How Are You Dealing with Material Delays / Supply Chain Impacts?
June 07, 2021 —
David Adelstein - Florida Construction Legal UpdatesIn a prior article I discussed a material escalation provision in your construction contract to account for the volatility of the material price market. While including such a provision may not have been much of a forethought before, it is now!
What about concerns with the actual supply chain that impacts the availability of and the lead time of materials? How are you addressing this concern in your construction contract?
The pandemic has raised awareness to this issue as certain material availability has been impacted by the pandemic. As a result, parties in construction have tried to forecast those materials where delivery issues may occur including those materials with longer than expected lead times. But equally important is how this issue is being addressed in your construction contract including how you want to negotiate this risk in future construction contracts.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
DC Metro Extension’s Precast Supplier Banned from Federal Contracts
November 16, 2020 —
Jim Parsons - Engineering News-RecordStowe, Pa.-based Universal Concrete Products, which supplied hundreds of defective precast panels for the $2.7 billion Silver Line light rail extension in northern Virginia, has received a three-year ban on participating in federally financed transportation projects. Imposed by the Federal Transit Administration, the ban makes Universal ineligible for contracts, grants, loans or other financial assistance from agency of the federal government until the end of 2023.
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Jim Parsons, Engineering News-Record
ENR may be contacted at ENR.com@bnpmedia.com
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Nomos LLP Partner Garret Murai Recognized by Super Lawyers
August 03, 2022 —
Garret Murai - California Construction Law BlogNomos LLP Partner Garret Murai has been recognized as a 2022 Northern California Super Lawyers honoree in the area of Construction Litigation. This is the ninth consecutive year that he has been recognized by Super Lawyers.
Super Lawyers, an annual listing of outstanding lawyers from more than 70 practice areas who have attained a high degree of peer recognition and personal achievement, is limited to no more than five percent (5%) of lawyers in a state who are selected through a multiphase process that includes a statewide survey of lawyers, independent research evaluation and peer reviews by practice area.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Wichita Condo Association Files Construction Defect Lawsuit
November 20, 2013 —
CDJ STAFFKey Construction, the contractor of a downtown Wichita, Kansas mixed-use development has been sued by the condominium association of the development’s condo building. The WaterWalk Place Owners Association claims that the balconies on the building do not drain properly. Additionally, the suit claims that the building has water intrusion problems due to inappropriate or missing sealant at windows, doors, and expansion joints.
Key Construction says that they are dealing with the problems and describe the suit as due to “a deadline pushing on” the residents. Wyatt Hock, the attorney for the residents, says that he hopes for a settlement.
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ASCE Joins White House Summit on Building Climate-Resilient Communities
October 09, 2023 —
The American Society of Civil EngineersRESTON, Va. – The White House Climate Policy Office hosted the Summit on Building Climate Resilient Communities today and unveiled its
National Climate Resilience Framework for communities to build more resiliently as they face increasingly severe weather events. The framework features comprehensive recommendations and opportunities for action, including partnerships between federal agencies and leading standards development organizations such as the
American Society of Civil Engineers (ASCE), to improve the resilience of buildings and other infrastructure. ASCE president Maria Lehman, P.E., was in attendance for the Summit.
ASCE's most widely adopted standard,
ASCE 7-22, is the primary reference of structural design requirements in all U.S. building codes and is updated every six years to reflect the latest data and trends presented by an ever-changing climate. Its most recent update, published in 2022, includes updates to environmental hazards used for building design including new wind speeds along the hurricane coastline, a completely new chapter for tornado loads, and the most substantial update to its chapter on flood loads since the inception of ASCE 7-22 – calling for structures to be built to withstand 500-year floods rather than the previous standard of 100-year flood mitigation.
Although modern codes and standards, such as ASCE 7-22, can mitigate climate hazards, many communities throughout the U.S. have not yet adopted these practices. The new White House framework calls for ensuring federal funding requires climate-resilient infrastructure investments by encouraging government at all levels to adopt consensus-based engineering standards, which would go a long way towards addressing vulnerabilities posed by future climate impacts.
ASCE, in conjunction with industry leaders represented at the Summit, supports federal efforts to improve climate data, enforce the most stringent codes and standards, and provide technical assistance to building and infrastructure stakeholders. To learn more about environmental hazard mitigation resources, follow
ASCE's Pathways to Resilient Communities Toolkit, a plain-language guide for federal, state, and local leaders as they seek out standards, best practices, data, and strategies that can be implemented to safeguard communities across the country from increasingly severe weather events.
ABOUT THE AMERICAN SOCIETY OF CIVIL ENGINEERS
Founded in 1852, the American Society of Civil Engineers represents more than 150,000 civil engineers worldwide and is America's oldest national engineering society. ASCE works to raise awareness of the need to maintain and modernize the nation's infrastructure using sustainable and resilient practices, advocates for increasing and optimizing investment in infrastructure, and improve engineering knowledge and competency. For more information, visit www.asce.org or www.infrastructurereportcard.org and follow us on Twitter, @ASCETweets and @ASCEGovRel.
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Production of Pre-Denial Claim File Compelled
November 30, 2017 —
Tred R. Eyerly - Insurance Law HawaiiThe appellate court found that the claims file that existed before the insurer's denial was discoverable. Cascade Builders Corp. v. Rugar, 2017 N.Y. App. Div. LEXIS 7357 (N.Y. App. Div.. Oct. 19, 2017).
Cascade Builders was the general contractor for the homeowners. In May 2011, Cascade subcontracted with John Rugar to perform certain exterior power washing on the residence. The contract between Cascade and Rugar required Rugar to indemnify and hold Cascade harmless for any work performed by Rugar and to obtain coverage naming Cascade as an additional insured. Rugar procured the required CGL policy from Utica First Insurance Company.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Liquidated Damages: Too High and It’s a Penalty. Too Low and You’re Out of Luck.
November 21, 2022 —
Christian Fernandez - Snell & Wilmer Real Estate Litigation BlogLiquidated damages provisions in commercial and residential real estate contracts play a vital role when a transaction goes south, and should be given careful consideration when negotiating a real estate contract. Liquidated damages may be referred to in a variety of ways, such as “earnest money,” a “good-faith deposit,” or a “non-refundable deposit,” but each typically denote a negotiated amount of money that a seller is entitled to retain should a buyer breach a purchase and sale agreement. The purpose of liquidated damages is to provide the parties with certainty when actual damages arising from a breach of contract may be difficult to calculate. Accordingly, liquidated damages provisions alleviate the need for potentially expensive litigation associated with proving damages.
While parties are free to negotiate the amount of liquidated damages, the amount must approximate the loss anticipated at the time of contracting, or the loss that actually occurs as a result of a breach. Arizona courts have held that where the amount of liquidated damages is unreasonably large when compared to the anticipated loss or actual loss, the liquidated damages provision is unenforceable as a penalty. A breaching party faced with high liquidated damages will often seek to invalidate the provision as a penalty. If a court agrees, the non-breaching party may still recover damages, but must go through the process of proving such damages. Therefore, when negotiating a real estate contract, consideration should be given as to whether a liquidated damages amount is arbitrarily high when compared to an anticipated loss in the event of a breach.
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Christian Fernandez, Snell & WilmerMr. Fernandez may be contacted at
cfernandez@swlaw.com
A WARNing for Companies
March 13, 2023 —
Abby M. Warren & Sapna Jain - Construction ExecutiveSince last fall, news of layoffs in the technology sector have set off a ripple effect in a variety of other industries. Companies engaging in layoffs must be thoughtful and prepared when it comes to taking such action. While the construction industry generally has one of the highest layoff rates, and human resource personnel may be very knowledgeable with regard to related risks and exposure, there are a number of additional issues to consider when there are mass layoffs or closings. Further, expensive litigation awaits if companies are not meticulous in complying with state and federal laws regarding such large scale reductions in force.
Under federal law, the primary legislation governing mass layoffs and closing is the Worker Adjustment and Retraining Notification (“WARN”) Act which generally covers employers with 100 or more employees. This law was enacted to protect employees by requiring companies to provide 60 days’ notice to employees in advance of certain plant closings and mass layoffs. In addition, many states, such as California, Connecticut and New York, have enacted similar state laws, referred to as “mini-WARN” laws, which impose additional requirements, including increasing the length of the required advance notice and broadening the scope of employers to which the law applies.
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Abby M. Warren and Sapna Jain, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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