Fairfield Connecticut Building Expert Directory

Limiting Liability: Three Clauses to Consider in your Next Construction Contract

June 25, 2019 — Tara Lynch - Gordon & Rees Construction Law Blog
In your next contract, consider including some (or all!) of the following clauses to limit your liability and maximize your profits. Waiver of Consequential Damages While a proven breach of contract will leave a design professional or contractor exposed to direct or compensatory damages, a waiver of consequential damages will help “stop the bleeding” and protect the design professional or contractor from paying every damage that might flow from the breach. Consequential damages include those damages which indirectly flow from the breach of contract, for example, lost rents, lost profits, lost use, lost opportunity, loss of employee productivity, and damages to reputation. The American Institute of Architects (AIA) has included a mutual waiver of consequential damages in its sample A201 for over 20 years. The AIA provision includes a definition of consequential damages which are waived, including many of the examples cited above. However, the AIA waiver of consequential damages clause carves out an exception for liquidated damages to the owner. Prudent design professionals and contractors will strike this exception so as not to render the clause meaningless. A well-drafted waiver clause will be mutual, will define which damages are consequential versus direct, and will not contain exceptions. Read the court decision
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Reprinted courtesy of Tara Lynch - Gordon & Rees Scully Mansukhani
Ms. Lynch may be contacted at tlynch@grsm.com

The Future of Construction Tech Is Decision Tech

August 06, 2019 — Bassem Hamdy - Construction Executive
It doesn’t take much to be catastrophically wrong in construction; some bad information, a touch of misleading intel, a few biased opinions mixed with human error and perhaps a little bad luck to top it off. A poor decision early in a project plants itself like a weed—it grows benignly at first, and becomes gravely pervasive at the end. Being wrong in construction is dangerous. Error leads to leaning towers and broken buildings. Poorly-built structures can hinder economic growth and deprive communities of good infrastructure. For the enterprise, bad decisions can lead to massive financial loss and—worse—human loss on a jobsite. Despite knowing all the dangers, it seems that flawed data, misleading intel and human error have become traits the industry can’t shake. To be clear, construction is one of—if not the most—complex industry in today’s economy. Companies walk a tight rope between a 2% margin on one side and ruinous loss on the other. Under such conditions, it’s easy to see why sustained good judgement is difficult. Reprinted courtesy of Bassem Hamdy, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Home Prices Rose in Fewer U.S. Markets in Fourth Quarter

February 12, 2014 — Prashant Gopal – Bloomberg
Prices for single-family homes rose in 73 percent of U.S. cities in the fourth quarter, fewer than in the previous three months, as surging values in the past two years started to reduce affordability. The median transaction price for an existing home climbed from a year earlier in 119 of 164 metropolitan areas measured, the National Association of Realtors said in a report today. In the third quarter, 88 percent of markets had increases. While tight inventories and improving employment are bolstering the housing recovery, home-price gains are poised to decelerate as an increase in mortgage rates from record lows cuts into affordability. Values have been rising faster than incomes, particularly in the West, the Realtors group said. Read the court decision
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Reprinted courtesy of Prashant Gopal, Bloomberg
Mr. Gopal may be contacted at pgopal2@bloomberg.net

Construction Defects Up Price and Raise Conflict over Water Treatment Expansion

August 27, 2013 — CDJ STAFF
The owner of a regional water treatment plant in California has filed a lawsuit against the where they operate. Construction defects lead to cost overruns at the Modesto Irrigation District’s water treatment plant. Now the question is whether MID or Modesto will be paying for the expenses. Both parties sued Black & Veatch and others, receiving $14.9 million. But the problems have lead to the cost of the water treatment plant expansion ballooning to $107.5 million, a big jump over the planned $62.9 million. Also, instead of being completed in 2009, the completion date has been pushed to 2015. Modesto originally agreed to pay for the expansion, which will increase plant’s ability to provide drinking water to 66 million gallons per day with the agreement that MID would provide the water at the cost of producing it. But now the cost to Modesto of those additional 36 million gallons a day is an additional $44.6 million. Read the court decision
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Rio Olympic Infrastructure Costs of $2.3 Billion Are Set to Rise

January 31, 2014 — Tariq Panja and David Biller – Bloomberg
Brazilian authorities announced 5.6 billion reais ($2.3 billion) will be spent on infrastructure directly related to the 2016 Rio de Janeiro Olympic Games and those costs will rise as projects are added. Yesterday’s announcement comes months behind schedule, and after pressure on public bodies to reveal exactly how much it will cost for Rio to be the first South American city to host the quadrennial showpiece. Delays and cost overruns to several projects related to this year’s soccer World Cup have sharpened the focus on the Olympics. “We are committed to being on schedule,” Sports Minister Aldo Rebelo said at a press conference in Rio to announce the spending plans. “It is the first time we have a consortium of three levels of government. It is in an effort to ensure the success and execution of all the commitments to deliver the Olympics in Rio in 2016.” Mr. Panja may be contacted at tpanja@bloomberg.net and Mr. Biller may be contacted at dbiller1@bloomberg.net. Read the court decision
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Reprinted courtesy of Tariq Panja and David Biller, Bloomberg

Show Me the Money: The Good Faith Dispute Exception to Prompt Payment Penalties

March 13, 2023 — Garret Murai - California Construction Law Blog
California has a number of prompt payment penalty statutes on the books. Among them is Civil Code section 8800 which requires project owners on private works projects to pay progress payments to direct contractors within 30 days after demand for payment pursuant to contract or be subject to prompt payment penalties of two percent (2%) per month on the amount wrongfully withheld. Like California’s other prompt payment penalty statutes, however, there is an important carve out: If there is a good faith dispute between the project owner and the direct contractor the project owner may withhold up to 150% of the dispute amount and not be subject to prompt payment penalties. And that, my friends, is a higher-tiered party’s “get out of jail free” card. In a case of first impression, the 1st District Court of Appeals, in Vought Construction Inc. v. Stock (2022) 84 Cal.App.5th 622, examined whether a project owner’s claim for liquidated damages constitutes a good faith dispute under Civil Code section 8800. Read the court decision
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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

Houston Office Secures Favorable Verdict in Trespass and Nuisance Case Involving Subcontractor’s Accidental Installation of Storm Sewer Pipe on Plaintiff’s Property

June 12, 2023 — Lewis Brisbois Newsroom
Houston, Texas (May 26, 2023) - Houston Partners Joelle Nelson and Matt Begley secured a defense verdict on behalf of a gasoline services company following a four-day trial in the 284th District Court of Montgomery County, Texas. In this case, Lewis Brisbois represented a client who hired a contractor to install a storm sewer line to mitigate flood risks to the client’s property. The contractor, however, deviated from the engineering plans and installed the storm sewer line on a neighboring property owned by the plaintiff. The storm sewer line then remained on the plaintiff’s property for five years while the parties attempted to negotiate potential solutions to the situation. The plaintiff refused multiple reasonable settlement attempts and ultimately sued the client and the contractor for continuous trespass and private nuisance. The contractor’s carrier denied coverage, making the client the target defendant. The matter proceeded to trial. Read the court decision
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Reprinted courtesy of Lewis Brisbois

University of Tennessee Commits to $1.9B Capital Plan

August 07, 2023 — Stephanie Loder - Engineering News-Record
A nearly $2-billion funding plan approved by University of Tennessee trustees signals the go-ahead for 15 new capital projects at five locations including research, science and housing facilities along with a planned entertainment district for Neyland Stadium, home of the university's football team. Reprinted courtesy of Stephanie Loder, Engineering News-Record ENR may be contacted at enr@enr.com Read the full story... Read the court decision
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FAIRFIELD CONNECTICUT BUILDING EXPERT DIRECTORY AND CAPABILITIES