Supply Chain Delay Recommendations
August 07, 2022 —
Denise Motta - Gordon & Rees Construction Law BlogThis Bulletin provides guidance to contractors, subcontractors, suppliers, and others to ensure compliance with contractual change order requirements in the event work on a construction project is impacted by supply chain delays.
Contract Protection Tips:
The construction industry is being impacted substantially by inability to obtain necessary construction products due to supply chain issues. Most construction contracts do not accommodate time extensions due to supply chain impacts. To address this gap in contract terms, we recommend including language such as: “lack of or failure of or other inability to obtain necessary transportation, fuel, power, materials, machinery, equipment or facilities, delays caused by other contractors, subcontractors or their subcontractors of any tier, or any materialmen or suppliers” as part of the defined force majeure event under the contract.
This provision can be included in the Change Order section of the contract as well by including a provision such as: “If the Work is delayed by the failure of or other inability to obtain necessary transportation, fuel, power, materials, machinery, equipment or facilities, delays caused by other contractors, subcontractors or their subcontractors of any tier, or any materialmen or suppliers, contractor shall be entitled to a change order for its costs and time associated with the delay.”
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Denise Motta, Gordon Rees Scully Mansukhani, LLPMs. Motta may be contacted at
dmotta@grsm.com
AI AEC Show: Augmenta Gives Designers Superpowers
December 31, 2024 —
Aarni Heiskanen - AEC BusinessIn
this episode of the AI AEC Show, host
Aarni Heiskanen interviews
Aaron Szymanski and
Francesco Iorio, the visionary founders of
Augmenta, to explore how generative AI is revolutionizing design. Augmenta’s platform gives designers superpowers by automating complex workflows, doubling productivity, and enabling better, faster decision-making.
Discover the fascinating origin story of Augmenta, born from the intersection of industrial design frustration and cutting-edge AI research.
Aaron and Francesco share how their backgrounds in manufacturing, design, and technology led them to tackle inefficiencies in the construction industry—starting with electrical raceway design. They reveal how their AI-powered tools save time and optimize designs for cost, sustainability, and constructability.
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi
Arizona Court of Appeals Rules Issues Were Not Covered in Construction Defect Suit
December 09, 2011 —
CDJ STAFFThe Arizona Court of Appeals has ruled in the case of Peters v. Marque Homes. In this case, Walter Peters provided the land and funding for Marque Homes to build a luxury residence in Glendale, Arizona. By the terms of the “Joint Venture Agreement,” Peters provided the land and funding, while Marque would not charge Peters for overhead, profits, or supervision fees. The agreement specified that profits would be divided equally.
Two years later, Marque sued Peters claiming he had breached his obligations by refusing several offers for the home. Peters replied that Marque had “failed to complete the home so it is habitable to prospective purchasers.” Peters stated he had “retained an expert inspector who had identified numerous defects.” The court appointed a Special Commissioner to list the home for sale. Peters purchased the home with two stipulations ordered by the court. At this point, the earlier case was dismissed with prejudice.
Peters then sued Marque “asserting express and implied warranty claims arising out of alleged construction defects in the home.” Marque claimed that Peters’s claims were “precluded by the prior joint venture dispute.” The court granted Marque’s motion.
The appeals court reversed the lower court’s decision, determining that Peters’s claims were not precluded by the agreement. Although there had been a prior case between the two parties, warranty issues did not form a part of that case. “Peters never raised these allegations nor presented this evidence in support of any warranty claim.”
The court also noted that the “parties never agreed to preclude future warranty claims.” Marque and Peters “agreed in the stipulated sale order that ‘the sale of the property to a third party shall be “as is” with a 10-year structural warranty.’” The court noted that the agreement said nothing about one of the parties buying the house.
The appeals court left open a claim by Marque that there are no implied or express warranties available to Peters. They asked the Superior Court to address this.
Read the court’s decision…
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Alert: AAA Construction Industry Rules Update
August 26, 2015 —
Christopher G. Hill – Construction Law MusingsThe American Arbitration Association has made some needed updates to their Construction Industry Arbitration and Mediation Rules, effective July 1, 2015. Among the changes listed at their website are:
- A mediation step for all cases with claims of $100,000 or more (subject to the ability of any party to opt out).
- Consolidation and joinder time frames and filing requirements to streamline these increasingly involved issues in construction arbitrations.
- New preliminary hearing rules to provide more structure and organization to get the arbitration process on the right track from the beginning.
- Information exchange measures to give arbitrators a greater degree of control to limit the exchange of information, including electronic documents.
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Christopher G. Hill, Law Office of Christopher G. Hill, PCMr. Hill may be contacted at
chrisghill@constructionlawva.com
The EPA’s Renovation, Repair, and Painting Rule: Are Contractors Aware of It?
March 12, 2015 —
Beverley BevenFlorez-CDJ STAFFRemodeling Magazine reported recently that some remodelers are unaware of the U.S. Environmental Protection Agency’s (EPA) Renovation, Repair and Painting (RRP) rule despite that it took effect back in April of 2010.
“There are still quite a few remodelers who have never heard of RRP,” Mark Schlager, president of Access Training Services, an EPA and Occupational Safety and Health Administration (OSHA) trainer in Pennsauken, N.J. told Remodeling Magazine.
According to the article, “The RRP rule applies to homes, apartments, and child-occupied commercial facilities built before 1978.” There are two RRP certifications required on every job: “a “Firm” certification for the company that contracts to do the work, and a “Renovator” certification for the person overseeing the work. A solo operator needs both certifications, which are good for five years.”
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Addenda to Construction Contracts Can Be an Issue
March 30, 2016 —
Christopher G. Hill – Construction Law MusingsWe’ve all been there. Your client either has a well drafted standard subcontract (with any luck in consultation with an experienced construction attorney) that it presents to its subcontractors and suppliers or your client is presented with a construction contract that has some provisions that it would prefer were either different or gone altogether.
In the first of these scenarios, your client often gets push back from a subcontractor to change certain provisions. Such a response is not necessarily a bad thing depending on the provisions that the potential subcontractor may have. The construction contract documents will govern the way that the project moves forward and will be strictly enforced in Virginia and elsewhere so some early give and take is not unusual or unwanted.
In the second scenario, your client is likely to be reading a fairly one sided document. The General Contractor has drafted the contract and is “north” of your client in the payment chain. Like it or not, they will in most instances leave it to you and your attorney to root out the particularly egregious on sided terms and seek to negotiate them to some sort of equality.
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Christopher G. Hill, Law Office of Christopher G. Hill, PCMr. Hill may be contacted at
chrisghill@constructionlawva.com
Where Breach of Contract and Tortious Interference Collide
July 18, 2022 —
Christopher G. Hill - Construction Law MusingsClaims for breach of contract are numerous in the construction law world. Without these claims we construction attorneys would have a hard time keeping the doors open. A 2021 case examined a different sort of claim that could arise (though, “spoiler alert” did not in this case) during the course of a construction project. That type of claim is one for tortious interference with business expectancy.
In Clark Nexsen, Inc. et. al v. Rebkee, the U. S. District Court for the Eastern District of Virginia gave a great explanation of the law of this type of claim in analyzing the following basic facts:
In 2018, Clark Nexsen, Inc. (“Clark”) and MEB General Contractors, Inc. (“MEB”) responded to Henrico County’s (“Henrico”) Request for Proposals (“RFP”) for the design and construction of a sport and convocation center (the “Project”). Henrico initially shortlisted Clark and MEB as a “design-build” team for the Project, but later restarted the search, issuing a second RFP. Clark and MEB submitted a second “design-build” proposal, but Henrico selected Rebkee Co. (“Rebkee”) for certain development aspects of the Project. MEB also submitted proposals to Rebkee, and Rebkee selected MEB as the design-builder for the Project. MEB, at Rebkee’s request, solicited proposals from three design firms and ultimately selected Clark as its design partner. From December 2019 to May 2020, Clark and MEB served as the design-build team to assist Rebkee in developing the Project. In connection therewith, Clark developed proprietary designs, technical drawings, and, with MEB, several cost estimates. In February 2020, MEB submitted a $294,334.50 Pay Application to Rebkee for engineering, design, and Project development work. Rebkee never paid MEB. Henrico paid MEB $50,000.00 as partial payment for MEB’s and Clark’s work. MEB then learned that Rebkee was using Clark’s drawings to solicit design and construction proposals from other companies. On July 23, 2020, Rebkee told MEB that Henrico directed it to cancel the design-build arrangement with MEB and Clark and pursue a different planning method. MEB and Clark sued and Rebkee for, among other claims, tortious interference with a business expectancy. Rebkee moved to dismiss the tortious interference claim.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Will Future Megacities Be a Marvel or a Mess? Look at New Delhi
November 14, 2018 —
Jill Ward - BloombergThe effects of unbridled urbanization are inescapable in India’s capital city. Smog blankets landmarks like India Gate in winter, delaying flights at the airport due to poor visibility. Traffic jams are part of the daily routine and slums abut New Delhi’s luxury hotels and private mansions, testifying to a growing wealth divide and chronic housing shortage.
And every day, the problem gets bigger. More than 27 million people live in and around Delhi with about 700,000 more joining them each year, according to research firm Demographia. The United Nations forecasts that by 2028 the population could outstrip Tokyo’s to make Delhi the world’s biggest megacity.
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Jill Ward, Bloomberg