Fairfield Connecticut Building Expert Directory

Real Estate & Construction News Round-Up (09/21/22) – 3D Printing, Sustainable Design, and the Housing Market Correction

October 17, 2022 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
The first 3D-printed home is under construction, construction contractors could face liability for not securing employee data, the housing market correction continues, and more.

Sustainable home design has become key focus of builders and homeowners, helping reduce carbon emissions and other environmental impacts. (Kristi Waterworth, U.S.News)
Construction contractors could face legal consequences for failing to manage employee data correctly. (Robyn Griggs Lawrence, Construction Dive)
The home price correction continues to spread across the U.S., with an interactive map showcasing local housing markets that have been impacted. (Lance Lambert, Fortune)

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Wisconsin High Court Rejects Insurer’s Misuse of “Other Insurance” Provision

March 04, 2019 — Michael S. Levine & David M. Costello - Hunton Andrews Kurth
The Wisconsin Supreme Court held last week in Steadfast Ins. Co. v. Greenwich Ins. Co. that two insurers must contribute proportionally to the defense of an additional insured under their comprehensive liability policies. In 2008, torrential rainstorms battered the Milwaukee area for two days. The downpour overwhelmed the city’s sewer system, causing significant flooding in homes throughout the region. Out of those floods sprang several lawsuits against the Milwaukee Metropolitan Sewerage District (“MMSD”) for negligent inspection, maintenance, repair, and operation of Milwaukee’s sewage system. MMSD was an additional insured under liability policies covering two other water service providers responsible for the city’s sewer systems. The first policy was issued by Greenwich Insurance Company for United Water Services Milwaukee, LLC, and the second was issued by Steadfast Insurance Company for Veolia Water Milwaukee, LLC. After learning of the lawsuits, MMSD tendered its defense of the sewage suits to both insurers. Steadfast accepted the defense; but Greenwich refused, claiming that its policy was excess to Steadfast’s based on an “other insurance” clause in Greenwich’s policy. Reprinted courtesy of Michael S. Levine, Hunton Andrews Kurth and David Costello, Hunton Andrews Kurth Mr. Levine may be contacted at mlevine@HuntonAK.com Mr. Costello may be contacted at dcostello@HuntonAK.com Read the court decision
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S&P Suspended and Fined $80 Million in SEC, State Mortgage Bond Cases

January 21, 2015 — Keri Geiger and Matt Robinson – Bloomberg
Standard & Poor’s (MHFI) agreed to be suspended from rating the biggest part of the commercial-mortgage bond market and pay almost $80 million to state and federal authorities over claims it bent criteria to win business. S&P misled investors about the methodology it used in 2011 to rate eight commercial-mortgage backed securities, the U.S. Securities and Exchange Commission said in a statement today. The company will pay about $58 million to the SEC and an additional $19 million to attorneys general for New York and Massachusetts to settle the matter. Ms. Geiger may be contacted at kgeiger4@bloomberg.net; Mr. Robinson may be contacted at mrobinson55@bloomberg.net Read the court decision
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Reprinted courtesy of Keri Geiger and Matt Robinson, Bloomberg

Avoiding Project Planning Disasters: How to Spot Problem Projects

December 13, 2021 — James T. Dixon - Construction Executive
The burden of project planning falls first and foremost upon a project owner. Owners have varying levels of sophistication, and the smart ones fill weak spots on their staff by engaging project managers, construction managers and owner’s representatives. Typically, the owner then delegates the largest part of the project’s plan to the contractor in terms of creation and execution of a critical path method schedule during the construction phase. Before accepting that burden, a wise contractor will evaluate the project to determine if it is on a path to success or disaster. It is guaranteed that an owner’s problems will become the contractor’s problems in one way or another. There are legendary projects that were also legendary planning failures. The iconic Sydney Opera House is one. The design competition began in 1955. After selecting the architect, the owner implemented a team that involved that architect, a structural engineer and an executive committee of inexperienced politicians. The original plan included a budget of $7 million (Australian) and a completion schedule spread over four years. That executive committee forced the project to start before designs were complete, doubled the number of theaters and then put a strangle-hold on the payment process, eventually causing the architect to quit and return to Europe with the construction drawings. The Opera House opened for its first performance in 1973—14 years late and $98 million over budget. Reprinted courtesy of James T. Dixon, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Construction Executives Should Be Dusting Off Employee Handbooks

January 03, 2022 — Adam E. Richards & Andrew Zelman - Construction Executive
For most businesses—large and small—the importance of maintaining and updating an employee handbook that sets forth a uniform set of company policies cannot be understated. The construction industry, which is seemingly plagued by a never-ending labor shortage, necessitating construction executives having to grapple with pandemic-related workplace issues and challenges, is not exempt from the benefits of a thorough, well-formed handbook. The employee handbook should be a window into the soul of a business. Even though annual updates are appropriate, they seldom occur. To say a lot has happened over the last few years barely begins to scratch the surface. Particularly, during the COVID-19 pandemic, construction executives and human resources professionals within construction-related businesses throughout the country have been forced to evaluate business models, values and cultures in furtherance of deciding where and how to evolve. Once those decisions are made, the employee handbook is deserving of time and attention. Reflecting the evolution of your construction business is only part of the overall plan; however, demonstrating compliance with new laws is equally important. Reprinted courtesy of Adam E. Richards & Andrew Zelman, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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SNC-Lavalin’s Former Head of Construction Pleads Guilty to Bribery, Money Laundering

October 01, 2014 — Beverley BevenFlorez-CDJ STAFF
Riadh Ben Aissa, a former SNC-Lavalin executive, “pleaded guilty to charges including bribery and money laundering in Switzerland, according to a court filing released on Wednesday,” reported the Wall Street Journal. SNC-Lavalin “issued a separate statement acknowledging the court's acceptance of Mr. Ben Aissa's guilty pleas, adding it was recognized as ‘an injured party’ in the case and would recover an unspecified amount of money from him.” Chief Executive Robert Card stated, “SNC-Lavalin's goal is nothing less than to set a new standard for clean business in the engineering and construction industry,” as quoted by the Wall Street Journal. “We've adopted a zero-tolerance policy for ethics violations of any kind. We have the right people in place and systems and procedures which are designed to protect the company and its stakeholders from future fraudulent actions." Read the court decision
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New York Labor Laws and Action Over Exclusions

February 01, 2021 — Theresa A. Guertin & Ashley McWilliams - Saxe Doernberger & Vita, P.C.
One of the most important methods for shifting risk in the construction context is insurance coverage. Upstream parties such as owner/developers and general contractors typically require that their downstream subcontractors who perform work on their properties or projects bring specific insurance to the table. These insurance requirements have a twofold purpose: protect the upstream parties, through additional insured coverage, from liabilities caused by the subcontractor; and protect the downstream parties by ensuring that they have adequate insurance for their own potential liabilities. In New York, subcontractor insurance coverage can have some surprising terms which frustrate risk transfer. Numerous policies contain “Action Over” exclusions, which bar coverage for one of the most significant exposures faced by owner-developers and general contractors: bodily injury lawsuits brought by subcontractor employees. It is critical that upstream parties understand the unique impact of New York’s labor laws on the insurance market and be prepared to identify and request removal of Action Over exclusions on subcontractor insurance policies. Reprinted courtesy of Theresa A. Guertin, Saxe Doernberger & Vita, P.C. and Ashley McWilliams, Saxe Doernberger & Vita, P.C. Ms. Guertin may be contacted at TGuertin@sdvlaw.com Ms. McWilliams may be contacted at AMcWilliams@sdvlaw.com Read the court decision
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Most Common OSHA Violations Highlight Ongoing Risks

July 27, 2020 — David M. McLain – Colorado Construction Litigation
In the 12 months from October 2018 through September 2019, the most recent period reported by OSHA,[1] the workplace safety agency cited the following standards[2] more than any other in the 28 states which do not have OSHA-approved state plans, including Colorado:

1926.501 – Duty to have fall protection – included in 459 citations, resulting in $2,475,596 in penalties ($5,393/citation);
1926.451 – General requirements for scaffolds – included in 265 citations, resulting in $834,324 in penalties ($3,148/citation);
1926.1053 – Requirements for ladders including job-made ladders – included in 164 citations, resulting in $354,853 in penalties ($2,163/citation);
1926.503 – Training requirements related to fall protection - included in 114 citations, resulting in $156,076 in penalties ($1,369/citation);
1926.405 - Wiring methods, components, and equipment for general use – included in 93 citations, resulting in $150,821 in penalties ($1,621/citation);
1926.20 - General safety and health provisions – included in 85 citations, resulting in $328,491 in penalties ($3,864/citation);
1926.1052 – Requirements for stairways – included in 79 citations, resulting in $155,651 in penalties ($1,970/citation);
1926.102 – Requirements for eye and face protection - included in 67 citations, resulting in $165,595 in penalties ($2,471/citation);
1926.403 – General requirements for electrical conductors and equipment – included in 63 citations, resulting in $146,050 in penalties ($2,318/citation), and;
1926.100 – Requirements for head protection – included in 55 citations, resulting in $127,274 in penalties ($2,314/citation).

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Reprinted courtesy of David McLain, Higgins, Hopkins, McLain & Roswell
Mr. McLain may be contacted at mclain@hhmrlaw.com

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