Fairfield Connecticut Building Expert Directory

The Risk of A Fixed Price Contract Is The Market

August 03, 2022 — David Adelstein - Florida Construction Legal Updates
When performing work on a fixed price or unit, there is risk that is being assumed on your end. One risk is the market. You are ultimately banking on the fact that the market is not going to make your fixed prices unprofitable. That’s not an unforeseeable occurrence because the market shifts and that shift can have a negative ripple effect. In a recent case out of the Federal Circuit, U.S. Aeroteam, Inc. v. U.S., 2022 WL 243176 (Fed.Cir. 2022), this market risk played a role in a fixed price contract. Here, a contractor was hired by the federal government to produce ground support trailers. A key component of these trailers was a running gear. The contractor relied on a vendor for these running gears. Due to financial difficulties, the vendor had to raise its unit price for the running gears. Based on the increased price, the contractor elected to manufacture the running gears itself. The contractor asked the government if this was ok and the government approved the request. Once the contractor started manufacturing these running gears, it had an “awe” moment – the manufacturing costs were higher than anticipated. The contractor submitted a request for equitable adjustment which the government denied. The Contractor than sued the government raising three arguments to support its entitlement to additional costs: (1) constructive change; (2) cardinal change; and (3) commercial impracticability. The contractor lost on all arguments. It probably should have lost on all arguments. 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

Eliminating Waste in Construction – An Interview with Turner Burton

June 29, 2020 — Aarni Heiskanen - AEC Business
I had the pleasure of interviewing Turner Burton, President of Hoar Construction. We discussed waste in construction and how his company is on a mission to eliminate it. Can you say a few words about yourself and your company? I grew up around construction and this company, hearing about the business from both my grandfather and my father. I started working on job sites in high school forming concrete, continued working on projects throughout college, and since graduating from college, I’ve taken on different roles in the company to ensure I understand all aspects of the business. Hoar Construction was founded 80 years ago, and throughout our history, we’ve been committed to learning from every project to improve our processes and deliver the best building experience possible for our clients and partners. But it’s the relentless pursuit of improvement that really sets us apart as builders – to always strive to be the best and do the right thing for our customers and partners. There’s something to be said for setting a goal that you’ll always be working toward. It fosters hard work, collaboration, and productive effort. If we’re always working to find a better way, then we will always be improving. That effort drives better results for our owners and everyone we work with. Essentially, we’re always working toward something. Always improving. Always in process. Read the court decision
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Reprinted courtesy of Aarni Heiskanen, AEC Business
Mr. Heiskanen may be contacted at aec-business@aepartners.fi

California Enacts New Claims Resolution Process for Public Works Projects

January 19, 2017 — Garret Murai – California Construction Law Blog
If you’re a public entity or contractor involved in public works construction you should be aware of a new law, AB 626, which took effect on the first of this year and establishes a new mandatory claims resolution process for disputes on public works projects. Here’s what you need to know: What is the new law and where is it codified at? AB 626 added new Public Contract Code Section 9204 that according to the bill’s author, Assemblymember David Chiu of San Francisco, establishes “a claim resolution process applicable to any claim by a contractor in connection with a public works project.” 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

Mitigating the Consequences of Labor Unrest on Construction Projects

February 14, 2023 — Cameron Lukas, Alan Winkler & Gregory Begg - ConsensusDocs
Until this past year, we have enjoyed an era of relative labor stability. It’s true, however, that labor unrest frequently coincides with inflationary pressure on prices, something that we are currently experiencing. The recent nationwide rail workers strike was averted only through the extraordinary intervention of the federal government. More recently, thousands of academic workers in the University of California system went on strike. Underscoring this development was a November 2022 New York Times article reporting that polls showed the highest level of support for organized labor since the 1960s. The same article also quoted a professor of labor relations warning that the current economy presents a high potential for strikes. This recalls the sixties and seventies when increased costs due to inflation led to a multitude of strikes. The construction industry has been historically strike-prone with approximately 22% of all strikes during the 1960s involving construction projects, contrasted with the fact that construction workers themselves accounted for only roughly 5% of the nation’s nonagricultural labor force. Incredibly, in 1969 alone, a record number of nearly 1,000 construction strikes occurred nationwide with 20 million worker days lost, more than five times the lost working time of the rest of the economy.[1] Reprinted courtesy of Cameron Lukas, Peckar & Abramson, P.C, Alan Winkler, Peckar & Abramson, P.C and Gregory Begg, Peckar & Abramson, P.C Mr. Lukas may be contacted at clukas@pecklaw.com Mr. Winkler may be contacted at awinkler@pecklaw.com Mr. Begg may be contacted at gbegg@pecklaw.com Read the court decision
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Counter the Rising Number of Occupational Fatalities in Construction

April 19, 2021 — Joshua Jacobsen - Construction Executive
Prior to the pandemic, the construction industry was experiencing mental and behavioral health stressors and increasing fatalities. The pandemic is contributing to these underlying conditions threatening the safety and wellbeing of the construction workforce:

Workers in construction occupations experienced 1,066 fatalities, a 6.3% increase and the highest total since 2007. Across all industries slips, trips and falls resulted in 880 deaths, a 11.3% increase from the previous year;
Increasing mental health challenges as evidenced by growing percentage of Americans starting therapy; and
Rising risk of relapse to substance use disorders and especially opioid overdoses. Deaths from unintentional overdoses of non-medical drug or alcohol use while at work climbed slightly to 313, marking the seventh straight annual increase in this category.

Reprinted courtesy of Joshua Jacobsen, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Mr. Jacobsen may be contacted at jjacobsen@holmesmurphy.com

New York City Construction: Boom Times Again?

October 22, 2013 — CDJ STAFF
Construction spending in New York City is expected to reach $31.5 billion this year, which would be the first time has exceeded $30 billion since 2006. Further , construction spending is projected to grow to $37 billion in 2015. During that same period, construction jobs are expected to grow from 120,000 to 130,000. Richard Anderson, the president of the New York Building Congress noted that “just five years after the worst downturn since the Great Depression, the city’s construction industry finds itself on the brink of yet another building boom.” Much of the increase is due to new residential construction. Read the court decision
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Workarounds for Workers' Comp Immunity: How to Obtain Additional Insured Coverage when the Named Insured is Immune from Suit

May 25, 2020 — Bethany L. Barrese - Saxe Doernberger & Vita, P.C.
Construction is an inherently risky business, fraught with the potential for human error. Despite best efforts to ensure safety, accidents involving construction workers are common, with consequences ranging from your run-of-the-mill trip and fall to much more serious and debilitating injuries. A worker who is injured on the job generally receives workers’ compensation benefits through their employer. Most states have enacted statutes stating that this is the exclusive remedy available from the employer, effectively making employers immune against civil lawsuits that might otherwise be brought by their injured employees. However, workers’ compensation benefits do not always fully compensate the employee for their injuries. In the construction industry, this often leads to lawsuits against upstream parties, such as a general contractor or project owner. Read the court decision
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Reprinted courtesy of Bethany L. Barrese, Saxe Doernberger & Vita, P.C.
Ms. Barrese may be contacted at blb@sdvlaw.com

Denver Condo Development Increasing, with Caution

January 21, 2015 — Beverley BevenFlorez-CDJ STAFF
According to Aldo Svaldi of The Denver Post, condo development has increased in the Denver metro area, though builders stated they are carefully documenting each step of construction as well as vetting contractors and materials. "We are being ultra-careful about everything," Roy Kline, a managing director at Western Development Group, told the Denver Post. Western Development is behind the 250 Columbine development. Svaldi reported that Western Development Group has been “photographing or filming every step of construction.” Brian Levitt and Trevor Hines of NAVA Real Estate Development “have spent the past year crafting a detailed three-page, 18-point action plan to deal with any contingency they could think of arising from the state's constructions-defects law.” Levitt told Svaldi that he “estimates all the safeguards being put in place will add 5 percent to 10 percent to the costs of the units at NAVA Sloan Lake, whose final price points are being determined.” Read the court decision
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FAIRFIELD CONNECTICUT BUILDING EXPERT DIRECTORY AND CAPABILITIES