SEATTLE WASHINGTON BUILDING EXPERT
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Executive Insights 2024: Leaders in Construction Law

August 05, 2024 — Construction Executive
The key risks that should always be taken into account when a contract is signed are risks associated with uncompensated delays and cost increases. Provisions relating to the scope of work deserve significant attention to help minimize these risks. Defining the scope of work is often put on the backburner while parties focus on negotiating the rest of the terms and conditions of the contract. And when these scopes are inserted, they are often not closely reviewed by attorneys who tend to defer to project personnel on scope. These situations can lead to costly disputes. Instead, make sure: (1) the correct plans and specifications have been referenced in the contract; (2) an attorney or his/her business counterpart is familiar with relevant specifications; (3) the exhibit containing the assumptions and clarifications is clearly written, has been coordinated with language in the body of the contract and can be clearly understood by attorneys and business people beyond the preconstruction personnel who drafted them; and (4) the contract addresses the order of precedence in the event of a conflict between or among contract provisions (including exhibits). With regard to specifications referenced above, an attorney review is advised because many specification sections, including submittal sections, change order sections, payment provisions and construction progress documentation sections, regularly vary from the negotiated sections of the actual contract. Contractors also unwittingly accept design risk through performance specifications, and the accompanying obligations and risks are underestimated by those tasked with the initial review of those documents. In sum, a clear scope is as important as clear terms and conditions. Reprinted courtesy of Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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History and Gentrification Clash in a Gilded Age Resort

October 05, 2020 — Alex Ulam - Bloomberg
Newport, Rhode Island, is a small New England beachfront town with a permanent population of 26,000 and an amazing collection of historic homes. Billed as “America’s First Resort,” the 350-year-old city on Aquidneck Island hosts more than 3 million tourists every year. They come for the boating, the famous folk and jazz festivals (both canceled this summer), and the architecture. The narrow streets of the Point along the waterfront are lined with hundreds of modest homes from the early 1700s, one of the largest ensembles of colonial architecture in the country. On Historic Hill sits an assortment of grander antebellum, classical and Gothic Revival structures from the latter part of the 18th and early to mid-19th century, many built by Southern plantation owners. Newport also boasts what is probably the most opulent thoroughfare in the country, a several-mile stretch of Bellevue Avenue lined with shade trees and palatial limestone mansions built by Gilded Age robber barons and industrialists. Read the court decision
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Reprinted courtesy of Alex Ulam, Bloomberg

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Staffing Company Not Entitled to Make a Claim Against a Payment Bond and Attorneys’ Fees on State Public Works Payment Bonds

August 12, 2024 — Garret Murai - California Construction Law Blog
It’s not quite Baskin Robbin’s “31 Flavors” but the panoply of statutory construction payment remedies available to contractors, subcontractor and material suppliers in California, from mechanics liens to stop payment notices to payment bond claims, can be tempting to reach for when you are not paid. However, some flavors are more readily available than others, as a staffing agency discovered in K & S Staffing Solutions, Inc. v. The Western Surety Company, Case Nos. C096705 and C097987 (January 2, 2024). The K & S Staffing Case The California Department of Transportation awarded VSS International, Inc. two public works construction contracts for road maintenance. Each involved an expenditure of over $25,000 and VSSI obtained a payment bond from Western Surety Company. Titan DVBE Inc. was a subcontractor on both projects. For most years, Titan employed its own workers. However, when it learned that its insurance carrier would no longer be offering workers’ compensation insurance in California it switched to K & S Staffing Solutions, Inc. to fulfill its staffing needs. Read the court decision
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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

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Housing Markets Continue to Improve

February 11, 2013 — CDJ STAFF
The National Association of Home Builders reports that for a sixth consecutive month there has been an increase in the number of housing markets that have shown improvement. The January report saw 242 improving markets, which in February grew to 259. The NAHB notes that there are now improving markets in every state, “suggesting that the housing recovery has substantial momentum.” Not all markets showed continued improvement. Three metropolitan areas were dropped from the list of improving markets, but another twenty were added. The NAHB has been tracking this data since September 2011, when there were only twelve improving markets through the whole country. Read the court decision
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Flushing Away Liability: What the Aqua Engineering Case Means for Contractors and Subcontractors

October 21, 2024 — Heather Zipperer - Colorado Construction Litigation Blog
The recent Town of Mancos v. Aqua Engineering case is an insightful example of how well written contracts and timely legal action can make all the difference in resolving disputes between municipalities, general contractors, and subcontractors. The ruling favored Aqua Engineering; a subcontractor that played a role in a wastewater treatment facility project gone wrong. The court’s decision highlighted key legal principles, including the economic loss rule and the importance of well-structured contracts in construction disputes. Whether you are a subcontractor looking to avoid undue liability or a general contractor seeking to ensure subcontractors shoulder their fair portion of responsibility, this case offers valuable lessons for all parties involved in construction projects. The Background: A Wastewater Project with Issues In 2008, the Town of Mancos, Colorado, hired Souder, Miller & Associates (“SMA”) to design a new wastewater treatment facility. SMA subcontracted Aqua Engineering to help implement a specific wastewater treatment system known as the Multi-Stage Activated Biological Process (“MSABP”). However, after construction, the facility never worked as expected. For years, the Town faced ongoing issues, and despite Aqua’s involvement in attempts to fix the problems, the facility remained dysfunctional. Read the court decision
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Reprinted courtesy of Higgins, Hopkins, McLain & Roswell, LLC

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Fargo Shows Record Home Building

October 01, 2013 — CDJ STAFF
Home builders in the area of Fargo, North Dakota are describing growth in the area as “enormous.” Darrick Guthmiller, the president of the Home Builders Association of Fargo-Moorhead noted that in sixteen years of building homes, this was the best he’d seen. The Home Builders Association expects that next year might even be better. Read the court decision
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Happenings in and around the 2016 West Coast Casualty Seminar

April 20, 2016 — Beverley BevenFlorez-CDJ STAFF
The West Coast Casualty Construction Defect Seminar returns to the Disneyland Hotel next month (May 12th-13th) and the Construction Defect Journal has compiled a list of concerts, sporting events, and museum exhibitions taking place in and around Anaheim. Whether you like to spend your personal time checking out a new band, or watching your favorite Angel slide into home, or perusing the local art museum, there is something to spark your interest. CONCERT VENUES THE HOUSE OF BLUES IN ANAHEIM Located in Downtown Disney, The House of Blues in Anaheim is a short walk from the convention hall.

Breakthru Entertainment Presents… Tuesday, May 10th Starting at 630pm For More Information...

Totally 80’s Live Friday, May 13th at 7pm For More Information...

THE GROVE OF ANAHEIM Near Angel Stadium, the Grove of Anaheim is just a few miles away from the seminar location.

Luca Turilli’s Rhapsody & Primal Fear Thursday, May 12th Doors Open at 7pm For More Information and to Purchase Tickets...

SPORTING EVENTS ANGEL’S STADIUM – BASEBALL Take care of your popcorn-and-peanuts-and-cracker-jacks fix while cheering for the Angel’s—conveniently just a few miles from the Disneyland Hotel.

Angels v. Cardinals Tuesday, May 10th at 7:05pm For More Information and to Purchase Tickets...

Angels v. Cardinals Wednesday, May 11th at 7:05pm For More Information and to Purchase Tickets...

FAIRS AND FESTIVALS Art Crawl Experience Every quarter, Downtown Anaheim hosts an art walk that includes live entertainment, local artists, as well as food and craft vendors.

Saturday, May 14 from 6pm to 10pm For More Information...

MUSEUM EXHIBITIONS MUZEO This local museum and cultural center is a short drive from the convention hall.

Exhibition: Master Craft: The Art of Woodworking March 12th, 2016-May 21st, 2016 Museum Days/Hours: Tuesday – Sunday (Closed Mondays) / 10 am to 5 pm For More Information...

Exhibition: “A Touch of Africa in Anaheim” by Da African Village: the Art of Senegal and neighboring countries April 30th, 2016 – May 30th, 2016 Museum Days/Hours: Tuesday – Sunday (Closed Mondays) / 10 am to 5 pm For More Information...

BOWERS MUSEUM (Santa Ana) Voted “The Best Museum in Orange County” by OC Register Readers for 16 consecutive years, this arts and cultural center is worth the fifteen minute drive.

Exhibition: Once Upon a Time April 16th, 2016-August 28th, 2016 Museum Days/Hours: Tuesday – Sunday (Closed Mondays) / 10 am to 4 pm For More Information...

Exhibition: Mummies of the World March 19th, 2016-September 5th, 2015 Museum Days/Hours: Tuesday – Sunday (Closed Mondays) / 10 am to 4 pm For More Information...

Exhibition: Mystery from the Tomb: The Face Beneath the Mask December 8th, 2015-TBD Museum Days/Hours: Tuesday – Sunday (Closed Mondays) / 10 am to 4 pm For More Information...

Exhibition: Popul Vuh: Watercolors of Diego Rivera December 12th, 2015 – May 29th, 2016 Museum Days/Hours: Tuesday – Sunday (Closed Mondays) / 10 am to 4 pm For More Information...

Lecture: Popul Vuh: Art in Context (6-Part series): The Rise of Modernism in Europe: Realist Shifts in the Nineteenth Century (Part 3) Wednesday, May 11 at 11am-12pm For More Information...

Lecture: ARCE Weekend Lecture: Sudanese Antiquity: New Insights from the ‘Bio-archaeology of Nubia Expedition (BONE)’ Saturday, May 14 at 130pm-3pm For More Information...

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Approaches in the Absence of a Differing Site Conditions Clause

April 10, 2019 — Parker A. Lewton - Smith Currie
A contractor who has encountered unforeseen conditions will typically rely on the contract’s differing site conditions clause as a means to recovery. Most construction contracts address those issues directly. In ConsensusDocs Standard Agreement and General Conditions between Owner and Constructor, the starting point is § 3.16.2. But what if the contract does not contain a differing site conditions clause? Or, what if the contract does contain such a clause, but the contractor failed to provide adequate notice or satisfy other conditions or requirements of the contract? When reliance on a differing site conditions clause is impractical, a contractor still may seek recovery in certain instances under one or more of the following legal theories: misrepresentation; fraud; duty to disclose; breach of implied warranty; and mutual mistake. Misrepresentation Misrepresentation occurs when an owner “misleads a contractor by a negligently untrue representation of fact[.]” John Massman Contracting Co. v. United States, 23 Cl. Ct. 24, 31 (1991) (citing Morrison–Knudsen Co. v. United States, 170 Ct. Cl. 712, 718–19, 345 F.2d 535, 539 (1965)). A contractor may be able to recover extra costs incurred, under a theory of misrepresentation, if it can show that (1) the owner made an erroneous representation, (2) the erroneous representation went to a material fact, (3) the contractor honestly and reasonably relied on that representation, and (4) the contractor’s reliance on the erroneous representation was to the contractor’s detriment. See T. Brown Constructors, Inc. v. Pena, 132 F.3d 724, 728–29 (Fed. Cir. 1997). These four requirements can be satisfied, for example, through the use of deposition testimony detailing the owner’s representations and the contractor’s reliance thereon. See, e.g., C & H Commercial Contractors, Inc. v. United States, 35 Fed. Cl. 246, 256–57 (1996). Read the court decision
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Reprinted courtesy of Parker A. Lewton, Smith Currie
Mr. Parker may be contacted at palewton@smithcurrie.com

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