime! – When the Statute of Limitations Isn’t Game Over For Your Claim

August 07, 2022 — Bradley E. Sands, Jones Walker LLP - ConsensusDocs
Statutes of limitations establish the period of time within which a claimant must bring an action after it accrues. An action can be filing a lawsuit and, in some instances, filing a demand for arbitration. But a multi-year construction project could be longer than the applicable statute of limitations. For example, under Delaware or North Carolina law, the statute of limitations for a breach of contract is only three years.1 So a claim for breach of a construction contract that occurred (i.e. accrued) at the beginning of a four-year project under Delaware or North Carolina law may expire before the project is completed. Generally, a claim accrues at the time of the breach (however, it is important to note that this is not always the case and claim accrual could be the subject of an entirely different article). During the course of a multi-year construction project, proposed change orders or claims for additional compensation can sit, unanswered or unpursued, for months. Or, the parties may informally agree as part of regular project communications to put off dealing with a claim head-on until the end of the project. On certain projects, slow-walking a claim is understandable, as a contractor may be hesitant to sue an owner in the middle of a multi-year project and risk upsetting an otherwise good working relationship. But a delay in formally asserting a put-off claim after it accrues could result in the claim falling subject to a statute of limitations defense. Read the court decision
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Reprinted courtesy of Bradley E. Sands, Jones Walker LLP (ConsensusDocs)
Mr. Sands may be contacted at bsands@joneswalker.com

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Carroll Brock of Larchmont Homes Dies at Age 88

November 05, 2014 — Beverley BevenFlorez-CDJ STAFF
Homebuilder Carroll Brock, "whose family-owned company built thousands of Larchmont Homes in the Sacramento region, died Oct. 31 of natural causes in his sleep, his son Steve said," according to the obituary in the Sacramento Bee. "Under Mr. Brock, who was named Sacramento general manager in 1967, Larchmont Homes built nearly 15,000 houses in more than 30 subdivisions of modest ranch-style homes aimed mostly at first-time buyers." Mr. Brock served on the board of the National Association of Home Builders, was past president of the North State Building Industry Association, and had been appointed to the California state Board Standards Commission. Furthermore, he was inducted into the California Building Industry Association Hall of Fame in 1991. Mr. Brock served the community through his work in the Sacramento Area Commerce and Trade Commission as well as the Sacramento Metropolitan Chamber of Commerce. He volunteered his time to the Salvation Army as well as offering construction assistance and expertise to the Fair Oaks Presbyterian Church. “My dad was a humble leader,” his son told the Sacramento Bee. “As successful as he was at building homes, he felt just as strongly about serving others.” Read the court decision
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Modern Tools Are Key to Future-Proofing the Construction Industry

September 19, 2022 — Guillaume Le Gouic - Construction Executive
The U.S. construction industry is facing a tech revolution that’s upending the roles of skilled workers. Many traditional contractors are struggling to embrace the new technologies customers increasingly demand, while the industry struggles to attract young professionals. According to the latest American Community Survey data, the median age of a construction worker is 41. This is particularly concerning given the confluence of two trends: the construction industry is facing a critical workforce shortage that’s only expected to intensify, and the workforce is aging—NCCER is predicting around 40% are expected to retire by 2031. Industry leaders must prioritize using the latest industry solutions and innovations to modernize construction work, transform the construction industry and appeal to the next generation of contractors. Throughout COVID-19, the construction sector experienced a higher number of workers quitting jobs as opposed to being laid off, indicating the older workforce likely took the opportunity to retire early, along with more than three million other Americans who did the same. Currently, industry leaders are not doing enough to communicate opportunities to help shift the career perception of electrical contractors from simply being “blue collar” and un-exciting. A 2019 National Association of Home Builders (NAHB) found only 3% of people ages 18 to 25 were interested in pursuing a construction career, with most respondents noting the desire for a less physically demanding job. Reprinted courtesy of Guillaume Le Gouic, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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What I Love and Hate About Updating My Contracts From an Owners’ Perspective

July 25, 2022 — ConsensusDocs
The Construction Owners Association of America (COAA) is the largest association of construction owners in the United States. COAA just held its Spring Connect conference in downtown Baltimore on the University of Maryland, Baltimore (UMB) campus. One session featured “What I Love and Hate About Updating My Contracts from an Owners’ Perspective.” ConsensusDocs’ Executive Director & Senior Counsel Brian Perlberg spoke on a panel with Joe Cleves of Taft Law and Pen Wolf from the Cleveland Clinic. Pen Wolf from Cleveland Clinic outlined the process he used to update his contracts recently. The Cleveland Clinic builds facilities annually and owns different facilities at different locations. The clinic employs over 75,000 employees. For an owner with a broad reach like the Cleveland Clinic, Wolf recommended using outside counsel with construction expertise to update contracts. He concluded that while it was a significant effort, the endeavor to update the Clinic’s contracts was absolutely worth the time commitment and expense. Wolf shared that updating the Clinic’s contracts has generated positive reviews internally and externally. Now their written agreements better reflect their business practices in their construction design and construction program. Read the court decision
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Reprinted courtesy of ConsensusDocs

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No Coverage Where Cracks in Basement Walls Do Not Amount to Sudden Collapse

January 10, 2018 — Tred Eyerly - Insurance Law Hawaii

In another of a series of collapse cases arising out of Connecticut, the federal district court found there was no coverage for the homeowner's cracked basement wall caused by defective concrete. Liston-Smith v. CSAA Fire & Cas. Ins. Co., 2017 U.S. Dist. LEXIS 206211 (D. Conn. Dec. 15, 2017).

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Reprinted courtesy of Tred Eyerly, Insurance Law Hawaii
Tred Eyerly may be contacted at te@hawaiilawyer.com

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Insurer Must Defend Where Possible Continuing Property Damage Occurred

January 13, 2017 — Tred R. Eyerly - Insurance Law Hawaii
The California Court of Appeal overturned the trial court's issuance of summary judgment based upon the possibility of continuing property damage during the insurer's policy period. Tidwell Enters. v. Fin. Pac. Ins. Co., 2016 Cal. App. LEXIS 1038 (Cal. Ct. App. Nov. 29, 2016). Financial Pacific insured Greg Tidwell, Tidwell Enterprises, Inc. and Tidwell Enterprises Fireplace Division (Tidwell) under CGL policies issued between March 2003 and March 2010. In 2006 or 2007, Tidwell installed a fireplace in a home. On November 11, 2011, 20 months after the end of the last policy period of Financial Pacific's coverage, the home owned by Kendall Fox, was damaged by fire. Fox was insured by State Farm. State Farm's attorney advised Tidwell of the fire, and Tidwell forwarded the information to Financial Pacific. State Farm hired an investigator who reported that the fire was caused by the installation of an "unlisted shroud at the top of the chimney chase". This prevented the fireplace from drafting properly, resulting in overheating of the fireplace and heat transfer to the surround wood framing members. This resulted in the ignition of the framing members at the sides, top and bottom of the fireplace. State Farm sent the report to Financial Pacific. 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

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