Seattle Washington Building Expert Directory

Recent Opinions Clarify Enforceability of Pay-if-Paid Provisions in Construction Contracts

May 29, 2023 — Patrick McKnight - The Dispute Resolver
Several recent opinions and legislative actions have brought the controversial nature of pay-if-paid provisions into focus in early 2023. Pay-if-paid provisions are contractual mechanisms designed to shift the risk of non-payment from General Contractors to lower-tier subcontractors. In other words, pay-if-paid provisions generally do not require payment to downstream subs until after the GC or Prime are themselves paid in-full by the owner. Recent developments reflect the differing approaches taken by courts when addressing pay-if-paid provisions, ranging broadly from prohibition to full enforceability. Other jurisdictions fall somewhere in the middle, viewing such provisions with varying amounts of skepticism on the grounds heir impact on smaller downstream subs is disproportionate and unfair. Pay-if-paid provisions are often contrasted against “pay-when-paid” provisions. Pay-when-paid provisions may require payment within a specified duration but remove the upstream contractor’s payment in-full as a condition precedent. The brief discussion below will not explore pay-when-paid, no damage for delay provisions, or statutory prompt payment acts. Instead, this article serves as a primer on recent legal developments related to pay-if-paid provisions exclusively. Read the court decision
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Reprinted courtesy of Patrick McKnight, Fox Rothschild LLP
Mr. McKnight may be contacted at pmcknight@foxrothschild.com

Exponential Acceleration—Interview with Anders Hvid

December 01, 2017 — Aarni Heiskanen - AEC Business
Anders Hvid is a Danish consultant, speaker, and author. He talks about digital disruption, exponential acceleration, and paradigm shifts that are taking place in a world that is moving from local and linear into global and exponential. “I have a background in social studies. My interest is in humans, and systems in which they work together. I’ve always had a deep fascination with technology and how it influences our society, our jobs, our democracies, and systems,” Anders says. He visited Singularity University back in 2010, and that experience made a lasting impression on him. “It freaked me out, to be honest, and it opened my eyes to how important technology is.” Read the court decision
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Reprinted courtesy of Aarni Heiskanen, AEC Business
Mr. Heiskanen may be contacted at info@aepartners.fi

Home Prices Up, Inventory Down

February 04, 2013 — CDJ STAFF
"Housing is clearly recovering," David Blitzer of Standard & Poor told USA Today. Standard & Poor issued their Case-Shiller Index of home sale prices for November. In their review of twenty metropolitan areas, prices rose in all but one area. In the report for October, housing overall saw a 0.1% decline with gains only in ten cities. The article attributes this in part to that the inventory of unsold homes was 4.4 months, which was the lowest since May 2005. "Any new listings are getting eaten up right away," said E. J. Bowlds, a broker at Coldwell Banker Bain. He is seeing six to ten competing offers on homes in his area of Washington State. Read the court decision
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Melissa Pang Elected Vice President of APABA-PA Board of Directors

December 21, 2016 — White and Williams LLP
Melissa Pang has been elected Vice President of the Asian Pacific American Bar Association of Pennsylvania's (APABA-PA) Board of Directors. She will serve a one-year term in the position, beginning January 1, 2017. As part of her responsibilities, Melissa will co-chair the National Asian Pacific American Bar Association Northeast Regional Conference, which will be hosted by the APABA-PA in Philadelphia. Melissa has been a member of the APABA-PA since 2010 and has served on the board since 2015. Her involvement includes participation on the Law Student Outreach Committee as well as the Annual Banquet Committee. In 2016, she chaired the organization's Lunar Banquet. Read the court decision
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Reprinted courtesy of Melissa Pang, White and Williams LLP
Ms. Pang may be contacted at pangm@whiteandwilliams.com

What the FIU Bridge Collapse Says About Peer Review

September 23, 2019 — Richard Korman & Scott Judy - Engineering News-Record
Attorneys for families of the six people who were killed and for survivors of 2018’s Florida International University pedestrian bridge collapse say Louis Berger Group is the last defendant that has not yet agreed to settle lawsuits in state court in Miami. The legal actions target companies that designed and built the bridge. Reprinted courtesy of Richard Korman, Engineering News-Record and Scott Judy, Engineering News-Record Mr. Korman may be contacted at kormanr@enr.com Mr. Judy may be contacted at judys@enr.com Read the court decision
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AAA Revises Construction Industry Arbitration Rules and Mediation Procedures

July 22, 2024 — Patrick McKnight - The Dispute Resolver
The American Arbitration Association (AAA) recently revised its Construction Industry Arbitration Rules and Mediation Procedures (“the Rules”). Several notable changes went into effect March 1, 2024, involving the scope of confidentiality, regular and fast track procedures, and updates to certain monetary thresholds. I. Revisions to Regular Track Procedures Rule 45: Confidentiality For the first time, confidentiality is now the default standard. Under Rule 45(a), arbitrators must keep all matters confidential unless otherwise required by law, court order or the agreement of the parties. Rule 45(b) allows a mediator to issue confidentiality orders and “take measures for protecting trade secrets and confidential information.” Rule 7: Consolidation and Joinder Under the new provisions, consolidation and joinder requests must be filed before confirmation of the Merits Arbitrator’s appointment. This language eliminates a previous option that allowed confirmation up to 90 days after filing of such requests. A failure to timely respond to a joinder request will result in a waiver of objections. Now, a party must establish both good cause and prejudice for a successful joinder request after confirmation of the arbitrator. Read the court decision
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Reprinted courtesy of Patrick McKnight, Fox Rothschild LLP
Mr. McKnight may be contacted at pmcknight@foxrothschild.com

What Made the Savannah Harbor Upgrade So Complicated?

May 10, 2017 — Jim Parsons - Engineering News-Record
Of all the East Coast port upgrade programs aimed at luring cargo traffic from the newly widened Panama Canal, the Savannah Harbor Expansion Project (SHEP) may well be the most ambitious, and complex. Elements of the joint effort by the U.S. Army Corps of Engineers’ Savannah District and the state of Georgia—originally estimated to cost $706 million, but subsequently increased to $973 million—range from 40 miles of channel dredging and new water quality mitigation facilities to the addition of an upstream fish passage and the recovery of a Civil War-era relic. Read the court decision
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Reprinted courtesy of Jim Parsons, ENR
ENR may be contacted at ENR.com@bnpmedia.com

Construction Litigation Roundup: “Builder’s Risk Indeed”

October 24, 2023 — Daniel Lund III - Lexology
A contractor for a hotel in Seattle was tasked with constructing the hotel utilizing premanufactured modular hotel rooms. The modular unit portion of the project was the subject of a $15.8 million subcontract between the general contractor and the manufacturer. The manufacturer was also responsible to the GC for shipping and installing the modular units. Shipping was to be “DDP,” or “Delivery Duty Paid” – which, according to a New York federal court, “is an international shipping term meaning that the seller assumes all responsibilities and costs for delivering property to the named place of destination, including export and import clearance, fees, duties, and taxes.” Additionally, per the subcontract, the manufacturer was responsible for “ensur[ing] all modular units [were] covered, secured[,] and protected from damage during the shipping process….” The modular units were shipped from Poland to Seattle. In the shipping process, the units spent some time in the Port of Everett in Washington state, where the units sustained water damage while sitting in port. A related damage claim made by the subcontractor against the general contractor’s builder’s risk policy. On the face of the policy, the policy covered subcontractors as “additional insured” parties, covered all manner of materials and the like to be used on the project, and would provide that coverage in the process of transporting the materials insofar as “inland or coastal waters” were concerned. Yet, the builder’s risk insurer refused to cover the claim for the damages to the modular units which occurred while sitting in port in Everett. Read the court decision
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Reprinted courtesy of Daniel Lund III, Phelps
Mr. Lund may be contacted at daniel.lund@phelps.com

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