Foundation Differences Across the U.S.
October 15, 2014 —
Beverley BevenFlorez-CDJ STAFFThe National Association of Home Builders’ Eye on Housing analyzed data from the Survey of Construction (SOC) to demonstrate the differences in foundations built across the nation. For instance, “about 30 percent of new single-family homes started in 2013 have a full or partial basement, 54 percent are built on slabs, and 15 percent have a crawl space. The remaining share, including homes built on stilts or pilings, accounted for about 1 percent of homes started in 2013.”
Climate is the deciding factor in what type of foundations are used, Eye on Housing reported. “In colder regions where codes require foundations to be deep the marginal cost of providing a full or partial basement is not that great. So basements are the most common type of foundation in the colder climate divisions.” The warm climate area of the West South Central division are primarily built on slabs. However, “the other two divisions that make up the South region – the East South Central and South Atlantic –are still largely built on slabs but crawl spaces are also common.”
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Recommendations and Drafting Considerations for Construction Contingency Clauses Part III
December 27, 2021 —
Samantha Schacht & Josh Levy - Construction ExecutiveThe best contracts provide the parties with a clear allocation of risks and responsibilities, and a process for handling inevitable project challenges. Contract negotiations can enable parties to have the difficult conversations allocating risks before the start of a project. An effective negotiation, in turn, aligns the parties’ expectations and helps avoid costly disputes born out of misunderstandings of the parties’ respective rights and responsibilities on the project.
This final installment of a three-part series on contingencies in construction contracts addresses factors that should be discussed and considered when drafting a contingency clause in a construction contract with the goal of helping to set clear expectations and avoid disputes.
Part I The Best Laid Plans: Contingency in a Construction Contract explained what a construction contingency is and
Part II The Best Laid Plans: Contingency in a Construction Contract discussed the two primary schools of thought on how a construction contingency fund should be used and managed.
Reprinted courtesy of
Samantha Schacht, Construction Executive and Josh Levy, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Ms. Schacht may be contacted at samantha.schacht@huschblackwell.com
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Exclusions Bar Coverage for Damage Caused by Chinese Drywall
July 05, 2011 —
Tred R. EyerlyThe insured homeowners were unsuccessful in arguing around the policy's exclusions when seeking coverage for damage caused by Chinese drywall. Ross v. C. Adams. Constr. & Design, L.L.C., 2011 La. App. LEXIS 769 (La. Ct. App. June 14, 2011).
Before the insureds purchased and moved into their home, it was renovated. After moving in, the insures discovered foreign gypsum drywall, or Chinese drywall. The insureds submitted a claim to Louisiana Citizens Property Insurance Company. In an investigation, the insurer confirmed the presence of Chinese drywall and damage to the metal surfaces caused by corrosion. Louisiana Citizens refused coverage and the insureds sued. The trial court denied the insured's motion for summary judgment and granted summary judgment to Louisiana Citizens.
The court of appeal affirmed. Initially, the court determined the insureds sustained a direct physical loss. The inherent qualities of the Chinese drywall created a physical loss to the home and required that the drywall be removed and replaced.
Four exclusions, however, barred coverage. First, damages due to faulty or defective materials were excluded from coverage. The Chinese drywall emitted high levels of sulfuric gas which caused the damage to the insured's plumbing, electrical wiring and metal components.
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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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Duty to Defend Negligent Misrepresentation Claim
April 15, 2014 —
Tred R. Eyerly – Insurance Law HawaiiThe Kansas Court of Appeals determined that the insurer must defend claims of negligent misrepresentation against its insured. Central Power Sys. & Servs. v. Universal Underwriters Ins. Co., 2014 Kan. App. LEXIS 9 (Kan. Ct. App. Feb. 21, 2014).
Central Power contracted to furnish Eagle Well with 10 oil-rig engines and 10 oil-rig transmissions. Eagle Well alleged that Central Power informed them that the engines and transmissions would be operational without any additional components. As is turned out, the engines could not operate without a wiring harness. Eagle Well had to hire a third party to make wiring harnesses that would meet their needs and to install the wiring harnesses.
Eagle Wells sued Central Power, alleging damages in the form of lost profits for the time it took to make the engines independently operational. Further, damages were incurred due to money needed for the costs of purchasing the wiring harnesses from the third party and attaching the harnesses to the engines. Claims asserted against Central Power included breach of contract, negligence and negligent misrepresentation.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
The Investors Profiting Off Water Scarcity
June 10, 2024 —
Linda Poon - BloombergWe’re excited to share that the Bloomberg Green series Water Grab was named a Pulitzer Prize finalist. The series, which includes contributions from several CityLab writers and alums, explores how private investors are commandeering public water for profit at the expense of both the environment and less powerful communities.
Below is a sample of stories looking at how investors, private equity firms and Wall Street are taking advantage of the world’s scarce water supply. Read the full series here, which is now in front of the paywall.
Reprinted courtesy of
Linda Poon, Bloomberg
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Application Of Two Construction Contract Provisions: No-Damages-For-Delay And Liquidated Damages
February 14, 2022 —
David Adelstein - Florida Construction Legal UpdatesA recent Florida opinion between a prime contractor and a Florida public body touches upon two important issues: (1) the application of a no-damage-for-delay provision; and (2) the application of a liquidated damages provision. Both provisions find there way into many construction contracts. Unfortunately, the opinion is sparse on facts. Nevertheless, the application of these provisions is worthy of consideration.
In this opinion, Sarasota County v. Southern Underground Industries, Inc., 2022 WL 162977 (Fla. 2d DCA 2022), a county hired a contractor to install sanitary and water piping underneath a waterway. During construction, a nearby homeowner complained that vibration from the drilling caused damage to his home. As a result, the county stopped the contractor’s work to address a potential safety issue, as it was contractually entitled to do. The contractor hired a structural engineer to inspect the house and the engineer issued a report determining that any alleged damage was cosmetic and that there was sufficient monitoring of the vibrations to prevent future damage. The contractor also had an insurance policy to cover any homeowner claim for damage. However, upon receipt of the engineer’s report, the county did not lift its stop work order. Rather, the stop work order remained in place for an additional 71 days.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Let the 90-Day Countdown Begin
February 11, 2019 —
Amy L. Pierce & Robert A. James - Gravel2Gavel Construction & Real Estate Law BlogMost contractors are diligent about making sure that they pay their licensing fees, renew worker’s compensation insurance, and maintain the required bonds. What may be less obvious is how critically important it is to have current company personnel listed on the company’s licensing records with the Contractor’s State Licensing Board. Only personnel listed on the CSLB’s records are authorized to act on behalf of the licensee with respect to CSLB-related matters.
Although this may sound simple enough, all such personnel will be required to comply with fingerprinting (and background check) requirements before their applications to be added to the company’s licensing records can be approved. No new personnel will be associated with the licensee until their application is determined to be acceptable and all other requirements are met. Unforeseeable processing delays could result in this new personnel being unable to timely act on behalf of the licensee.
Reprinted courtesy of
Amy L. Pierce, Pillsbury and
Robert A. James, Pillsbury
Ms. Pierce may be contacted at amy.pierce@pillsburylaw.com
Mr. James may be contacted at rob.james@pillsburylaw.com
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Recent Opinions Clarify Enforceability of Pay-if-Paid Provisions in Construction Contracts
May 29, 2023 —
Patrick McKnight - The Dispute ResolverSeveral recent opinions and legislative actions have brought the controversial nature of pay-if-paid provisions into focus in early 2023. Pay-if-paid provisions are contractual mechanisms designed to shift the risk of non-payment from General Contractors to lower-tier subcontractors. In other words, pay-if-paid provisions generally do not require payment to downstream subs until after the GC or Prime are themselves paid in-full by the owner. Recent developments reflect the differing approaches taken by courts when addressing pay-if-paid provisions, ranging broadly from prohibition to full enforceability. Other jurisdictions fall somewhere in the middle, viewing such provisions with varying amounts of skepticism on the grounds heir impact on smaller downstream subs is disproportionate and unfair.
Pay-if-paid provisions are often contrasted against “pay-when-paid” provisions. Pay-when-paid provisions may require payment within a specified duration but remove the upstream contractor’s payment in-full as a condition precedent. The brief discussion below will not explore pay-when-paid, no damage for delay provisions, or statutory prompt payment acts. Instead, this article serves as a primer on recent legal developments related to pay-if-paid provisions exclusively.
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Patrick McKnight, Fox Rothschild LLPMr. McKnight may be contacted at
pmcknight@foxrothschild.com