Practical Advice: Indemnification and Additional Insured Issues Revisited
September 08, 2016 —
John P. Ahlers – Ahlers & Cressman PLLC Construction BlogLawyers love writing about indemnification. There are seventeen blog articles on our website alone that deal with the subject. Before you click out of this email in disgust that we are rehashing a stale topic, this post contains some practical advice for contractors and subcontractors dealing with the perplexing issues of indemnification and additional insured provisions.
The concept of indemnity is based on a contractual agreement made between two parties, in which one party agrees to pay for the potential losses or damages caused by the other party. To indemnify someone means to protect that person or entity by promising to pay the cost of possible future damage, loss, or injury. When signing a contract, you should identify the indemnity obligations that could cost your business money. Finding the words “hold harmless” or “indemnify” in a proposed contract is not enough. The terms “hold harmless,” “save harmless,” or “indemnify” are a big part of the indemnification obligation. Although insurance requirements (“additional insured” clauses) accomplish virtually the same thing as very broad, unfair, or unlimited indemnity terms do, they result in an “end run” around the effort to limit the indemnification obligation.
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John P. Ahlers, Ahlers & Cressman PLLCMr. Ahlers may be contacted at
jahlers@ac-lawyers.com
Mississippi River Spends 40 Days At Flood Stage, Mayors Push for Infrastructure Funding
June 18, 2019 —
Jeff Yoders - Engineering News-RecordAs record flooding continues across the Midwest, the region’s mayors and the Army Corps of Engineers are looking for solutions to mitigate future floods.
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Jeff Yoders, ENRMr. Yoders may be contacted at
yodersj@enr.com
The Great Skyscraper Comeback Skips North America
February 05, 2015 —
Patrick Clark – BloombergTall buildings are back. Developers around the globe completed a record 97 buildings of at least 200 meters (656 feet) in height in 2014, according to a new report from the Council on Tall Buildings and Urban Habitat, as size-obsessed builders got back on a growth track after a two-year skyscraper dip.
It’s not hard to explain the pattern. A typical skyscraper takes two to four years to finish, says report co-author Daniel Safarik. Work back from the year of completion, and the global financial crisis looks like an easy explanation for the drop-off in tall buildings. If you thought it was hard to get a home loan in 2009, imagine asking bankers to finance a gravity-and-wind-defying symbol of luxury, industry, and capitalist will. Especially, as Bloomberg Businessweek’s Bryant Urstadt pointed out, since supertall buildings are notorious for being hard to fill with tenants. (It’s worth noting that “tall” isn’t a technical term, though “supertall,” which is used to describe buildings more than 300 meters tall, is. And construction schedules vary. The Ryugyong Hotel in Pyongyang, North Korea, planned for 330 meters, has been under construction for 28 years, according to a CTBUH report last year.)
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Patrick Clark, Bloomberg
A Survey of Trends and Perspectives in Construction Defect Decisions
November 27, 2013 —
CDJ STAFFThomas F. Segella, Ellen H. Greiper, and Matthew S. Lerner, partners at the firm Goldberg Segalia, together with Suzin L. Raso, an associate of the firm, have prepared a wide-ranging survey of cases, in their commentary, “Emerging Trends and Changing Perspectives on Construction Defect Claims.
The authors examine 11 coverage cases, representing decisions from eight states, and 15 cases of litigation, here covering 11 states. In each case, they give a one-sentence summary, a further discussion of the case, and they end with a practice note.
They start with Alabama, noting that the court found that “faulty workmanship is not an occurrence,” looking at the recent case of Owners Insurance Co. v. Jim Carr Homebuilders, LLC. Here they note that under Alabama law, “there was no damage to personal property or property of others; therefore, there was no ‘occurrence.’” They also note that “the policy involved did not contain a ‘subcontractor exception.’”
In Georgia, they noted, the courts concluded that “damage to insured’s completed work is an ‘occurrence.’” Here they cite a recent decision of the Georgia Supreme Court, noting that the court looked at cases from Connecticut, South Carolina, Illinois, Texas, as well as the Fourth and Tenth Circuits.
Under litigation, they look at such aspects of construction defect litigation such as the application of the economic loss doctrine in Kansas and Florida, and how the courts view arbitration agreements in states including New Jersey, Louisiana, and Colorado.
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Dispute Resolution in Your Construction Contract
February 07, 2022 —
David Adelstein - Florida Construction Legal UpdatesThere are important provisions in your construction contract that are geared towards dispute resolution. These are provisions you want to understand – not when a dispute arises, but BEFORE the dispute ever occurs.
Many times, dispute resolution provisions are cast aside or not appreciated until a dispute rears its ugly head. This can put you in a reactive stance versus a proactive stance, which you want to be in, because you want to proactively make sure all rights are preserved relative to the dispute. You want to proactively make strategic decisions based on the dispute resolution provisions and process in your contract.
Before your contract even gets signed, you may want to negotiate aspects of the dispute resolution process for many reasons. The process could be one-sided. It could be onerous. It could be complex. It could be unfavorable or costly with respect to how you want to progress a dispute. If you appreciate the dispute resolution process from the get-go, you will be in a more effective position to navigate the process while ensuring you are preserving your rights moving forward.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
A New Study on Implementing Digital Visual Management
July 31, 2024 —
Aarni Heiskanen - AEC BusinessA new paper, “Implementing Digital Visual Management: A Case Study on Challenges and Barriers,” discusses situational management in complex infrastructure projects. It’s worth reading for anyone interested in improving project management with digital tools.
A complex infrastructure project
The authors interviewed nine project management professionals who worked for the client on constructing the western part of the Metro in Helsinki and Espoo, Finland. The project lasted eight years and had a budget of 1,200 million euros.
The project used a Digital Visual Management (DVM) tool, and the paper discusses the challenges and barriers faced during the tool’s implementation. At the time of the study, the system was used to manage the final documentation and testing status.
KPI management
The project management team was involved in developing a system for combining collected data into a central dashboard and using it to manage the whole project.
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi
Avoiding Lender Liability for Credit-Related Actions in California
October 27, 2016 —
Anthony J. Carucci – Snell & Wilmer Real Estate Litigation BlogAside from general statutory prohibitions on lender discrimination, there are certain circumstances under California law in which lenders may be held liable for credit-related actions, such as negotiating or denying credit. See generally 11 Cal. Real Est. § 35:3 (explaining that the business of lending money is subject to the Unruh Civil Rights Act, Cal. Civ. Code § 51 et seq., the Fair Employment and Housing Act, Cal. Gov. Code § 12900 et seq., the Federal Fair Housing Act, 42 U.S.C. § 3601 et seq., and the Equal Credit Opportunity Act, 15 U.S.C. § 1691, et seq.). Specifically, lenders have been held liable for credit-related actions where, among other things, the lender (1) breached a loan commitment; (2) committed fraud; or (3) breached a fiduciary duty owed to the borrower.
The Lender-Borrower Relationship
As a general rule, a lender does not owe a duty of care to a borrower when the lender’s involvement in a transaction does not exceed the scope of its conventional role as a lender of money. Oaks Management Corp. v. Superior Court (2006) 145 Cal.App.4th 453, 466 (“[I]t is established that absent special circumstances . . . a loan transaction is at arms-length and there is no fiduciary relationship between the borrower and lender.”); Nymark v. Heart Fed. Savings & Loan Assn. (1991) 231 Cal.App.3d 1089, 1096 (holding lender owed no duty of care to a borrower in preparing an appraisal of the real property that was security for the loan when the purpose of the appraisal is to protect the lender by satisfying it that the collateral provided adequate security for the loan, and noting that “as a general rule, a financial institution owes no duty of care to a borrower when the institution’s involvement in the loan transaction does not exceed the scope of its conventional role as a mere lender of money”).
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Anthony J. Carucci, Snell & WilmerMr. Carucci may be contacted at
acarucci@swlaw.com
HP Unveils Cheaper, 3-D Printing System to Spur Sales
November 05, 2014 —
Jack Clark - BloombergHewlett-Packard Co. (HPQ) unveiled a new 3-D-capable computer and speedier 3-D printer technology as it prepares to spin off its personal-computer and printer businesses into a stand-alone company.
The company today introduced Sprout, an $1,899 computer that lets people scan and manipulate 2-D and 3-D objects. It will be available early next month online and in some U.S. stores. Hewlett-Packard also said new 3-D printer technology will make the process cheaper and faster than competitors.
The Palo Alto, California-based company is betting that 3-D technology will help revitalize sales and spur growth in the printer industry. More than 2.3 million 3-D printers will ship in 2018, up from about 108000 this year, according to researcher Gartner Inc. Earlier this month, Hewlett-Packard said it would split into two companies by late 2015, with one focused on corporate hardware services and the other -- dubbed HP Inc. -- on PCs and printers.
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Jack Clark, BloombergMr. Clark may be contacted at
jclark185@bloomberg.net