Cambridge Massachusetts Building Expert Directory

Ready, Fire, Aim: The Importance of Targeting Your Delay Notices

November 08, 2021 — Bradley Sands, Jones Walker LLP - ConsensusDocs
Providing 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 decision
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Reprinted courtesy of Bradley Sands, Jones Walker LLP
Mr. Sands may be contacted at bsands@joneswalker.com

The Enforceability of “Pay-If-Paid” Provisions Affirmed in New Jersey

January 04, 2023 — Levi W. Barrett, Michael S. Zicherman & Brian Glicos - Peckar & Abramson, P.C.
On December 7, 2022, the Appellate Division affirmed the New Jersey Superior Court decision in Jersey Precast v. Tricon Enterprises, Inc. et al., finding that the “pay-if-paid” clause in a material supplier’s purchase order with a general contractor was binding and enforceable. While clauses conditioning a general contractor’s obligation to pay its subcontractors on the general contractor’s receipt of payment from the project owner are not unique – this is the first time that a court in New Jersey has affirmed this practice in a published opinion. [1] Background The general contractor, Tricon, sent Jersey Precast its standard form purchase order for the supply of prestressed box beams to fulfill a public improvement contract with Union County. The reverse side of the form purchase order contained standard terms and conditions, and included a pay-if-paid clause drafted by Michael Zicherman, a partner of Peckar & Abramson, P.C. While Jersey Precast provided some draft revisions to the terms and conditions, Tricon never signed the purchase order and the proposed revisions were never accepted. Significantly, Jersey Precast did not attempt to modify the pay-if-paid provision. It later developed that the construction of the project became impossible, and the beams fabricated by Jersey Precast were not used. Tricon invoiced Union County for the cost of the beams, but the County failed to make payment and refused to accept delivery of the beams. Reprinted courtesy of Levi W. Barrett, Peckar & Abramson, P.C., Michael S. Zicherman, Peckar & Abramson, P.C. and Brian Glicos, Peckar & Abramson, P.C. Mr. Barrett may be contacted at lbarrett@pecklaw.com Mr. Zicherman may be contacted at mzicherman@pecklaw.com Mr. Glicos may be contacted at bglicos@pecklaw.com Read the court decision
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New Law Impacting Florida’s Statute of Repose

June 29, 2017 — Meredith N. Reynolds & K. Stefan Chin – Peckar & Abramson, P.C.
On June 14, 2017, Governor Scott signed House Bill 377 into law, clarifying that Florida’s ten-year Statute of Repose commences either when the work is completed or when final payment becomes due, whichever is latest. The new law resolves a problem for contractors created by a recent Florida court ruling that held the Statute of Repose to commence as late as when the owner made final payment. The applicable amendments to Florida Statute Section 95.11 take effect on July 1, 2017 and apply to all causes of action that accrue on or after that date. Perhaps the most critical component of a construction professional’s risk management program is the length of time that it is liable for the work performed on a project. While contractual warranty periods typically run one or two years from substantial completion, the true length of a contractor’s post-completion obligation is measured by the “Statute of Repose,” which establishes the period of time following the completion of construction that a lawsuit can be filed for construction defects. Reprinted courtesy of Meredith N. Reynolds, Peckar & Abramson, P.C. and K. Stefan Chin, Peckar & Abramson, P.C. Ms. Reynolds may be contacted at mreynolds@pecklaw.com Mr. Chin may be contacted at kschin@pecklaw.com Read the court decision
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First Circuit Rejects Insurer’s “Insupportable” Duty-to-Cooperate Defense in Arson Coverage Suit

October 24, 2023 — Geoffrey B. Fehling & Yaniel Abreu - Hunton Insurance Recovery Blog
In Philadelphia Indemnity Insurance Co. v. BAS Holding Corp., the Court of Appeals for the First Circuit rejected an insurer’s “insupportable” defense that the insured company had breached its duty to cooperate by refusing the insurer’s request for an examination under oath of the company’s president. The decision is a reminder that, while examinations under oath can be effective tools to allow the insurer to properly investigate a claim, an insured’s duty to cooperate is not boundless and does not demand attendance at examinations that are not reasonably requested. Background BAS Holding involves the destruction of a landmark building in Boston by an arsonist. The owner, BAS Holding Corporation, submitted an insurance claim to its property insurer to recover insurance proceeds for the damage to the building. The insurer investigated the claim to determine whether the damage to the building was covered and issued a reservation of rights letter suggesting that the policy may not provide coverage for the fire. As part of its investigation, the insurer requested an examination under oath as a condition to coverage under the policy, which led to BAS presenting the property’s operations coordinator for an interview. Shortly after examining the operations coordinator, the insurer sought another examination of BAS’s president and owner, as well as five other employees. In response, BAS questioned whether the additional examinations were “reasonably required” and said that it would consider the requests if the insurer could explain why they were necessary. Reprinted courtesy of Geoffrey B. Fehling, Hunton Andrews Kurth and Yaniel Abreu, Hunton Andrews Kurth Mr. Fehling may be contacted at gfehling@HuntonAK.com Mr. Abreu may be contacted at yabreu@HuntonAK.com Read the court decision
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Federal Court Sets High Bar for Pleading Products Liability Cases in New Jersey

November 11, 2024 — Lian Skaf - The Subrogation Strategist
Products liability is an area of law that both sides of the aisle vigorously litigate. Like in most litigation, products liability claims provide subrogation attorneys with an important means of prosecuting cases against manufacturers, sellers, and other entities in the stream of commerce. Of course, these claims also come with numerous “buyer beware” requirements. New Jersey allows products liability claims and the United States District Court for the District of New Jersey (District Court) clarified how such claims should be plead in Cambridge Mut. Fire Ins. Co. a/s/o David Krug vs. Stihl, Inc., No. 22-05893, 2024 U.S. Dist. LEXIS 178804 (D. N.J.). After becoming subrogated to the rights of its insured, Cambridge Mutual Fire Insurance Company (Cambridge) filed suit against Stihl, Inc. (Stihl) in the Superior Court of New Jersey, Morris County, Law Division. Stihl then removed the case to federal court. Once in federal court, Stihl filed a motion to dismiss the action. The District Court granted the motion, doing so in part with prejudice and in part without prejudice. Read the court decision
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Reprinted courtesy of Lian Skaf, White and Williams LLP
Mr. Skaf may be contacted at skafl@whiteandwilliams.com

Residential Construction Rise Expected to Continue

May 10, 2013 — CDJ STAFF
Housingwire reports that Fannie Mae has predicted strong increases in housing starts over the last few years, with an expected return to normal by 2016. If this holds true, residential construction will include 2.5 million jobs. Read the court decision
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Union THUGS Plead Guilty

October 15, 2014 — Craig Martin – Construction Contractor Advisor
Some time ago, I wrote about union THUGS (The Helpful Union Guys) that tormented merit shops to force contractors to use union labor on projects. The THUGS set fire to equipment, beat contractors with baseball bats, and picketed apartment complexes where contractors lived. Recently two of the ten union members plead guilty to arson-related charges, including two counts of maliciously damaging property by means of fire, extortion, and RICO conspiracy charges. Read the court decision
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Reprinted courtesy of Craig Martin, Lamson, Dugan and Murray, LLP
Mr. Martin may be contacted at cmartin@ldmlaw.com

Three Payne & Fears Attorneys Named 2024 Southern California Super Lawyers Rising Stars

June 17, 2024 — Payne & Fears LLP
We congratulate our Payne & Fears attorneys named 2024 Southern California Super Lawyers Rising Stars in the following practice areas: Employment & Labor Blake A. Dillion Business Litigation Leilani L. Jones Employment Litigation: Defense Tyler B. Runge Read the court decision
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Reprinted courtesy of Payne & Fears LLP

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