Fix for Settling Millennium Tower May Start This Fall
August 17, 2020 —
Nadine M. Post - Engineering News-RecordWith the lengthy and complex permitting and approval process complete and almost all the other details worked out, construction could begin in mid-November on the estimated $100-million shoring fix for the 645-ft-tall Millennium Tower in San Francisco. The perimeter pile upgrade for the 58-story residential condominium building, which has settled more than 17 in. toward the northwest since its completion in 2009, was originally expected to begin earlier this year.
Nadine M. Post, Engineering News-Record
Ms. Post may be contacted at postn@enr.com
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Read Carefully. The Insurance Coverage You Thought You Were Getting May Not Be The Coverage You Got
November 27, 2013 —
Bret Cogdill — Higgins, Hopkins, McLain & Roswell, LLCA recent U.S. District Court case in Colorado highlighted the importance for an insured to read and understand the terms of its insurance policy. The case 2-BT, LLC v. Preferred Contractors Insurance Company Risk Retention Group, LLC, Civil Action No. 12CV02167PAB, was a controversy between an insured’s expectations for coverage, and the terms and exclusions of the insurance policy.
2-BT is a heating, ventilation, and air-conditioning (“HVAC”) contractor, which utilizes soldering devices and heat sources among other tools for its trade. 2-BT needed liability insurance to cover its work, and found a provider, Preferred Contractors Insurance Company Risk Retention Group, LLC (“PCIC”). 2-BT read PCIC’s online materials, which stated “PCIC’s personalized underwriting process allows us to tailor coverage to properly outfit the contractor with excellent coverage and rates.”
2-BT filled out a policy application, which included a description of the type of HVAC work it performs, initialed several sections, and signed it. One of the initialed paragraphs on the application, “Policy Exclusions,” stated that damages arising from “fungi/bacteria,” “open flame,” and “use of heating devices,” was not covered. PCIC issued a policy to 2-BT, which included a section titled, “Additional Exclusions” that excluded coverage for mold and damage related to heating elements among others.
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Bret CogdillBret Cogdill can be contacted at
cogdill@hhmrlaw.com
First Quarter Gains in Housing Affordability
May 20, 2015 —
Beverley BevenFlorez-CDJ STAFFAccording to the National Association of Home Builders’ (NAHB) Eye on Housing, the combination of low interest rates and home prices has provided a “solid boost in nationwide affordability in the first quarter of 2015.” Furthermore, “66.5 percent of new and existing homes sold between the beginning of January and end of March were affordable to families earning the U.S. median income of $65,800.” Syracuse, New York remained the U.S.’s most affordable major housing market, while the San Francisco-San Mateo-Redwood City, California region was the nation’s least affordable major housing market. All five of the least affordable small housing markets were in California.
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Mutual Or Concurrent Delay Caused By Subcontractors
March 23, 2020 —
David Adelstein - Florida Construction Legal UpdatesHow are delay damages treated when two subcontractors cause a mutual or concurrent delay to the project?
Assume multiple subcontractors concurrently contributed to an impact to the critical path resulting in a delay to the project. The delay caused the prime contractor to: (1) be assessed liquidated damages from the owner and (2) incur extended general conditions. The prime contractor will be looking to the subcontractors for reimbursement for any liquidated damages it is assessed along with its extended general conditions costs.
There is really no great case that addresses this point when two (or more) subcontractors mutually or concurrently delay the project. It is also not uncommon, and frankly expected, that a subcontractor will point the finger at another subcontractor for the cause of the delay or that another subcontractor was concurrently delaying the project.
The prime contractor should absolutely, without any exception, undertake efforts with a scheduling consultant to allocate the delay caused by subcontractors. Taking an approach that joint and several liability applies between multiple subcontractors and/or not trying to apportion delay because the subcontractors concurrently delayed the critical path at the same time is probably not the best approach. The prime contractor should have an expert render an opinion as to the allocation of the delay period amongst responsible subcontractors that delayed the critical path. Not doing so, in my opinion, is a mistake.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Partner Jonathan R. Harwood Obtained Summary Judgment in a Coverage Action Arising out of a Claim for Personal Injury
December 22, 2019 —
Jonathan R. Harwood - Traub Lieberman PerspectivesOn August 16, 2019, Traub Lieberman partner obtained summary judgment in a declaratory judgment action involving a claim for coverage for a personal injury action involving injuries suffered on a construction site. The plaintiff in the underlying action was performing excavation in a basement of a building in Manhattan so the owner could install a pool. During the course of the excavation plaintiff fell 13 feet from a plank, into the excavated pit, suffering serious injuries. Traub Lieberman’s client issued a CGL policy to the building owner and the insured sought coverage for the suit under that policy. The insurer denied coverage based on an endorsement to the policy that stated the insured could only contract directly with a specified general contractor. The plaintiff was an employee of a subcontractor and the insurer believed the insured had contracted directly with that unapproved subcontractor. The insured denied it had done, contending the subcontractor had been hired by the general contractor identified in the endorsement.
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Jonathan R. Harwood, Traub Lieberman
Mr. Harwood may be contacted at jharwood@tlsslaw.com
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Construction Law Alert: Unlicensed Contractors On Federal Projects Entitled To Payment Under The Miller Act
May 07, 2014 —
Steven M. Cvitanovic and Jessica M. Lassere Ryland - Haight Brown & Bonesteel, LLPAs a matter of first impression, the Ninth Circuit Court of Appeals in Technica LLC ex rel. U.S. v. Carolina Cas. Ins. Co., 12-56539, 2014 WL 1674108 (9th Cir. Apr. 29, 2014), allowed an unlicensed subcontractor to recover from a prime contractor for unpaid services relating to a federal construction project under a federal Miller Act claim. California law otherwise prevents unlicensed contractors from recovering for unpaid work on non-federal projects as a penal measure intended to encourage contractors to maintain a valid license at all times.
Technica LLC (“Technica”) worked as a sub-subcontractor on a large federal fence replacement project (the “Project”). Over the course of a year, Technica supplied nearly a million dollars worth of labor, materials, and services for the Project. However, Technica received only $287,861.81 in partial payments for its work. Technica proceeded to file suit in district court against the prime contractor Candelaria Corporation (“Candelaria”) and its payment surety Carolina Casualty Insurance Company (“CCIC”) under the Miller Act to recover amounts owed to it on the subcontract against the payment bond.
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Steven M. Cvitanovic, Haight Brown & Bonesteel, LLP and
Jessica M. Lassere Ryland, Haight Brown & Bonesteel, LLP
Mr. Cvitanovic may be contacted at scvitanovic@hbblaw.com; Ms. Lassere Ryland may be contacted at jlassere@hbblaw.com
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Quick Note: Aim to Avoid a Stay to your Miller Act Payment Bond Claim
February 23, 2017 —
David Adelstein – Florida Construction Legal UpdatesStrategy is important. This is especially true if you are trying to avoid arbitration. In a recent federal district court case, a subcontractor sued the prime contractor and the Miller Act payment bond surety. The subcontractor, however, had an arbitration provision in its subcontract with the prime contractor. The prime contractor moved to compel arbitration pursuant to the subcontract and moved to stay the subcontractor’s Miller Act payment bond claim. The last thing, and I mean the last thing, the subcontractor wanted to do was to stay its claim against the Miller Act payment bond. However, the district court compelled the subcontractor’s claim against the prime contractor to arbitration and stayed the subcontractor’s Miller Act payment bond claim pending the outcome of the arbitration. See U.S. v. International Fidelity Ins. Co., 2017 WL 495614 (S.D.Al. 2017). This is not what the subcontractor wanted.
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David Adelstein, Florida Construction Legal UpdatesMr. Adelstein may be contacted at
dadelstein@gmail.com
Building Group Has Successful 2012, Looks to 2013
February 14, 2013 —
CDJ STAFFThe North State Building Industry Association has looked back at 2012, and feels that they are “well-positioned to addressed future challenges in 2013 and beyond.” The organization, which represents home builders in Northern California, had several major accomplishments in 2012.
The NSBIA has managed to reduce fees that builders must pay. Due to their work with the Sacramento Regional County Sanitation District and the Sacramento Area Sewer District over the last several years, a new rate and fee methodology has been adopted, saving builders $3,000 per single family unit in SRCSD fees and $1,000 per acre in SASD fees. Fees were also reduced through agreements with the Folsom Cordova unified and Elk Grove school districts. The city of Rancho Cordova reduced its transportation fee by $3,500 per home.
In addition to their advocacy work, the NSBIA has continued its worker training programs. During 2012, 113 people participated in their Journeyman Upgrade classes, an increase of 20 from the prior year.
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