Housing Starts in U.S. Climb to an Almost Eight-Year High
August 19, 2015 —
Sho Chandra – BloombergNew-home construction in the U.S. climbed in July to the highest level in almost eight years, indicating the industry will pick up in the second half of the year.
Residential starts rose 0.2 percent to a 1.21 million annualized rate, the most since October 2007, from a 1.2 million pace in the prior month that was higher than previously estimated, a Commerce Department report showed Tuesday in Washington. The median forecast of 77 economists surveyed by Bloomberg was 1.18 million. A drop in permits, a proxy for future construction, signals additional gains will take time to develop.
Rising employment and historically low mortgage rates are enticing buyers, while increasing prices induced by a lack of homes on the market is an incentive to start new developments. Data showing builder sentiment at a decade high in August underscores the view that the housing rebound will stay on track even as the Federal Reserve is poised to boost borrowing costs.
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Sho Chandra, Bloomberg
Contractor Changes Contract After Signed, Then Sues Older Woman for Breaking It
September 03, 2015 —
Beverley BevenFlorez-CDJ STAFFChannel 13 Who TV reported, in Winterset, Iowa, Mary Gregory allegedly signed an estimate for hail damage repair to her home, and was later told by the contractor that it was a contract. When a crew showed up to her home to perform the work, she turned them away. Then, Gregory received a letter from an attorney demanding eight thousand dollars for breach of contract.
It turns out that the contractor altered the estimate Gregory signed and submitted it to the insurance company. According to Who TV, the altered estimate “contained work that Gregory says she didn’t authorize and a price tag of $32,134.” Jim Nelle, the contractor, admitted that he added to the contract after it was signed. He claims he was only trying to help her.
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A Subcontractor’s Perspective On California’s Recent Changes to Indemnity Provisions
September 10, 2014 —
William M. Kaufman – Construction Lawyers BlogGreat news for California subcontractors and suppliers! “Type I” Indemnity provisions in California construction contracts entered into on or after January 1, 2013 are not enforceable. This change in the law prevents owners and general contractors from shifting enormous exposure and costs of litigation downstream to the little guy, namely subcontractors and suppliers. In October 2011, Governor Brown signed Senate Bill 474 into law, which represented a major legislative victory for subcontractors and suppliers. The new law also imposed exacting limitations on contractors that attempt to require their subcontractors and suppliers to cover their defense fees and costs in litigation.
New Law Prevents Indemnity or Cost of Defense for Active Negligence
Under a "Type I" indemnity provision, the downstream subcontractor agrees to indemnify the owner or contractor, even against liability caused by the upstream owner/contractor's own "active negligence." A “Type I” indemnity provision in general contractors’ subcontracts often require their subcontractors to defend and indemnify them from liability regardless of whether the general contractor is partially at fault. Subcontractors and suppliers historically have complained that they have little bargaining power when entering into these contracts and these types of provisions can result in ruinous liability for those in the construction industry that are most vulnerable-subcontractors and suppliers. Before this change, the law allowed a general contractor who is 99 percent at fault for an injury or damage to shift the entire risk to a subcontractor who is only one percent at-fault or a subcontractor who is not at fault at all, but tangentially involved in the claim. Subcontractors and suppliers joined forces and lobbied the legislature. The legislature and Governor Brown agreed. Under the new law, such "Type I" indemnity provisions will no longer be enforceable. SB 474 adds Civil Code section 2782.05 that precludes indemnity where the party to be indemnified is "actively negligent" and makes void and unenforceable these types of clauses.
Reprinted courtesy of
William M. Kaufman, Lockhart Park LP
Mr. Kaufman may be contacted at wkaufman@lockhartpark.com, and you may visit the firm's website at www.lockhartpark.com
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Designing a Fair Standard of Care in Design Agreements
February 21, 2022 —
ConsensusDocsOne of the concerns faced by construction companies is now design liability. Design liability concerns are not limited to just design-build projects. It is a hot-button issue for builders because the line between an architect’s responsibility to create sufficient design documents and a builder’s responsibility to execute the means, methods, and techniques is increasingly blurry. Problems arise when owners, design professionals, and builders point fingers, rather than truly collaborate, and communicate. While construction technologies used to assemble complex systems within buildings are increasingly sophisticated, such sophistication is unfortunately not matched with increased information sharing and effective communication.
Another reason for growing design liability is unclear and inadequate specifications. Too often projects rush as well as shortchange design budgets. And some projects use hybrid prescriptive and performance specifications. This hybrid approach often confuses and obfuscates rather than clarifies design requirements.
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ConsensusDocs
Providing Your Insurer Prompt Notice
May 20, 2024 —
David Adelstein - Florida Construction Legal UpdatesSometimes, when it comes to insurance, you may hear the argument that you breached your insurance policy by failing to provide your insurer with prompt notice as the insurance policy requires. Well, this is not such an absolute issue. With that said, you should absolutely provide your insurer with prompt notice of a claim or loss. No legitimate reason not to. But, if you don’t, it is not an absolute get out of jail free card for your insurer, but it does give them a good argument, which you don’t really want to deal with.
In Gulfpoint Construction Co., Inc. v. Westfield Ins. Co., 2024 WL 1759228 (11th Cir. 2024), an insured appealed a trial court’s ruling that found it did not provide prompt notice to its property insurer as the policy required. In this case, notice was provided two years after a loss from a hurricane. The insurer denied coverage and, in doing so, relied on the insured’s failure to provide prompt notice. Although the trial court agreed, the appellate court found this was a genuine issue of material fact.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Several Lewis Brisbois Partners Recognized by Sacramento Magazine in List of Top Lawyers
October 03, 2022 —
Lewis BrisboisSacramento, Calif. (September 2, 2022) - Sacramento Magazine has recognized several partners from Lewis Brisbois' Sacramento office on its List of Top Lawyers of 2022. The list is developed through a peer nomination process, with nominees then evaluated on the basis of survey results, the legitimacy of their licenses, and their standing with the State Bar of California. Qualifying attorneys who then receive the highest number of votes from their peers are included in the list, which is organized by area of practice.
Congratulations to:
- Managing Partner John S. Poulos, recognized for Construction Law and Construction Litigation.
- Partner Paul R. Baleria, recognized for Medical Malpractice.
- Partner Scott E. Bartel, recognized for Securities & Corporate Finance and Securities Litigation.
- Partner Greg L. Johnson, recognized for Banking & Financial Services.
- Partner Eric J. Stiff, recognized for Mergers & Acquisitions.
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Lewis Brisbois
California Contractor License Bonds to Increase in 2016
December 02, 2015 —
Garret Murai – California Construction Law BlogThe post, which originally appeared on
The Surety Bond Insider, was written by Jon Gottschalk, a member of the SuretyBonds.com Educational Outreach team. on
SuretyBonds.com helps contractors fulfill their bonding requirements.
The Contractors State License Board (CSLB) is requiring all California contractors to purchase a $15,000 bond by January 1, 2016— a $2,500 increase from the $12,500 amount that was previously required. The additional $2,500 was previously accounted for by an additional requirement to obtain a contractor’s license. Those applying for the license had to post the $12,500 surety bond and proof of financial solvency in the amount of $2,500. Essentially, contractors were required to show that their current assets were greater than their liabilities by no less than $2,500. By increasing the bond amount to include that additional $2,500, the CSLB has removed the burden of proving financial solvency from those who wish to obtain their license.
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Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
How to Protect the High-Tech Home
March 19, 2015 —
Beverley BevenFlorez-CDJ STAFFRemodeling explained how the new high-tech home gadgets can be vulnerable to “digital or actual break-ins” without the right security in place. Though it isn’t clear how often home hacking is occurring.
"I haven't heard of any major hackers breaking into many houses at one time, and the likelihood that someone will try to break into your house by unlocking your door instead of smashing the window is probably low," Tim McInerney, director of product marketing for Savant told Remodeling. "But as devices get more popular and clear winners start to emerge, you may see more and more of those kinds of attacks. When there's a million of one type of connected thermostat out there, that creates more chances for hackers to test the connections and catch someone off-guard."
Remodeling includes tips on making your home more secure, including changing the default device password, creating multiple networks, and consider hard-coding the hardware address.
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