Cambridge Massachusetts Building Expert Directory

Busting Major Alternative-Lending Myths

July 22, 2024 — Warren Miller - Construction Executive
Alternative capital is a broad term for financing provided by institutions or firms that typically fall outside of the purview of the larger, regulated institutions (i.e., not traditional banks). While these funding sources may not always be the first option for many businesses, alternative lending is a perfect option for many small and mid-sized capital-intensive companies, like construction companies, which often require fast access to capital that is incompatible with the stringent and laborious processes imposed by traditional banks. Construction companies should take a closer look at alternative financing, understand its benefits, and evaluate its usefulness for achieving their unique funding requirements. REALITY 1: ALTERNATIVE LENDING IS SAFE AND PROVEN Private lending has been around for a long time, and has become increasingly common since the 1990s, when major consolidation took place in the banking industry. As the large, consolidated banks set their sights on providing loans to large enterprises, they left a gap in the small and mid-size market that was filled by alternative lenders. By 2000, alternative lenders had overtaken traditional banks for the majority of corporate loans. Stricter regulation of banks following the Global Financial Crisis of 2007 intensified underwriting standards for bank loans and further diminished banks’ appetites for SMB lending. Reprinted courtesy of Warren Miller, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Deterioration Known To Insured Forecloses Collapse Coverage

January 28, 2019 — Tred R. Eyerly - Insurance Law Hawaii
The insurer properly denied coverage for collapse of a building when the insured knew from an expert’s examination that the walls of his house were deteriorating. Jaimes v. Liberty Ins. Corp., 2018 U. S. Dust. LEXIS 198224 (D. Colo. Nov. 21, 2018). The insured discovered a crack in the wall of his home. He hired Anchor Engineering to inspect. Anchor found a large bulge in the south wall. Several problems with deterioration were noted in the basement. The structure of the house was unstable and dangerous. The insured filed a claim with his homeowners insurer, Liberty. The claim was denied because damage to the wall was the result of deterioration. The south wall of the house later collapsed. The insured submitted a second claim. Liberty again denied the claim because the collapse was the result of deterioration of the wall. The insured sued. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Boyfriend Pleads Guilty in Las Vegas Construction Defect Scam Suicide

November 07, 2012 — CDJ STAFF
One of the odder twists of the Las Vegas construction defect scandal was the charge that Nancy Quon’s boyfriend helped her in an initial suicide attempt. Quon, implicated by not charged in the case of taking control of homeowner boards in order to profit from construction defect settlements. William Webb was alleged to have bought the drug GBH in order to allow Quon, his girlfriend, to commit suicide. Ms. Quon later overdosed on a combination of alcohol and prescription drugs. In addition to pleading guilty to the drug charges, Webb also made a plea bargain with prosecutors in which he did not admit guilt in an insurance fraud charge, but acknowledged that prosecutors would likely be successful at obtaining a conviction. Webb will be sentenced February 7 and is expected to receive a sentence of six years imprisonment. Read the court decision
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Delay Leads to Problems with Construction Defects

November 27, 2013 — CDJ STAFF
The Bardwells bought a new home in the Philadelphia area in 2000. Now, thirteen years later they’ve learned that their house has been slowly rotting away due to moisture trapped beneath the stucco. And they’re not alone. The O’Days bought a home for about $1 million, and it now needs about $200,000 in repairs. All the stucco has been removed and their home is being rebuilt. Monica Bardwell said that “everything was rotted,” and “there was not a piece of good wood to be salvaged.” Other area homeowners are finding similar problems. Wendy Meyer had her home inspected by Kevin Thompson. Mr. Thompson said, “I shouldn’t be able to take a piece of plywood like that and crush it in my hands completely disintegrated.” Mr. Thompson described it as due to “faulty construction,” which he estimated accounted for such damage “95 percent of the time.” The Pennsylvania Builders Association says that diligent homeowners can head off problems with maintenance. “Make sure water isn’t continually on the outside of the stucco,” said Brent Sailhamer of the PBA. “Make sure there are no large cracks where water can seep behind the stucco.” For those who bought their homes as far back as the Bardwells, it’s already too late to sue anyone. Pennsylvania construction defect law allows 12 years for lawsuits. Read the court decision
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Sureties do not Issue Bonds Risk-Free to the Bond-Principal

August 30, 2017 — David Adelstein - Florida Construction Legal Updates
If your construction company is bonded, then you have signed a General Agreement of Indemnity with your surety / bonding company. Stated another way, if a surety issued an obligee on behalf of your construction company, as the bond-principal, a payment or performance bond, then you have signed a General Agreement of Indemnity with your surety. The General Agreement of Indemnity is NOT to be taken lightly. Without the General Agreement of Indemnity, the surety is NOT issuing the bonds you need to work on a certain project. A bond is not insurance and sureties do not issue the bonds under a risk-free premise. Oh no! If a surety has to pay-out claims under a bond, the surety will be looking to recoup that loss from the indemnitors that executed the General Agreement of Indemnity. Read the court decision
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Reprinted courtesy of David Adelstein, Florida Construction Legal Updates
Mr. Adelstein may be contacted at Dadelstein@gmail.com

OSHA/VOSH Roundup

August 19, 2015 — Christopher G. Hill – Construction Law Musings
In an unusual flurry of occupational safety related activity, the Virginia courts decided two cases in the last week relating to either the review of occupational safety regulations themselves or their enforcement. In Nat’l College of Business & Technology Inc. v. Davenport (.pdf), the Virginia Court of Appeals considered what constitutes a “serious” violation of the exposure to asbestos Virginia Occupational Safety & Health (VOSH) regulations. The facts found by the Salem, Virginia Circuit Court were that employees of the petitioner college were exposed to asbestos insulation when they were required to enter a boiler room to retrieve paper files. However, no evidence was presented regarding the length of time or level of exposure at the Circuit Court level. Despite the lack of evidence regarding the level or extent of exposure, the Circuit Court upheld the VOSH citation for exposure and the level of violation at a “serious” level with the attendant penalty. The Virginia Court of Appeals disagreed with the second finding. The appellate court determined that the lack of evidence regarding the level of exposure (whether length or extent) made the serious level violation an error. The Court stated that merely presenting evidence that asbestos is a carcinogen is not enough given the number of carcinogenic materials in existence and then remanded the case back to Circuit Court to reconsider the penalty level. Read the court decision
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Reprinted courtesy of Christopher G. Hill, Law Office of Christopher G. Hill, PC
Mr. Hill may be contacted at chrisghill@constructionlawva.com

Contractor Pleads Guilty to Disadvantaged-Business Fraud

November 17, 2016 — Tom Ichniowski – Engineering News-Record
In the latest development in a federal small disadvantaged-business case, a construction company executive has pleaded guilty to a charge of conspiring to commit wire fraud. Read the court decision
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Reprinted courtesy of Tom Ichniowski, Engineering News-Record
Mr. Ichniowski may be contacted at ichniowskit@enr.com

Georgia Supreme Court Limits Damages Under Georgia Computer Systems Protection Act

March 01, 2017 — Chadd Reynolds – Autry, Hanrahan, Hall & Cook, LLP
On January 27, 2017, the Supreme Court of Georgia issued a decision determining whether the Georgia Computer Systems Protection Act (“GCSPA”) provides for punitive damages. While not directly related to construction, the GCSPA can be a potential mechanism for asserting claims against former employees that use company information stored in computers. Read the court decision
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Reprinted courtesy of Chadd Reynolds, Autry, Hanrahan, Hall & Cook, LLP
Mr. Reynolds may be contacted at reynolds@ahclaw.com

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