Architects Group Lowers U.S. Construction Forecast
July 30, 2014 —
Nadja Brandt – BloombergSpending on non-residential construction in the U.S. will be less than initially projected as state and local governments scale back investments in such properties as schools and health-care buildings, the American Institute of Architects said.
Total spending on commercial and institutional development probably will increase 4.9 percent this year, down from an earlier estimate of 5.8 percent, according to a semi-annual survey by the Washington-based group.
A slowdown in funding for institutional projects, which include education, health-care, religious and public-safety facilities, has been a drag on the recovery of the wider industry, according to Kermit Baker, the AIA’s chief economist. The group expects institutional-construction spending to fall 0.1 percent this year, compared with January’s projection for an increase of 3.4 percent, Baker said.
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Nadja Brandt, BloombergMs. Brandt may be contacted at
nbrandt@bloomberg.net
A Retrospective As-Built Schedule Analysis Can Be Used to Support Delay
May 23, 2022 —
David Adelstein - Florida Construction Legal UpdatesDelay claims are part of construction. There should be no surprise why. Time is money. A delay claim should be accompanied by expert opinions that bolster evidence that gets introduced. The party against whom the delay claim is made will also have an expert – a rebuttal expert. Not surprisingly, each of the experts will rely on a different critical path as to relates to the same project. The party claiming delay will rely on a critical path that shows the actions of the other party impacted their critical path and proximately caused the delay. This will be refuted by the opposing expert that will challenge the critical path and the actions claimed had no impact on the critical path (i.e., did not proximately cause the delay). Quintessential finger pointing!
This was the situation in CTA I, LLC v. Department of Veteran Affairs, CBCA 5826, 2022 WL 884710 (CBCA 2022), where the government terminated the contractor for convenience and the contractor claimed equitable adjustments for, among other things, delay. The contractor’s expert relied on an as-built critical path analysis by “retrospectively creating updates to insert between the contemporaneous updates.” Id., supra, n.3. The government’s expert did not do a retrospective as-built analysis and relied on only contemporaneous schedule updates. Id.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Texas Jury Finds Presence of SARS-CoV-2 Virus Causes “Physical Loss or Damage” to Property, Awards Over $48 Million to Baylor College of Medicine
September 26, 2022 —
Michael S. Levine & Kevin V. Small - Hunton Insurance Recovery BlogA Texas jury has found that the presence of SARS-CoV-2 virus on the property of Baylor College of Medicine (BCM) caused “physical loss or damage” and resulting economic loss, triggering coverage under BCM’s commercial property insurance program. The jury awarded BCM over $48 million following a three-day trial; the award consisted of $42.8 million in business interruption, $3.3 million in extra expense, and $2.3 million in damage to research projects.
The verdict came after the court denied the insurers’ pre-trial motion for summary judgment, rejecting the insurers’ contention that a virus cannot—as a matter of law—cause physical loss or damage to property. In denying the motion, the court held that whether the presence of the virus causes physical loss or damage presents a question of fact for the jury to resolve; a copy of the order rejecting the insurers’ summary judgment argument can be found
here.
Reprinted courtesy of
Michael S. Levine, Hunton Andrews Kurth and
Kevin V. Small, Hunton Andrews Kurth
Mr. Levine may be contacted at mlevine@HuntonAK.com
Mr. Small may be contacted at ksmall@HuntonAK.com
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Policy Language Matters: New Jersey Court Bars Cleanup Coverage Under Broad Policy Terms
May 15, 2023 —
Stacy M. Manobianca - Saxe Doernberger & Vita, P.C. The New Jersey Appellate Division in
Handy & Harman v. Beazley USA Services, Inc., provided clarity regarding the interpretation of the Prior or Pending Litigation Exclusion in a site-specific environmental liability insurance policy.
In Handy & Harman, the Appellate Division affirmed the trial court’s determination that the insurer was not required to defend or indemnify its policyholder, a metal etching company. The court held that the Prior or Pending Litigation Exclusion (which applied to prior litigation and prior claims) barred coverage for natural resource damages sought in the current litigation because (1) an Administrative Consent Order (“ACO”) is a claim; and (2) the underlying lawsuit was based on the same environmental contamination as addressed in the ACO.1
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Stacy M. Manobianca, Saxe Doernberger & Vita, P.C.Ms. Manobianca may be contacted at
SManobianca@sdvlaw.com
Ohio “property damage” caused by an “occurrence.”
May 18, 2011 —
CDCoverage.comIn JTO, Inc. v. State Automobile Mut. Ins. Co., No. 2010-L-062 (Ohio Ct. App. March 25, 2011), general contractor JTO was sued by hotel project owner Marriott for breach of contract and warranties seeking damages for the repair of construction defects resulting in moisture penetration property damage to interior components. JTO filed a third party complaint against subcontractor Farizel and also tendered its defense as an additional insured under Farizel’s State Auto CGL policy.
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Reprinted courtesy of CDCoverage.com
Census Bureau, HUD Show Declines in Residential Construction
May 17, 2011 – CDJ Staff
The U.S. Census Bureau and the Department of Housing and Urban Development released their summary of residential construction for April 2011 on May 17.
Building permits for privately owned housing units were down 4% from last month and 12% from last year. Similarly, privately-owned housing starts were down 10% from March and 23% below the previous year.
For further details, read the Census Bureau/HUD report
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Manhattan Condo Resale Prices Reach Record High
September 03, 2014 —
Oshrat Carmiel – BloombergPrices for previously owned Manhattan condominiums rose to a record last month even as an increase in the supply of units eased competition among buyers.
An index of resale prices climbed 1.1 percent from June to reach the highest level in data going back to 1995, StreetEasy.com, a New York real estate website, said in a report today. The inventory of condos on the market grew 5.4 percent from a year earlier, the biggest annual gain since October 2009.
The market is still tight, with the number of available condos about 16 percent below the five-year average for Manhattan. That will continue to drive up prices, according to StreetEasy, which projects a 0.4 percent increase for August.
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Oshrat Carmiel, BloombergMs. Carmiel may be contacted at
ocarmiel1@bloomberg.net
BHA’s Next MCLE Seminar in San Diego on July 25th
July 02, 2014 —
Beverley BevenFlorez-CDJ STAFFThere are just three weeks remaining to sign up for Bert L. Howe & Associate’s next California MCLE seminar, UNDERSTANDING CONSTRUCTION DEFECT LITIGATION.
This activity will be presented on Friday, July 25th at noon, in BHA’s San Diego offices, located at:
402 W. Broadway
Suite 400
San Diego, CA 92101
There is no cost for attendance at this seminar and lunch will be provided.
This course has been approved for Minimum Continuing Legal Education credit by the State Bar of California Committee on MCLE in the amount of 1.0 credit hours, of which 0.0 credit hours will apply to legal ethics/professional responsibility credit. The seminar will be presented by Charlie Miller, general contractor and project manager.
Water intrusion through doors, windows and roofing systems, as well as soil and foundation-related movement, and the resultant damage associated therewith, are the triggering effects for the vast majority of homeowner complaints today and serve as the basis for most residential construction defect litigation. The graphic and animation-supported workshop/lecture activity will focus on the residential construction process from site preparation through occupancy, an examination of associated damages most often encountered when investigating construction defect claims, and the inter-relationships between the developer, general contractor, sub trades and design professionals. Typical plaintiff homeowner/HOA expert allegations will be examined in connection with those building components most frequently associated with construction defect and claims litigation.
The workshop will examine:
• Typical construction materials, and terminology associated with residential construction
• The installation process and sequencing of major construction elements, including interrelationship with other building assemblies
• The parties (subcontractors) typically associated with major construction assemblies and components
• An analysis of exposure/allocation to responsible parties.
Attendance at THE UNDERSTANDING CONSTRUCTION DEFECT LITIGATION seminar will provide the attendee with:
• A greater understanding of the terms and conditions encountered when dealing with common construction defect issues
• A greater understanding of contractual scopes of work encountered when reviewing construction contract documents
• The ability to identify, both quickly and accurately, potentially responsible parties
• An understanding of damages most often associated with construction defects, as well as a greater ability to identify conditions triggering coverage
To register for the event, please email Charlie Miller at cmiller@berthowe.com. If you have any questions, please feel free to contact Charlie at (800) 482-1822 (office) or (714) 353-1959 (cell).
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Alabama Supreme Court Finds No Coverage for Construction Defect to Contractor's own Product
October 21, 2013 —
Tred Eyerly — Insurance Law HawaiiThe Alabama Supreme Court followed prior precedent and found that the contractor's faulty workmanship causing damage to his own product did not arise from an occurrence. Owners Ins. Co. v. Jim Carr Homebuilder, LLC, 2013 Ala. LEXIS 122 (Ala. Sept. 20, 2013).
The plaintiffs contracted with Carr to construct a new home. After completion of the home and taking occupancy, the plaintiffs noted several problems with the house related to water leaking through the roof, walls and floors, resulting in water damage to various areas of the house. The plaintiffs sued Carr and the case eventually went to arbitration. The arbitrator entered an award in favor of plaintiffs for $600,000.
Owners filed an action against Carr for a declaratory judgment seeking to establish there was no coverage because the property damage did not arise from an occurrence. The trial court granted summary judgment to Carr.
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Tred EyerlyTred Eyerly can be contacted at
te@hawaiilawyer.com