Cambridge Massachusetts Building Expert Directory

Contractual Indemnification Limitation on Florida Public Projects

July 28, 2016 — David Adelstein – Florida Construction Legal Updates
Construction contract indemnification provisions are governed under Florida Statute s. 725.06. This is a very important statute to know if you are drafting indemnification provisions for any type of construction contract. (There is also Florida Statute s. 725.08 that discusses indemnification provisions applicable to design professionals that is also worth knowing.) Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris
Mr. Adelstein may be contacted at dma@kirwinnorris.com

Risk-Shifting Tactics for Construction Contracts

February 24, 2020 — Nate Budde - Construction Executive
Anyone who has worked in the construction industry is familiar with the financial risks involved. With thin margins, cash flow issues and the litany of potential claims and damages that can arise, contractors need to be able to manage that risk properly. There is the right way of going about it, and there's a wrong way. Unfortunately, the wrong way (which involves using leverage and shifting risk to other parties) is the more prevalent approach. There are different contractual tactics employed by owners and general contractors alike to shift financial risk to other parties. Why is construction so financially risky? There are a few different reasons there is so much risk involved. First and foremost, the construction payment chain itself is inherently risky. Owners and lenders release project funds and trust that the money will reach everyone on the job. But that can’t happen unless each link in the payment chain passes payment to the next. That's a lot of trust for an industry that's not particularly known for it. Another reason is how construction projects begin. Upfront payment is rare in this industry. This leads to floating the initial costs, extending credit and potentially borrowing money to do so. And those who typically bear this burden, lower-tier subs and suppliers, are the least equipped for that level of risk. Reprinted courtesy of Nate Budde, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Mr. Budde may be contacted at nate@levelset.com

I.M. Pei, Architect Who Designed Louvre Pyramid, Dies at 102

July 01, 2019 — James S. Russell - Bloomberg
I.M. Pei, a dominant figure in American architecture for more than three decades who designed the Louvre’s crystal pyramid and the angular East Building of Washington’s National Gallery of Art, has died. He was 102. His son Li Chung Pei said on Thursday that his father had died overnight, the New York Times reported. Pei gave “this century some of its most beautiful interior spaces and exterior forms,” said the jury of the Pritzker Architecture Prize, which Pei won in 1983. Though reserved and supremely diplomatic, Pei’s face, always crowned by round thick-rimmed glasses, could break unexpectedly into a wide, dazzling smile. He approached clients with charm and a quick wit, and they usually succumbed happily. Read the court decision
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Reprinted courtesy of James S. Russell, Bloomberg

Construction Termination Issues Part 5: What if You are the One that Wants to Quit?

August 21, 2023 — Melissa Dewey Brumback - Construction Law in North Carolina
Architects and Engineers are sometimes pleasantly surprised to find out that they, also, can terminate those crazy, hard to deal with Owners—at least, if the Owners fail to make payments as required. You can also terminate for Owner delays to the work, or where you think the contractor should be fired but the Owner disagrees. Again, the standard 7 days written notice is required. (See B101 §9.4). Do you have to walk off the job if they are not paying you? No—you could exercise the smaller remedy of suspending services (with 7 days written notice) until payments are caught up or the contract performance is corrected by the Owner. (See B101 §9.1). Suspension rather than outright termination is a softer approach when working with an owner you do not want to burn (too many) bridges with. Read the court decision
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Reprinted courtesy of Melissa Dewey Brumback, Ragsdale Liggett
Ms. Brumback may be contacted at mbrumback@rl-law.com

Times Square Alteration Opened Up a Can of Worms

January 26, 2017 — Nadine M. Post – Engineering News-Record
Compared with some of its Manhattan neighbors, a high-rise on the corner of Seventh Avenue and West 47th Street looks standard. Like many buildings in Times Square, the 41-story retail-entertainment-hotel development, nearly topped out, has a tower springing from a boxy base that will sport a flashy billboard. Read the court decision
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Reprinted courtesy of Nadine M. Post, Engineering News-Record
Ms. Post may be contacted at postn@enr.com

Construction Materials Company CEO Sees Upturn in Building, Leading to Jobs

November 05, 2014 — Beverley BevenFlorez-CDJ STAFF
The Washington Post reported that Mesa Industries Inc. (a construction equipment and materials company), are "prepping for significant growth," which suggests that the construction industry is poised for growth. Terry Segerberg, CEO of Mesa Industries Inc., "is seeing enough nonresidential orders to suggest a sustained jobs recovery is underway in the industry — and in firms like hers that supply it." A Bureau of Labor Statistics report predicted that 1.6 million construction jobs will be added through 2022, according to the Washington Post. Read the court decision
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Public Policy Prevails: Homebuilders and Homebuyers Cannot Agree to Disclaim Implied Warranty of Habitability in Arizona

November 01, 2022 — Ryan Bennett - The Subrogation Strategist
In Zambrano v. M & RC II LLC, et al., 2022 Ariz. LEXIS 309, the Supreme Court of Arizona held that a homebuilder and homebuyer could not waive or disclaim the implied warranty of workmanship and habitability. While the court would normally enforce a contract between two parties – even if one side made a “bad deal” – they will not do so if the contract’s terms are against public policy. In this case, Tina Zambrano (Zambrano) signed a purchase agreement with the homebuilder to buy a newly built home. The agreement included provisions which expressly disclaimed any implied warranties, including the warranty of habitability and workmanship. After the purchase, Zambrano claimed that there were construction defects within the home, including popped nails in the drywall and issues with the home’s foundation. Zambrano sued the homebuilder for breach of the implied warranty of workmanship and habitability. The homebuilder moved for summary judgment based on the waivers within the contract and the trial court, agreeing that the waivers applied, dismissed the case. Zambrano appealed and the appellate court reversed the trial court’s decision. The appellate court specifically explained that Arizona has a public policy interest in protecting consumers. Read the court decision
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Reprinted courtesy of Ryan Bennett, White and Williams LLP
Mr. Bennett may be contacted at bennettr@whiteandwilliams.com

A New Hope - You Now May Have Coverage for Punitive Damages in Connecticut

February 15, 2018 — Stella Szantova Giordano – SDV Blog

On December 19, 2017, the Connecticut Supreme Court released its decision in Nationwide Mutual Ins. Co. v. Pasiak. The decision is significant for two reasons: 1) it clarifies the amount of proof an insurer needs to determine whether an exclusion to coverage applies; and 2) it found that where an insurance policy expressly provides coverage for an intentional act such as false imprisonment, common-law punitive damages are also covered.

Underlying action

The underlying action proves that real life is often stranger than fiction. Ms. S worked as an office help for a construction company owned by Mr. P, which operated out of his home. Ms. S was working alone in the home office, when an armed, masked intruder entered the office, tied her hands, gagged and blindfolded her and, pointing a gun to her head, threatened to kill her family if she did not give him the combination to a safe in the home. As this was happening, Mr. P entered the office, unmasked the intruder, and discovered it was his lifelong friend. After Ms. S was untied, she asked to leave, but Mr. P told her to stay. She was not allowed to leave for several hours as Mr. P made her accompany him to an errand. Ms. S sued Mr. P for false imprisonment, among other things. The trial court awarded her compensatory and punitive damages. Insurance coverage for the underlying judgment is at the heart of the Pasiak case.

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Reprinted courtesy of Stella Szantova Giordano, Saxe Doernberger & Vita, P.C.
Ms. Szantova Giordano may be contacted at ssg@sdvlaw.com

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