Contractor Beware: Design-Build Firms Must Review Washington’s Licensing Requirements
October 16, 2018 —
John Krawczyk - Ahlers Cressman & Sleight PLLCDesign-build contracting is a method of project delivery where the contractor provides both architectural/design and building services to the owner. Yet rarely do firms perform both design and building work in equal measure. Rather, in many instances, firms perform the vast majority of their work on the building side while advertising and providing design services for smaller projects using in-house architects.
Regardless of the volume of design-build contracting a firm performs, any firms practicing this method of project delivery must be aware of Washington State’s registration requirement under RCW 18.08.420(1), and specifically the condition that a “designated architect” must serve as a partner, manager or director of the firm’s governing structure.
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John Krawczyk, Ahlers Cressman & Sleight PLLCMr. Krawczyk may be contacted at
john.krawczyk@acslawyers.com
Colorado Senate Revives Construction Defects Reform Bill
January 04, 2018 —
BEVERLEY BEVENFLOREZ - CDJ STAFFOriginally Published by CDJ on March 1, 2017
A re-booted construction defects reform bill recently passed its first Senate committee, according to the Denver Business Journal. Next, Senate Bill 156, sponsored by Sen. Owen Hill, R-Colorado Springs, heads to the Senate floor for debate.
SB 156 “would require that condominium owners alleging construction defects take their disputes to arbitration or mediation if requested by builders,” the Denver Business Journal reported. “It also would require that homeowners be informed of the consequences of filing legal actions over purported disputes and that a majority of all owners in a condominium complex vote to proceed with legal action, rather than just a majority of homeowners association board members.”
However, it is almost identical to the failed measures that were introduced in 2014 and 2015.
Homeowners association group members and owners of defective condominiums argued against the measure, stating “that the effort would not improve the quality of building in the state, but simply would block aggrieved Coloradans from taking their complaints before a jury of their peers.”
Proponent of the bill, Tom Clark, CEO of Metro Denver Economic Development Corp., said “that Denver’s housing costs have risen since the first bill was introduced in 2013 to the sixth-most-expensive in the country – and are tops for any metro area not on a coast.”
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PATH Station Designed by Architect Known for Beautiful Structures, Defects, and Cost Overruns
October 01, 2013 —
CDJ STAFFThe new PATH station at the World Trade Center site in New York is six years behind schedule and its cost has doubled to $4 billion dollars. But maybe New Yorkers shouldn’t be surprised. The New York Times reports that the Port Authority, which operates the PATH trains between New York and New Jersey, hired Santiago Calatrava, an architect whose work has frequently lead to cost overruns and claims of defects.
The problems in lower Manhattan are not all Mr. Calatrava’s fault. Auditors described the Port Authority as “a challenged and dysfunctional organization.” (A separate report in the New York Times notes that a former PATH executive may have walked away with the rights to the words “World Trade Center” for $10. The company he subsequently founded, The World Trade Center Association, charges millions for the use of the name.)
One problem with Mr. Calatrava’s design for the station is that he insisted that all the mechanical elements of the station be located in other buildings. Further, the Port Authority might want to examine those plans carefully. In the design for a museum in Valencia, Spain, Mr. Calatrava forgot to provide for handicap access or fire escapes. That project, according to the Times tripled in cost as it was built.
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Contractual Assumption of Liability Does Not Bar Coverage
August 27, 2014 —
Tred R. Eyerly – Insurance Law HawaiiThe Michigan Court of Appeals rejected the insurer's argument that coverage was barred for the insured's contractual assumption of liability of another. Travelers Prop. Cas. Co. of Am v. Peaker Serv., Inc., 2014 WL 3605680 (Mich. Ct. App. July 22, 2014).
The contractor was hired to install an "electronic over-speed system" at the University of Michigan. The hope was that the new system would prevent the steam turbines at the central power plant from turning too quickly. The parties' contract provided,
“Section 15.18. Supplier Damage to University Property. Without regard to any other section of the Agreement, Supplier shall be responsible for the costs to return to ‘as was’ condition from any damage caused to the building, grounds, or other equipment and furnishings caused in whole or part by Supplier Personnel while performing activities arising under this Agreement.”
The contractor improperly calibrated the system, causing one of the university's turbines to operate at twice the safe operational speed, causing significant damage to the generator equipment. The university sued the contractor for more than $3 million in damages. Travelers defended, but filed a declaratory judgment action, contending that coverage did not exist because the "contractual liability" exclusion applied. Section 15.18 of the contract purportedly constituted an "assumption" of the insured's own liability, and was therefore not covered under the CGL policy.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Broker for Homeowners Policy Has No Duty to Advise Insureds on Excess Flood Coverage
November 02, 2017 —
Tred R. Eyerly - Insurance Law HawaiiA broker who assisted the insureds in procuring a homeowners policy had no duty to advise the insureds to secure additional flood coverage. Ring v. Meeker Sharkey Assocs., LLC, 2017 N.J. Super. Unpub. LEXIS 3458 (N.J. Super Ct. App. Div. Sept.26, 2017).
The insureds owned two beachfront properties that were located in a designated flood zone. They secured homeowners and flood insurance through Meeker's predecessor. Subsequently, Meeker became the insureds' homeowners insurance broker while Willis, N.A. was their flood insurance broker.
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Tred R. Eyerly - Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Equipment Costs? It’s a Steal!
July 08, 2011 —
CDJ STAFFKCBD reports on the problems of a Lubbock, Texas contractor. It’s hard to do the job when your tools keep getting stolen. Corey Meadows, owner of Top Cut Interiors, told KCBD that he had chained an air compressor to a table saw. Since the thieves couldn’t cut the chain, they cut the table saw “and just took the air compressor and the chain.” Meadows estimates the thieves cost him $2,000 in damaged or stolen equipment and time lost.
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Michigan Supreme Court Finds Faulty Subcontractor Work That Damages Insured’s Work Product May Constitute an “Occurrence” Under CGL Policy
November 02, 2020 —
Jason Taylor - Traub Lieberman Insurance Law BlogIn Skanska USA Bldg. Inc. v. M.A.P. Mech. Contractors, Inc., 2020 WL 3527909 (Mich. June 29, 2020), the Michigan Supreme Court addressed whether unintentionally faulty subcontractor work that damages an insured’s work product constitutes an “accident” under a commercial general liability insurance policy. In aligning itself with a growing number of jurisdictions, the Michigan Supreme Court answered, “yes.” In Skanska, a construction manager brought an action against a commercial general liability (CGL) insurer seeking coverage as additional insured for the cost of repairs to correct faulty work performed by its subcontractor in renovation of medical center. In 2009, the construction manager hired MAP to install a steam boiler and related piping for the medical center’s heating system. MAP’s installation included several expansion joints, which it was later discovered, were installed backward. Significant damage to concrete, steel, and the heating system occurred as a result. The construction manager performed the work of repairing and replacing the damaged property to the tune of $1.4 million, and submitted a claim to MAP’s CGL insurer, Amerisure, seeking coverage as an additional insured.
Amerisure denied the claim contending that MAP’s defective construction was not a covered “occurrence” within the CGL policy. The policy defined “occurrence” as “an accident, including continuous or repeated exposure to substantially the same general harmful conditions,” but did not define the term “accident.” The trial court looked to the Court of Appeal’s decision in Hawkeye-Sec. Ins. Co. v. Vector Const. Co., 185 Mich. App. 369 (1990), which defined “accident” as “…a result which is not anticipated and…takes place without the insured’s foresight or expectation and without design or intentional causation on his part.” But, again citing Hawkeye, the trial court concluded that “[d]efective workmanship, standing alone, is not an occurrence within the meaning of a[ ] general liability insurance contract[;] an occurrence exists where the insured’s faulty work product damages the property of another.”
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Jason Taylor, Traub LiebermanMr. Taylor may be contacted at
jtaylor@tlsslaw.com
Meet BWB&O’s 2025 Best Lawyers in America!
September 09, 2024 —
Dolores Montoya - Bremer Whyte Brown & O'Meara LLPBremer Whyte Brown & O’Meara, LLP is proud to announce Partners
Nicole Whyte,
Keith Bremer,
Vik Nagpal,
John O’Meara,
Sheila Stiles,
Patrick Au, and
Nicole Schmidt have been selected by their peers for inclusion in the 31st edition of The Best Lawyers in America, and Partner
Devin Gifford, and Associates
Melissa Youngpeter,
Ryan Flanagan, and
Alexandria Zeis are included in the fifth edition of Best Lawyers: Ones to Watch in America. Each person is being recognized for their diligent work in the areas of Family Law, Construction, Commercial, Personal Injury, and Real Estate Litigation.
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Dolores Montoya, Bremer Whyte Brown & O'Meara LLP
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