Fairfield Connecticut Building Expert Directory

Risk Management for Condominium Conversions

July 31, 2013 — David McLain, Higgings, Hopkins, McLain & Roswell, LLC
One of the bright spots in the Colorado construction industry over the last few years has been the construction of for-rent apartments. It seems as though apartments are going up everywhere you look along the Front Range. As market forces change, it will be interesting to see whether these units will remain apartments or whether they will be converted into for-sale condominiums or townhouses. One of the risk management strategies we have recently discussed with our general contractor clients who have been asked to build apartments is to ensure that the project remains a for-rent apartment project through the applicable statute of repose, conservatively assumed to be eight years. Unfortunately this is not always feasible, usually because the owner and/or lender are not interested in encumbering the property for such a long period of time, and want to retain the ability to convert the project if and when market forces allow, even if that is before the running of the statute of repose. The purpose of this article is to discuss the insurance and risk management ramifications of converting a project too early. I have recently heard from several sources in the insurance industry that there are owners and contractors who are currently building apartments with the idea that they will be held as apartments for two to three years and then converted to for-sale condominiums or townhomes. While this strategy may have great appeal from a business point of view, it has a very serious risk management downside. Apparently, these owners and contractors are operating under the mistaken belief that they will have no liability exposure to the ultimate purchasers of the converted units or to the homeowners association for construction defects. This is an incorrect belief. Read the court decision
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Reprinted courtesy of David M. McLain
David M. McLain can be contacted at mclain@hhmrlaw.com

Warning! Danger Ahead for Public Entities

July 30, 2019 — Michael J. Baker - Snell & Wilmer Under Construction Blog
Public entities are known to assert False Claims actions “to up the ante” to intimidate and aggressively address contractor construction claims. This strategy in the case of John Ross of Industrial Sheet Metal, Inc. (JRI) V. City of Los Angeles Department of Airports (LAWA), 29 Cal. App. 5th 378 (2018), backfired on the public entity, LAWA, in a big way and should serve as a warning to public entities about expanding claims to include False Claim actions. In this case, LAWA was awarded $1 in contract damages, its California False Claims Act (CFCA) claim was rejected by the jury as were JRI’s claims against LAWA. Despite losing on the substantive contract claims, the trial court found that JRI “prevailed in the action” under the relevant CFCA fee provision, Government Code 12652, subd. (g)(9)(B), regardless of JRI’s failure to prevail in the action as a whole. The California Appellate Court (hereinafter “Court”) affirmed the trial court’s finding. The CFCA is analogous to the federal False Claims Act (FFCA; 31 U.S.C. 3729 et seq.). Since the CFCA is patterned on similar federal legislation, it was appropriate for the Court to look to precedent construing this similar federal act in interpreting the CFCA provisions. Accordingly, the Court looked at the False Claims Act cases for guidance in upholding the trial court’s decision in its determination that JRI was the “prevailing party” for determining an attorney’s fees award against LAWA. Read the court decision
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Reprinted courtesy of Michael J. Baker, Snell & Wilmer
Mr. Baker may be contacted at mjbaker@swlaw.com

PPP Loan Extension Ending Aug. 8

August 03, 2020 — Construction Executive
There is just over one week left to apply for the extended period of the Paycheck Protection Program, which will accept new applications through Aug. 8. Congress extended the legislation by unanimous consent on June 30 and President Trump signed the bill into law on July 4, 2020, allowing approximately $131.9 billion in funding to remain accessible to small businesses affected by the COVID-19 pandemic. Associated Builders and Contractors has expressed support for several changes to the PPP, but submitted comments on July 27, 2020, to the U.S. Department of the Treasury and U.S. Small Business Administration regarding changes to an interim final rule altering loan forgiveness and loan review procedures. ABC urges the government agencies to:

Provide further guidance on when businesses should apply for loan forgiveness and when they are notified of their forgiveness status.
Issue further guidance on the PPP audit process.
Increase flexibility for employee retention requirements and loan forgiveness.
Provide further clarification of non-payroll costs.
Refocus efforts to deliver PPP funds to underserved communities and minority businesses.

Reprinted courtesy of Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Trump’s Infrastructure Weak

June 21, 2017 — Garret Murai - California Construction Law Blog
This past week was President Trump’s “Infrastructure Week.” A week dedicated, according to the White House’s official blog, “to addressing America’s crumbling infrastructure” and to try to build support for the President’s campaign promise to invest “at least” $1 trillion on improving the nation’s infrastructure. For the construction industry it was going to be an exciting week. Not only because it could mean new opportunities for the industry but from a policy perspective our nation’s infrastructure, which recently received a grade of D+ from the American Society of Engineers, is in dire need of investment. But Infrastructure Week ended up being more like Infrastructure Weak. No infrastructure bills were signed or introduced, no executive orders were issued, and no new departments or commissions were created, although at the end of the week President Trump promised to form a “council” and “office” to review the environmental permitting process. Read the court decision
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Reprinted courtesy of Garret Murai, Wendel Rosen Black & Dean LLP
Mr. Murai may be contacted at gmurai@wendel.com

You’ve Been Suspended – Were You Ready?

April 20, 2020 — Curtis W. Martin, Patrick J. Greene, Jr. & Levi W. Barrett - Peckar & Abramson
“Effective tomorrow … the City is suspending all regular activity at construction sites in Boston.” This was just one of the surprises that greeted contractors last week. Contractors and owners with projects across the country are scrambling to comply with mandated governmental suspensions. Project participants should begin contingency planning for possible project shutdowns. Reacting to Suspension Your legal rights and remedies will be largely determined by your contract and the laws applicable to it. But some basic principles will be applicable depending on the source of the suspension. Suspension by the Owner: An owner work suspension suggests review of the contract’s suspension of work clause. Federal contractors would look to the FAR Suspension of Work clause, FAR 52.242-14, but that is applicable if the suspension is by the Contracting Officer; the US would argue that a systemic suspension was a sovereign act and outside the FAR clause. Contractors for private work and state or municipal work may have contractual suspension of work clauses. At least some suspension clauses provide relief for time and money. Reprinted courtesy of Peckar & Abramson attorneys Curtis W. Martin, Patrick J. Greene and Levi W. Barrett Mr. Martin may be contacted at cmartin@pecklaw.com Mr. Greene may be contacted at pgreene@pecklaw.com Mr. Barrett may be contacted at lbarrett@pecklaw.com Read the court decision
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Colorado Homes Approved Despite being Too Close Together

January 22, 2014 — Beverley BevenFlorez-CDJ STAFF
ABC 7 reported that more than a dozen homes in Adams County, Colorado were inspected and approved by Building and Safety despite being built too close together. The problem was discovered by an inspector who cited a new home for being “4 inches too close to adjoining property.” Jim Williamette, the Adams County Chief Building Official told ABC 7, “It’s a fire issue for the separation of buildings.” The county may have solved the issue, according to ABC 7. Williamette stated that the properties “will be modified with fire-resistant windows” and combined with the “already-installed fire-resistant siding, the windows will satisfy the international building code.” Currently, the parties are in verbal agreement, and a “signed design proposal” is expected no later than January 21st. Read the court decision
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Curtain Wall Suppliers Claim Rival Duplicated Unique System

February 28, 2022 — Annemarie Mannion - Engineering News-Record
Chicago-area construction material suppliers that hold patents for a curtain wall system used in high-rise construction projects are suing a rival, claiming it created a knock-off of the system based on a former employee’s knowledge and put the system to use on construction projects. Reprinted courtesy of Annemarie Mannion, Engineering News-Record ENR may be contacted at enr@enr.com Read the full story... Read the court decision
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No One to Go After for Construction Defects at Animal Shelter

January 28, 2013 — CDJ STAFF
The Riverside County Animal Shelter in Thousand Palms has had problems since it opened in 2006, including floors that weren't able to withstand scratching by dogs and a malfunctioning HVAC system. The county's expenses only started with the $6.9 million cost of building the shelter, as the building has required almost constant repairs. Riverside County Supervisor John Benoit said that "there were shortcomings in the construction that became apparent later." The County can't sue, because the builder closed operations after a bankruptcy. "There's no one to go after," said Benoit. Read the court decision
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