How Artificial Intelligence Can Transform Construction
February 22, 2021 —
Jeff Rubenstone - Engineering News-RecordArtificial intelligence and machine-learning algorithms have struggled to make sense of chaotic construction jobsites, but recent years have seen industry firms build the vast data lakes and analytics systems necessary for these machines to provide useful advice on how to plan, schedule and execute projects. In some cases, these AI advisors have become a standard part of some firms’ project delivery methods. But it’s still a challenge to convince construction professionals to listen to these AI advisors, and there are emerging questions of how risk will be allocated once algorithm-driven decisions start to steer projects.
Reprinted courtesy of
Jeff Rubenstone, Engineering News-Record
Mr. Rubenstone may be contacted at rubenstonej@enr.com
Read the full story... Read the court decisionRead the full story...Reprinted courtesy of
Coverage Issues: When You Need Your Own Lawyer in a Construction Defect Suit
October 16, 2013 —
CDJ STAFFWhen an insurer hires an attorney on behalf of a client in a construction defect suit, that attorney is the client’s lawyer, but as Mike Curry writes on the website of Pendleton Wilson Hennessey & Crow, PC, a point may come when you need to hire your own additional attorney. Even though an insurance company client may refer to the lawyer as “the insurance carrier’s attorney,” Mr. Curry cites the words of the Colorado Bar Association’s ethics committee, “the insured is the client to whom the lawyer’s duty of loyalty is owed, regardless of any retention agreement the lawyer may have with the carrier.”
Mr. Curry then offers the example of what happens when the insurance company advises its client that it may not cover. “You presumably call your attorney and ask him to explain what’s going on, what the letter means, and what to do next.” All the attorney can say is “I cannot offer legal advice on coverage issues.”
This is the limitation of what Mr. Curry refers to as “the tripartite relationship.” The attorney has been retained for issues related to the construction defect dispute between the insured and the plaintiff. Not between the insurer and its insured. The attorney has, as he points out, a fiduciary obligation to the insurance company.
When coverage issues arise, “an independent attorney — one you hire — can help you with the coverage issues that your insurance-assigned attorney simply cannot address.” He further notes that “personal counsel owes no fiduciary obligation to the insurance company,” and can be “utilized to persuade the carrier to provide coverage or settle the case.”
Read the court decisionRead the full story...Reprinted courtesy of
Coverage Rejected Under Owned Property and Alienated Property Exclusions
June 06, 2011 —
Tred R. EyerlyThe insured’s request for a defense when sued in a construction defect action was denied under the owned property exclusion and the alienated property exclusion in1777 Lafayette Partners v. Golden Gate Ins. Co., 2011 U.S. Dist. LEXIS 48562 (N.D. Cal. April 29, 2011).
In 1999, Lafayette Partners purchased an abandoned walnut processing factory to convert into living and working units. The property was developed into a rental property from 2000-2001, and thereafter rented. In May 2003, Lafayette Partners entered into a sales agreement with Wolff Enterprises LLC. The sale closed in February 2005. Wolff then converted the rental units into condominiums.
In December 2007, the Walnut Factory Owners Association sued Wolff for construction defects. In Lafayette Partners was added to the suit in 2009. The suit alleged a variety of defective conditions, including the roofs, exteriors, windows, electrical , plumbing, and mechanical components and systems.
Read the full story…
Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii. Mr. Eyerly can be contacted at te@hawaiilawyer.com
Read the court decisionRead the full story...Reprinted courtesy of
When to use Arbitration to Resolve Construction Disputes
February 25, 2014 —
Beverley BevenFlorez-CDJ STAFFOn the blog Construction Contractor Advisor, Craig Martin answers the question of whether arbitration is always the best choice for resolving construction claims. His answer: “Some claims may benefit from arbitration, but the benefit is not always clear.”
Martin brings forth four points to consider. First, AIA Contracts do not “push Arbitration.” Second, the cost of arbitration may be expensive: “You could well spend over $5,000 just to have the arbitrator decide your case—again, not to mention your own attorneys fees.” Third, arbitration doesn’t avoid discovery. And finally, “mediation is always an option, regardless of which way you pursue your claim.”
Read the court decisionRead the full story...Reprinted courtesy of
Not All Design-Build Projects are Created Equal
June 28, 2021 —
Nicole Markowitz & Richard Robinson - Peckar & Abramson, P.C.As the need for faster and more efficient construction increases, design-build agreements are growing in popularity. Design-build projects may account for 44% of nonresidential building in the United States this year. However, contractors who venture into a “design builder” role may unexpectedly become liable for design errors/omissions that are not covered by their insurance policies. In turn, they may expose themselves to liability and insurance risks that are neither insured nor managed.
In this article, we’ll discuss how the contractor who becomes a design-builder, or performs design-related work through subcontractors, faces potentially unmanaged risk. We will also explore indemnity, warranty, and insurance traps by paying attention to contract language in both traditional design-build and design-assist scenarios.
Reprinted courtesy of
Nicole Markowitz, Peckar & Abramson, P.C. and
Richard Robinson, Peckar & Abramson, P.C.
Ms. Markowitz may be contacted at nmarkowitz@pecklaw.com
Mr. Robinson may be contacted at rrobinson@pecklaw.com
Read the court decisionRead the full story...Reprinted courtesy of
The Business of Engineering: An Interview with Matthew Loos
July 15, 2019 —
Aarni Heiskanen - AEC BusinessMatthew Loos is an experienced project manager in the civil engineering industry. He works as a project engineer at Jones|Carter in Fort Worth, Texas. In this interview, we discuss Matt’s new book, The Business of Engineering.
It is not very common that an engineer writes a non-technical book. What inspired you to do so?
Have you ever gotten an idea stuck in your head that you just couldn’t let go of? A time when you couldn’t go to sleep because the idea was consistently begging for your attention?
That’s what happened to me. The idea for this book hits me right before bed, as most good ideas do. I couldn’t go to sleep after the idea struck me. I spent half of the night writing the chapters of this book in my mind. I had been thinking about the idea of engineering and how it relates to other career fields, even the non-technical ones. I was disenchanted with the trifling number of classes I took that prepared me for the business world. These were the initial thoughts that eventually led me down the road into thinking about engineering as a profession going forward.
Read the court decisionRead the full story...Reprinted courtesy of
Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi
Does Arbitration Apply to Contemporaneously Executed Contracts (When One of the Contracts Does Not Have an Arbitration Provision)?
January 10, 2018 —
David Adelstein - Florida Construction Legal UpdatesBinding arbitration is an alternative to litigation. Instead of having your dispute decided by a judge and/or jury, it is decided by an arbitrator through an arbitration process. Arbitration, however, is a creature of contract, meaning there needs to be a contractual arbitration provision requiring the parties to arbitrate, and not litigate, their dispute. Just like litigation, there are pros and cons to the arbitration process, oftentimes dictated by the specific facts and legal issues in the case.
What happens when a person executes two (or more) contemporaneous contracts, one with an arbitration provision and one without? Are the parties required to arbitrate the dispute arising out of the contract that does not contain the arbitration provision?
Read the court decisionRead the full story...Reprinted courtesy of
David Adelstein, Florida Construction Legal UpdatesMr. Adelstein may be contacted at
dadelstein@gmail.com
Committeewoman Requests Refund on Attorney Fees after Failed Legal Efforts
February 10, 2014 —
Beverley BevenFlorez-CDJ STAFFWest Deptford, New Jersey township redevelopment counsel Mark Cimino had spent a year arguing that the city should receive a $4 million reduction in construction costs due to “inadequate documentation provided by the bank, as well as receipts showing disbursement had ‘improperly’ been made toward uses other than construction,” according to a December 30th 2013 article in the South Jersey Times. However, a state appellate court upheld the ruling that “the township had no basis” to request the reduction.
Now, Committeewoman Denice DiCarlo is “seeking a $10,000 refund on the attorney fees paid” to Cimino, the South Jersey Times reported on February 6th. “This entire matter has been a monumental waste of tax dollars, and I am angry that the entire township committee was misled by Mr. Cimino and induced to believe we had any reasonable chance of recovering loan proceeds from this lawsuit,” DiCarlo stated in a letter to Mayor Raymond Chintall.
Not all committee members agree with DiCarlo. Committeeman Sam Cianfarini told South Jersey Times that “he still believed Fulton Bank owed it to West Deptford to answer for any funds put toward anything other than construction.”
Cimino declared “that both the lawsuit and appeal were valid,” according to the February 6th article. He “accused DiCarlo of ‘playing politics.’”
Read the full story, December 30th Article...
Read the full story, February 6th Article... Read the court decisionRead the full story...Reprinted courtesy of