Seattle Washington Building Expert Directory

Tarriffs, a Pandemic and War: Construction Contracts Must Withstand the Unforeseeable

May 16, 2022 — Brett Moritz, Adrian Bastianelli III & Adam Handfinger - Construction Executive
Since the tariffs on steel and the first wave of the COVID-19 pandemic, the construction industry has been reeling from the impact of material shortages and price increases, labor shortages, breakdowns in the supply chain and the inflationary effect of these issues. Unfortunately, the war in Ukraine has only exacerbated the situation. International conflicts can constrain supply, resulting in delays and price increases for contractors, subcontractors and suppliers. The disruption caused by the war is expected to be particularly acute due to the role that Russia and Ukraine play in the world economy and the effect of the economic sanctions that have been imposed on Russia by the United States and other countries. Russia controls approximately 10% of the global copper reserves and is estimated to produce about 10% of the world’s nickel supply. It also provides at least 30% of Europe’s oil and natural gas. Ukraine is a significant source of raw materials, such as iron. Thus, the war will cause significant shortages and price increases to the global construction industry. There are already reports of delays and cost increases for commodities such as nickel, aluminum, copper and—most importantly—steel, which have resulted in impacts to construction costs and schedules. Suppliers are especially sensitive to the volatile markets caused by these conditions. Some are insisting on automatic price increases in their purchase orders. All of this, not to mention the anticipation of what may come next, points to the necessity for a new paradigm to achieve a successful project. It is more important today than ever that owners, contractors, subcontractors and suppliers reasonably address the economic and time impacts of these unforeseeable events in preparing contracts for future work and in administering existing contracts. Otherwise, the risk of a default on more than one level may put projects in jeopardy, to no one’s benefit. Reprinted courtesy of Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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All Risk Policy Only Covers Repair to Portion of Dock That Sustains Damage

January 06, 2012 — Tred R. Eyerly - Insurance Law Hawaii

A portion of a dock on Lack Michigan operated by the Ports of Indiana suffered visible damage. See Ports of Indiana v. Lexington Ins. Co., 2011 U.S. Dist. LEXIS 130979 (S.D. Ind. Nov. 14, 2011). Lexington Insurance Company insured the port. Lexington agreed that a portion of the dock was damaged and paid $1.2 million for repairs. A dispute arose, however, over whether additional sections of the dock were damaged and whether the damage was the result of more than one "occurrence."

An expert report opined that a significant drop creating record lows in the water level of Lake Michigan in 2007 caused damage to the dock. Lexington maintained that only 128 feet of the dock was damaged; other portions of the dock did not sustain "direct physical loss or damage."

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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii. Mr. Eyerly can be contacted at te@hawaiilawyer.com

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Athens, Ohio, Sues to Recover Nearly $722,000 After Cyber Attack

January 21, 2025 — Jeff Yoders - Engineering News-Record
In November, Athens, Ohio, officials sent nearly $722,000 to a bank account they believed was set up by its contractor, Pepper Construction, to receive payment for its work on a fire station headquarters. The request was actually a sophisticated cyber attack that took advantage of a construction payment system that often does not allow clients processing invoices to directly know those behind the email addresses making the requests. Read the court decision
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Reprinted courtesy of Jeff Yoders, ENR
Mr. Yoders may be contacted at yodersj@enr.com

Is it time for a summer tune-up?

September 20, 2017 — Christopher G. Hill - Construction Law Musings
For this week’s Guest Post Friday readers are in for a treat. Lance Godard, founder of The Godard Group, has provided marketing and business development solutions to global law firms for nearly 20 years. He has particular expertise developing strategies that allow lawyers to identify client opportunities, communicate their messages, and grow their practices. Lance has been called a “provocative and engaging leader in the legal profession and social media” and was named one of the “20 Twitterers Lawyers should follow on Twitter.” He is the founder of 22 Tweets, live Twitter interviews with practicing lawyers, which provides a forum for lawyers to tell their story using social media. The market appears to be picking up. Clients are getting back to work. New opportunities can’t be far behind. What are you doing to find them? To make sure they show up on your radar? To put yourself in a position to see those opportunities that do present themselves, and to land the work when you pitch for it? Maybe it’s time for a marketing tune-up. Read the court decision
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Reprinted courtesy of Christopher G. Hill, The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

Wildfires Threaten to Make Home Insurance Unaffordable

January 10, 2018 — Christopher Flavelle – Bloomberg
More frequent and intense wildfires are making it harder for homeowners to find and keep insurance in California, a state regulator warned Thursday. Read the court decision
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Reprinted courtesy of Christopher Flavelle, Bloomberg

'Right to Repair' and Fixing Equipment in a Digital Age

August 30, 2021 — Jeff Rubenstone - Engineering News-Record
When a piece of equipment breaks down on site, rental agreements, subcontractor contracts and other arrangements generally make it clear who gets to open the hood and start tinkering. But heavy equipment made in the last two decades increasingly relies on digital components for many basic functions. Embedded computer systems oversee electronically controlled hydraulics and regulate engine behavior and emissions-control systems. The tools to access these firmware and software systems are not always easy to come by, and in some cases repairs can’t be done without working directly with a manufacturer-approved dealer or technician. Some repairs may require a digital handshake to take effect. Reprinted courtesy of Jeff Rubenstone, Engineering News-Record Mr. Rubenstone may be contacted at rubenstonej@enr.com Read the full story... Read the court decision
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Render Unto Caesar: Considerations for Returning Withheld Sums

January 18, 2021 — William E. Underwood Partner, Jones Walker LLP - ConsensusDocs
Withholding sums during a dispute can be an effective and perfectly legitimate means to protect against the harms caused by another party’s breach. However, withholding too much money during a dispute can turn a position of strength into one of weakness. “Why should I fund the other side’s litigation war chest?” and “Isn’t this just a display of weakness?” are common questions raised by contractors when this issue is discussed. Often, the contractor is well within its contractual or legal rights to withhold money from a breaching subcontractor (another topic for another day). But it may not always be in a contractor’s best interest to withhold every single penny available. This article addresses some of the long-term implications for failing to return withheld sums, including the potential to recover attorneys’ fees, possible bad faith, accruing interest, and overall litigation costs. Admittedly, it can be hard to give money back in the middle of a dispute. But sometimes it can positively impact the overall outcome of the case. Read the court decision
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Reprinted courtesy of William E. Underwood, Jones Walker LLP (ConsensusDocs)
Mr. Underwood may be contacted at wunderwood@joneswalker.com

Architect Searches for Lost Identity in a City Ravaged by War

March 14, 2022 — Donna Abu-Nasr & Mohamed Sheikh Nor - Bloomberg
Omar Degan got used to being ridiculed when he sat down with developers. The architect wanted buildings to incorporate green spaces, use less glass but have bigger windows to allow in more air. They wanted to maximize profit. Such a clash of visions between designer and constructor could, of course, happen anywhere. But the gulf between them was particularly wide in a place where people have been more focused on survival than sustainability. Degan, 31, wants to transform the Somali capital of Mogadishu, a lofty ambition in a city that’s been defined by violence, piracy and terrorism over the past three decades. His persistence, though, has led to prominence by championing cultural heritage and buildings that are in tune with the environment during the frenzy of reconstruction in recent years. Reprinted courtesy of Donna Abu-Nasr, Bloomberg and Mohamed Sheikh Nor, Bloomberg Read the court decision
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