Cambridge Massachusetts Building Expert Directory

Violation of Prompt Payment Statutes is Not a Breach of Contract. But That’s Not the Most Interesting Part

November 01, 2022 — Garret Murai - California Construction Law Blog
While construction projects can get messy, they don’t get much messier than the next case, which, while involving a fairly limited legal issue, has such jaw dropping facts it’s worth a read if only to make you feel a bit better about your own project. The Clark Bros. Case In Clark Bros, Inc. v. North Edwards Water District, 77 Cal.App.5th 801 (2022), general contractor Clark Bros., Inc. was awarded over $3 million in damages against a local water district on a water treatment facility project. The Project The North Edwards Water District serves approximately 220 customers in the Mojave Desert. It has one employee, Dollie Dimples Kostopoulos. Seriously, you can’t make this stuff up. The drinking water it provides to its customers contains three times the legal limit of arsenic, a carcinogen. Read the court decision
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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

Designing a Fair Standard of Care in Design Agreements

February 21, 2022 — ConsensusDocs
One of the concerns faced by construction companies is now design liability. Design liability concerns are not limited to just design-build projects. It is a hot-button issue for builders because the line between an architect’s responsibility to create sufficient design documents and a builder’s responsibility to execute the means, methods, and techniques is increasingly blurry. Problems arise when owners, design professionals, and builders point fingers, rather than truly collaborate, and communicate. While construction technologies used to assemble complex systems within buildings are increasingly sophisticated, such sophistication is unfortunately not matched with increased information sharing and effective communication. Another reason for growing design liability is unclear and inadequate specifications. Too often projects rush as well as shortchange design budgets. And some projects use hybrid prescriptive and performance specifications. This hybrid approach often confuses and obfuscates rather than clarifies design requirements. Read the court decision
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Reprinted courtesy of ConsensusDocs

Building Inspector Jailed for Taking Bribes

September 30, 2011 — CDJ STAFF

The LA Times reports that Raoul Germain, a city Los Angeles building inspector has been sentenced to 21 months in prison after pleading guilty to taking bribes. Germain was caught as part of an FBI sting operation in which he approved work in exchange for thousands of dollars in bribes. The Times notes that that in some cases, Germain never visited the construction sites. Germain was offered a chance to cooperate with investigators. His lawyer, Steve Cron asked the Times, “What do you think happens to someone who cooperates?”

In addition to Germain, another city inspector has pleaded guilty to taking bribes and two more employees of the Department of Building and Safety have been fired in connection with the investigation.

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U.S. Construction Value Flat at End of Summer

December 04, 2013 — CDJ STAFF
The Census Bureau has released it numbers for the value of construction put in place for September and October, and while further numbers are forthcoming, this current report shows little change. The value of construction dropped a miniscule 0.3% in September, however, residential construction actually showed a slight increase. October then showed a 0.8% increase, but then private residential construction dropped by 0.5%. In all, however, by the end of October, private residential spending was up 17.8% over the prior year. As with other sectors of public spending, public residential spending dropped 3.4% from the prior year. Read the court decision
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CSLB “Fast Facts” for Online Home Improvement Marketplaces

August 20, 2018 — Garret Murai - California Construction Law Blog
As more and more online home improvement marketplaces like Angie’s List come online, questions have arisen as to whether such online marketplaces must hold a contractor’s license. The California Contractor’s State License Board has put together a “Fast Facts” sheet to help online home improvement marketplaces navigate the ins and outs of contractor’s license requirements, salesperson requirements, and advertising requirements. The short answer is that these marketplaces do not need a contractor’s license as long as the customer is contracting directly with the listed contractors (not the marketplace). Here’s the slightly longer explanation: July 20, 2018 CSLB #18-10 CSLB Hopes to Clear Up Confusion about License and Contracting Requirements for Online Home Improvement Marketplace Companies SACRAMENTO – Over the past few months, the Contractors State License Board (CSLB) has been addressing emerging issues involving online marketplaces and contractor referral websites. In its most basic form, online marketplaces are e-commerce websites that link consumers to products and/or services that are provided by multiple third parties. In these situations the e-commerce operator processes the transactions. Many referral websites charge contractors for leads. 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

Contingent Business Interruption Claim Denied

April 08, 2014 — Tred R. Eyerly – Insurance Law Hawaii
The insured's claim for contingent business interruption ("CBI") coverage was denied in Millennium Inorganic Chemicals Ltd. v. Nat. Union Fire Ins. Co. of Pittsburgh Pa., 2014 U.S. App. LEXIS 3096 (4th Cir. Feb. 20, 2014). Millenium processed titanium dioxide, a compound used for its white pigmentation, at its plant in Western Australia. Millennium purchased natural gas to process the titanium dioxide from Alinta Sales Pty Ltd., a natural gas supplier. Alinta purchased gas from Apache Corporation. Once Apache processed the natural gas, it was injected into a pipeline. The gas from Apache's facility was commingled with that obtained from other producers, resulting in a mix of gas in a single pipeline. Alinta had sole ownership of the gas once it entered the pipeline. Under Alinta's contract with Millennium, title to the gas passed to Millenium only at the time of delivery, i.e., when the gas left the pipeline and was delivered to Millennium's facility through a separate delivery line. Millennium had no contract or business relationship with Apache, and the contract it had with Alinta made no reference to Apache. An explosion occurred at Apache's facility causing its natural gas production to cease. As a result, Millennium's gas supply was curtailed, and it was force to shut down its operations for a number of months. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

BWB&O Partners are Recognized as 2022 AV Preeminent Attorneys by Martindale-Hubbell!

December 06, 2021 — Dolores Montoya - Bremer Whyte Brown & O'Meara LLP
Congratulations to BWB&O Partners on their recognition in Martindale-Hubbell® as AV Preeminent attorneys. This honor is given to attorneys who are ranked at the highest level of professional excellence for their legal expertise, communication skills, and ethical standards by their peers. Newport Beach Partner, Nicole Whyte Newport Beach Partner, Keith Bremer Newport Beach Partner, John Toohey Newport Beach Partner, Jeremy Johnson Woodland Hills Partner, John O'Meara Woodland Hills Partner, Patrick Au Arizona Partner, John Belanger Las Vegas Partner, Peter Brown Las Vegas Partner, Lucian Greco Las Vegas Partner, Anthony Garasi San Diego Partner, Vik Nagpal San Diego Partner, Alexander Giannetto Read the court decision
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Reprinted courtesy of Dolores Montoya, Bremer Whyte Brown & O'Meara LLP

Subcontract Should Flow Down Delay Caused by Subcontractors

December 21, 2020 — David Adelstein - Florida Construction Legal Updates
A general contractor’s subcontract with its subcontractor should include a provision that entitles it to flow down liquidated damages assessed by the owner stemming from delays caused by the subcontractor. Such a provision does not mean the general contractor does not have to prove delays caused by the subcontractor or can arbitrarily allocate the amount or days it claims the subcontractor is liable. The general contractor still will need to reasonably establish the delays the subcontractor caused the critical path of the schedule, i.e., delayed the job. In addition to the right to flow down liquidated damages, the subcontract should also entitle the general contractor to recover its actual extended general conditions caused by the subcontractor’s delays (regardless of whether the owner assesses liquidated damages). The objective is that if the subcontractor delays the job, the subcontractor is liable for liquidated damages the general contractor is liable to the owner for in addition to the general contractor’s own delay damages. This is an important subcontractual provision so that the risk of delay caused by subcontractors is clearly flowed down to them in the subcontract. In a 1987 case, Hall Construction Co., Inc. v. Beynon, 507 So.2d 1225 (Fla. 5th DCA 1987), the subcontract at-issue contained language that stated, “The parties hereto agree that a supplier who delays performance beyond the time agreed upon in this Purchase Order shall have caused [general contractor] liquidated damages in the amount required of [general contractor] by their contract per day for each day such delay continues which sum the supplier hereby agrees to pay.” Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

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