FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Pulling the Plug

December 13, 2022 — Todd R. Regan - Construction Executive
As a contractor, you may have wondered if your contract can be terminated by the owner for cause after the project has reached substantial completion. The answer is yes. Under certain circumstances it may be permissible—or even necessary—for a project owner to terminate the contract for cause after the project has reached substantial completion. Although the rights of the parties in any case will depend in large part on the specific contract language, the fact that a project has reached substantial completion is not an absolute bar to termination for cause, particularly when the owner intends to pursue a performance-bond claim. Completion Versus Performance Following substantial completion, a contractor typically will have outstanding contractual obligations such as paying its subcontractors and suppliers, bonding off any mechanic’s liens, completing the punch list, remediating defective work, testing and commissioning equipment, providing manufacturer’s warranties and performing its own warranty obligations. Reprinted courtesy of Todd R. Regan, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Construction Defects and Warranties in Maryland

November 27, 2013 — CDJ STAFF
Nicholas D. Cowie, a partner with Cowie & Mott, P.A., has started a blog focusing on construction defect claims in Maryland condominium complexes. In his first post, he writes about the statutory remedies in Maryland law for condominium owners. He notes that “four separate statutory warranties apply to the sale of condominiums.” He further discusses the varying duration of these warranties and when they come into effect, saying that “associations and unit owners are often incorrectly informed that their construction defect-related problems (such as leaks around windows) are ‘out of warranty’ because the problems did not occur during the warranty period.” Read the court decision
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Time to Reform Construction Defect Law in Nevada

February 21, 2013 — CDJ STAFF
The Las Vegas Review-Journal is supporting efforts to reform the state’s construction defect laws. Although the intention was to “protect homeowners from the costs of shoddy workmanship,” they state the laws have instead “enriched lawyers and made housing more expensive.” The take the Las Vegas homeowner association scandal as a sign that reform is needed. A further sign of needed reform is that during a time when new home sales decreased, construction defect claims more than tripled. The editorial notes that “current law allows lawsuits to be brought for cosmetic imperfections that pose no risks.” Read the court decision
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Reduce Suicide Risk Among Employees in Remote Work Areas

November 24, 2019 — Sandra Moran - Construction Executive
In the construction industry, a disturbing and unnerving trend has been developing over the past few decades. Construction and resource extraction have the highest rate of deaths by suicide compared to any other industry. This phenomenon is not limited to a single country. The statistics from three developed countries with strong construction and resource extraction industries (United States, United Kingdom and Australia), reflect the same pattern. A major risk factor that has not been given much attention and scrutiny is the requirement for many workers to be away from their homes for long periods of time, based in remote locations and basecamps. This isolation contributes to loneliness and disconnectedness that increases the vulnerability to employees at risk due to underlying mental health disorders, such as depression and anxiety, or those with suicidal ideations or prior attempts. Basecamps or remote work locations remove workers from the support networks of family, friends, and even medical and psychological caregivers. Employers placing employees in remote work locations should be mindful that simply wanting to work in a remote location does not necessarily equate to being able to cope well in such an environment—unless appropriate supports are provided. Companies need to become proactive to lead employees to become true teams to help reduce the risk of suicide among their workers. Reprinted courtesy of Sandra Moran, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Define the Forum and Scope of Recovery in Contract Disputes

March 02, 2020 — Phillip L. Sampson Jr. & Richard F. Whiteley - Construction Executive
Private and public companies spend billions of dollars every year on construction projects. For these projects, time is money, and incorporating the most advantageous legal terms in the construction contract can minimize the number and extent of disputes, and ultimately save money. It is important to remember that the provisions in construction contracts are negotiable. In a common scenario, the contractor and owner informally agree to the scope of a construction project and its cost. When it is time to reduce the deal to writing, the contractor and owner decide to use an AIA contract that appears to be a standard form. The document looks to be on point, and the parties simply need to fill in a few blanks with the cost and scope-specific information. Presuming that the AIA provisions are mutually protective and beneficial, the parties do not think about altering the “standard” terms. They sign the contract, and the project begins. Months later, the owner and contractor end up disputing delays on the project, entitlement to various payments, and whether certain aspects of the work are defective. At this point, the parties realize that some of the contract’s terms could have been drafted a bit more favorably—but by that time it’s too late. So remember, construction contracts are negotiable, even provisions within “standard” AIA contracts. Reprinted courtesy of Phillip L. Sampson Jr. and Richard F. Whiteley, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Mr. Sampson may be contacted at phillip.sampson@bracewell.com. Mr. Whiteley may be contacted at richard.whiteley@bracewell.com. Read the court decision
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Court of Appeals Finds Arbitration Provision Incorporated by Reference Unenforceable

September 20, 2021 — Garret Murai - California Construction Law Blog
Subcontractors have gotten accustomed to incorporation clauses in their contracts. While an incorporation clause can incorporate any document, most typically, it’s the prime contract between the general contractor and the project owner. Subcontractors will sometimes even accept these documents sight unseen which can be a recipe for disaster. But not in the next case. In Remedial Construction Services, LP v. AECOM, Inc., Case No. B303797 (June 15, 2021), the 2nd District Court of Appeal examined whether a subcontractor was bound to an arbitration provision contained in a prime contract that was incorporated by reference into the subcontractor’s contract. In this case, it was the prime contractor who was in for a surprise. The Remedial Construction Case In 2015, Shell Oil Products US, LLC entered into a prime contract with AECOM Technical Services, Inc. for the demolition, remediation and restoration of the Gaviota oil terminal in Goleta, California. AECOM in turn entered into a subcontract with Remedial Construction Services, LP to perform portions of the work. When AECOM refused to pay Remedial for delay costs asserted by Remedial, Remedial filed suit. Read the court decision
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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

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Eighth Circuit Considers Judicial Estoppel in Hazardous Substance Release-Related Personal Injury Case

April 11, 2018 — Anthony B. Cavender - Gravel2Gavel Construction & Real Estate Law Blog
On April 5, the U.S. Court of Appeals for the Eighth Circuit decided the case of Kirk v. Schaeffler Group USA, Inc., et al., a personal injury action commenced in the U.S. District Court for the Western District of Missouri alleging injury resulting from the release of thousands of gallons of trichloroethylene (TCE) at the FAG Bearings Corporation’s (FAG Bearings) facility in Joplin, MO. The Court of Appeals reversed the District Court’s judicial estoppel ruling on the successor liability issue and concluded that the jury’s verdict on compensatory damages stands but their general verdict requires a new trial on Plaintiff’s punitive damages claim against FAG Bearings. Read the court decision
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Reprinted courtesy of Anthony B. Cavender, Pillsbury Winthrop Shaw Pittman LLP
Mr. Cavender may be contacted at anthony.cavender@pillsburylaw.com

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Congress Addresses Homebuilding Credit Crunch

May 20, 2011 — CDJ STAFF

The National Association of Home Builders (NAHB) reports that Representatives Gary Miller (CA), Brad Miller (NC) and twenty-nine cosponsors have put forth a bill with bipartisan support to “address the severe credit crunch for acquisition, development, and construction (AD&C) financing.” They report in addition to more than 1.4 million construction workers who have been “idled since 2006,” the housing slump has cost 3 million jobs and $145 million in wages.

NAHB reports that they worked closely with lawmakers on the bill. The association had members meet with legislators both in D.C. and in their home districts. They state that HR 1755 would help homebuilders “find the credit they need to move forward with new or existing projects.”

The bill would allow lenders to use the value upon completion when assessing loan collateral and ban the use of foreclosed or distressed sale properties in assessing values of projects. The would bill would also lessen restrictions by banking regulators, which the lead sponsors said “have hindered federal and state chartered banks and thrifts’ ability to make and maintain loans to qualified small home builders that have viable projects.”

The NAHB is urging members of Congress to cosponsor the bill and is urging the Senate to introduce a companion bill.

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