Pulling the Plug
December 13, 2022 —
Todd R. Regan - Construction ExecutiveAs a contractor, you may have wondered if your contract can be terminated by the owner for cause after the project has reached substantial completion. The answer is yes.
Under certain circumstances it may be permissible—or even necessary—for a project owner to terminate the contract for cause after the project has reached substantial completion. Although the rights of the parties in any case will depend in large part on the specific contract language, the fact that a project has reached substantial completion is not an absolute bar to termination for cause, particularly when the owner intends to pursue a performance-bond claim.
Completion Versus Performance
Following substantial completion, a contractor typically will have outstanding contractual obligations such as paying its subcontractors and suppliers, bonding off any mechanic’s liens, completing the punch list, remediating defective work, testing and commissioning equipment, providing manufacturer’s warranties and performing its own warranty obligations.
Reprinted courtesy of
Todd R. Regan, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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NY Estimating Consultant Settles $3.1M Government Project Fraud Case
November 23, 2020 —
Eva Fedderly - Engineering News-RecordVJ Associates, a Hicksville, N.Y., estimating consultant, has agreed to pay $3.13 million in civil and criminal penalties to settle charges that the firm overbilled and falsified hours on multiple federal and state government-funded transportation and other contracts in New York and Massachusetts, the U.S. Attorney's office in Boston announced on Oct. 29.
Reprinted courtesy of
Eva Fedderly, Engineering News-Record
ENR may be contacted at ENR.com@bnpmedia.com
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Lewis Brisbois Promotes 35 to Partnership
March 15, 2021 —
Lewis BrisboisLewis Brisbois is proud to announce the promotion of 35 of its associates to partner. With these promotions, Lewis Brisbois’ total partnership comes to 933 across its 53 offices. The diverse class of newly promoted attorneys includes 15 women, which brings the total percentage of female partners at Lewis Brisbois to 33%.
Los Angeles Managing Partner Jana I. Lubert expressed her excitement about the recent promotions, stating, “On behalf of the Management Committee, I congratulate these outstanding attorneys on their achievement. They have demonstrated an exceptional level of dedication to Lewis Brisbois and to our clients, especially during this difficult past year. I am particularly proud of the diversity that exists across this group.”
Similarly, San Bernardino and Chief Diversity Partner Rima M. Badawiya shared her enthusiasm over the diversity of the new partners, explaining, “This group of exceptional attorneys, who have been promoted based upon their extraordinary performance, represents the diversity that exists throughout Lewis Brisbois and our commitment to advancing those who achieve at the highest level.”
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Lewis Brisbois
Eight Ways to Protect a Construction Company Before a Claim Is Filed
November 04, 2019 —
Mary Bacon - Construction ExecutiveClaims are inevitable in the construction industry. They can take on a life of their own and come with the burden of legal fees, wasted executive time and a possible judgment. Too often the only winners are the lawyers.
TIPS FOR PROTECTING MANAGEMENT AND THE BUSINESS BEFORE A CLAIM IS FILED
- Respect the business entity’s corporate structure. First and most importantly, respect the business entity’s corporate form. Legal entities have certain formalities like filing an annual list of officers, maintaining separate bank accounts, conducting certain meetings and following bylaws, etc. Respect these formalities. Failure to follow them exposes the owner to personal liability for company debts. And while a business claim has the potential to wipe out a business, owners should not risk having their personal assets on the line as well.
- Get a good contract. In most instances, a contract governs what happens and who is responsible for payment associated when a certain issue or dispute arises. A clear, well-written contract can often avoid a dispute or liability for a dispute. Actively participate in the contract negotiation and drafting process to make sure each party’s role and responsibilities are clearly accounted for.
- Make friends with clients. While it is true that “business is business,” people are often fairer and more willing to work towards a solution for people they are friends with. In most cases, friends will help friends in ways that people would not help mere business associates. When encountering a problem on a job, a friend may be willing to help achieve a more favorable outcome.
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Mary Bacon, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Ms. Bacon may be contacted at
mbacon@spencerfane.com
Disjointed Proof of Loss Sufficient
June 11, 2014 —
Tred R. Eyerly – Insurance Law HawaiiThe court found that when considered as a whole, separately filed proofs of loss and estimates of damage were sufficient to meet the requirements of a flood policy. Young v. Imperial Fire & Cas. Ins. Co., 2014 U.S. Dist. LEXIS 51863 (April 15, 2014).
On August 29, 2012, plaintiffs' property sustained flood damage due to Hurricane Isaac. After Imperial's adjustor inspected the property, advance payments were made for $5000 under the building coverage and $5000 under the contents coverage.
On October 26, 2012, the plaintiffs' adjustor submitted a proof of loss for building damages, stating the amount of loss was $175,100, which was the policy limit minus the deductible. The insured wife signed the proof of loss. The actual case value, full cost of replacement or repair, and applicable depreciation were listed "undetermined."
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Engineers Propose 'River' Alternative to Border Wall
May 10, 2017 —
Frank K. Johnson - Engineering News-RecordOf all the ideas that have been suggested for the border wall, there is one that may help to bring together Mexico and the U.S., instead of pitting the countries against each another over illegal immigration. I’m part of a group of civil engineers in Massachusetts that has conceived of a program that is based on a recently acquired patent for an advanced concrete construction technology for building large-scale, monolithic concrete structures capable of physically partitioning two countries while serving to promote economic development. This fast and thrifty construction method and our proposed program prove that, as far as creativity is concerned, civil engineering isn’t dead yet.
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Frank K. Johnson, ENRENR may be contacted at
ENR.com@bnpmedia.com
One to Watch: Case Takes on Economic Loss Rule and Professional Duties
June 28, 2011 —
Douglas Reiser, Builders Council BlogAccording to the Supreme Court of Washington Blog, The Supreme Court heard oral argument in Jackowski v. Hawkins Poe on Thursday, June 16, 2011. The court’s synopsis of the case can be found on the Washington State Court website.
In short, two home purchasers brought a lawsuit against the home’s sellers, the sellers’ agent and the purchasers’ own agent, alleging claims of fraud, fraudulent concealment, negligent misrepresentation and breach of common law and statutory duties. The trial court dismissed the buyers’ claims on the basis of the economic loss doctrine and Division II reversed, opining that the ELR does not apply to professional duties. The Supreme Court will now look at applying the Independent Duty Doctrine established last year, and whether professional duties (those of the real estate agents) should be reviewed under a different light.
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Reprinted courtesy of Douglas Reiser of Reiser Legal LLC. Mr. Reiser can be contacted at info@reiserlegal.com
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U.S. Supreme Court Halts Enforcement of the OSHA Vaccine or Test Mandate
January 17, 2022 —
Stephen E. Irving, Kevin J. O’Connor, Aaron C. Schlesinger & Lauren Rayner Davis - Peckar & AbramsonThe United States Supreme Court today stayed enforcement of the OSHA emergency temporary standard (ETS) requiring employers with 100 or more employees to require employees either be “fully vaccinated” against COVID-19 or submit to weekly testing. The ruling immediately stops enforcement of the rule which had gone into effect on January 10, 2022.
Today’s order raises significant doubt as to whether the ETS requirement will ever take effect in its current form. A 6 to 3 majority of the Supreme Court justices issued the profound statement that the parties opposed to the rule “are likely to succeed on the merits of their claim that the Secretary lacked authority to impose the mandate.” The Court went on to state that the OSH Act does not authorize the agency to “set . . . broad public health measures,” such as the found in the current emergency standard.
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Stephen E. Irving, Peckar & Abramson,
Kevin J. O’Connor, Peckar & Abramson,
Aaron C. Schlesinger, Peckar & Abramson and
Lauren Rayner Davis, Peckar & Abramson
Mr. Irving may be contacted at sirving@pecklaw.com
Mr. O'Connor may be contacted at koconnor@pecklaw.com
Mr. Schlesinger may be contacted at aschlesinger@pecklaw.com
Ms. Davis may be contacted at ldavis@pecklaw.com
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