FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

DoD Issues Guidance on Inflation Adjustments for Contractors

August 15, 2022 — Jennifer Harris & Abby Salinas - ConsensusDocs
The Department of Defense (“DoD”) recently issued a memorandum to contracting officers (“COs”) guiding the use of economic price adjustment (“EPA”) clauses to address inflation-related cost increases. The memorandum, entitled Guidance on Inflation and Economic Price Adjustments, comes as the year-over-year inflation rate rose to 8.6% in May, and contractors with fixed-price contracts seek ways to recover their rising costs. EPA clauses allow the parties to mitigate cost risks that present themselves as a result of circumstances beyond the contractor’s control, e.g., inflation and supply chain price fluctuations. Generally, an EPA clause will dictate that the Government bear the cost risk up to a mutually agreed-upon ceiling. EPA clauses apply to the cost portion of a contract, but do not normally apply to the profit. DFARS PGI 216.203-4. Memorandum: No CO Authority to Grant Contractual Relief Absent an EPA Clause The memorandum states that absent an existing EPA clause, COs do not have the authority to provide contractual relief for unanticipated inflation under a firm-fixed-price contract. Reprinted courtesy of Jennifer Harris, Peckar & Abramson, P.C. (ConsensusDocs) and Abby Salinas, Peckar & Abramson, P.C. (ConsensusDocs) Ms. Harris may be contacted at jharris@pecklaw.com Read the court decision
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Construction Demand Unsteady, Gains in Some Regions

June 29, 2011 — CDJ STAFF

The Associated General Contractors of America reported Tuesday, June 28 that construction employment increased in 120 of the 337 metropolitan areas surveyed between May 2010 and May 2011.



‘While construction employment has stopped plunging, any sign of a recovery remains spotty at best,” said Ken Simonson, the association’s chief economist. ‘The close to even split between areas adding and losing jobs is a reminder that for every market doing well, there is another market that is still hurting.”



The largest number of jobs created was in the Dallas, Texas region, with 5,600 new jobs, a five percent increase. The northern Massachusetts/southern New Hampshire region near Haverhill saw the greatest percentage increase, although that twenty-two percent increase represents only 800 new jobs. The Chicago, Illiinois area added 4,600 jobs, a four percent increase.



Other regions were not so lucky. The Atlanta, Georgia area saw a loss of 7,400 jobs, an eight percent loss. Las Vegas also lost 7,400 jobs, which there represented a sixteen percent decline. The New York City area lost 6,700 jobs, a six percent reduction. The Riverside, California area lost 5,300 jobs, a nine percent loss.



Stephen E. Sandherr, the association’s chief executive officer, blamed a combination of regulation and budget squeezes. "Some in Washington never met a regulation they didn’t like and others never found a penny they didn’t want to pinch. Together that makes for a bad way to boost employment and a great way to stifle the private sector and neglect critical economic infrastructure.”



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Texas Mechanic’s Lien Law Update: New Law Brings a Little Relief for Subcontractors and a Lot of Relief for Design Professionals

June 07, 2021 — Tracey L. Williams - Peckar & Abramson, P.C.
After several recent failed attempts to amend Chapter 53 of the Texas Property Code (the “Texas Mechanic’s Lien Statute”), it appears that long awaited relief may, at least in part, be on the horizon for subcontractors in Texas. Additionally, architects, engineers, and surveyors also appear to be significant benefactors of House Bill 2237 (“HB 2237”). Under existing law, many subcontractors often fail to perfect their mechanic’s liens under the Texas Mechanic’s Lien Statute because of complex notice requirements which must be sent for every month in which labor or material are furnished. And architects, engineers and surveyors currently have no lien rights unless they have a direct contractual relationship with the owner of the project. Effective January 1, 2022, HB 2237 amends the Texas Mechanic’s Lien Statute in several significant respects. Subcontractor Impacts HB 2237 impacts subcontractors in the following ways:

1. Establishes uniformity in the notice requirements by imposing the same notice obligation on all subcontractors regardless of with whom they have contracted. Rather than sending one notice to the owner and one to the general contractor, the single notice now required must be sent to both simultaneously. Additionally, HB 2237 prescribes the form of the notice to be given under both Section 53.056 (notice of derivative claimant) and 53.057 (notice of contractual retainage).

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Reprinted courtesy of Tracey L. Williams, Peckar & Abramson, P.C.
Ms. Williams may be contacted at twilliams@pecklaw.com

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Insurance Policy’s “No Voluntary Payment” Clauses Lose Some Bite in Colorado

October 22, 2013 — Brady Iandiorio — Higgins, Hopkins, McLain & Roswell, LLC.
The Colorado Court of Appeals recently handed down an opinion dulling the teeth of the “no voluntary payment” clauses found in many contractors’ insurance policies. In the case of Stresscon Corporation v. Travelers Property Casualty Company of America, 2013 WL 4874352 (Colo. App. 2013), the Court of Appeals found that an insured’s breach of the “no voluntary payment” clause does not always bar the insured from receiving benefits from its insurance company. In July 2007, at a construction project run by Mortenson (the “GC”), a partially erected building collapsed, killing one worker and gravely injuring another. The collapse was caused by a crane hook pulling a concrete component off of its supports. The GC contracted with Stresscon Corporation (“Stresscon”) to build pre-cast concrete components for the project, and in turn Stresscon hired two sub-subcontractors, RMS and Hardrock (the “Crane Team”) to work together to erect those concrete components. Stresscon and the Crane Team had liability insurance, and Stresscon was insured by Travelers Property Casualty Company of America (“Travelers”). The accident led to three separate lawsuits: 1) one brought by the deceased worker; 2) one brought by the injured worker; and 3) one brought by the GC against Stresscon claiming it was entitled to contract damages incurred because the project was delayed. Read the court decision
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Reprinted courtesy of Brady Iandiorio
Brady Iandiorio can be contacted at Iandiorio@hhmrlaw.com

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Bridges Crumble as Muni Rates at Least Since ’60s Ignored

June 26, 2014 — William Selway and Brian Chappatta – Bloomberg
No state is needier than West Virginia when it comes to fixing crumbling highways, airports and water works, with annual repair needs of $1,035 per resident that’s three times the national average. Yet even with borrowing costs hovering close to four-decade lows, lawmakers rejected a January proposal to sell $1 billion of bonds to repair roads that run through the Appalachian Mountains. Budget cuts were a more immediate concern, they said. Across the U.S., localities are refraining from raising new funds in the $3.7 trillion municipal-bond market after the worst financial crisis since the Great Depression left them with unprecedented deficits. Rather than take advantage of Federal Reserve (FDTR) policy that’s held benchmark interest rates at historic lows since December 2008, they’re repaying obligations by the most on record. Mr. Selway may be contacted at wselway@bloomberg.net; Mr. Chappatta may be contacted at bchappatta1@bloomberg.net Read the court decision
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Reprinted courtesy of William Selway and Brian Chappatta, Bloomberg

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Suppliers Must Also Heed “Right to Repair” Claims

October 16, 2013 — CDJ STAFF
“Right to repair” statutes don’t only affect general contractors, but everyone involved in the building of a home, down to those who supply materials, warns Paul Gary in a post on Window & Door. He notes that “if you sell your window or door products in one of the growing number of states with a ‘Notice and Opportunity to Cure’ or ‘Right to Repair’ statute, you need a plan in the event you receive a defect notice relating to your product.” A supplier that receives a statement that a defect exists should, according to Mr. Gary, carefully document not only when the notice was received, but when it was sent, according to postmark, and whether the sender complied with all the regulations. From there, the supplier should determine if there were previous, informal complaints. Finally, determine sales information. At this point, the supplier has the information its insurer will require. His next caution is that in what follows, other may “seek defense and indemnity from you.” And while you may point out problems with the notice,” he counsels that “if you confirm there is an issue with your product, don’t be afraid to make a fair proposal for repair.” Read the court decision
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Lewis Brisbois Listed on Leopard Solutions Top 10 Law Firm Index

March 21, 2022 — Lewis Brisbois
New York, N.Y. (March 17, 2022) – Lewis Brisbois has been listed as a top 10 firm by Leopard Solutions in its annual rankings list of the healthiest law firms in 2021 across the country. Lewis Brisbois was ranked 7th on the list, with a “very good” score of 439. Other firms in the top 10 include Kirkland & Ellis, Greenberg Traurig, and Latham & Watkins. The Leopard Law Firm Index provides insight into law firm health and stability, using a robust list of criteria. This includes attorney growth and retention, financial stability over time, lateral recruiting success, an "Insider Score" based on surveys of attorneys at firms about their workplace (done in partnership with Above the Law), attorney promotions, and overall diversity. Leopard Solutions is a provider of business development solutions and market research reports, for law firms, legal recruiters, and legal departments. Read the court decision
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Reprinted courtesy of Lewis Brisbois

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Misread of Other Insurance Clause Becomes Costly for Insurer

February 22, 2018 — Tred R. Eyerly – Insurance Law Hawaii

One insurer's refusal to defend based upon its "other insurance" provision ultimately meant the insurer had to pay all of the insured's defense costs. Steadfast Ins. Co. v. Greenwich Ins. Co., 2018 Wis. App. LEXIS 51 (Wis. Ct. App. Jan. 17, 2018).

Milwaukee Metropolitan Sewerage District (MMSD) was a government agency that provided water reclamation and flood management services to the city. From March 1, 1998 to February 20, 2008, MMSD contracted with United Water Services Milwaukee LLC to operate the sewerage system. From March 1, 2008 on, MMSD contracted with Veolia Water North America-Central, LLC to operate the system.

Through agreements, both companies were obligated to indemnify MMSD for claims arising out of the operations and maintenance of the system and to obtain insurance to cover their indemnity obligations. Both companies complied.

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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

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