Substantial Completion Explained: What Contractors & Owners Should Know
January 17, 2022 —
Travis Colburn - Ahlers Cressman & SleightA project’s Substantial Completion date is a critical construction milestone for contractors and owners. Depending on the contract, the date of Substantial Completion has project-specific contractual and statutory consequences.
Substantial Completion is an “event” – there is no universal definition of the term. It is generally understood to be (1) a point in time (2) when work performed by the contractor is sufficiently complete (3) where it can be used or occupied for the owner’s intended purpose. The date of Substantial Completion is generally established at the time of contract formation (either as a negotiated or a contract set date), and that date may be adjusted over the course of a project to account for excusable delays.
As a construction professional, your attorney should review and tailor any written agreement to your project-specific needs and risk tolerances prior to execution. Savvy construction professionals often start with standard form agreements promulgated by the American Institute of Architects (“AIA”), the Design-Build Institute of America (“DBIA”), or the Engineers Joint Contract Document Committee (“EJCDC”) as the basis for their construction contracts. The AIA, DBIA, and EJCDC standard forms each contains contract provisions relating to when and what happens once Substantial Completion has occurred, subject to any agreed-to, project-specific deviations.
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Travis Colburn, Ahlers Cressman & SleightMr. Colburn may be contacted at
travis.colburn@acslawyers.com
Construction Defect Reform Bill Passes Colorado Senate
April 15, 2015 —
Beverley BevenFlorez-CDJ STAFFThe Denver Business Journal reported that a construction defect reform bill has “passed the Colorado Senate by a 24-11 vote Tuesday, with six Democrats joining all 18 Republicans in the chamber in backing the measure.”
The bill now moves to the House. According to the Denver Business Journal, the bill “faces a tougher path in the House, where Speaker Dickey Lee Hullinghorst, D-Gunbarrel, has said she was not going to support a bill that does not include a provision giving aggrieved condominium owners the right to take their disputes with builders to court. No such amendment was added in the Senate.”
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Landmark Towers Association, Inc. v. UMB Bank, N.A. or: One Bad Apple Spoils the Whole Bunch
May 12, 2016 —
Jean Meyer - Colorado Construction LitigationOn April 21, 2016, the Colorado Court of Appeals issued an opinion that immediately drew the ire of the greater real estate development industry and those concerned about affordable housing in a state in the midst of unprecedented soaring rent and housing prices. The Landmark Towers Assn., Inc. v. UMB Bank, N.A., 2016 COA 61, decision is the result of protracted litigation arising out of construction and sale of the ill-fated European Village (“Village”) residential community. For a thorough summary of the origins of the development and the unfortunate story of the man behind the curtain, review the Denver Post’s article titled “Zachary Davidson, Denver Landmark developer, and his fall from grace.” (http://www.denverpost.com/ci_22656011/fall-from-grace-zach-davidson-landmark denver)
Despite the unique facts and circumstances relating to the questionable dealings by the developer, Mr. Zachary Davidson, the decision now stands to turn the Colorado real estate development business on its head. Specifically, a group of condominium owners, who did not live in the Village, learned that their properties had been included in a special district, the Marin Metropolitan District (“District”), to finance the Village. Prior to their purchase, Mr. Davidson failed to disclose to the condominium owners that they would be responsible for financing the Village’s development through previously issued bonds by the District to be paid for through their property taxes. Understandably frustrated by this discovery the condominium owners, through the Landmark Towers Association, Inc. (“Landmark HOA”), investigated the origin of these unforeseen property taxes.
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Jean Meyer, Higgins, Hopkins, McLain & Roswell, LLCMr. Meyer may be contacted at
meyer@hhmrlaw.com
Vinny Testaverde Alleges $5 Million Mansion Riddled with Defects
January 15, 2014 —
Melissa Zaya-CDJ STAFFFormer Tampa Bay Buccaneers quarterback Vinny Testaverde and his wife Mitzi filed suit December 20, 2013 claiming breach of contract and building code violations on their $5 million, Odessa, Florida mansion, according to the Tampa Tribune. The Testaverdes allege that their six-year old, 6,700 square foot home has multiple defects, including “wet floors and walls when it rains and a grand staircase leading to the front door that is sinking, taking with it two columns that support the porch roof,” The Tampa Tribune reports.
Gray Homes of Tampa Bay were contracted by the couple to build their mansion on Lake Keystone. The Tampa Tribune stated that several months before filing suit, the Testaverdes sent a certified letter to Gray Homes stating they had uncovered “a series of defects.” According to the article, Gray Homes had not yet responded to the Tampa Tribune’s message asking for a comment.
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Acquisition, Development, and Construction Lending Conditions Ease
May 21, 2014 —
Beverley BevenFlorez-CDJ STAFFAccording to the National Association of Home Builders’ (NAHB) Eye on Housing, “[b]uilders and developers continue to report easing credit conditions for acquisition, development, and construction (AD&C) loans according to NAHB’s survey on AD&C financing.”
Eye on Housing stated that while “commercial banks remain the primary source of credit for AD&C by a wide margin, private individual investors have emerged as a viable alternative, especially for A&D loans.”
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One More Mechanic’s Lien Number- the Number 30
March 06, 2023 —
Christopher G. Hill - Construction Law MusingsI’ve spoken here often about the numbers
90 and 150 as they relate to
Virginia mechanic’s liens. These numbers are important for all mechanic’s liens in Virginia, whether commercial or residential (meaning liens for 1 and 2-family homes). There is another number, 30, that is important for those construction contractors that perform work on single and two-family homes. Where a mechanic’s lien agent is named on the building permit (or possibly just named if not stated on the permit), and
among other requirements,
Va. Code 43-4.01 requires that, in order to have lien rights at the project, the contractor must provide notice to the mechanic’s lien agent within 30 days of beginning work that it is performing work and shall seek payment for the work.
Further, the mechanic’s lien agent notice must contain the following:
(i) the name, mailing address, and telephone number of the person sending such notice, (ii) the person’s license or certificate number issued by the Board for Contractors pursuant to Chapter 11 (§ 54.1-1100 et seq.) of Title 54.1, if any, and the date such license or certificate was issued and the date such license or certificate expires, (iii) the building permit number on the building permit, (iv) a description of the property as shown on the building permit, and (v) a statement that the person filing such notice seeks payment for labor performed or material furnished.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
The Association of Southern California Defense Counsel (ASCDC) and the Construction Defect Claims Managers Association (CDMA) Annual Construction Defect Seminar
December 04, 2013 —
CDJ STAFF
The Association of Southern California Defense Counsel (ASCDC) and the Construction Defect Claims Managers Association (CDMA) Jointly Present the 2013 Construction Defect Seminar and Holiday Party to be Held Thursday, December 5, at the Hilton Hotel, Costa Mesa
Professional development activities will include panel discussions including “What Happened to Simple HOA Actions – Litigating Commercial Projects,” a roundtable discussion by Ross Hart, Keith Koeller, Alex Robertson, Les Robertson, Todd Schweitzer, Wendy Wilcox, and Brian D. Kahn. A timely discussion of California’s “right to repair” laws “SB800 – Is It Still Worth Fighting For?,” will be presented by Nick Cammarota, Timothy Earl, Luke Ryan, Dave Simons, Dave Stern, John Terry, and Adrienne Cohen is also on the the agenda.. Additionally, Assemblyman Donald P. Wagner will serve as the event’s Special Guest Speaker.
Bert L. Howe & Associates, Inc. is pleased to return this year as an event sponsor. BHA will be exhibiting our latest inspection data collection system and forensic analysis platforms newly optimized for the new iOS 7. Visitors of the BHA exhibit booth can enter into our drawing for a 16 GB iPad Air with WiFi.
Professional development activities will be followed by a holiday party and reception honoring the Orange County Judiciary. The reception will be hosted by Glenn Barger, Adrienne Cohen, and Brian Kahn. It will place from 5:30 p.m. through 7.00 p.m.
For further information for the event, please visit http://www.ascdc.org/Events.asp.
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The Four Forces That Will Take on Concrete and Make Construction Smart
September 17, 2018 —
Massimiliano Moruzzi - Construction ExecutiveWhen it comes to building a bridge, what prevents it from having the most enduring and sustainable life span? What is its worst enemy? The answer is, simply, the bridge itself—its own weight.
Built with today’s construction processes, bridges and buildings are so overly massed with energy and material that they’re inherently unsustainable.
While concrete is quite literally one of the foundations of modern construction, it’s not the best building material. It’s sensitive to pollution. It cracks, stainsand collapses in reaction to rain and carbon dioxide. It’s a dead weight: Take San Francisco’s sinking, leaning Millennium Tower as an example.
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Massimiliano Moruzzi, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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