Ready, Fire, Aim: The Importance of Targeting Your Delay Notices
November 08, 2021 —
Bradley Sands, Jones Walker LLP - ConsensusDocsProviding written notice of delay to subcontractors when a project is behind schedule is a regular part of good project documentation practices. A properly targeted delay notice is an important, project correspondence that is an appropriate response to a subcontractor’s specific delay or ongoing delays. However, when a project falls behind schedule and the project management team is in the fog of war, it could seem like a good idea to start firing off project delay notices to any and every subcontractor. While these delay notices may provide a short term burst of productivity, you could find that those same notices are aimed back at you in a future litigation.
This article identifies two potential unintended consequences of sending delay notices that a contractor should keep in its sights and then provides recommendations for properly calibrating future delay notices in light of these potential consequences.
Acceleration: You Might Get What You Ask For
A delay notice to a subcontractor could be interpreted as—or expressly state—direction to the subcontractor to accelerate its work. When a subcontractor is directed to accelerate its work, it may incur additional costs for premium, extended, or overtime labor, additional crews, increased supervision costs, increased overhead costs, and losses due to productivity impacts from the acceleration (e.g., stacking of trades and fatigue). A subcontractor may be entitled to recover these increased costs that are caused by a direction to accelerate.
Read the court decisionRead the full story...Reprinted courtesy of
Bradley Sands, Jones Walker LLPMr. Sands may be contacted at
bsands@joneswalker.com
Small Airport to Grow with Tower
October 25, 2013 —
CDJ STAFFThe city Hammond, Louisiana is finding that their airport just keeps getting busier. Mayson Foster, the mayor of Hammond noted that the city now has “various types of aircraft ranging from blimps, regional jets, smaller private planes, helicopters and other aircraft using the airport.” Spartan Construction Company has made a successful $1.6 million bid to build the tower.
Funding will come from the sale of 17 acres of land near the airport. Air traffic at the Northshore Regional Airport is expected to increase after the tower becomes operational.
Read the court decisionRead the full story...Reprinted courtesy of
Buyer Alleges Condo Full of Mold and Mice
March 26, 2014 —
Beverley BevenFlorez-CDJ STAFFSarah Schottenstein purchased a New York condo for $1.65 million, and claimed that “she wound up getting a moldy, mouse-infested mess,” according to DNAinfo New York. Schottenstein alleged that “within a month of moving in she found her apartment was infested with mice, had toxic mold growing beneath her floors, brown water coming from the tap and leaks from the ceiling, according to court documents.”
According to DNAinfo New York, “Microecologies Inc., an environmental health firm, found 'very heavy levels' of the infectious mold Aspergillus Chaetomium under the floor of Schottenstein's apartment.”
However, Larry Pittinsky, an attorney for the condo board, told DNAinfo New York that “the case was "about a woman trying to escape her obligation to pay money.”
Read the court decisionRead the full story...Reprinted courtesy of
Risk Management and Contracting after Hurricane Irma: Suggestions to Avoid a Second Disaster
September 14, 2017 —
Stephen H. Reisman, Gary M. Stein & Adam P. Handfinger – Peckar & Abramson, P.C.Peckar & Abramson attorneys have assisted contractors in the immediate aftermath of several Hurricanes, including Andrew in 1992, Wilma in 2005, Ike in 2008, and Sandy in 2012. Based on this experience, we offer some post-storm strategies for contracting and risk management in three situations:
- Ongoing projects in the area directly impacted by the storm;
- Projects remote from the storm-impacted areas, but which may be affected by material or labor shortages; and
- Requests for assistance in recovery/clean-up/rebuild eff orts, which would be new projects.
Projects Directly Impacted By Hurricane Irma:
1. Immediately review each Owner contract to determine what notices are required for delays and/or extra costs arising from the storm. Contract notice requirements and time limits vary, whether for force majeure or other similar time and compensation rights. There is no effective one-size-fits-all solution. While the initial notice letters will likely look very similar, you should make sure that each is sent as required by the contract. Check each contract’s requirements for particulars regarding content, the form of delivery, and parties and individuals designated to receive the letters as well as carbon copy recipients like the architect. Follow-up notices and time periods differ from contract to contract and should be tracked so that if, for example, a follow-up notice is required in a week per the contract terms, it is tracked to ensure compliance.
Reprinted courtesy of Haight Brown & Bonesteel LLP attorneys
Stephen H. Reisman,
Gary M. Stein and
Adam P. Handfinger
Mr. Reisman may be contacted at sreisman@pecklaw.com
Mr. Stein may be contacted at gstein@pecklaw.com
Mr. Handfinger may be contacted at ahandfinger@pecklaw.com
Read the court decisionRead the full story...Reprinted courtesy of
Insurance Telematics and Usage Based Insurance Products
October 29, 2014 —
Robert Ansehl – White and Williams LLPThe New York State Department of Financial Services (the "DFS") issued Insurance Circular Letter No. 4 on May 27, 2014 (the “Circular Letter”). The purpose of the Circular Letter was to alert stakeholders of the DFS’ interest in obtaining information about products that use embedded telematic devices, including usage-based insurance products (“UBI”) that provide benefits to insurers and policyholders.
As data capture and transmission technology become more advanced, and as user interfaces become increasingly sophisticated, many insurers are considering UBI and other programs that rely upon telematic devices to monitor the behavioral patterns, tendencies and habits of insureds. For example, when these devices are installed in an insured's vehicle, a telematic device can gather driving data, including miles driven, the time of day the driver used the vehicle, and his/her speed, acceleration and braking patterns. This data can be captured and transmitted on a real-time basis that allows insurers to make more effective underwriting determinations and to better align pricing with an insured’s driving tendencies and the resulting attendant risks. Other insurers have applied UBI to homeowner’s insurance where, for example, smoke and other alarms and monitoring devices can monitor and transmit details regarding the resident's risk-based activities (for example, whether and how often and how long the insured uses ovens and stoves on an attended and unattended basis). This data can be used to facilitate an insurer’s ability to correlate insurance coverage decisions with the insured’s actual behavior (as opposed to self-reported behavior) as measured by sophisticated home-based telematic devices. In addition, UBI and other programs provide the data on a real-time basis, as opposed to collecting information via traditional means, principally based upon post-claim reporting. Tempering increased UBI usage are countervailing privacy and data protection concerns and risks. Regulators, insurers and consumers have significant stakes in the availability, access and applications of this information.
Read the court decisionRead the full story...Reprinted courtesy of
Robert Ansehl, White and Williams LLPMr. Ansehl may be contacted at
ansehlr@whiteandwilliams.com
California’s Right To Repair Act Is The Sole Remedy For Damages For Construction Defects In New Residential Construction
March 14, 2018 —
Mark Johnson – Real Estate Litigation Blog The California Supreme Court ruled in
McMillin Albany LLC et al. v. The Superior Court of Kern County, (1/18/2018) 4 cal. 5th 241, that California’s Right to Repair Act, California Civil Code sections 895 et seq. (“Act”) is the sole remedy for construction defect claims for economic loss and property damages regarding new residential construction. The Act establishes a pre-litigation dispute resolution process that must be followed before filing a construction defect action for new residential construction purchased after January 1, 2003. The Act provides a builder with the right to attempt to repair construction defects before litigation is filed.
The
McMillin ruling resolved a split among two court of appeal decisions regarding the scope of the Act:
Liberty Mutual Insurance Company v. Brookfield Crystal Cove LLC (2013) 219 Cal.App.4th 98 and
Burch v. Superior Court [(2014) 223 Cal.App.4th 1411. Those cases held that the Act is not the exclusive remedy for construction defect lawsuits that allege property damage arising from new residential construction. Therefore owners of new residential construction where construction defects had caused property damage were not required to proceed under the Act and instead could proceed with common law claims.
McMillilin removes that option.
Read the court decisionRead the full story...Reprinted courtesy of
Mark Johnson, Snell & WilmerMr. Johnson may be contacted at
majohnson@swlaw.com
Mediating is Eye Opening
September 17, 2015 —
Christopher G. Hill – Construction Law MusingsAs anyone that reads this construction law blog on any sort of regular basis knows, I am a big advocate for mediation in most cases (construction or otherwise). I took this truly to heard about four years ago when I decided to go through the training and mentorship to become a certified mediator here in Virginia. This training led to many opportunities to act as a mediator in the General District Courts here in Virginia and has recently given me the great privilege of helping parties that were not court referred resolve their disputes.
I’ve discussed this first category of mediations at other times here at Musings, but it is the second category that has opened my eyes lately. The non-court referred mediations are those where the parties actively seek out the assistance of a mediator because they, like me, know that more often than not the control and ability to come to some form of negotiated solution (not to mention short circuiting the litigation process in a way that saves money) is a better way to go than to go through the expensive (though as a construction attorney I acknowledge sometimes necessary) process of litigation.
Read the court decisionRead the full story...Reprinted courtesy of
Christopher G. Hill, Law Office of Christopher G. Hill, PCMr. Hill may be contacted at
chrisghill@constructionlawva.com
Emergency Paid Sick Leave and FMLA Leave Updates in Response to COVID-19
April 06, 2020 —
Yvette Davis & Kyle R. DiNicola - Haight Brown & BonesteelThe Families First Coronavirus Response Act (“FFCRA”) was signed by the President on March 18, 2020 and will become effective no later than April 2, 2020. The law contains numerous updates to the country’s employment regulations in response to the Coronavirus pandemic of which employers should be familiar.
Of particular note, the FFCRA makes limited amendments to the Family and Medical Leave Act. Now, pursuant to the Emergency Family and Medical Leave Expansion Act (“EFMLEA”) employees may take up to 12 weeks of family and medical leave after having worked with the employer for 30 calendar days if the employee is unable to work (or telework) due to the employee’s need to care for a son or daughter under 18 years of age due to the child’s school closure or unavailability of a childcare provider due to a public health emergency, i.e., COVID-19. Unlike the FMLA, which does not apply to many small employers, this requirement applies to any employers with 500 or fewer employees. No mileage radius requirement exists under the EFMLEA.
When an employee utilizes leave pursuant to EFMLEA, the first 10 days of that leave may consist of unpaid leave, but the employee may elect to substitute any accrued paid vacation leave, personal leave, or medical or sick leave, including the Emergency Paid Sick Leave provided for by the Act and described below). All subsequent days of leave taken by the employee after the tenth day must be paid by the employer at a rate of not less than two thirds of the employee’s regular rate of pay and the number of hours the employee would otherwise normally be scheduled to work. The cap is $200 per day or $10,000 in the aggregate.
Reprinted courtesy of
Yvette Davis, Haight Brown & Bonesteel and
Kyle R. DiNicola, Haight Brown & Bonesteel
Ms. Davis may be contacted at ydavis@hbblaw.com
Mr. DiNicola may be contacted at kdinicola@hbblaw.com
Read the court decisionRead the full story...Reprinted courtesy of
