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    BOOK CLUB SERIES: Everything You Want to Know About Construction Arbitration But Were Afraid to Ask

    October 30, 2023 —
    I recently had the pleasure of speaking with construction law notables John Foust and Andy Ness to discuss the release of their new book—Construction Arbitration: The Advocate’s Practical Guide. The goal of their book: to teach attorneys what they need to know to maximize their effectiveness in the arbitration context. To that end, the book covers every aspect of the arbitration process including motion practice, conduct as an advocate, presentation of the case, and post-hearing submissions. Read on for Andy and John’s candid, behind-the-scenes take on how this book came to be and why you should get your copy now, while supplies last! Q: Who is the target audience for this book? Andy: In the editing process (and in writing my own chapter on Navigating an International Construction Arbitration) I pretended that I was speaking with a construction lawyer who was a few years out of law school, with some litigation experience, who was getting ready to take on a significant and complex construction arbitration for the first time. The book presupposes knowledge of the basics and tries to anticipate the questions that would be asked when you are trying to think through the whole arbitration process from start to finish. What should my pleadings look like? How much discovery am I likely to be able to obtain? How should my demeanor be different from what I would do in a courtroom? How much should I object during the hearing? In a nutshell, it’s “What do I need to know to maximize my chances of success in the arbitration setting?” Read the court decision
    Read the full story...
    Reprinted courtesy of Marissa L. Downs, Laurie & Brennan, LLP
    Ms. Downs may be contacted at mdowns@lauriebrennan.com

    Builders Can’t Rely on SB800

    October 01, 2013 —
    In coming to their ruling on SB800, the California Court of Appeals looked to the legislative intent behind the law. Valentine Hoy, Timothy Hutter, and Erin Sedloff of Allen Matkins, in an article on the ruling, note that SB800 was written in response to Aas v. Superior Court, in which the court found that there was no remedy for construction defects that had not resulted in property damage. In the latest ruling, Liberty Mutual v. Brookfield Crystal Cove, LLC, the court concluded that SB800 was passed to give homeowners a way to address defects that had not lead to damage. However, the court also concluded that the legislature did not intend for SB800 to be the only remedy. In Liberty Mutual, the insurance company sought reimbursement for claims it had paid on a homeowner’s claim after a fire sprinkler pipe burst. Liberty Mutual had insured the homeowner and sought repayment from the builder. Escrow had closed on the home in 2004, the pipe burst in 2008, and Liberty Mutual filed their claim in 2011, seven years after the close of escrow. But for plumbing issues, SB800 has a four-year statute of limitations. The writers describe California as “a hotbed for construction defect litigation.” Due to the Liberty Mutual ruling, developers now “cannot rely on the statutes of limitation set forth in SB800.” Read the court decision
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    Reprinted courtesy of

    US Court Questions 102-Mile Transmission Project Over River Crossing

    February 07, 2022 —
    A federal judge will decide in February whether to stop construction of a $492-million Iowa-to-Wisconsin transmission line, after issuing an opinion in mid-January “declaring” that federal rules preclude the 102-mile Cardinal-Hickory Creek project from crossing the 261-mile Upper Mississippi River National Wildlife and Fish Refuge by right-of-way or land transfer. Reprinted courtesy of Mary B. Powers, Engineering News-Record ENR may be contacted at enr@enr.com Read the full story... Read the court decision
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    Reprinted courtesy of

    Repairing One’s Own Work and the one Year Statute of Limitations to Sue a Miller Act Payment Bond

    April 11, 2018 —
    When it comes to Miller Act payment bond claims, repairing one’s own work does NOT extend the one year statute of limitations to file suit on a Miler Act payment bond. Belonger Corp., Inc. v. BW Contracting Services, Inc., 2018 WL 704379, *3 (E.D. Wisconsin 2018) (“The courts that have considered this question tend to agree that, once a subcontractor completes its work under the subcontract, repairs or corrections to that work do not fall within the meaning of ‘labor’ or ‘materials’ and, as such, do not extend the Miller Act’s one-year statute of limitations.”). Well, what if the subcontractor was repairing its own work due to an issue caused by another subcontractor? Read the court decision
    Read the full story...
    Reprinted courtesy of David Adelstein, Florida Construction Legal Updates
    Mr. Adelstein may be contacted at dadelstein@gmail.com

    Righting Past Wrongs Through Equitable Development

    January 17, 2022 —
    Standing on a dead-end street in Spartanburg, S.C., Harold Mitchell can plainly see the history of injustice in his community. On one side lies the remains of his childhood home. On the other, a shuttered fertilizer plant that was operational when Mitchell was growing up. He distinctly recalls smells of ammonia and sulfur emanating through the neighborhood that “were so pervasive, you didn’t even think about it.” He remembers his father regularly cleaning white dust off their cars, and workers emerging from the plant gates “looking like the Pillsbury Doughboy” covered in fertilizer dust from head to toe. Sometimes, he’d walk with the plant’s night watchman, strolling alongside neon green sewage lagoons located not far from his bedroom window. Reprinted courtesy of Bruce Buckley, Engineering News-Record and Pam Radtke Russell, Engineering News-Record ENR may be contacted at enr@enr.com Read the full story... Read the court decision
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    Reprinted courtesy of

    Top 10 Construction Contract Provisions – Changes and Claims

    November 03, 2016 —
    This is the seventh post in our “Top 10 Construction Contract Provisions” series. Prior posts discussed Price and Payment, Liquidated Damages, Consequential Damages – Part I and Part II, Indemnity, Scope of Work, and Flow-Down Provisions. Today’s topic, Changes and Claims, is a contender for the top spot on our list, for both day-to-day impact on the job and importance in disputes. In fact, these provisions[i] are so variable and are involved in so many reported construction law decisions, that this post will not attempt to survey all their various forms, uses, or potential legal ramifications, but instead focuses on bottom line “best practices”—questions to consider as a general contractor, subcontractor, or owner when drafting, negotiating, or managing the Changes and Claims provisions of a contract. There is no “ideal” here, and the changes and claims procedures should be suited to the project, owner, contractor(s), likely issues, and other project-specific considerations. Key considerations include the following: 1. How prescriptive is the Change Order process? At one end of the spectrum, a Change Order provision may include requirements for written direction and request by the owner and formal response by the contractor, with pricing and specific supporting data or documentation, in addition to strict timelines for response, execution, and performance, precise methods to determine the resulting contract adjustment, limits on the type or extent of adjustment, or terms defining the effect of a signed Change Order, e.g. to what extent related claims or impacts might be extinguished. At the other end of the spectrum, the Change Order provision might simply recognize that the owner may direct changes, and the parties intend to document the directions and resulting compensation in a Change Order, with no further elaboration. There is no universal ideal on this spectrum. A highly defined and prescriptive process may be appropriate for a complex, high value, multi-stakeholder project on which significant changes are likely. The same process would be an inefficient waste of resources on a small and simple project where significant changes are unlikely and the parties would be unlikely to comply with more formal procedures. Read the court decision
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    Reprinted courtesy of James R. Lynch, Ahlers & Cressman PLLC
    Mr. Lynch may be contacted at jlynch@ac-lawyers.com

    More Broad-Based Expansion for Construction Industry Expected in 2015

    January 07, 2015 —
    It’s a short week for most of us this week. Christmas is over and New Year’s is approaching. So, what will 2015 bring us? According Dodge Data & Analytics’s 2015 Dodge Construction Outlook: Continuing expansion of the construction sector, but one that is more broad-based than in recent years. “The economic environment going forward carries several positives that will help to further lift total construction starts,” said Robert Murray, Chief Economist and Vice President at Dodge Data & Analytics. “Financing for construction projects is becoming more available, reflecting some easing of bank lending standards, a greater focus on real estate development by the investment community, and more construction bond measures getting passed. While federal funding for construction programs is still constrained, states are now picking up some of the slack. Interest rates for the near term should stay low, and market fundamentals (occupancies and rents) for commercial building and multifamily housing continue to strengthen.” Read the court decision
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    Reprinted courtesy of Garret Murai, Wendel Rosen Black & Dean LLP
    Mr. Murai may be contacted at gmurai@wendel.com

    Contractors: Revisit your Force Majeure Provisions to Account for Hurricanes

    September 20, 2017 —
    We now know and can appreciate the threat of hurricanes. Not that we did not appreciate the reality of hurricanes–of course we did–but Hurricane Harvey and Hurricane Irma created the type of actual devastation we fear because they hit close to home. The fear came to life, creating panic, anxiety, and uncertainty. It is hard to plan for a force majeure event such as a hurricane because of the capriciousness of Mother Nature. But, we need to do so from this point forward. No exception! And, I mean no exception!! A force majeure event is an uncontrollable event that cannot be anticipated with any degree of definitiveness. The force majeure event will excusably delay or hinder performance obligations under a contract. One type of force majeure event is a hurricane—an uncontrollable and unforeseen act of Mother Nature. Read the court decision
    Read the full story...
    Reprinted courtesy of David Adelstein, Florida Construction Legal Updates
    Mr. Adelstein may be contacted at dadelstein@gmail.com