Fairfield Connecticut Building Expert Directory

Court Says KBR Construction Costs in Iraq were Unreasonable

August 27, 2014 — Beverley BevenFlorez-CDJ STAFF
Mike Bosse of Bernstein Shur, analyzed a case involving Kellogg Brown and Root Services Inc. (KBR) and the U.S. Army for services that KBR provided during Operation Iraqi Freedom, according to JDSupra Business Advisor: “The court case involved KBR’s construction of dining facility services near Mosul, Iraq under a cost-plus fee arrangement. Under this contractual arrangement, all allowable costs were reimbursed by the government plus the contractor was paid an additional fee.” KBR first started on a prefabricated metal dining hall that would serve 2,500 people, but part way into building they were told to stop construction and to instead start on a new reinforced concrete building that would serve almost three times as many people. “After construction was finished, a defense contract auditing agency suspended some of the payments to KBR and instead of the $12.5 million it expected to receive, KBR was paid only $6.7 million,” reported JDSupra Business Advisor. “After trial, the court concluded KBR did not meet its burden to show the costs it incurred were reasonable under the circumstances.” Read the court decision
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Third Circuit Holds No Coverage for Faulty Workmanship Despite Insured’s Expectations

November 21, 2018 — Brian Margolies - TLSS Insurance Law Blog
In its recent decision in Frederick Mut. Ins. Co. v. Hall, 2018 U.S. App. LEXIS 31666 (3d Cir. Nov. 8, 2018), the United States Court of Appeals for the Third Circuit had occasion to consider Pennsylvania’s doctrine of reasonable expectations in the context of a faulty workmanship claim. Hallstone procured a general liability policy from Frederick Mutual to insure its masonry operations. Notably, when purchasing the policy through an insurance broker, Hallstone’s principal stated that he wanted the “maximum” “soup to nuts” coverage for his company. Hallstone was later sued by a customer for alleged defects in its masonry work. While Frederick agreed to provide a defense, it also commenced a lawsuit seeking a judicial declaration that its policy excluded coverage for faulty workmanship. The district court agreed that the business risk exclusions applied, but nevertheless found in favor of Hallstone based on the argument that Hallstone had a reasonable expectation that when applying for an insurance policy affording “soup to nuts” coverage, it this would include coverage for faulty workmanship claims. Read the court decision
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Reprinted courtesy of Brian Margolies, Traub Lieberman Straus & Shrewsberry LLP
Mr. Margolies may be contacted at bmargolies@tlsslaw.com

Haight’s John Arbucci and Kristian Moriarty Selected for Super Lawyers’ 2020 Southern California Rising Stars

July 20, 2020 — T. Giovanni “John” Arbucci & Kristian B. Moriarty - Haight Brown & Bonesteel
Congratulations to attorneys T. Giovanni “John” Arbucci and Kristian Moriarty who were selected to the Super Lawyers 2020 Southern California Rising Stars list. Each year, no more than 2.5% of the lawyers in the state are selected by the research team at Super Lawyers to receive this honor. Reprinted courtesy of T. Giovanni “John” Arbucci, Haight Brown & Bonesteel and Kristian B. Moriarty, Haight Brown & Bonesteel Mr. Arbucci may be contacted at jarbucci@hbblaw.com Mr. Moriarty may be contacted at kmoriarty@hbblaw.com Read the full story... Read the court decision
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Viewpoint: Firms Should Begin to Analyze Lessons Learned in 2020

January 04, 2021 — Rich Friedman - Engineering News-Record
If there’s one phrase that describes 2020, it was not “business as usual.” How AEC firms fared last year depended upon their strategies for navigating an uncertain landscape. While we talk about finding a new normal, company leaders in 2021 will have to think more expansively about what they want that “normal” to look like. Reprinted courtesy of Rich Friedman, Engineering News-Record ENR may be contacted at ENR.com@bnpmedia.com Read the full story... Read the court decision
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Texas Public Procurements: What Changed on September 1, 2017? a/k/a: When is the Use of E-Verify Required?

October 11, 2017 — Timothy D. Matheny – Peckar & Abramson, P.C.
Every contractor that does business with the federal government is familiar with the requirement to use of E-Verify in order to document the employability of a contractor’s employees. But, when is a contractor required to use E-Verify in Texas? And, does this requirement to use E-Verify extend to the contractor’s subcontractors? All contractors and each of their subcontractors will be required to use E-Verify for a variety of goods and services contracts with state agencies. Failure to understand these requirements could lead to your company losing out on the award of the next Texas public procurement contract. Read the court decision
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Reprinted courtesy of Timothy D. Matheny, Peckar & Abramson, P.C.
Mr. Matheny may be contacted at tmatheny@pecklaw.com

Substantial Completion Explained: What Contractors & Owners Should Know

January 17, 2022 — Travis Colburn - Ahlers Cressman & Sleight
A project’s Substantial Completion date is a critical construction milestone for contractors and owners. Depending on the contract, the date of Substantial Completion has project-specific contractual and statutory consequences. Substantial Completion is an “event” – there is no universal definition of the term. It is generally understood to be (1) a point in time (2) when work performed by the contractor is sufficiently complete (3) where it can be used or occupied for the owner’s intended purpose. The date of Substantial Completion is generally established at the time of contract formation (either as a negotiated or a contract set date), and that date may be adjusted over the course of a project to account for excusable delays. As a construction professional, your attorney should review and tailor any written agreement to your project-specific needs and risk tolerances prior to execution. Savvy construction professionals often start with standard form agreements promulgated by the American Institute of Architects (“AIA”), the Design-Build Institute of America (“DBIA”), or the Engineers Joint Contract Document Committee (“EJCDC”) as the basis for their construction contracts. The AIA, DBIA, and EJCDC standard forms each contains contract provisions relating to when and what happens once Substantial Completion has occurred, subject to any agreed-to, project-specific deviations. Read the court decision
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Reprinted courtesy of Travis Colburn, Ahlers Cressman & Sleight
Mr. Colburn may be contacted at travis.colburn@acslawyers.com

Social Engineering Scams Are On the Rise – Do I Have Insurance Coverage for That?

June 01, 2020 — Jeffrey Dennis & Heather Whitehead - Newmeyer Dillion
Cyber attackers all know that the majority of organizations are currently working from home due to the ongoing COVID-19 (commonly referred to as the Coronavirus) pandemic. And, as would be expected, social engineering scams are on the rise. Nonetheless, there may be limitations in your cyber liability insurance policy for these types of claims. It is advisable to take the initiative to review such insurance policies in detail for coverage considerations prior to the occurrence of any cyber incident. And, of course, protect your business from attacks by engaging in precautious cyber safety efforts. What Is Social Engineering? Social engineering refers to various means to manipulate individuals in the online environment so that they divulge sensitive, personal information, such as banking information, which may include account numbers and passwords. This can also take the form of receiving a request to transfer funds to what the victim believes is another employee, trusted financial information or other party with whom the person has a business relationship with. Unfortunately, however, those funds ultimately are received by the engineer of the cyber attack. Reprinted courtesy of Jeffrey M. Dennis, Newmeyer Dillion and Heather Whitehead, Newmeyer Dillion Mr. Dennis may be contacted at jeff.dennis@ndlf.com Ms. Whitehead may be contacted at heather.whitehead@ndlf.com Read the court decision
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Washington Supreme Court Upholds King County Ordinance Requiring Utility Providers to Pay for Access to County’s Right-of-Way and Signals Approval for Other Counties to Follow Suit

March 02, 2020 — Kristina Southwell - Ahlers Cressman & Sleight PLLC
On December 5, 2019, the Washington State Supreme Court released its opinion in King County v. King County Water Districts, et al.,[1] upholding King County’s Ordinance 18403, which requires utility companies who are franchise grantees to pay “franchise compensation” for their use of the County rights-of-way. Generally, utility companies must apply for and obtain from the County a franchise permitting it to do necessary work in the County rights-of-way. [2] Previously, King County only charged an administrative fee associated with issuing such a franchise. But with the new franchise compensation charges, King County estimates that it will raise approximately $10 million dollars per year for its general fund. Ordinance 18403 passed in November 2016 and was the first of its kind in the state. The ordinance created a rule, set forth in RCW 6.27.080, requiring electric, gas, water, and sewer utilities who are granted a franchise by King County to pay “franchise compensation” in exchange for the right to use the County’s rights-of-way. The rule provides that franchise compensation is in the nature of an annual rent payment to the County for using the County roads. King County decides an initial estimate of the charge by considering various factors such as the value of the land used, the size of the area that will be used, and the density of the households served. But utility companies can negotiate with the County over the final amount of franchise compensation. Read the court decision
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Reprinted courtesy of Kristina Southwell, Ahlers Cressman & Sleight PLLC
Ms. Southwell may be contacted at kristina.southwell@acslawyers.com

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