Fairfield Connecticut Building Expert Directory

Construction Law Client Alert: California Is One Step Closer to Prohibiting Type I Indemnity Agreements In Private Commercial Projects

June 15, 2011 — Haight Brown & Bonesteel, LLP

On June 1, 2011 by majority vote, the California Senate passed Senate Bill 474, which would amend Civil Code section 2782, and add Civil Code section 2782.05. The passage of this new law is a critical development for real estate developers, general contractors and subcontractors because it will affect how these projects are insured and how disputes are resolved.

Civil Code section 2782 was amended in 2007 to prohibit Type I indemnity agreements for residential projects only. Since 2007, various trade associations and labor unions have lobbied to expand those very same restrictions to other projects. These new provisions apply to contracts, entered into after January 1, 2013, that are not for residential projects, and that are not executed by a public entity. The revisions provide that any provision in a contract purporting to indemnify, hold harmless, and defend another for their negligence or other fault is against public policy and void. These provisions cannot be waived.

A provision in a contract requiring additional insured coverage is also void and unenforceable to the extent it would be prohibited under the new law. Moreover, the new law does not apply to wrap-up insurance policies or programs, or a cause of action for breach of contract or warranty that exists independently of the indemnity obligation.

The practical impact of this new law is that greater participation in wrap-up insurance programs will likely result. While many wrap-up programs suffer from problems such as insufficient limits, and disputes about funding the self-insured retention, the incentive for the developer or general contractor to utilize wrap-up insurance will be greater than ever before because they will no longer be able to spread the risk of the litigation to the trades and the trade carriers.

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Reprinted courtesy of Steve Cvitanovic of Haight Brown & Bonesteel, LLP.

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Godfather Charged with Insurance Fraud

July 01, 2011 — CDJ STAFF

Texas-based Godfather Construction is a recipient of a fraud suit from the Cook County state attorney’s office. The firm incorporated in Illinois in April 2010, moving there to do business after storms damaged homes in the Chicago suburbs, according to a report in the Chicago Tribune. The state attorney alleges that Godfather brought unlicensed out-of-state workers and the work they performed was “incomplete or shoddy.” Godfather is claimed to have received about $60,000 from Illinois homeowners. The prosecutors are seeking restitution for Godfather’s clients and seek to forbid the firm from doing business in Illinois.

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My Construction Law Wish List

December 31, 2014 — Garret Murai – California Construction Law Blog
I’ve been good this year. Not great mind you, but good, and good is the standard, right? So, here’s my construction law wish list this holiday season: 1.More Transparency. So much uncertainty and resultant litigation exists for the simple reason that contractors and subs don’t know when a higher tiered contractor or owner (on a lender financed project) has been paid for their work. So how about a requirement that owners, contractors and subcontractors of all tiers be required to disclose when payment applications are submitted, when payments are made and in what amount, and what pay applications have been paid. And because I’m pretty sure I’m at least within the 20th percentile of “good” this year how about a requirement that this information be provided through an online database accessible by all persons working on projects valued at over a certain dollar amount, say $500,000. Read the court decision
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Reprinted courtesy of Garret Murai, Wendel Rosen Black & Dean LLP
Mr. Murai may be contacted at gmurai@wendel.com

Gain in Home Building Points to Sustained U.S. Growth

October 22, 2014 — Michelle Jamrisko and Danielle Trubow – Bloomberg
Builders started work on more homes in September and American consumers this month were the most optimistic in seven years, signaling the U.S. economy will ride out a global slowdown. Housing starts climbed 6.3 percent to a 1.02 million annualized rate from a 957,000 pace in August as multifamily and single-family projects advanced, the Commerce Department reported today in Washington. The Thomson Reuters/University of Michigan preliminary sentiment index for October increased to 86.4, the strongest since July 2007, another report showed. Gains in residential construction will help underpin the economic expansion as the recent drop in mortgage rates lifts home sales and gives builders reason to take on more projects. Other figures showing factory production rebounded last month and claims for jobless benefits dropped last week to the lowest level in 14 years added to evidence the turbulence in global markets has yet to depress the world’s largest economy. Ms. Jamrisko may be contacted at mjamrisko@bloomberg.net; Ms. Trubow may be contacted at dtrubow@bloomberg.net Read the court decision
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Reprinted courtesy of Michelle Jamrisko and Danielle Trubow, Bloomberg

Lewis Brisbois Launches New Practice Focusing on Supply Chain Issues

April 04, 2022 — Sean Shecter - Lewis Brisbois
Ft. Lauderdale, Fla. (March 31, 2022) - Lewis Brisbois has formed a Supply Chain Due Diligence Practice that will assist clients in navigating the issues they continue to face as a result of the many forces currently impacting the global supply chain. The attorneys who comprise Lewis Brisbois' new practice will advise companies on the complex and multi-disciplinary legal matters arising from, among other things, environment, social, and governance (ESG) policies, trade bans (i.e., "deglobalization"), and the U.S. government's efforts to emphasize "green investigations." Fort Lauderdale Partner Sean P. Shecter, a former federal prosecutor, will chair the new practice. “Companies need to be aware that several methodologically distinct forces are reshaping the global supply chain. Most law firms are not paying attention to this critical area," Mr. Shecter noted when discussing why the firm formally established this practice. "Lewis Brisbois recognizes that companies need trustworthy legal advice to navigate these multi-faceted legal issues, and so it has established this Supply Chain Due Diligence Practice and resource page. With its expansive network, Lewis Brisbois is well-positioned to help companies navigate and address these complex and multi-disciplinary legal issues.” Read the court decision
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Reprinted courtesy of Sean Shecter, Lewis Brisbois
Mr. Shecter may be contacted at Sean.Shecter@lewisbrisbois.com

Home Numbers Remain Small While Homes Get Bigger

June 28, 2013 — CDJ STAFF
Catherine Rampell reports in the New York Times that while the number of single-family homes built in 2012 was still at the very bottom of the range, since the government starting recording this data in 1973, the medium size for these homes is at its largest ever. According to data collected by the Census Bureau, these homes also have more bedrooms and bathrooms than previously. Of all homes built in 2012, forty-one percent had four or more bedrooms and thirty percent had three or more bathrooms. Both of these were the highest percentages in those categories. Meanwhile, the size of newly-built rental units declined in 2012. While still larger than the average rental unit built in 1999 (the earliest date given in the article), there has been little change over the last decade. During the same period, the size of sale units in multi-family buildings did show an increase. Read the court decision
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Associated Builders and Contractors Northern California Chapter Announces New President/CEO

January 24, 2022 — Associated Builders and Contractors, Northern California Chapter
(January 19, 2022 – Livermore, CA) Associated Builders and Contractors, Northern California Chapter (ABC NorCal) Board of Directors launched an exhaustive, nationwide CEO search, and recently selected Deborah Maus as the next President/CEO. Deborah is a Certified Association Executive (CAE) with 25+ years of strategic and operational leadership. Prior to accepting the position, Deborah served as the chief executive officer of Plumbing Heating Cooling Contractors of California. Mark Kirkes, President of MK Electric & Design Inc—and 2022 ABC NorCal Chair— said, "We believe Deborah will focus on strengthening organizational structure to meet new and expanding program needs, guide policy development and strategic innovations, bring increased value to members and continue to be the leading voice of the merit shop in Northern California. Her demonstrated knowledge of the industry and her support of all who desire to succeed in the construction industry made her an ideal choice to advance ABC's mission in Northern California." Former ABC NorCal President/CEO Michele Daugherty is transitioning to the ABC Central Florida Chapter as President/CEO, continuing her 16+ years of service in ABC. ABC 2021 Chair, Josh Ward noted, "Michele has been working for ABC since 2006 and we are happy to see that she is staying in the ABC family—continuing to fight for the Merit Shop. The Executive Committee expresses its sincere appreciation for Michele and her remarkable services to the organization. Her enthusiasm and leadership will be deeply missed and difficult to replicate. However, we believe we have found the right person in Deborah Maus." About ABC Northern California Chapter ABC Northern California Chapter (ABC NorCal) is a trade association founded on the merit shop philosophy and dedicated to serving construction professionals from Fresno to the Oregon border. Our mission: To promote free enterprise by advancing the merit shop philosophy in the construction industry through education, advocacy and business services. To learn more visit www.abcnorcal.org Read the court decision
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Speeding up Infrastructure Projects with the Cloud

July 28, 2018 — Aarni Heiskanen - AEC Business
Infrakit, a cloud service developed by a Finnish startup company, is accelerating infrastructure projects both in Finland and, increasingly, abroad. Automatic transfer of information among parties involved in a project saves time, reduces paperwork, and facilitates the work of land surveyors. In addition to excavators, rock drills can now also be viewed on the map. The CEO and founder of DSC Finland, the supplier of Infrakit, is Teemu Kivimäki. He states that despite the name of the company changing over the years, its principles have stayed the same. Kivimäki describes the functions of the service: “The digital site plans are added to Infrakit, and they can then be viewed on a map and in a 3D view with a browser. When the working machines are also linked to the service, the user can see if the work has been executed according to plan.” Read the court decision
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Reprinted courtesy of Aarni Heiskanen, AEC Business
Mr. Heiskanen may be contacted at aec-business@aepartners.fi

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