Cambridge Massachusetts Building Expert Directory

Boilerplate Contract Language on Permits could cause Problems for Contractors

March 19, 2014 — Beverley BevenFlorez-CDJ STAFF
Craig Martin on his blog Construction Contractor Advisor discusses the potential problems for a contractor that a “boilerplate contract” could cause: “A recent case revealed the problems a contractor had with permits when the contractor’s estimate contemplated an easy permitting process and compliance, but in actuality it was much, much more difficult.” Martin cites the case Bell/Heery v. United States, where a contractor discovered that the permit process would be much more time-consuming and expensive than originally planned. When Bell/Heery asked for additional funds to cover the additional costs, the “contracting officer rejected the request, finding that Bell/Heery had assumed the risk of the permitting process and it was liable for any costs associated with the permitting process and construction methods required by the permitting process.” “Bell/Heery appealed to the Court of Claims,” but lost the battle. The contractor had to absorb $7 million in costs to comply with the required permits. Read the court decision
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Another Guilty Plea in Las Vegas HOA Scandal

December 20, 2012 — CDJ STAFF
A twenty-eighth person has plead guilty in the ongoing Las Vegas HOA scandal. Dax Louderman, who had been a construction company manager had acknowledged that he stole more than $495,000 from his former employers, Alpha 1 Construction and the Stone Canyon Homeowners Association, and further that he did not report this improper income on his tax returns. He has agreed to work with prosecutors and to pay $134,860 to the IRS. His actual sentencing will happen on June 24. Read the court decision
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Quick Note: Attorney’s Fees on Attorney’s Fees

June 13, 2022 — David Adelstein - Florida Construction Legal Updates
In a recent case, the appellate court held that the attorney’s fees provision in the contract was NOT broad enough to entitle the prevailing party to recover attorney’s fees for litigating the amount of attorney’s fees. This is known as “fees on fees” which is when you can recover your prevailing party attorney’s fees when you are fighting over the quantum that should be awarded to you as the prevailing party. The attorney’s fees provision at-issue stated: “In any lawsuit to enforce the Lease or under applicable law, the party in whose favor a judgment or decree has been rendered may recover its reasonable court costs including attorney’s fees from the non-prevailing party.” Language similar to this language can be found in many contracts as a prevailing party attorney’s fees provision. However, this provision was NOT broad enough to recover “fees on fees.” As explained in this article, if this is a consideration, you can negotiate or include this provision into your construction contract by expanding the scope of the prevailing party attorney’s fees provision to clarify that it entitles the prevailing party to recover attorney’s fees in litigating the amount of attorney’s fees. Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

Potential Pitfalls Under the Contract Disputes Act for Federal Government Contractors

February 28, 2018 — Sarah K. Carpenter – Smith Currie Publications
The Contract Disputes Act (CDA) governs monetary and non-monetary disputes arising out of contracts or implied-in-fact contracts between the federal government and contractors. Because the CDA is an exclusive remedy, it is important that contractors be wary of the many pitfalls that may be encountered by a contractor seeking to assert a claim against the government under the CDA. The pitfalls faced by a contractor under the CDA can arise before a contractor becomes aware of a potential claim. Pursuant to the Federal Acquisition Regulation (FAR) § 43.204(c), a contracting officer should include in any supplemental agreement, including any change order, a Contractor’s Statement of Release which requires a contractor to execute a broad release of the government from any and all liability under the contract. As a result of this FAR provision, in executing a routine change order, a contractor may inadvertently release its right to pursue a potential claim under the CDA. A contractor should always review any release language prior to executing a supplemental agreement or change order with the government. Read the court decision
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Reprinted courtesy of Sarah K. Carpenter, Smith Currie
Ms. Carpenter may be contacted at skcarpenter@smithcurrie.com

The Jersey Shore gets Beach Prisms Designed to Reduce Erosion

January 22, 2014 — Beverley BevenFlorez-CDJ STAFF
Thirty-five beach prisms manufactured by Smith-Midland Corporation have been installed along the Jersey shore in Ocean Gate, New Jersey. According to the Wall Street Journal, “The prisms protect homes, prevent erosion, and reduce impacts from natural disasters like Hurricane Sandy.” They “are made with a built-in parabolic curve that scatters waves away as spray instead of allowing them to crash up onto the vulnerable shoreline.” Ocean Gate’s Mayor Paul J. Kennedy stated, "We've been losing beach year after year with the Nor'easters we get. So we came up with an idea that hopefully will work,” The Wall Street Journal reported. Read the court decision
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The Courts and Changing Views on Construction Defect Coverage

October 02, 2013 — CDJ STAFF
There have been changes recently in how courts interpret commercial general liability policies. Writing for Claims Journal, Burke Coleman, who is legal counsel and Compliance Manager for Demotech, looks at five recent cases and how they show changing views of CGL policies and construction defect claims. He notes that the Ohio Supreme Court concluded that “defective construction itself does not trigger coverage.” The court’s view in Westfield Ins. Co. v. Custom Agri Systems, Inc. was that a CGL policy does not protect contractors from every risk, but instead covers damage to other property that occur due to its work. But, conversely, the Georgia Supreme Court found that construction defect claims could be covered under a commercial general liability policy, noting that “the limits of coverage do not have to be found in the word ‘occurrence,’ inasmuch as the other words of the insuring agreement — as well as the policy exclusions — have their own roles to play in marking the limits of coverage.” This decision was reached in Taylor Morrison Services v. HDI-Gerling America. The Connecticut Supreme Court also concluded that defective construction could trigger coverage from a CGL policy, however, as Mr. Coleman notes, “only damage to non-defective property may be entitled to coverage.” He concludes that the North Dakota Supreme Court “has taken an even broader approach to the issue.” That court found that construction defects were covered “if the faulty work was unexpected and unintended.” Finally, the Supreme Court of Appeals of West Virginia held that faulty work can be property damage. He notes “the policy at issue included a ‘your work’ exclusion that excluded coverage for work performed by the insured, but subcontractors were excepted from the exclusion.” However, another clause excluded work performed on the behalf of the insured. Read the court decision
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Don’t Let Construction Problems Become Construction Disputes (guest post)

October 01, 2014 — Melissa Dewey Brumback – Construction Law in North Carolina
To start our week off right, today we have another important article from guest blogger Christopher G. Hill, LEED AP. Chris is a Virginia Supreme Court certified mediator, construction lawyer and owner of the Richmond, VA firm, The Law Office of Christopher G. Hill, PC. He authors the Construction Law Musings blog where he discusses legal and policy issues relevant to construction professionals. His practice concentrates on mechanic’s liens, contract review and consulting, occupational safety issues (VOSH and OSHA), and risk management for construction professionals. [His blog was also one of the first construction law blogs I found and followed, even if he is a Duke alum!] Take it away, Chris! First and foremost, thanks to Melissa for inviting me back to post here at her great blog. She continues to invite me back despite my being a Blue Devil (and I try not to hold her Tar Heel status against her). So much of discussion relating to construction law and construction lawyers centers on the litigation of disputes. This discussion comes in many forms from avoidance of such litigation through the early intervention of good counsel prior to getting into a project to what sort of resolution mechanism to use. Another branch of this discussion is essentially the right way to pursue your claim (or as some may read it start the dispute ball rolling). Sometimes a payment bond claim is the best method while others a straight up contractual suit is the best way to go. Of course, all of this discussion presumes that there will be disputes. While I agree to some degree that in the Murphy’s Law riddled world of commercial construction, problems will arise. These problems need not rise to the level of a dispute that requires outside (read court or arbitrator) intervention. A few tips that are easy to write, but admittedly hard to practice at times can hopefully keep problems from blossoming into disputes. I’ve listed three big ones here: 1.Use “in house counsel.” Yes, I know that most of you engineers, architects, commercial general contractors and subcontractors out there aren’t big enough to either want or need a full time attorney on the payroll. What I mean by this is that when problems occur (or preferably before doing so), give your friendly local construction lawyer a call. As I learned from my dad, an ounce of prevention and all that. That 10 minute phone call may help avoid many hours of time and bills from your attorney later down the road. Read the court decision
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Reprinted courtesy of Melissa Dewey Brumback, Construction Law in North Carolina
Ms. Brumback may be contacted at mbrumback@rl-law.com

Three Key Takeaways from Recent Hotel Website ADA Litigation

April 26, 2021 — Shane Singh & Grace Mehta - Lewis Brisbois
Despite the COVID-19 pandemic and its chill on the hospitality industry, ADA-related digital lawsuits increased by approximately 23% in 2020. Many of these lawsuits are filed against hotels. The complaints allege that a hotel’s online reservation system failed to provide enough detail for individuals with disabilities to decide if the hotel meets their accessibility needs. These plaintiffs will often claim that it is insufficient to describe an aspect of a hotel or room as “accessible” because the term is an opinion or conclusion. Plaintiffs argue that a hotel’s reservation system must report specific information, such as the dimensions of space under accessible desks and sinks, the slopes of surfaces, doorway clearance, and numerous other technical requirements under the ADA. Many hotels are fighting back, arguing that the detail provided is sufficient and in compliance with the ADA. So far this year, in February 2021, two judges in the U.S. District Court for the Central District of California, Judge Percy Anderson and Judge Cormac Carney, agreed with the defendants, dismissing three cases with prejudice. Reprinted courtesy of Shane Singh, Lewis Brisbois and Grace Mehta, Lewis Brisbois Mr. Singh may be contacted at Shane.Singh@lewisbrisbois.com Ms. Mehta may be contacted at Grace.Mehta@lewisbrisbois.com Read the court decision
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CAMBRIDGE MASSACHUSETTS BUILDING EXPERT DIRECTORY AND CAPABILITIES