April Rise in Construction Spending Not That Much
June 28, 2013 —
CDJ STAFFApril saw an increase in construction spending that didn’t even break a half of a percent with just a 0.4% increase, although that’s better than March’s slight decrease of 0.8%, Both government and residential construction spending dropped, although government spending dropped only 1.2% and residential a miniscule 0.1%. This was slightly more than offset by the modest 2.2% increase in residential spending.
Although the April gains were modest, they come after the first year to increase after five years of decline.
Read the court decisionRead the full story...Reprinted courtesy of
The Enforceability of “Pay-If-Paid” Provisions Affirmed in New Jersey
January 04, 2023 —
Levi W. Barrett, Michael S. Zicherman & Brian Glicos - Peckar & Abramson, P.C.On December 7, 2022, the Appellate Division affirmed the New Jersey Superior Court decision in Jersey Precast v. Tricon Enterprises, Inc. et al., finding that the “pay-if-paid” clause in a material supplier’s purchase order with a general contractor was binding and enforceable. While clauses conditioning a general contractor’s obligation to pay its subcontractors on the general contractor’s receipt of payment from the project owner are not unique – this is the first time that a court in New Jersey has affirmed this practice in a published opinion. [1]
Background
The general contractor, Tricon, sent Jersey Precast its standard form purchase order for the supply of prestressed box beams to fulfill a public improvement contract with Union County. The reverse side of the form purchase order contained standard terms and conditions, and included a pay-if-paid clause drafted by Michael Zicherman, a partner of Peckar & Abramson, P.C. While Jersey Precast provided some draft revisions to the terms and conditions, Tricon never signed the purchase order and the proposed revisions were never accepted. Significantly, Jersey Precast did not attempt to modify the pay-if-paid provision. It later developed that the construction of the project became impossible, and the beams fabricated by Jersey Precast were not used. Tricon invoiced Union County for the cost of the beams, but the County failed to make payment and refused to accept delivery of the beams.
Reprinted courtesy of
Levi W. Barrett, Peckar & Abramson, P.C.,
Michael S. Zicherman, Peckar & Abramson, P.C. and
Brian Glicos, Peckar & Abramson, P.C.
Mr. Barrett may be contacted at lbarrett@pecklaw.com
Mr. Zicherman may be contacted at mzicherman@pecklaw.com
Mr. Glicos may be contacted at bglicos@pecklaw.com
Read the court decisionRead the full story...Reprinted courtesy of
Contractors Should Be Optimistic that the Best Value Tradeoff Process Will Be Employed by Civilian Agencies
September 10, 2018 —
Pillsbury's Construction & Real Estate Law Team - Gravel2GavelIn The Fiscal Year 2019 NDAA Imposes Government-Wide Limitations on the Use of Lowest-Price Technically Acceptable Procurements, Pillsbury attorneys Dick Oliver and Aaron Ralph are optimistic that contractors will soon have additional legal authority to demonstrate to civilian agencies that a best value tradeoff process should be employed.
- Congress’ trend of limiting the use of the much-derided lowest price, technically acceptable (LPTA) procurement process continues.
Read the court decisionRead the full story...Reprinted courtesy of
Pillsbury's Construction & Real Estate Law Team
Randy Maniloff Recognized by U.S. News – Best Lawyers® as a "Lawyer of the Year"
October 14, 2019 —
Randy Maniloff - White and Williams LLPCongratulations to Randy Maniloff, Counsel in the Insurance Coverage and Bad Faith Group, who was named the U.S. News – Best Lawyers® 2020 Insurance Law “Lawyer of the Year” in Philadelphia. Randy was recognized by his peers for his professional abilities in this area. "Lawyer of the Year" recognitions are awarded to individual lawyers with extremely high overall peer-feedback for a specific practice area and geographic location.
Randy concentrates his practice in the representation of insurers in coverage disputes over primary and excess obligations under a host of policies, including general liability and various professional liability policies. He has significant experience in coverage matters involving additional insured and contractual indemnity issues.
His practice also includes an academic side. He is an adjunct professor of Insurance at Temple University Beasley School of Law and the co-author of “General Liability Insurance Coverage – Key Issues in Every State” (4th edition), a nearly 1,000 page reference book that provides 50-state surveys on 20 critical liability coverage issues.
Read the court decisionRead the full story...Reprinted courtesy of
Randy Maniloff, White and Williams LLPMr. Maniloff may be contacted at
maniloffr@whiteandwilliams.com
Replevin Actions: What You Should Know
November 08, 2021 —
Craig H. O'Neill - White and Williams LLPA contractor client of White and Williams recently found itself in a prickly situation. They had default terminated a subcontractor on a major commercial project and withheld payment to that subcontractor on an outstanding invoice as permitted under the terms of the subcontract until the project was completed. Clearly irate over being terminated, the subcontractor walked-off of the project with thousands of dollars’ worth of project materials and equipment that had been paid for by the owner. While on some projects this may amount to nothing more than an annoyance or inconvenience, in this case it was a significant problem because some of the wrongfully removed materials were custom manufactured overseas and not easily replaceable. The client therefore needed to take immediate action to retrieve the stolen materials so that the project would not be delayed. Specifically, it needed to file a replevin action against the subcontractor.
A replevin action is a little known but powerful area of the law. In its simplest terms, replevin is a procedure whereby seized goods may be provisionally restored to their owner pending the outcome of an action to determine the rights of the parties concerned. The requirements of a replevin action differ by jurisdiction. For example, in Pennsylvania, the Rules of Civil Procedure devote an entire section to replevin actions and spell out in precise detail the steps that must be taken. While you should be sure to strictly comply with the rules in your jurisdiction, here are a few general points to keep in mind:
- Where to File: A replevin action is typically commenced by filing a complaint in the appropriate jurisdiction. Generally speaking, it is best to file the action in the jurisdiction where the improperly seized materials are being held. If that location is unknown, you can also typically file the action in the jurisdiction where the project is located.
Read the court decisionRead the full story...Reprinted courtesy of
Craig H. O'Neill, White and Williams LLPMr. O'Neill may be contacted at
oneillc@whiteandwilliams.com
No Damage for Delay? No Problem: Exceptions to the Enforceability of No Damage for Delay Clauses
October 18, 2021 —
Chris Broughton, Jones Walker LLP - ConsensusDocsIntroduction:
Under a no-damage-for-delay clause, the owner is not liable for any monetary damages resulting from delays on the project. In lieu of monetary recovery, the contractor’s remaining remedy is a non-compensatory time extension. These clauses are common at the contractor-subcontractor interface as well.
While no-damage-for-delay clauses are enforced in most jurisdictions, some states, either by statute or case law, have limited the enforceability of no-damage-for-delay clauses. Other states have also limited the enforceability of these clauses on state government contracts, and a select few have outlawed them on all projects regardless if they are publicly or privately owned. Additionally, for subcontractors on federal projects, the Miller Act may provide a way to avoid no-damage-for-delay and recover against the general contractor’s payment bond.
This article provides an overview of no-damage-for-delay clauses and the exceptions to enforcement of these clauses. However, due to the consequences of a no-damage-for-delay clause, it is important to know the terms of your contract and the law that governs your project.
Read the court decisionRead the full story...Reprinted courtesy of
Chris Broughton, Jones Walker LLPMr. Broughton may be contacted at
cbroughton@joneswalker.com
Orchestrating Bias: Arbitrator’s Undisclosed Membership in Philharmonic Group with Pauly Shore’s Attorney Not Grounds to Reverse Award in Real Estate Dispute
June 21, 2017 —
Lyndsey Torp - Snell & Wilmer Real Estate Litigation BlogThe California court of appeal recently issued an unpublished decision in Knispel v. Shore, 2017 WL 2492535, affirming a judgment confirming an arbitration award in a real estate dispute involving Pauly Shore. The court of appeal held that the arbitrator’s failure to disclose her membership in the Los Angeles Lawyers Philharmonic Group with the attorney representing Pauly was not grounds to overturn the judgment.
The underlying arbitration involved a dispute between Michael Scott Shore, on the one hand, and his brother, Pauly, among others, on the other hand, regarding certain residential property located on Sunset Boulevard near The Comedy Store in West Hollywood (owned and operated by their mother, Mitzi Shore). The parties agreed to arbitrate their dispute before Judge Aviva K. Bobb (Ret.) of the Alternative Resolution Center. Judge Bobb issued an award in favor of Pauly, and he petitioned the trial court to affirm the award. Michael opposed, contending the arbitrator failed to disclose that she and Pauly’s attorney had both been members of the Lawyers Philharmonic, for which they had been practicing and performing together since November 2010.
Read the court decisionRead the full story...Reprinted courtesy of
Lyndsey Torp, Snell & WilmerMs. Torp may be contacted at
ltorp@swlaw.com
Former Zurich Executive to Head Willis North America Construction Insurance Group
March 01, 2012 —
CDJ STAFFInsurance Journal reports that Sean McGroarty will be directing surety operations for their construction practice in North America. Previously, Mr. McGroarty was the senior vice president and head of international surety with Zurich Financial Services. He has also worked for Liberty Mutual Group and the St. Paul Companies.
Mr. McGroarty will be leading a team of professionals offering brokerage services for contract and commercial surety.
Read the full story…
Read the court decisionRead the full story...Reprinted courtesy of