SEATTLE WASHINGTON BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Should I Pull the Pin? Contractor and Subcontractor Termination for Cause

January 26, 2017 — Patrick McNamara - Porter Law Group
Any owner or general contractor who has a few projects under his or her belt has likely had this thought: “My contractor (or subcontractor) is not performing the way I expected; should I replace him?” The other side of the termination coin is: “This project is not going the way I expected; should I get out?” While there may be an emotional high that immediately comes from terminating a contractor or subcontractor (or leaving a project, in mid-stream), there are many factors to be weighed, before making that decision. Project Delay. Replacing a contractor or subcontractor that has already begun performance always results in delays to the project. Assessing the work in place, interviewing replacement contractors, and negotiating the terms of the new relationship can easily consume weeks, if not months of project time. Read the court decision
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Reprinted courtesy of Patrick McNamara, Porter Law Group
Mr. McNamara may be contacted at pmcnamara@porterlaw.com

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Texas Federal Court Upholds Professional Services Exclusion to Preclude Duty to Defend

March 16, 2020 — Jeremy S. Macklin - Traub Lieberman Insurance Law Blog
In Project Surveillance, Inc. v. The Travelers Indemnity Company, No. 4:19-CV-03324, 2020 WL 292247 (S.D. Tex. Jan. 21, 2020), a Texas federal court held that a professional services exclusion in a commercial general liability policy precluded Travelers’ duty to defend its insured. The underlying lawsuit was a wrongful death action brought by the family of a worker killed on a construction site. Project Surveillance was present at the construction site “to provide safety supervision or other services.” The underlying lawsuit alleged that Project Surveillance negligently failed to inspect or adequately inspect the project and failed to warn or adequately warn the decedent of a dangerous condition. The underlying lawsuit also alleged that Project Surveillance was negligent in failing to stop work. At the time of the incident, Project Surveillance had commercial general liability insurance through Travelers and professional liability insurance through RLI. RLI agreed to defend Project Surveillance in the underlying lawsuit. Travelers, however, denied owing a duty to defend or indemnify based on an exclusion for “bodily injury” arising out of the rendering or failure to render any “professional service.” The Traveler policy defined the term “professional services” to mean any service requiring specialized skill or training, including “failure to prepare [. . .] any warning,” “supervision,” “inspection,” “control,” “surveying activity or service,” “job site safety,” “construction administration,” and “monitoring [. . .] necessary to perform and of [those] services.” Read the court decision
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Reprinted courtesy of Jeremy S. Macklin, Traub Lieberman
Mr. Macklin may be contacted at jmacklin@tlsslaw.com

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California’s Labor Enforcement Task Force Continues to Set Fire to the Underground Economy

February 16, 2016 — Evelin Y. Bailey – California Construction Law Blog
If you’re a fan of the Hunger Games trilogy, either the books or the movies, you’re likely familiar with “The Hob,” the black market in District 12 where people buy and sell banned items. It’s where bow-wielding protagonist Katniss Everdeen and her childhood friend Gale Hawthorne sell their poached game and where, in the movie but not the book (what can we say, we’re fans), Katniss obtains the “mockingjay” pin which she is later associated with. While The Hob is largely ignored by soldiers of the totalitarian “Capitol,” in the third book Catching Fire, the Hob is reduced to a pile of rubbish and ash by the Capital as an example to punish the insurrectionists led by Katniss. The Labor Enforcement Task Force (LETF), a joint task force composed of several of California’s agencies including the Contractors State License Board, Department of Industrial Relations and Employment Development Department is also setting fire, at least figuratively, to California’s underground economy. See our earlier post Joint Labor Task Force Targets Underground Economy for further background on LETF. Read the court decision
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Reprinted courtesy of Evelin Y. Bailey, Wendel Rosen Black & Dean LLP
Ms. Bailey may be contacted at ebailey@wendel.com

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Keeping Your Workers Safe When Air Quality Isn't

August 21, 2023 — Kim Ritchie - Construction Executive
Kim Ritchie, Vice President, Canada, ISN Construction Executive Q&A What risks do wildfires and poor air quality pose to workers? Exposure to smoke caused by wildfires can have significant health risks, especially for those with preexisting medical conditions. Smoke exposure and poor air quality can trigger immediate effects such as coughing, difficulty breathing and irritation of the throat, eyes and lungs. However, despite smoke dissipating, it could have long-term health complications with cardiovascular impacts, such as heart attacks and stroke. With the lasting impacts caused by exposure to wildfire smoke and poor air quality, it's essential for organizations to look out for their workers’ long-term health. Reprinted courtesy of Kim Ritchie, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Statutes of Limitations May be the Colorado Contractors’ Friend

April 18, 2011 — Beverley BevenFlorez CDJ STAFF

Albert Wolf, a principal in Wolf Slatkin & Madison P. C., has written an interesting article on statutes of limitations in construction defect claims in Colorado. While Wolf states that in most cases, “construction defect claims against construction industry participants (contractors, subcontractors, architects, engineers, etc.) requires that suits be started within two years after construction defects have been or should have been—in the exercise of reasonable diligence (care)—discovered,” if a project used the AIA General Conditions (AIA Document A2010) before the 2007 edition, the “statutes of limitations begin to run (accrue) at either substantial completion or breach by the contractor (installation of defective work), depending on the circumstances.”



“That’s a huge difference,” Wolf writes in his article. “For example, if the structural defect caused by faulty foundation work is not discovered or discoverable until walls begin to exhibit cracking more than two years after the building is completed, the owner’s claim against the contractor may be barred if the AIA provision is applied.”



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HHMR Celebrates 20 Years of Service!

October 18, 2021 — David M. McLain – Colorado Construction Litigation
I remember it (almost) like it was yesterday. It was September of 2001, and I was a third-year associate at Long & Jaudon, practicing with the construction litigation group. After a long weekend away, I received word that the firm had just announced that it would cease providing legal services. Long & Jaudon, which formed in 1967, had been a stalwart of Colorado’s defense bar, counting among its number some of the finest and most well-respected defense attorneys in the state. To learn that the firm would be shutting its doors was devastating. I would be out of a job. Soon after L&J’s announcement, Dave Higgins, one of that firm’s senior partners, inquired as to whether I would be interested in starting a new firm focused on supporting Colorado’s construction industry and its insurers. Instead of riding into the sunset of retirement, Dave wanted to leave a legacy. That legacy is Higgins, Hopkins, McLain & Roswell. Shortly after the sprout of the idea, I spent an afternoon at a picnic table in Cheesman Park with Dave Higgins, Steve Hopkins, and Sheri Roswell, sketching out an idea for a new law firm. Twenty years later, HHMR is still here, still serving Colorado’s construction industry and its insurers, and still embodying the principles of service and stewardship upon which the firm was founded. Read the court decision
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Reprinted courtesy of David McLain, Higgins, Hopkins, McLain & Roswell
Mr. McLain may be contacted at mclain@hhmrlaw.com

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Insured's Claim for Replacement Cost Denied

December 02, 2015 — Tred R. Eyerly – Insurance Law Hawaii
The Illinois Appellate Court affirmed the trial court's ruling that the insured was only entitled to the actual cost value of his loss, not the replacement cost. Lytle v. Country Mutual Ins. Co., 2015 Ill. App. LEXIS 756 (Sept. 30, 2015). The insured's home was built around 1903. On June 21, 2011, the insured discovered damage to his home because of a severe storm. He made a claim with his insurer, Country Mutual. The policy contained a depreciation holdback provision. The provision said the insurer would not pay more than the actual cash value until the actual repair or replacement was complete. If the insured elected to accept actual cash value, he would have one year from the date of the loss to repair or replace the damaged property and request the difference between the actual cash value and the replacement cost. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

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City of Sacramento Approves Kings NBA Financing Plan

May 21, 2014 — Beverley BevenFlorez-CDJ STAFF
Sacramento, California’s city council recently approved a financing plan that will enable the construction of the $477 million downtown arena project to move forward, reported KNOE News. Sacramento will now be responsible for a $223 million subsidy, and “the Kings would contribute $254 million to construct the arena and develop surrounding land with a hotel, office tower and shopping.” “Kings President Chris Granger called it a historic day for the team and Sacramento region, saying the arena would serve as a hub for economic development,” according to KNOE News. “The project would bring 11,000 construction jobs and 4,000 permanent jobs, [Granger] said.” Read the court decision
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