General Contractors: Consider Importance of "Primary Noncontributory" Language
February 16, 2017 —
David Adelstein – Florida Construction Legal UpdatesIn prior articles, I reinforced the importance of general contractors including “primary and noncontributory” language in subcontracts and requiring the subcontractor to provide an analogous “primary and noncontributory” endorsement. As a general contractor this is important, particularly since you are going to require the subcontractor to (i) indemnify you for claims relating to personal injury, property damage, or death, and (ii) identify you as an additional insured under its commercial general liability (CGL) policy for claims arising out of the subcontractor’s scope of work. The “primary and noncontributory” language in your subcontracts allows you to maximize the value of your additional insured status.
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David Adelstein, Florida Construction Legal UpdatesMr. Adelstein may be contacted at
dadelstein@gmail.com
Lessee Deemed Statutory Employer, Immune from Tort Liability by Pennsylvania Court
November 03, 2016 —
Jerry Anders & Alison Russell – White and Williams LLPThe Superior Court of Pennsylvania addressed whether a lessee can be shielded from tort liability as a statutory employer and thus, immune from civil liability under the Workers’ Compensation Act. The court in Doman v. Atlas America, Inc. held that a primary contractor who leased property for the purposes of removing and drilling natural gas is a statutory employer under Section 302(a) of the Act and thus, entitled to tort immunity under Section 203 of the Act.
Reprinted courtesy of
Jerrold Anders, White and Williams LLP and
Alison Russell, White and Williams LLP
Mr. Anders may be contacted at andersj@whiteandwilliams.com
Ms. Russell may be contacted at russella@whiteandwilliams.com
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Waiving The Right to Arbitrate Under Federal Law
November 08, 2021 —
David Adelstein - Florida Construction Legal UpdatesIf there is an arbitration provision in your contract that you want to enforce, you do not want to take action inconsistent with those rights as this could give rise to a waiver argument, i.e., that you waived your rights to arbitrate, particularly if the other party has been prejudiced.
Under federal policy and law, establishing waiver requires the party arguing waiver to “bear a heavy burden of proof.” U.S. f/u/b/o John Wayne Construction, G.S.A. Division, LLC v. Federal Ins. Co., 2021 WL 4526727 (M.D.Fla. 2021) quoting Stone v. E.F. Hutton & Co., 898 F.2d 1542, 1543 (11th Cir. 1990).
“To determine whether the right to arbitrate has been waived, courts apply a two part test: i) whether, “‘under the totality of the circumstances,’ the party ‘has acted inconsistently with the arbitration right’”; and ii) “whether, by doing so, that party ‘has in some way prejudiced the other party.’” Id. quoting Ivax Corp. V. B. Braun of Am., Inc., 286 F.3d 1309, 1315-16 (11th Cir. 2002). Substantial participation in litigation prior to invoking the right to arbitrate supports a party acting inconsistent with the right to arbitrate. Id. And, “‘[p]rejudice has been found in situations where the party seeking arbitration allows the opposing party to undergo the types of litigation expenses that arbitration was designed to alleviate.’” Id. quoting Morewitz v. W. of Eng. Ship Owners Mut. Prot. & Indem. Ass’n (Luxembourg), 62 F.3d 1356, 1366 (11th Cir. 1995).
Hence the heavy burden for a party to support to prove waiver– establishing both substantial participation in litigation that is inconsistent with the right to arbitrate AND prejudice.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Lessons Learned from Implementing Infrastructure BIM in Helsinki
February 07, 2018 —
Aarni Heiskanen – AEC Business BlogFinland’s capital is currently experiencing a construction boom. Old industrial citadels are turning into residential areas with new commercial centers. Consequently, Helsinki needs to build new infrastructure. To improve the efficiency and quality of infrastructure construction, the city has started using BIM, and is now learning how to get the most value from it.
Ville Alajoki, Team Leader in Helsinki’s Urban Development Division, is a keen proponent of BIM. “Infrastructure construction is still in its early stages when it comes to using BIM. For the most part, BIM implementation has not been systematic in our city yet. We tend to use it in our own structural design and often in building construction. However, in infrastructure project management, its active individuals who have set the pace,” Ville admits. He believes that the city’s strategy for 2017–2021 will spur the use of new technologies, including BIM. “Helsinki aims to be the city in the world that makes the best use of digitalization,” Mayor
Jan Vapaavuori has declared.
A good start, but there’s room for improvement.
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Aarni Heiskanen, AEC Business Blog Mr. Heiskanen may be contacted at
info@aepartners.fi
OSHA Updates: New Submission Requirements for Injury and Illness Records
October 02, 2023 —
Ashley Meredith Strittmatter & Chelsea N. Hayes - Construction ExecutiveIn a revival of an OSHA recordkeeping rule originally implemented under the Obama administration in 2016 and "rolled back" by the Trump administration in 2019, OSHA issued a final rule on July 21, 2023, requiring certain establishments in high-hazard industries to submit additional injury and illness data electronically to OSHA. The
Final Rule is found at 29 CFR 1904 and goes into effect on Jan. 1, 2024.
What does this mean? On and after Jan. 1, 2024, OSHA will require employers with 100 or more workers in certain high-hazard industries to provide annual information from their
Forms 300 and 301, in addition to the already-required electronic submission of Form 300A. Form 300 is the Log of Work-Related Injuries and Illnesses, including the specific injuries or illnesses and the employee names, while Form 301 is the corresponding Injury and Illness Incident Report, which includes additional details on each item listed on the 300 Log. Form300A is the corresponding Annual Summary showing the injury and illness totals for the year, including the number of cases, number of lost workdays, the injury and illness types, the average number of employees and the total hours employees worked. This Form 300A Annual Summary must be routinely submitted by employers with more than 250 employees on or before March 2 of each year for the prior year.
Reprinted courtesy of
Ashley Meredith Strittmatter and Chelsea N. Hayes, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Ms. Strittmatter may be contacted at astrittmatter@bakerdonelson.com
Ms. Hayes may be contacted at cnhayes@bakerdonelson.com
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“Other Insurance” and Indemnity Provisions Determine Which Insurer Must Cover
September 01, 2011 —
Tred R. Eyerly - Insurance Law HawaiiA policy’s “other insurance” clause and a contractual indemnity provision were at the root for determining which of two insurers had to cover for injuries at a construction site. Valley Forge Ins. Co. v. Zurich Am. Ins. Co., 2011 U.S.Dist. LEXIS 76061 (N.D. Calif. July 14, 2011).
Hathaway was the general contractor at a demolition and construction project. Hathaway was insured by Zurich. Reinhardt Roofing was the roofing subcontractor. Reinhardt was insured by Valley Forge under a policy which named Hathaway as an additional insured. The subcontract also required Reinhardt to indemnify Hathaway for acts or omissions arising from Reinhardt’s work unless Hathaway was solely negligent.
Four of Reinhardt’s workers were injured when a canopy roof on which they were working collapsed. At the time of the accident, Hathaway’s on-site supervisor was inspecting a gap in the canopy roof, but did not order Reinhardt’s workers to stop working.
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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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When is an Indemnification Provision Unenforceable?
September 06, 2021 —
Christopher G. Hill - Construction Law MusingsVirginia Code Sec. 11-4.1 makes indemnification provisions in construction contracts that are so broad as to indemnify the indemnitee from its own negligence unenforceable. Of course, this begs the question as to what language of indemnification provisions make them unenforceable.
A case from the City of Chesapeake Virginia Circuit Court examined this question. In Wasa Props., LLC v. Chesapeake Bay Contrs., Inc., 103 Va. Cir 423 [unfortunately I can’t find a copy to which to link], Wasa Properties (“Wasa”) hired Chesapeake Bay Contractors (“CBC”) to perform utility work at Lake Thrasher in the Tidewater area of Virginia. Wasa then alleged that CBC breached the contract and caused over $400,000 in damages due to incorrectly installed water lines. Wasa used the following indemnification language as the basis for its suit:
To the fullest extent permitted by law, the Contractor shall indemnify and hold harmless the Owner and his agents and employees from and against all claims, damages, losses, and expenses, including but not limited to attorney’s fees arising out of or resulting from the performance of the Work.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
AECOM Out as General Contractor on $1.6B MSG Sphere in Las Vegas
January 18, 2021 —
Doug Puppel - Engineering News-RecordDevelopers of the $1.66-billion MSG Sphere in Las Vegas have removed AECOM as general contractor on the project and will bring construction management in-house for the 875,000-sq-ft entertainment venue, according to a Madison Square Garden Entertainment Corp. statement released Dec. 17.
Reprinted courtesy of
Doug Puppel, Engineering News-Record
ENR may be contacted at ENR.com@bnpmedia.com
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