Surety Bond Now a Valid Performance Guarantee for NC Developers (guest post)
June 09, 2016 —
Melissa Dewey Brumback – Construction Law in North CarolinaWelcome summer days! Today we have a guest post by Todd Bryant, president and founder of
Bryant Surety Bonds. He is a surety bonds expert with years of experience in helping contractors get bonded and start their business. While design professionals generally don’t have to deal with performance bonds directly, they are often at the front lines of advising owners as to various Requests for Proposals submitted by hopeful contractors. In that spirit, be sure to read how the new law changes security requirements. Take it away, Todd!
Last year wrapped up with some good news for North Carolina subdivision developers:
House Bill 721 confirmed that construction bonds are, in fact, a viable form of performance guarantee. Previous legislation was ambiguous on this point, but the new bill– which took effect last October– sought to clear up the confusion. Although the new rules have been in effect for eight months, there’s been scant coverage of the changes, and what they mean for developers.
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Melissa Dewey Brumback, Ragsdale Liggett PLLCMs. Brumback may be contacted at
mbrumback@rl-law.com
Failure to Consider Safety Element in Design Does Not Preclude Public Entity’s Discretionary Authority Under Design Immunity Defense
May 16, 2018 —
Garret Murai - California Construction Law BlogIn Rodriguez v. Department of Transportation, Case No. F074027 (March 27, 2018), the Court of Appeals for the Fifth District considered the following mind-twister: Can you knowingly approve something (which does not include something else) if you never considered the absence of that “something else?” Think about that for a moment . . . or, better yet, just read on.
Rodriguez v. Department of Transportation
In 2013, a pickup truck traveling westbound on State Route 152 toward Los Banos, California, ran off the road injuring Erik Rodriguez and the driver and killing another passenger. Rodriguez sued the California Department of Transportation (Caltrans) on the ground that the accident was caused by a dangerous condition on public property.
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Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
Quick Note: Unenforceable Language in Arbitration Provision
November 06, 2018 —
David Adelstein - Florida Construction Legal UpdatesAlthough arbitration is a dispute resolution provision provided for in a contract, the scope of judicial review of an arbitrator’s award is still governed by law. There are limited circumstances in which an arbitrator’s award can be challenged under the law. One of those circumstances is not because a party believes that an arbitrator applied the incorrect law.
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David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
On Rehearing, Fifth Circuit Finds Contractual-Liability Exclusion Does Not Apply
November 26, 2014 —
Tred R. Eyerly – Insurance Law HawaiiOn rehearing, the Fifth Circuit determined that the contractual-liability exclusion did not apply to bar coverage for damage caused by the insured contractor to the home it constructed. Crownover v. Mid-Continent Cas. Co., 2014 U.S. App. LEXIS 20727 (5th Cir. Oct. 29, 2014).The court withdrew its prior opinion, summarized here.
Arrow Development, Inc. contracted with the Crownovers to construct a home. The contract had a warranty-to-repair clause, which, in paragraph 23.1, provided that Arrow would "promptly correct work . . . failing to confirm to the requirements of the Contract Documents." After the Crownovers moved in, cracks began to appear in the walls and foundation of the home. Additional problems with the heating, ventilation, and air conditioning ("HVAC") caused leaking in the exterior lines and air ducts inside the home. To compensate for defects in the HVAC system, the system's mechanical units ran almost continuously in order to heat or cool the home. Because they were overburdened, the mechanical units had to be replaced. The Crownovers paid several hundred thousand dollars to fix the problems with the foundation and HVAC system.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
And the Cyber-Beat Goes On. Yet Another Cyber Regulatory Focus for Insurers
April 15, 2015 —
Robert Ansehl – White and Williams LLPRegulators and government agencies are sharpening their focus on the issues surrounding cyber risk. The number of pronouncements are too numerous to recite in a single client alert but the overarching message is clear – be prepared or be subject to attack. Attacks not only will come from hackers, customers, consumers and, ultimately the plaintiffs’ bar, but the regulators themselves. Vulnerability lies not only with cyber attacked companies but increasingly with the companies’ officers and directors who fail to adequately safeguard data.
On March 26, 2015, the New York Department of Financial Services (DFS) announced that it would be expanding its information technology examination procedures to focus on cyber risk. This effort was a follow-up to its February 8, 2015 announcement of new cyber assessments (See "Not Just Another Client Alert about Cyber-Risk and Effective Cybersecurity Insurance Regulatory Guidance," March 24, 2015). Not to be outdone, the National Association of Insurance Commissioners (NAIC) proposed a comprehensive and mandatory filing for property casualty insurers that would give regulators a full range of information and data on cyber risk exposures issued by carriers in the insurance market. This proposal comes on the heels of President Obama’s proposal, just two months ago, to create the Cyber Threat Intelligent Integration Center (CTIIC), a new federal agency designed to fight cyber attacks, provide collaboration and encourage information sharing between the Federal government and private industry.
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Robert Ansehl, White and Williams LLPMr. Ansehl may be contacted at
ansehlr@whiteandwilliams.com
How Drones are Speeding Up Construction
July 26, 2017 —
Aarni Heiskanen - AEC BusinessDrones, or unmanned aerial vehicles (UAVs), are being used in many industries, e.g. agriculture, construction, mining, oil & gas, mapping, and surveying. In construction, drones have proven to be quite disruptive, offering huge productivity increases.
Gartner’s famous Hype Cycle for Emerging Technologies, 2016, positioned drones as just entering the Peak of Inflated Expectations. Gartner claims that, “Smart machine technologies will be the most disruptive class of technologies over the next 10 years due to radical computational power, near-endless amounts of data, and unprecedented advances in deep neural networks.”
Commercial UAVs are one of the smart machine technologies in question, together with smart robots, autonomous vehicles, cognitive expert advisors, and others.
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
info@aepartners.fi
Why Clinton and Trump’s Infrastructure Plans Leave Us Wanting More
September 15, 2016 —
Garret Murai – California Construction Law BlogIt’s hard not to pick up your newspaper (or, more likely, your smart phone) and not get caught up reading about Donald Trump’s latest “did he really say that” statement or about the “less than personal” personal email account of Hillary Clinton.
But which candidate is better suited to bridge America’s nearly $1.5 trillion infrastructure gap? Clinton the veteran politician? Or Trump the veteran developer?
Despite being on opposite sides on nearly every issue from abortion, to taxes, to . . . well, maybe immigration . . . both Clinton and Trump agree that the U.S. needs to invest more in its aging infrastructure. But that’s a little like saying we should take better care of ourselves and exercise more. Of course we should. The question is how.
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Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
Ohio “property damage” caused by an “occurrence.”
May 18, 2011 —
CDCoverage.comIn JTO, Inc. v. State Automobile Mut. Ins. Co., No. 2010-L-062 (Ohio Ct. App. March 25, 2011), general contractor JTO was sued by hotel project owner Marriott for breach of contract and warranties seeking damages for the repair of construction defects resulting in moisture penetration property damage to interior components. JTO filed a third party complaint against subcontractor Farizel and also tendered its defense as an additional insured under Farizel’s State Auto CGL policy.
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Reprinted courtesy of CDCoverage.com
Census Bureau, HUD Show Declines in Residential Construction
May 17, 2011 – CDJ Staff
The U.S. Census Bureau and the Department of Housing and Urban Development released their summary of residential construction for April 2011 on May 17.
Building permits for privately owned housing units were down 4% from last month and 12% from last year. Similarly, privately-owned housing starts were down 10% from March and 23% below the previous year.
For further details, read the Census Bureau/HUD report
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