Construction Contract Clauses That May or May Not Have Your Vote – Part 3
November 23, 2016 —
Garret Murai – California Construction Law BlogScope, time and cost provisions may be the most important clauses in your construction contract but they’re not the only ones which can impact your bottom line. The third in a multi-part series, here are some other important construction contract clauses that may determine whether you come out a winner.
Provision: Supervisory Personnel, Employees, and Authority to Bind Provisions
- Typical Provision: ”At all times during performance of the Work, Subcontractor shall have at the job site a competent supervisor approved by Owner. Subcontractor’s supervisor shall be deemed a representative of Subcontractor and all communications given to Subcontractor’s supervisor shall be as binding as if such communications were given to Subcontractor. Should Contractor object to Subcontractor’s supervisor’s presence at the job site, or the presence at the job site, or the presence at the job site of any other employee or agent of Subcontractor or any employee or agent of Subcontractor of Subcontractor, Subcontractor shall cause such persons to be replaced immediately as directed by Contractor.”
- What it Means: Higher-tiered parties have a legitimate interest in ensuring that only competent individuals are allowed to perform work on a project and in ensuring that there are peaceable relations at a job site. Higher-tiered parties also have an interest in ensuring that directives and agreements made and reached in the field are followed. However, it is unreasonable for higher-tiered party or to require that such personnel be able to bind that lower-tiered party to agreements best decided by others.
- What You Can Do: Lower-tiered parties should seek to include language which provides that only “reasonable” changes to personnel are allowed and, as necessary, limit by category or issue the types of items on-site personnel can bind the lower-tiered party to.
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Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
Separation of Insureds Provision in CGL Policies
August 31, 2020 —
David Adelstein - Florida Construction Legal UpdatesCGL policies contain a “Separation of Insureds” provision. This provision oftentimes states:
Except with respect to the Limits of Insurance, and any rights or duties specifically assigned this Coverage Part to the first Named Insured, this insurance applies:
- As if each named insured were the only Named Insured; and
- Separately to each insured against whom claim is made or “suit” is brought.
This provision is designed to “create separate insurable interests in each individual insured under a policy, such that the conduct of one insured will not necessarily exclude coverage for all other insured.” Evanson Ins. Co. v. Design Build Interamerican, Inc., 569 Fed.Appx. 739 (11th Cir. 2014). This provision also allows one insured under the policy (e.g., additional insured) to sue another (e.g., named insured) without violating potential coverage because there are separate insurable interests. This is a valuable provision in CGL policies.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Luxury Villa Fraudsters Jailed for Madeira Potato Field Scam
September 25, 2018 —
Franz Wild - BloombergFour men and a woman convicted of conning people to invest in a fraudulent luxury villa construction scheme on a potato field in the Portuguese island of Madeira were sentenced to as long as 5 1/2 years in a U.K. jail.
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Franz Wild, Bloomberg
Nevada Governor Signs Construction Defect Reform Bill
February 26, 2015 —
Beverley BevenFlorez-CDJ STAFFAccording to the Las Vegas Review-Journal, Nevada Governor Brian Sandoval “signed the first major Republican-backed reform bill of the 2015 session, a measure making changes to Nevada’s construction defect law.”
Sandoval stated, “During my State of the State address, I challenged the Legislature with passing meaningful construction defect reform. They have met that challenge with the Homeowner Protections Act, which discourages frivolous litigation and strengthens Nevada’s rebounding housing market,” as quoted in the Las Vegas Review-Journal.
The bill, which goes into effect immediately, “restricts the definition of what constitutes a home defect, repeals a provision allowing attorney fees and costs in a home defect judgment, and requires specific descriptions of defects.” It also reduces the statute of limitations from ten years to six years, and prohibits homeowner association boards from filing suits on behalf of homeowners.
Not all legislatures were in favor of the measure. For instance, Sen. Aaron Ford “called the measure the ‘homeowner rejection’ act rather than a homeowner protection act at a joint hearing on the bill,” according to the Las Vegas-Review Journal.
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GIS and BIM Integration Will Transform Infrastructure Design and Construction
October 09, 2018 —
Nicolas Mangon - Engineering News-RecordAn unfortunate fact of the architecture and engineering professions and the construction industry is that, between every stage of the process—from planning and design to construction and operations—critical data is lost.
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Nicolas Mangon, ENRENR may be contacted at
ENR.com@bnpmedia.com
Enerpac Plays Critical Role in Industry-changing Discovery for Long Span Bridges at The University of Nebraska-Lincoln
April 19, 2022 —
EnerpacMENOMONEE FALLS, Wis. (April 18, 2022) – Three years ago when Marc Maguire, assistant professor of construction programs at the University of Nebraska-Lincoln, started investigating a new stranded wire product for bridge girder reinforcing he thought the best strands for bridge construction were the industry standard 7-wire strands.
After running a multitude of analyses, Maguire and student researchers found that 19-wire 1-1/8 in. diameter strands outperform the typical 7-wire 1-1/6 in. diameter strands and allow bridges to reach unprecedented lengths. Further tests conducted by the Durham School of Architectural Engineering and Construction with the help of Enerpac hydraulic tools examined the bond strength, force transfer, and development length of the 19-wire strands.
"Traditionally, 19-wire strands are not often used in the U.S. because they are not widely available and they are much larger than standard strands," said Maguire. "We wanted to show that there was an alternative option to the common 7-wire strand--one that can perform at the same level, if not better."
About Enerpac
Enerpac is a global market leader in high pressure hydraulic tools, controlled force products, portable machining, on-site services and solutions for precise positioning of heavy loads. As a leading innovator with a 110-year legacy, Enerpac has helped move and maintain some of the largest structures on earth. When safety and precision matters, elite professionals in industries such as aerospace, infrastructure, manufacturing, mining, oil & gas and power generation rely on Enerpac for quality tools, services and solutions. For more information, visit www.enerpac.com.
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Finalists in San Diego’s Moving Parklet Design Competition Announced
September 03, 2014 —
Beverley BevenFlorez-CDJ STAFFThe city of San Diego together with the Downtown San Diego Partnership sponsored the Moving Parklet Design competition, and the winning design will be built and “used in public areas and legally permitted parking spaces throughout downtown San Diego to add a new and unique gathering space for the community,” according to the San Diego Source.
A mobile parklet “is a small, innovative park that can move from location to location.” The winning team is chosen by facebook voters and will receive $5,000.
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CDC Issues Moratorium on Residential Evictions Through 2020
October 05, 2020 —
Steven E. Ostrow, C. Jason Kim, & Marissa Levy - White and Williams LLPOn September 1, 2020, the Centers for Disease Control and Prevention (CDC) announced that it was issuing an order (CDC Order) to temporarily halt residential evictions to prevent the further spread of COVID-19. The CDC Order became effective on September 4, 2020 and will remain in effect through December 31, 2020.
The purpose of the CDC Order is to keep tenants in their residences to reduce crowding in shelters or other shared housing and to reduce the number of unsheltered homeless, as those conditions have been shown to increase the spread of COVID-19.
APPLICABILITY & PROTECTIONS
The CDC Order is broader than the previous eviction moratorium under the Coronavirus Relief and Economic Security Act (CARES Act), which applied only to federally-funded housing and expired on July 24, 2020. Eligible renters include those who qualified for a stimulus check under the CARES Act and individuals who expect to make less than $99,000 this year or a joint-filing couple that expects to make less than $198,000.
Reprinted courtesy of
Steven E. Ostrow, White and Williams LLP,
C. Jason Kim, White and Williams LLP, and
Marissa Levy, White and Williams LLP
Mr. Ostrow may be contacted at ostrows@whiteandwilliams.com
Mr. Kim may be contacted at kimcj@whiteandwilliams.com
Ms. Levy may be contacted at levymp@whiteandwilliams.com
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