New Jersey Construction Worker Sentenced for Home Repair Fraud
October 22, 2013 —
CDJ STAFFMarcin Gradziel, who formerly worked for a construction company in Camden County, New Jersey, has been sentenced to seven years in state prison for insurance fraud. Mr. Gradziel admitted to creating fraudulent property damage claims, which he did for Precision Network Solutions, which did business as Precision Builders.
Mr. Gradziel and others went through neighborhoods telling residents that their roofs or siding were damaged by hail and that they could get their homes repaired at no cost. Mr. Gradziel would then return to create damage before the inspectors arrived. Another employee, Dominik Sadowski, previously plead guilty, as did Precision Builders. The firm paid out $68,720 in restitution and is now out of business.
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Appellate Court of Maryland Construes Notice Conditions of A312 Performance Bond in Favor of Surety
January 02, 2024 —
Joel P. Williams - White and Williams LLPThe Appellate Court of Maryland issued a reported opinion in a case construing an American Institute of Architects (“AIA”) A312 performance bond. In Wildewood Operating Company, LLC v. WRV Holdings, LLC, et al. 2023 Md. App. LEXIS 720 (Oct. 30, 2023), the Appellate Court of Maryland held that a performance bond surety was discharged from liability where the owner/obligee failed to give the surety notice of the contractor’s default termination until after a third party had completed the work.
The project concerned the construction of an assisted living facility in St. Mary’s County, Maryland. The owner, Wildewood Operating Company, LLC, entered into an A312-2010 performance bond with Clark Turner Construction, LLC, as contractor, and First Indemnity of America Insurance Company, as surety. When Clark Turner failed to complete certain stormwater management work adjacent to the site, Wildewood, Clark Turner, and other parties entered into a Work Agreement to address completion of the work. The surety was not a party to the Work Agreement.
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Joel P. Williams, White and Williams LLPMr. Williams may be contacted at
williamsj@whiteandwilliams.com
Expansion of Statutes of Limitations and Repose in K-12 and Municipal Construction Contracts
March 27, 2019 —
Henry Bangert - Colorado Construction LitigationThe purpose of this whitepaper is to bring attention to a trend in K-12 and municipal construction contracts, which expands the time periods for law suits against construction professionals.
Introduction and Background
Under Colorado statute, the period of time within which a legal action for construction defects may be brought against a construction professional in Colorado is two years from when the claimant (or its predecessor in interest) discovers or in the exercise of reasonable diligence should have discovered the physical manifestations of a defect (the “Statute of Limitations”), but in no case may an action be brought more than six years after substantial completion of the improvement, unless the claim arises in the fifth or sixth year after substantial completion, in which event the action may be brought within two years of such date, i.e., up to eight years after substantial completion (the “Statute of Repose”). See C.R.S. § 13-80-104. While the triggering events differ for the Statute of Limitations and Statue of Repose, the periods are intended to run concurrently to limit the period of time an action may be brought against construction professionals for construction defects to, at most, eight years after substantial completion. Importantly, these limitations periods may be expanded by agreement.
Prior to 1986, Colorado law provided for a 10-year Statute of Repose. However, in 1986, Colorado’s legislature shortened the Statute of Repose time limit to the current six (or up to eight) year period. In 1986, Colorado also redefined the date the claim arises from the date the defect was discovered or should have been discovered to the date the physical manifestation of a defect was discovered or should have been discovered. Therefore, after 1986, the two-year limitations period could begin to run when a claimant should have discovered the manifestation of a defect, even if the claimant did not recognize that a defect existed.
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David McLain, Higgins, Hopkins, McLain & Roswell, LLCMr. McLain may be contacted at
mclain@hhmrlaw.com
Jury Awards Aluminum Company 35 Million in Time Element Losses
September 23, 2019 —
Michael S. Levine & Daniel Hentschel - Hunton Insurance Recovery BlogOn July 3, 2019, a Delaware jury determined that fourteen property insurers for Noranda Aluminum Holding Corp., an aluminum producer that filed for bankruptcy and ceased operations three years ago, owe Noranda over $35 million in time element losses that Noranda sustained as a result of two separate catastrophic incidents that occurred at its aluminum facility in 2015 and 2016.
In August 2015, an aluminum explosion occurred at Noranda’s facility, resulting in substantial property damage and bodily injuries. Though the insurers paid for Noranda’s property damage claim, the insurers only covered $5.64 million of Noranda’s $22 million time element claim. In January 2016, the same facility sustained significant damage as a result of equipment failure. The insurers again paid for Noranda’s property damage claim arising from the equipment failure but declined to pay any of its $22.8 million time element claim.
Reprinted courtesy of
Michael S. Levine, Hunton Andrews & Kurth and
Daniel Hentschel, Hunton Andrews & Kurth
Mr. Levine may be contacted at mlevine@HuntonAK.com
Mr. Hentschel may be contacted at dhentschel@HuntonAK.com
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Hammer & Hand’s Top Ten Predictions for US High Performance Building in 2014
January 22, 2014 —
Beverley BevenFlorez-CDJ STAFFOn Hammer & Hand’s blog, Sam Hagerman, Skylar Swinford, and Dan Whitmore discuss how they expect US high performance building policy to evolve in 2014. The three consultants and builders have built “some of the most notable high performance green building projects around, including Karuna House,” “Pumpkin Ridge Passive House,” and the “Glasswood Commercial Passive House Retrofit,” according to the blog. Hagerman and Whitmore also have served on the Passive House Alliance US board. Predictions cover topics such as Net Zero Energy to Net Positive Energy buildings, renewable energy productions, building energy codes, CO2 heat pumps, and more.
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FDOT Races to Re-Open Storm-Damaged Pensacola Bridge
April 12, 2021 —
Jim Parsons - Engineering News-RecordBuffeted by hurricanes, northwest Florida’s largest-ever infrastructure effort is finally seeing the light at the end of the storm. The three-mile-long bridge across Pensacola Bay is expected to reopen to traffic this spring after an ongoing replacement effort abruptly became an emergency repair job as well.
Reprinted courtesy of
Jim Parsons, Engineering News-Record
ENR may be contacted at ENR.com@bnpmedia.com
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U.S. Department of Defense Institutes New Cybersecurity Maturity Model Certification
July 13, 2020 —
Joseph N. Frost - Peckar & AbramsonContractors doing business with the Federal Government, particularly with the Department of Defense (“DoD”), commonly handle sensitive information that is not intended to be disseminated. Controlled Unclassified Information (“CUI”) is one such type and is more specifically defined as “information that requires safeguarding or dissemination controls pursuant to and consistent with laws, regulations and government-wide policies.”1 Because some DoD contracts require contractors to handle CUI, certain safeguards have been put in place to ensure its security. This article briefly touches on the current cybersecurity protocols, followed by a discussion of the new system being developed by the DoD, and what contractors most need to know about the new system.
The Defense Federal Acquisition Regulation Supplement (“DFARS”) has long required contractors to comply with certain cybersecurity standards, as published by the National Institute of Standards and Technology (“NIST”). Specifically, DFARS sought to implement the cybersecurity framework found in NIST Special Publication (“SP”) 800-171, entitled “Protecting Controlled Unclassified Information in Nonfederal Systems and Organizations.” NIST SP 800-171 sets forth fourteen (14) families of recommended security requirements for protecting the confidentiality of CUI in nonfederal systems and organizations, including, among others, access control, audit and accountability, incident response, personnel security, and system and information integrity. However, after a series of data breaches, the DoD reassessed the efficacy of the continued use of NIST SP 800-171 and ultimately decided to institute a new methodology to ensure the security of CUI.
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Joseph N. Frost, Peckar & AbramsonMr. Frost may be contacted at
jfrost@pecklaw.com
OSHA Joins the EEOC in Analyzing Unsafe Construction Environments
June 26, 2023 —
Cameron S. Hill Sr. - Construction ExecutiveConsistent with the Equal Employment Opportunity Commission's (EEOC) Strategic Enforcement Plan (SEP)
published in January 2023, which noted an increased focus on the construction industry as it relates to harassment and discrimination issues within the workplace and around hiring and the advancement of minorities, the Occupational Safety and Health Administration (OSHA) is following suit. At the end of March 2023, OSHA leaders announced another arrow in their quiver: OSHA has new authority through its Wage and Hour Division to issue certifications supporting applications for "U" nonimmigrant status and "T" nonimmigrant status visas.
Reasoning that workers' immigration status, social inequalities or differences in culture can cause them to fear retaliation for identifying unsafe work environments and criminal activity, such as trafficking, murder, blackmail, extortion and other serious crimes, Assistant Secretary of Labor for Occupational Safety and Health, Doug Parker
stated, "The Occupational Safety and Health Administration's top priority is to ensure workers are safe and can exercise their rights, regardless of their demographic or immigration status. A key part of that mission is expanding our work to combat workplace inequities that can create hazards and affect vulnerable workers who are likely to be exploited or victims of crimes. Our vision extends beyond setting standards, inspecting workplaces and providing training. Becoming a visa-certifying agency gives us one more tool in our wide-ranging efforts to better protect workers and their rights on the job."
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Cameron S. Hill Sr., Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Mr. Hill may be contacted at chill@bakerdonelson.com
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