How Long is Your Construction Warranty?
February 26, 2015 —
Craig Martin – Construction Contractor AdvisorThe Nebraska Court of Appeals threw a wrench into the calculation of your warranty earlier this year in Adams v. Manchester Park, LLC and Southfork Homes, Inc. In that case, the court found that the statute of limitations for a warranty claim started running after the homebuilder’s warranty expired. So, the four year breach of warranty statute of limitations did not begin until after the one year homebuilder warranty expired.
In this case, the homeowner purchased a home from Southfork in September, 2007. The purchase agreement provided for a one-year New Home Limited Warranty which covered material defects in workmanship and materials. The homeowner noticed cracks in the drywall and problems with windows within 6 months of the purchase. The builder told the homeowner to keep track of all the problems and they would be fixed at the yearend walk through.
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Craig Martin, Lamson, Dugan and Murray, LLPMr. Martin may be contacted at
cmartin@ldmlaw.com
Dealing with Hazardous Substances on the Construction Site
July 10, 2018 —
Christopher G. Hill - Construction Law MusingsFor this week’s Guest Post Friday here at Construction Law Musings, we welcome Vickie Lane. Vickie is the primary point of contact for Business Development with HAZMAT Plans & Programs, a consulting and training firm that also works under the name of HP&P Safety. Vickie’s functions with HP&P include extensive pre-project research and support though estimating, planning and cost administration. Vickie attended Ohio State University and now enjoys her role as a first time grandmother and spending free time up in the Colorado Rocky Mountains. Vickie can be reached at vlane@hppsafety.com or on Twitter @HAZMATPlans and @hpandpsafety.
Most of us perceive hazards on a construction site to be those that can be readily visualized or perhaps easily imagined, like trench cave-ins or falls from heights. These are the obvious, but what about the nocuous, microscopic hazards that can’t be seen by the human eye, but can destroy the health of your workers? Welcome to the world of hazardous materials.
The inherent danger associated with hazardous substances is workers might not be not aware of exposure. Think of a snake in the dark scenario. If it is a rattlesnake, you have warning before the bite. A cobra on the other hand gives no such warning and the bite can be fatal. So it can be with hazardous and toxic substances.
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Christopher G. Hill, The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
A Discussion on Home Affordability
April 08, 2014 —
Beverley BevenFlorez-CDJ STAFFKrishna Rao, in the online publication Zillow Real Estate Research, analyzed statistics on home price affordability across the United States. Rao found that “[a]cross the United States, strong home price affordability has been recently eroded by a combination of rising home prices and mortgage rates. Some areas, particularly on the West Coast, have begun to look unaffordable compared to their historic norms, forcing some household to look to the periphery of urban areas in search of affordable homes.”
However, John McManus in Big Builder said a more helpful term when looking at the new home market would be “relative affordability (which inheres both payment power and access to credit).”
“Little attention has been given to the fact that many builders' mix--first- and second-time move-up and higher end homes.” McManus wrote that this “has skewed pricing conversations. When the buyer is ‘discretionary,’ has access to cash and no impediment of another property to sell in order to trigger a purchase--then both base price and price elasticity can be greater.”
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The Clock is Ticking: Construction Delays and Liquidated Damages
September 18, 2023 —
Tiffany Harrod - ConsensusDocsWith the on-going shortage of construction workers in the industry and other factors ranging from weather to procurement problems, the threat of project delay is real. When a contract contains a liquidated damages clause for assessing project delays, real financial consequences for contractors can result. Courts have long allowed parties to apportion contractual risks as they deem appropriate especially in the commercial context where the parties are considered to be sophisticated even if their bargaining power is not equal. Liquidated damage provisions such as those for delay that are found in construction contracts are not unusual but they must be crafted in such a way as to be enforceable and not violate public policy.
A liquidated damage clause in a construction contract is a customary way for the parties to deal with the possibility of delay in the completion of a project and the potential losses flowing from the delay.[
1] In their most basic form, the party in breach, which is more often than not the contractor, is obligated to pay the non-breaching party, usually the project owner, some fixed sum of money for the period that exceeds the designated completion date that was agreed upon in advance and memorialized in the contract. (It is after all no secret that these provisions are primarily for the owner’s benefit.) The non-breaching party is then compensated for losses associated with the delay without the time and expense of having to prove in either a civil suit or an arbitration proceeding what the actual damages are. This option is particularly attractive to project owners because the liquidated damages assessment can simply be withheld from payments owed to the contractor once the agreed-upon completion date has been passed.
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Tiffany Harrod, Peckar & AbramsonMs. Harrod may be contacted at
tharrod@pecklaw.com
Building Growth Raises Safety Concerns
November 20, 2013 —
CDJ STAFFWith the resurgence of the construction industry, another trend is going up and it’s not good. The workplace fatality rate for the construction industry has increased for the first time since 2006, according to a new report from Marsh Risk Consulting, based on data from the U.S. Bureau of Labor Statistics.
The increase to 9.5 deaths per 100,000 workers is attributed to “an influx of new, inexperienced workers” and that “some contractors are stretching their hiring standards to meet project demands.”
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BKV Barnett, LLC v. Electric Drilling Technologies, LLC: Analyzing the Impact of Colorado’s Anti-Indemnification Statute
December 23, 2024 —
David M. McLain – Colorado Construction Litigation BlogIn the recent case of BKV Barnett, LLC v. Electric Drilling Technologies, LLC, the United States District Court for the District of Colorado dealt with significant legal issues concerning indemnification and insurance obligations in construction agreements. The ruling, handed down on September 26, 2024, serves as a crucial reminder of the limitations imposed by Colorado’s Anti-Indemnification Statute, C.R.S. § 13-21-111.5, and its implications for contracts in the construction industry.
This case arose from a Master Service Contract (“MSC”) between BKV Barnett, LLC (“BKV”) and Electric Drilling Technologies, LLC (“EDT”), in which EDT provided electrical services and equipment to an oil and gas lease wellsite in Texas. Following a lightning strike in early 2022 that damaged electrical infrastructure at the site, EDT dispatched Turn Key Utility Construction to repair the damage. During the repair work, an arc flash occurred, causing significant injuries to one of Turn Key’s employees, Matthew Lara, leading to a personal injury lawsuit filed by Lara in Dallas County, Texas. BKV sought indemnification, defense, and additional insured status from EDT under the terms of their MSC, which EDT contested.
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David McLain, Higgins, Hopkins, McLain & RoswellMr. McLain may be contacted at
mclain@hhmrlaw.com
‘Revamp the Camps’ Cabins Displayed at the CA State Fair
July 30, 2014 —
Beverley BevenFlorez-CDJ STAFFThis year, the California State Fair is displaying “four modern, environmentally friendly cabins” as “part of the ‘revamp the camps’ mission by the Forward Parks Commission, California State Parks and 12 architecture graduate students at Cal Poly Pomona,” according to the Sacramento Bee. The commission’s purpose is “to find solutions for the financial, cultural and population changes affecting state parks” including “drawing millennials and urban residents who live far from traditional state parks.”
Guidelines stated that the cabins “had to be portable, accessible to the physically disabled and made from sustainable materials.” Furthermore the cabins had to be under $15,000 each, have no running water or electricity, and “[y]et the design had to appeal to a younger market.”
“After a review of the surveys and recommendations from the Parks Forward Commission, the hope is to place the prototypes in state parks for public use,” the Sacramento Bee reported.
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The Hunton Policyholder’s Guide to Artificial Intelligence: SEC’s Recent AI-Washing Claims Present D&O Risks, Potential Coverage Challenges
July 08, 2024 —
Geoffrey B. Fehling, Michael S. Levine & Alex D. Pappas - Hunton Insurance Recovery BlogWe have previewed in prior posts the ways artificial intelligence is rapidly changing the way business operate, including the many ways AI has influenced the insurance market, creating both opportunities and risks for policyholders. We later highlighted, based on a recent securities lawsuit, how corporate management may be at risk for the alleged use or misuse of AI and how companies should evaluate their directors and officers (D&O) and management liability policies to ensure that they are prepared to respond to and mitigate AI-driven risks, including claims alleging that a company or its officers and directors made misrepresentations about AI.
That potential risk now has regulatory teeth, as the US Securities and Exchange Commission recently charged the founder of an AI hiring startup with fraud based on claims about using AI to help clients find diverse and underrepresented candidates to fulfill diversity, equity, and inclusion hiring goals.
Reprinted courtesy of
Geoffrey B. Fehling, Hunton Andrews Kurth,
Michael S. Levine, Hunton Andrews Kurth and
Alex D. Pappas, Hunton Andrews Kurth
Mr. Fehling may be contacted at gfehling@HuntonAK.com
Mr. Levine may be contacted at mlevine@HuntonAK.com
Mr. Pappas may be contacted at apappas@HuntonAK.com
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