Seattle Washington Building Expert Directory

Delay Leads to Problems with Construction Defects

November 27, 2013 — CDJ STAFF
The Bardwells bought a new home in the Philadelphia area in 2000. Now, thirteen years later they’ve learned that their house has been slowly rotting away due to moisture trapped beneath the stucco. And they’re not alone. The O’Days bought a home for about $1 million, and it now needs about $200,000 in repairs. All the stucco has been removed and their home is being rebuilt. Monica Bardwell said that “everything was rotted,” and “there was not a piece of good wood to be salvaged.” Other area homeowners are finding similar problems. Wendy Meyer had her home inspected by Kevin Thompson. Mr. Thompson said, “I shouldn’t be able to take a piece of plywood like that and crush it in my hands completely disintegrated.” Mr. Thompson described it as due to “faulty construction,” which he estimated accounted for such damage “95 percent of the time.” The Pennsylvania Builders Association says that diligent homeowners can head off problems with maintenance. “Make sure water isn’t continually on the outside of the stucco,” said Brent Sailhamer of the PBA. “Make sure there are no large cracks where water can seep behind the stucco.” For those who bought their homes as far back as the Bardwells, it’s already too late to sue anyone. Pennsylvania construction defect law allows 12 years for lawsuits. Read the court decision
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The Latest News on Fannie Mae and Freddie Mac

May 01, 2014 — Beverley BevenFlorez-CDJ STAFF
The Federal Housing Finance Agency released a report on April 30th, which stated that in a severe economic downturn Fannie Mae (FNMA) and Freddie Mac (FMCC) “could require an additional bailout of as much as $190 billion… according to the results of stress tests,” according to Clea Benson writing for Bloomberg. “These results of the severely adverse scenario are not surprising given the company’s limited capital,” FNMA Senior Vice President Kelli Parsons said in a statement, as reported by Benson published in Bloomberg. “Under the terms of the senior preferred stock purchase agreement, Fannie Mae is not permitted to retain capital to withstand a sudden, unexpected economic shock of the magnitude required by the stress test.” Furthermore, in another Bloomberg article, Cheyenne Hopkins and Clea Benson reported that Democrats remain divided on how to replace FNMA and FMCC. “If we don’t get this right, we’ll create major disturbances in the housing market which will have a profound impact on families, on homeownership and certainly on our national economy,” Oregon Democrat Jeff Merkley said in an interview, as reported by Cheyenne and Benson. “Merkley described himself as ‘still in negotiations’ with the bill’s sponsors.” Read the full story, Clea Benson Article... Read the full story, Cheyenne Hopkins & Clea Benson Article... Read the court decision
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Approaching Design-Build Projects to Avoid (or Win) Disputes

August 07, 2023 — Stuart Eisler - Construction Executive
Stakeholders engage in design-build projects believing the collaborative nature better aligns parties' interests and reduces overall risk exposure. Each of the lead parties bases this belief on different factors—the owner sees an opportunity to reduce change-order exposure and improve delivery times, the design-builder (or contractor) aims to control design volatility by ensuring project components match budgeted projections, and the designer intends to benefit by greater constructability review from the design-builder team and often additional time to detail designs. Rarely do design-build parties contemplate claims arising while initiating a project. This being said, design-build projects carry unique, inherent risks due to the award of often fixed-price contracts utilizing incomplete, preliminary designs. As scopes creep and costs balloon, previously harmonious parties experience discord and lurking claims. While the majority of design-build projects are completed without major dispute, there are strategies available to further avoid disputes and prevail in those that are unavoidable. Reprinted courtesy of Stuart Eisler, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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'Perfect Storm' Caused Fractures at San Francisco Transit Hub

January 08, 2019 — Nadine M. Post - Engineering News-Record
The underlying causes of the trouble at San Francisco’s 4.5-block-long Salesforce Transit Center are coming into focus. A combination of low fracture toughness deep inside thick steel plates, cracks present as a consequence of normal steel fabrication and stress levels from loads, which are a function of design, apparently caused brittle fractures in the bottom flanges of the center's twin built-up plate girders that span 80 ft across Fremont Street. Read the court decision
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Reprinted courtesy of Nadine M. Post, ENR
Ms. Post may be contacted at postn@enr.com

U.K. Construction Growth Unexpectedly Accelerated in January

February 05, 2015 — Tom Beardsworth – Bloomberg
(Bloomberg) -- U.K. construction growth unexpectedly accelerated last month as housing strengthened and civil engineering bounced back from a contraction. Markit Economics said its Purchasing Managers’ Index rose to 59.1 from 57.6 in December. A reading above 50 indicates expansion. Economists forecast the gauge would fall to 57, according to the median estimate in a Bloomberg News survey. Read the court decision
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Reprinted courtesy of Tom Beardsworth, Bloomberg
Mr. Beardsworth may be contacted at tbeardsworth@bloomberg.net

Changing Course Midstream Did Not Work in River Dredging Project

December 10, 2015 — Craig Martin – Construction Contractor Advisor
A contractor learned a $12M lesson when it tried to change course on a Corps of Engineer river dredging project. The case also illustrates the importance of documenting problems on a project and providing notice of those problems to the owner. In Weston/Bean Joint Venture v U.S., Weston/Bean was awarded a Corps of Engineers project to provide maintenance dredging on the Miami River to a depth of 15 feet. The contract noted that the contractor may experience sediment, debris and rock, including soft to moderately hard limestone. The contractor encountered rocks early on in the project, but consistently submitted reports to the Corps of Engineers that nothing was experienced on the project that would lead to a change order or claim. And, for the first year of operations, the contractor made no claim for differing site conditions. Instead, the contractor terminated the subcontractor for not being able to process the rock uncovered during the dredging process. Read the court decision
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Reprinted courtesy of Craig Martin, Lamson, Dugan and Murray, LLP
Mr. Martin may be contacted at cmartin@ldmlaw.com

Reasonableness of Liquidated Damages Determined at Time of Contract (or, You Can’t Look Back Again)

October 05, 2020 — Christopher G. Hill - Construction Law Musings
I’ve discussed the continuing litigation between White Oak Power Constructors v. Mitsubishi Hitachi Power Systems Americas, Inc. previously here at Construction Law Musings because the case was another reminder that your construction contract terms matter and will be interpreted strictly here in the Commonwealth of Virginia. The prior opinion in this case from the Eastern District of Virginia court the Court considered the applicability of a liquidated damages provision. In the latest opinion from the Court (PDF) the Court looked at when and how any liquidated damages would be calculated. In its June 22, 2020 opinion, the Court put the issue as follows:

White Oak’s motion for partial summary judgment presents a narrow issue: whether courts may consider the damages actually sustained by a party as a result of a contract breach when deciding if liquidated damages required by a contract “grossly exceed” a party’s actual damages.

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Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

Norristown, PA to Stop Paying Repair Costs for Defect-Ridden Condo

February 10, 2014 — Beverley BevenFlorez-CDJ STAFF
The city of Norristown, Pennsylvania has already paid “$3.4 million for construction repairs and legal expenses” for the 26-unit condominium on 770 Sandy Street, according to The Times Herald. Therefore city officials recently declared that “they will no longer pay the $40,000 annual cost for maintenance, electricity and repairs” for the building. “At some point, the folks that own it have to step up and take responsibility for it,” Norristown Council President William Caldwell told The Times Herald. “No later than February 28, the municipality will cease to provide or pay for maintenance of 770 Sandy Street.” Previously, Norristown had received court orders to repair the building, after numerous construction defects turned up including “missing firestops in numerous walls, missing grout and steel rebar in block-wall, emergency stair towers, faulty electrical wiring and no provision for firestopping in the first-floor garage ceiling.” City officials “were faulted by Montgomery County Common Pleas Court judges for not properly inspecting the construction.” Charles Madracchia, past Customers Bank attorney and current Homeowner attorney, is “continuing active litigation in both federal and state court.” Read the court decision
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