The Legal Landscape
June 17, 2024 —
David McMillin - Construction ExecutiveThe construction industry continues to change as new technologies reshape jobsites and new generations of leaders rethink the way companies should operate. But one piece of the puzzle remains very much the same: Everyone needs a good lawyer.
According to the most recent edition of the Arcadis Construction Disputes Report, the average value of a dispute in the industry has soared to $42.8 million—a 42% year-over-year increase between 2021 and 2022. And based on how busy the attorneys at
Construction Executive’s 2024 Top 50 Construction Law Firmshave been this year, there is no sign of legal issues becoming less important to builders and contractors.
Every construction leader wants to spend more time and energy doing what they do best—building projects safely, efficiently and profitably—and less time thinking about the things that might land them in court. How can you best avoid big disputes bound for mediation, arbitration or litigation? What emerging rules and regulations should be on your radar as you develop strategies for success?
While legal issues will never disappear, listening to what some of the best construction lawyers in the country—all members of 2024 Top 50 Construction Law Firms—are thinking about offers a helpful perspective on future-proofing your business against risk, liability and worse.
Reprinted courtesy of
David McMillin, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Read the court decisionRead the full story...Reprinted courtesy of
Firm Offers Tips on Construction Defects in Colorado
February 28, 2013 —
CDJ STAFFAlthough the Tenth Circuit Court determined that construction defects are occurrences under a general liability policy and the passage of CRS Section 13-20-808, in which the Colorado Legislature addressed the definition of occurrences as they relate to construction defects, the insurance industry “will continue to challenge the very concept of coverage for construction defects,” according to five attorneys at the law firm Sherman & Howard.
They suggest that there are lessons to be learned from two recent cases that were recently decided by the Colorado Court of Appeals, TCD, Inc. v. American Family and Colorado Pool Systems, Inc. v. Scottsdale Insurance Company. They suggest that construction professionals to be certain that their insurers are “firmly rooted in insuring the construction industry.” Their broker should also have “specific expertise in insuring the construction industry.” And don’t buy on price alone. Finally, they suggest that construction professionals should “engage an experienced coverage attorney to assess pursuing coverage when an insurance company denies coverage for a construction defect claim.”
Read the court decisionRead the full story...Reprinted courtesy of
TOP TAKE-AWAY SERIES: The 2023 Fall Meeting in Washington, D.C.
November 13, 2023 —
Marissa L. Downs & Jennifer M. Kanady - The Dispute ResolverOver 500 construction lawyers, experts, and consultants descended on Washington last week for the Forum’s 2023 Fall Meeting. Newly minted Forum Chair John Cook and Program Coordinators Catherine Delorey and Brian Zimmerman put together a stellar program focused on navigating government construction. For this installation of the post-meeting post, I'm teaming up with guest contributor, Jennifer Kanady, to bring you 10 of our top take-aways from this unique program.
10. Contracting with the government is replete with risk that could easily trap the unwary. Nobody likes to be taken advantage of. But hell hath no fury like the U.S. Government scorned. Erin Cannon-Wells and Aaron Silberman, gave a (truly) delightful, Indiana-Jones-inspired presentation on the regulations that can doom the unwitting contractor who is less than perfectly forthright in its dealings. The government has created financial incentives for members of the public to report your company’s violations as part of a qui tam action. When you consider the number of potential whistleblowers in the bidding process and the contracting chain, a qui tam action would seem more likely than not. Add to that the sanctions contractors might face for even innocent errors either by their own companies or their downstream subs, and government contracting begins to sound increasingly like the Temple of Doom. Oh, and in case you were only focused on affirmative claims, beware the “reverse false claim” which is concealing information that would rightfully entitle the government to a credit…
Reprinted courtesy of
Marissa L. Downs, Laurie & Brennan, LLP and
Jennifer M. Kanady, FAC Services, LLC
Ms. Downs may be contacted at mdowns@lauriebrennan.com
Ms. Kanady may be contacted at JKanady@facfin.com
Read the court decisionRead the full story...Reprinted courtesy of
Incorporation, Indemnity and Statutes of Limitations, Oh My!
January 19, 2017 —
Christopher G. Hill – Construction Law MusingsWe all know that the contract is king in Virginia. We also know that Virginia will allow for a so called “incorporation” clause that will allow for “flow down” of certain prime contract provisions in a way that will make those provisions applicable to subcontractors. We also know that a claim for breach of contract or other contractual claim does not last forever due to certain statutes of limitation found in the Code of Virginia. What happens when all of these elements crash together in one place leading to litigation? Well, a relatively recent case from the Virginia Supreme Court gives at least a partial answer.
In Hensel Phelps Construction Company v Thompson Masonry Contractor, Inc, the Virginia Supreme Court considered a claim that arose from construction at Virginia Tech by Hensel Phelps. The construction concluded in 1998 (remember that date). The Prime Contract included language concerning a one year “Guarantee of Work” as well as fairly typical Warranty of Workmanship” language. However the Prime Contract also stated that the one year guaranty term did nothing to affect any other limitations period for any other action pursuant to the Prime Contract (this is important as well because Virginia Tech was not subject to any statute of limitations due to its status as an agency of the Commonwealth of Virginia). Final payment was made to Hensel Phelps and subsequently to the subcontractors in 1999.
Read the court decisionRead the full story...Reprinted courtesy of
Christopher G. Hill, The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
U.S. Tornadoes, Hail Cost Insurers $1 Billion in June
July 09, 2014 —
Kelly Gilblom – BloombergTornadoes, hail and windstorms that pounded the U.S. from the Rocky Mountains to the Tennessee Valley last month will probably cost insurers more than $1 billion, Aon Plc said in a report.
Hailstorms and winds greater than 90 miles an hour (145 kilometers) in June caused billions of dollars of economic losses, led by a full week of storms early in the month, the London-based insurance broker said today.
More than 300 tornadoes hit the U.S. last month, compared with 125 a year earlier and 111 in June 2012, according to preliminary data from the National Weather Service’s Storm Prediction Center. May, June and July tend to be the worst months for twisters, it said.
Severe weather from June 3 to June 9 this year killed three people and led to more than 100,000 claims, Aon said. Later in the month, “hail and winds gusting to hurricane strength tracked eastward,” the broker said in its report. The storm “shattered windows, punctured roofs and downed trees onto homes, structures and vehicles.”
Read the court decisionRead the full story...Reprinted courtesy of
Kelly Gilblom, BloombergMs. Gilblom may be contacted at
kgilblom@bloomberg.net
Court of Appeals Invalidates Lien under Dormancy Clause
January 05, 2017 —
Chadd Reynolds – Autry, Hanrahan, Hall & Cook, LLPOn October 27, 2016, the Georgia Court of Appeals determined whether the Dormancy Statute, which bars the enforcement of judgments after seven years, applied to a lienholder’s action to foreclose its lien.
A property owner (“Owner”), contracted with a contractor Contractor (“Contractor”) to build a home in January 2006. Contractor purchased building materials from a supplier (“Supplier”). In September 2006, Contractor failed to pay for the materials, and Supplier filed a lien on Owner’s property in November 2006. Supplier filed a claim of lien and instituted a lien action against Contractor. In March 2007, a default judgment was entered in favor of Supplier for the lien amount.
It was not until November 2014 that Supplier sued Owner, seeking a declaration of a special lien in the amount of $14,655.65. The trial court granted Supplier’s motion for summary judgment and awarded Supplier a special lien in the amount of $14,655.65 plus $8,305 in accrued interest. Owner appealed, arguing that the lien was rendered unenforceable by the Dormancy Statute.
Read the court decisionRead the full story...Reprinted courtesy of
Chadd Reynolds, Autry, Hanrahan, Hall & Cook, LLPMr. Reynolds may be contacted at
reynolds@ahclaw.com
After Fatal House Explosion, Colorado Seeks New Pipeline Regulations
May 10, 2017 —
Mark Shaw - Engineering News-RecordColorado Gov. John Hickenlooper (D) has ordered comprehensive inspections, along with new monitoring and testing procedures, for all oil and gas pipelines located near houses and other buildings across the state. The action follows an April gas explosion in a northern Colorado home that killed two people.
Read the court decisionRead the full story...Reprinted courtesy of
Mark Shaw, ENRMr. Shaw may be contacted at
shawm@enr.com
Plans Go High Tech
April 25, 2012 —
CDJ STAFFOne construction executive described it as “the wave of the future.” What is it? Accessing building plans on an iPad. According to an article in MacWorld, several companies are now offering solutions to distribute and update construction plans on iPads. Changes to plans and notes can be distributed quickly through cloud computing.
Alan Dillon, a senior superintendent at DPR Construction told MacWorld, “I can take my iPad into the field and have my whole set of drawings.” He described a set of drawings for a large construction project as “five or six inches thick.” Danielle Douthet, of Level 10 Construction said it “can help everyone be on the same page more quickly, and make sure that everybody is working off the most current set of documents.”
And it’s not just building plans. Other firms offer building management applications designed to be taken into the field on mobile devices.
Read the full story…
Read the court decisionRead the full story...Reprinted courtesy of