Fairfield Connecticut Building Expert Directory

Repairs Could Destroy Evidence in Construction Defect Suit

June 28, 2013 — CDJ STAFF
Repair work is underway on the Palladium concert hall in Carmel, Indiana, a suburb of Indianapolis, a contractor for the project says that the repairs will destroy evidence that they need to defect against additional construction defect allegations. Work stopped in 2009 for three months of repairs after problems were found in the steel roof supports. Steel Supply & Engineering Co. has claimed that the column failures are due to errors in the design. They say that if the repair work continues, it “would result in the spoliation of evidence, and will irreparably harm the defendants, and ultimately adversely affect their ability to protect their rights in the action.” They have asked the court to bring repairs to a stop until they are able to inspect the steel. Read the court decision
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Court Provides Guidance on ‘Pay-When-Paid’ Provisions in Construction Subcontracts

July 13, 2020 — Ted R. Gropman & Cindy J. Lee - ConsensusDocs
On April 17, the California Court of Appeal decided Crosno Construction, Inc. v. Travelers Casualty & Surety Company of America,1 effectively narrowing the scope of enforceable “pay-when-paid” provisions in construction subcontracts to the extent the subcontractor seeks recovery against a general contractor’s payment bond surety. Although the Crosno case involved a public works project, the rationale and holding should apply with equal force to private works projects. Basing the bulk of its decision on the Wm. R. Clarke Corp. v. Safeco Insurance Co.2 case, the court found that an open-ended “pay-when-paid” provision in a subcontract is not enforceable against a subcontractor that seeks to recover on a public works payment bond claim. This article discusses the Crosno decision and the implications for contractors on both sides of the contract moving forward. Brief Case Summary In Crosno, general contractor Clark Bros., Inc. contracted with the North Edwards Water District (the District) to build an arsenic removal water treatment plant. Clark hired steel storage tank subcontractor Crosno Construction, Inc. to build and coat two steel reservoir tanks. Clark and Crosno’s subcontract included a “pay-when-paid” provision, which stated that Clark would pay Crosno within a “reasonable time” of receiving payments from the owner, but “in no event less than the time Contractor and Subcontractor require to pursue to conclusion their legal remedies against Owner or other responsible party to obtain payment.” After Crosno completed its work, a dispute arose between Clark and the District, and the District withheld payment from Clark (including the monies earmarked for Clark’s subcontractors). Clark sued the District for payment, and Crosno filed its own action against Travelers Casualty and Surety Company of America, the surety on Clark’s statutory public works payment bond, for recovery of the unpaid subcontract balance. Travelers rejected Crosno’s bond claim as premature, invoking the “pay-when-paid” subcontract language and pointing to Clark’s pending payment action against the District. The issue on appeal was whether the “pay-when-paid” provision in the subcontract blocked Crosno from recovering under the payment bond from Travelers while Clark’s lawsuit against the District was still pending. Reprinted courtesy of Ted R. Gropman, Pepper Hamilton LLP and Cindy J. Lee, Pepper Hamilton LLP Mr. Gropman may be contacted at ted.gropman@troutman.com Ms. Lee may be contacted at cindy.lee@troutman.com Read the court decision
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Decaying U.S. Roads Attract Funds From KKR to DoubleLine

January 28, 2015 — Romy Varghese and Mark Niquette – Bloomberg
(Bloomberg) -- Investors such as Jeffrey Gundlach’s DoubleLine Capital and KKR & Co. are looking at crumbling U.S. roads -- and like what they see. DoubleLine, which oversees $64 billion, plans to start its first fund to finance infrastructure, Gundlach said this month. KKR, the private-equity firm led by Henry Kravis and George Roberts, signed a contract in December to manage the water system in Middletown, Pennsylvania, with Suez Environnement Co.’s United Water unit. Its debut infrastructure fund started buying assets in 2011, Bloomberg News reported in April. The companies are partnering with states and localities fed up with federal inaction to jump-start transit projects and revamp public works suffering from decades of neglect. Such an alliance in Pennsylvania, home to the nation’s highest number of deficient bridges, is letting the state replace 558 crossings more cheaply and more quickly. Reprinted courtesy of Romy Varghese, Bloomberg and Mark Niquette, Bloomberg Ms. Varghese may be contacted at rvarghese8@bloomberg.net; Mr. Niquette may be contacted at mniquette@bloomberg.net Read the court decision
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Florida Condo Collapse Victims Reach $1 Billion Settlement

May 23, 2022 — Erik Larson - Bloomberg
Victims of the South Florida condominium collapse that killed 98 people last year reached settlements totaling almost $1 billion with defendants including the developer of an adjacent luxury tower, engineers and a law firm for the condo association. The massive deal was cobbled together through multiple agreements before a state court hearing Wednesday in Miami, according to Harley S. Tropin, one of the lead plaintiffs’ lawyers who had sued on behalf of survivors and victims’ families. He said he disclosed the settlements in court. “We are pleased to have resolved this case with the defendants to get what we think is a very fair recovery to help end the litigation and allow the victims to attain some means of attempting to move forward from this horrific tragedy,” Tropin said in an emailed statement. The 12-story Champlain Towers South condominium building in Surfside, Florida, collapsed June 24, triggering multiple lawsuits and prompting state and federal probes. A focus was the development of the Renzo Piano-designed Eighty Seven Park high-rise next door to the Champlain Towers. Read the court decision
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Reprinted courtesy of Erik Larson, Bloomberg

North Carolina Should Protect Undocumented Witnesses to Charlotte Scaffolding Deaths, Unions Say

April 03, 2023 — Engineering News-Record
Charlotte Observer More than two months after a scaffolding collapse in Charlotte killed three men, labor unions are urging state leaders to protect undocumented construction workers who witnessed the collapse so they can safely talk to investigators. Reprinted courtesy of Engineering News-Record ENR may be contacted at enr@enr.com Read the full story... Read the court decision
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Flow-Down Clauses Can Drown Your Project

August 26, 2015 — Craig Martin – Construction Contractor Advisor
Flow-Down or pass-through clauses obligate downstream contractors to certain provisions contained in the up up-stream contractor contracts, such as the contract between the general contractor and the owner. These clauses are contained in every major form subcontract and they can expand the scope of your potential liability. This blog will look at typical language of a flow-down clause, what it means and how you can deal with them. Typical Flow-Down Clause A simple flow down clause might provide:

“The Subcontractor agrees to be bound to the Contractor by the terms of the prime contract and to assume to the Contractor all the obligations and responsibilities that the Contractor by those documents assumes to the Owner, except to the extent that the provisions contained therein are by the terms or by law applicable only to the Contractor.”

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Reprinted courtesy of Craig Martin, Lamson, Dugan and Murray, LLP
Mr. Martin may be contacted at cmartin@ldmlaw.com

Los Angeles Could Be Devastated by the Next Big Earthquake

October 15, 2013 — CDJ STAFF
A group of scientists have made a list of about 1,500 concrete buildings in Los Angeles which could potentially collapse in an earthquake. They have offered to make the list available to Los Angeles officials, although the city has yet to take them up on the offer. In response, a group of Times reporters combed through records to identify which buildings were of the sort most likely to collapse in an earthquake. The group found more than 1,000 concrete buildings built before 1976 when Los Angeles increased the requirements for steel rebar. Experts estimate that in a major earthquake, five percent of these buildings could collapse, which for Los Angeles would mean about 50 buildings. Many of these buildings could be seismically retrofitted, but the article notes that a retrofit starts with a $100,000 structural study. Carol Schatz of the Central City Association notes that the cost of retrofitting “would be greater than the value of the building.” Read the court decision
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Los Angeles Warehousing Mecca Halts Expansion Just as Needs Soar

September 05, 2022 — Ngai Yeung & Augusta Saraiva - Bloomberg
Communities in the Inland Empire, the US’s logistics mecca east of Los Angeles, are suspending new warehousing projects to examine the impact from decades of pollution -- putting the industry under pressure when it’s needed most. This week, the city council for Pomona is set to vote on extending a temporary halt on industrial developments to study the environmental impact, while the nearby city of Norco will decide whether to establish a 45-day moratorium. The actions follow similar freezes by a handful of Southern California cities like Riverside, Colton, Chino and Redlands over the past several years. Meanwhile, a state-level bill -- which is a long-shot to pass in the legislature but gives a reading of the mood -- proposes banning large industrial construction within 1,000 feet of non-industrial areas such as schools, homes and playgrounds in Riverside and San Bernardino counties, an area that spans 27,000 square miles. Reprinted courtesy of Ngai Yeung, Bloomberg and Augusta Saraiva, Bloomberg Read the court decision
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FAIRFIELD CONNECTICUT BUILDING EXPERT DIRECTORY AND CAPABILITIES