You’re Only as Good as Those with Whom You Contract
April 17, 2019 —
Christopher G. Hill - Construction Law MusingsI have been beating the drum of the need to have a solid construction contract as the basis for your construction project and contractor/subcontractor/supplier relationships. I have also emphasized that communication early and often is one of the best ways to assure a smooth project. However, the sad truth is that even with the best contract drafted with the assistance of an experienced construction attorney, if the other party to the contract simply decides not to perform, whether that is through unjustified non-payment or simple refusal to complete a scope of work without reason, it will be an expensive proposition to force compliance or be compensated for the monetary damage caused by such actions.
It is this often unmentioned truth relating to any contract, including those that construction professionals in Virginia deal with on a daily basis, that makes having a good knowledge of those with whom you plan to contract is key to a successful (read profitable) construction project. Of course be sure that any contractor or subcontractor you contract with has the basics of propoer insurance, the right experience and of course a contractor’s license with the proper specialty or specialties. These basics will get you most of the way to assuring that those that contract with you at least are responsible in business. Another key component, if you can find this information out, is the financial wherwithall of the other party. For a General Contractor, this means both sides of the equation: Owner and Subcontractors. For a Subcontractor, the key is the Contractor, but any other information you can get on the Owner is helpful (though this can be difficult) particularly in the face of a “pay if paid” clause.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
NY Estimating Consultant Settles $3.1M Government Project Fraud Case
November 23, 2020 —
Eva Fedderly - Engineering News-RecordVJ Associates, a Hicksville, N.Y., estimating consultant, has agreed to pay $3.13 million in civil and criminal penalties to settle charges that the firm overbilled and falsified hours on multiple federal and state government-funded transportation and other contracts in New York and Massachusetts, the U.S. Attorney's office in Boston announced on Oct. 29.
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Eva Fedderly, Engineering News-Record
ENR may be contacted at ENR.com@bnpmedia.com
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Guessing as to your Construction Damages is Not the Best Approach
November 18, 2019 —
David Adelstein - Florida Construction Legal UpdatesArbitrarily guessing as to your construction damages is NOT the best approach. Sure, experts can be costly. No doubt about it. Having an expert versus guessing as to your construction damages caused by another party’s breach of contract is a no brainer. Engage an expert or, at a minimum, be in a position to competently testify as to your damages caused by another party’s breach of contract. Otherwise, the guessing is not going to get you very far as a concrete subcontractor found out in Patrick Concrete Constructors, Inc. v. Layne Christensen Co., 2018 WL 6528485 (W.D. New York 2018) where the subcontractor could not competently support its delay-related damages or change orders and, equally important, could not support that the damages were proximately caused by the general contractor’s breach of the subcontract.
In this case, the concrete subcontractor entered into a subcontract to perform concrete work for a public project. The project was delayed and the general contractor was required to pay liquidated damages to the owner. Not surprisingly, the subcontractor disputed liability for delays and sued the general contractor for all of its delay-related damages “in the form of labor and materials escalation, loss of productivity, procurement and impact costs, field and home office overhead, idle equipment, inability to take on other work, lost profits, and interest.” Patrick Concrete Constructors, 2018 WL at *1.
The general contractor moved for summary judgment as to the plaintiff’s delay-related damages – the subcontractor’s damages were nothing but guesses and the subcontractor could not prove the general contractor was the cause of the subcontractor’s damages.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Fannie Mae, Freddie Mac Shares Fall on Wind-Down Measure
March 12, 2014 —
Clea Benson and Cheyenne Hopkins – BloombergCommon shares of Fannie Mae and Freddie Mac experienced their biggest intraday drop in 10 months after leaders of the Senate Banking Committee announced plans to eliminate the companies in a new bill.
Fannie Mae shares tumbled as much as 44 percent, paring the losses to 31 percent to close in New York at $4.03, after Edwin Groshans, a managing director at Washington-based equity research firm Height Analytics LLC, described the proposal as holder-negative. Freddie Mac fell 27 percent to close at $4.04. Preferred shares also dropped, some by as much as 12 percent.
The bipartisan measure, drafted with input from President Barack Obama’s administration, would replace the U.S.-owned mortgage financiers with government bond insurance that would kick in only after private capital suffered losses of at least 10 percent, Senate Banking Committee Chairman Tim Johnson and Senator Mike Crapo said in a statement today. The bill would require most borrowers to make down payments of at least 5 percent.
Ms. Benson may be contacted at cbenson20@bloomberg.net; Ms. Hopkins may be contacted at chopkins19@bloomberg.net
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Clea Benson and Cheyenne Hopkins, Bloomberg
Quick Note: Lis Pendens Bond When Lis Pendens Not Founded On Recorded Instrument Or Statute
May 20, 2019 —
David Adelstein - Florida Construction Legal UpdatesIf a lis pendens is recorded and the lis pendens is NOT founded on a duly recorded instrument (e.g., mortgage) or a statute (e.g., construction lien), a lis pendens bond should be recorded. The lis pendens bond should cover prospective damages associated with the wrongful / unjustified recording of a lis pendens that were suffered by the property owner. The reason being is that the lis pendens has an effect on the title to the property as long as the lis pendens is recorded. Damages could stem from a decline in the market value of the property, continued upkeep and maintenance of the property, and there may also be (and, really, should be) consideration for loss of investment return associated with the equity in that property.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Concerns About On-the-job Safety Persist
August 13, 2019 —
Joanna Masterson - Construction ExecutiveNearly 40% of workers are more concerned with on-the-job safety this year than they were last year, according to a 360training.com survey of a thousand people across several manual labor-intensive industries. Additionally, a quarter of workers worry every day about getting injured because of their job. That number goes up to 27% for workers in the construction and oil industries.
Slips, trips and falls were the top workplace safety concern (36%), followed by electrical hazards (13%), ergonomic problems (9%), vehicle/equipment accidents (7%) and falling objects (6%). For the construction industry specifically, electrical hazards were identified as the leading cause of concern.
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Joanna Masterson, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Ninth Circuit Holds that 1993 Budget Appropriations Language Does Not Compel the Corps of Engineers to use 1987 Wetlands Guidance Indefinitely
October 09, 2018 —
Anthony B. Cavender - Gravel2GavelOn September 21, 2018, the U.S. Court of Appeals for the Ninth Circuit decided the case of Tin Cup, LLC v. U.S. Army Corps of Engineers. A divided panel of the Court of Appeals (although all members concurred in the result) held that legislative language in a 1993 appropriations act does not require the U.S. Army Corps of Engineers (Corps) to continue to use its 1987 Clean Water Act (CWA) wetlands guidance beyond 1993. The Ninth Circuit noted that it approaches the interpretation of budget bills somewhat differently.
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Anthony B. Cavender, PillsburyMr. Cavender may be contacted at
anthony.cavender@pillsburylaw.com
Righting Past Wrongs Through Equitable Development
January 17, 2022 —
Bruce Buckley & Pam Radtke Russell - Engineering News-RecordStanding on a dead-end street in Spartanburg, S.C., Harold Mitchell can plainly see the history of injustice in his community. On one side lies the remains of his childhood home. On the other, a shuttered fertilizer plant that was operational when Mitchell was growing up. He distinctly recalls smells of ammonia and sulfur emanating through the neighborhood that “were so pervasive, you didn’t even think about it.” He remembers his father regularly cleaning white dust off their cars, and workers emerging from the plant gates “looking like the Pillsbury Doughboy” covered in fertilizer dust from head to toe. Sometimes, he’d walk with the plant’s night watchman, strolling alongside neon green sewage lagoons located not far from his bedroom window.
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Bruce Buckley, Engineering News-Record and
Pam Radtke Russell, Engineering News-Record
ENR may be contacted at enr@enr.com
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