Cambridge Massachusetts Building Expert Directory

Bright-Line Changes: Prompt Payment Act Trends

September 16, 2024 — Stephanie L. Cooksey - Peckar & Abramson, P.C.
Untimely payment by the owner for contract work and additional work on construction projects can place an unfair financial burden on contractors and subcontractors. Most states have attempted to eliminate or mitigate this inequity in construction contracting through Prompt Payment Acts that govern payment deadlines and provide remedies for untimely payment. This article addresses the legislative trends aimed at minimizing the risk of non-payment, overdue payment, and withholding retainage in favor of downstream parties to a construction contract. Fortifying Contractor Protections with “Bright-Line” Language Over the last decade, states have been tightening prompt payment laws by replacing broad, general statutory language with bright-line rules. What is a bright-line rule? A specific or definite figure, a quantifiable marker—i.e., something owners, contractors, subcontractors, and suppliers should be aware of. Practically speaking, the more bright-line a prompt payment statute is, the greater the likelihood it will affect a construction project in your state. A standard form construction contract, if not reviewed carefully, can create conflicts or confusion if it gives a party more leeway on payment deadlines than the applicable Prompt Payment Act. For example, consider an owner-issued Construction Change Directive (“CCD”) that requires a contractor to commence additional work immediately while a formal change order is negotiated. Consequently, a CCD can push financial burdens downstream, whether inadvertently or not, and may conflict with statutory payment deadlines. Nevertheless, an owner can be justified in its utilization of a CCD to maintain the project schedule. How should the parties competing interests be resolved? Read the court decision
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Reprinted courtesy of Peckar & Abramson, P.C.

Does the Russia Ukraine War Lead to a Consideration in Your Construction Contracts?

April 04, 2022 — David Adelstein - Florida Construction Legal Updates
Material costs are still affecting the construction industry. Supply chain impacts too. The volatility started with COVID-19 (and, in certain cases, before with the imposition of tariffs) and has continued through present date. But what about the war between Russia and Ukraine and the impact this has had or may have on the supply chain? I think the spillover from the war (with oil, gas, the energy sector, etc.), including the imposition of any sanctions, is not fully realized other than the concern exists in an economy that is already battling through material costs and supply chain disruptions. How does this affect you? It may not. Or you may regularly enter into construction contracts in which you would be smart to address material costs and supply chain impacts. The reason being is that everything from a risk standpoint should begin with your construction contract. Not addressing an issue does not actually mitigate the risk. Confronting the issue does mitigate the risk because you are contractually addressing a concern and know where the other party stands relating to that concern so that business decisions can be made. 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

Insurers Refuse Indemnification of Subcontractors in Construction Defect Suit

November 13, 2013 — CDJ STAFF
SMG Stone Co. Inc. and J. Colavin & Son Inc. were hired by Webcor Construction LP to install stone floor tiles at the Ritz-Carlton residences at the L.A. Live complex in Los Angeles. But the tiles began to crack even before installation was finished. The building management had all the tiles ripped out and replaced, although only 10% of the tiles were defective. The building management then claimed Webcor owed them $40 million, but settled for $8 million. $7 million of that claim was paid by Steadfast Insurance Co., with the remaining $1 million paid by Webcor. The two other insurers involved, American Home and The Insurance Company of the State of Pennsylvania, are attempting to deflect Webcor or Steadfast from making claims against them. Both insurers claim no obligation to indemnify the contractor or subcontractors as the claims do not involved “property damage,” as defined in the policy. Read the court decision
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New WOTUS Rule

November 13, 2023 — David R. Cook Jr. - Autry, Hall & Cook, LLP
The U.S. Army Corps of Engineers amended the regulation to conform the definition of “waters of the United States” to conform to the Supreme Court’s ruling in Sackett v. Environmental Protection Agency. See the prior blog post about the Supreme Court’s ruling: Sackett v. Environmental Protection Agency – Construction and Utility Law | Atlanta | AHC Law Federal Register :: Revised Definition of “Waters of the United States”; Conforming Reprinted courtesy of David R. Cook Jr., Autry, Hall & Cook, LLP Mr. Cook may be contacted at cook@ahclaw.com Read the full story... Read the court decision
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E-Commerce Logistics Test Limits of Tilt-Up Construction

January 28, 2019 — Jeff Rubenstone - Engineering News-Record
While “fulfillment centers” and other e-commerce logistic facilities drive a hot market for the manufacturing sector, traditional construction methods such as tilt-up concrete panels are being pushed to ever-greater heights. At a recent project in Tulsa, Okla., contractor Clayco oversaw installation of tilt-up composite panels that reached 81 ft in height, using an unusual brace and a lot of careful pre-planning. Read the court decision
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Reprinted courtesy of Jeff Rubenstone, ENR
Mr. Rubenstone may be contacted at rubenstonej@enr.com

Transition Study a Condo Board’s First Defense against Construction Defects

December 04, 2013 — CDJ STAFF
According to the advice provided by T. Allen Mott and Nicholas D. Cowie, condominium boards would be well advised to “hire an engineer or architect to perform a transition study,” since it would be preferable to repair any problems while warranties are still in effect. They also caution that the board must “determine whether the developer-created budget and reserve fund are adequate to cover the cost of maintaining the condominium’s construction over time.” They note that discovered in time, some problems are easy to fix, but left unrepaired, they can result in “extensive, hidden property damage requiring associations to borrow money and assess unit owners to cover the entire cost of repairing the developer’s construction defects and resulting property damage. The goal, as they point out, is “an amicable repair resolution.” Read the court decision
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Making Construction Innovation Stick

February 22, 2018 — Tom Sawyer, Jeff Rubenstone, and Scott Lewis – ENR
Integrating innovations into construction workflows—rather than serially testing, piloting and discarding them—is a definition of success. Yet few innovations—even ones that shine in trials—are absorbed into practice. Many just quietly go away, sending the work of vetting and testing them down the drain. That leaves some firms wondering if most construction technology innovation efforts are a waste of time. Reprinted courtesy of Engineering News-Record authors Tom Sawyer, Jeff Rubenstone and Scott Lewis Mr. Sawyer may be contacted at sawyert@enr.com Mr. Rubenstone may be contacted at rubenstonej@enr.com Mr. Lewis may be contacted at lewisw@enr.com Read the court decision
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Builder Exposes 7 Myths regarding Millennials and Housing

January 12, 2015 — Beverley BevenFlorez-CDJ STAFF
Builder Magazine discussed seven myths regarding Generation Y and housing, and stated whether it was fact or fiction. First, they answered whether “Millennials Carry Historically High Student Debt Levels,” (True), and second they concluded it was true that “Millenials Can’t Afford Down Payment at Today’s Standards.” However, Builder was split on whether “Millennials Will Pay a Premium for Green and Tech Features.” Read the court decision
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