Cambridge Massachusetts Building Expert Directory

D.R. Horton Profit Beats Estimates as Home Sales Jumped

January 28, 2015 — John Gittelsohn and Prashant Gopal – Bloomberg
(Bloomberg) -- D.R. Horton Inc., the largest U.S. homebuilder by revenue, reported fiscal first-quarter earnings that beat estimates as sales jumped. The shares rose the most since October. Net income was $142.5 million, or 39 cents a share, for the three months ended Dec. 31, compared with $123.2 million, or 36 cents, a year earlier, the Fort Worth, Texas-based company said Monday in a statement. The average of 14 analyst estimates was 35 cents a share, according to data compiled by Bloomberg. Results for the quarter included $6 million in inventory and land option charges, according to the statement. Reprinted courtesy of Bloomberg reporters Prashant Gopal and John Gittelsohn Mr. Gittlesohn may be contacted at johngitt@bloomberg.net; Mr. Gopal may be contacted at pgopal2@bloomberg.net Read the court decision
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Cumulative Impact Claims and Definition by Certain Boards

June 21, 2024 — David Adelstein - Florida Construction Legal Updates
What is a cumulative impact claim? This is commonly referred to as the unforeseeable ripple effect of changes, i.e., the death by a thousand cuts. Cumulative impact claims refer to a disruption on productivity based on the cumulative impact of changes and their impact on unchanged work. Cumulative impact claims are difficult claims to prove, particularly based on the causation standpoint (and argument they could be released based on change order language). If pursuing or considering a cumulative impact claim, you will need to work with a consultant(s) and lawyer that understand the dynamic of these claims to best maximize your arguments and recovery from a causation and damages standpoint. Cumulative impact damages are real. They occur. But they are not damages you can just throw out there or use loosely and expect to develop traction on compensation. Below is how cumulative impact claims are defined by certain Boards of Contract Appeals. The definitions are important. In Appeal of Centex Bateson Construction, Co., Inc., 9901 BCA P 30153, VABCA 4613 (VABCA 1998), the Board explained:

Direct impact, as the immediate and direct effect of a change on unchanged work, is considered foreseeable.

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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

Massachusetts Affordable Homes Act Provides New Opportunities for Owners, Developers, and Contractors

October 15, 2024 — Larry Grijalva - Construction Law Zone
On August 6, 2024, Massachusetts Governor Maura Healey signed the Affordable Homes Act (the Act) into law. The Act aims to counter the rising cost of housing in the commonwealth by implementing new policies and providing funding for the construction of affordable housing. New policies include:

A requirement that municipalities permit the construction of accessory dwelling units (ADUs) on the same parcel as a primary dwelling.
A requirement that municipalities permit the construction of single-family residences on previously unbuildable lots held in common ownership with an adjacent residential lot.
The creation of a commercial property conversion program to support the conversion of commercial space into housing or mixed-use developments.

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Reprinted courtesy of Larry Grijalva, Robinson & Cole LLP
Mr. Grijalva may be contacted at lgrijalva@rc.com

Scaffolding Purchase Suggests No New Building for Board of Equalization

July 30, 2014 — Beverley BevenFlorez-CDJ STAFF
Employees at California’s Board of Equalization spoke out against the Brown administration after the state purchased new scaffolding for the defect-riddled building, rather than finding a new facility, reported the Sacramento Bee. The existing scaffolding was leased for $10,000 per month, but the lease expired, prompting the purchase of new scaffolding for about $100,000. The board’s Chairman Jerome Horton stated “that while the change may make financial sense in the short term, it sends a signal that the Department of General Services intends to keep Equalization’s 2,200 or so employees in the troubled building,” according to the Sacramento Bee. Building problems include “toxic mold, defective elevators, leaking windows, corroded wastewater pipes, floods, and exterior glass panels that spontaneously break or pop off.” So far, $2.3 million has been paid “in connection with building-related employee injury claims” along with $60 million in repairs. However, an additional $115 million is estimated to completely fix the defects. Read the court decision
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Appropriation Bill Cuts Military Construction Spending

June 15, 2011 — CDJ STAFF

The Hill reports that HR 2055, the Military Construction, Veterans Affairs (VA) and Related Agencies bill, has passed with only five votes in opposition. The bill cuts the budget for military construction spending by $2.6 billion due to anticipated base closures.

The bill includes $186 million for family housing construction by the Army, $100 million for family housing construction by the Navy and Marines, and $84 million for family construction by the Air Force, with an additional $50 million allocated for the DOD outside the military branches. By the act, these funds will remain available until September 30, 2016.

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Insurers Refuse Indemnification of Subcontractors in Construction Defect Suit

November 13, 2013 — CDJ STAFF
SMG Stone Co. Inc. and J. Colavin & Son Inc. were hired by Webcor Construction LP to install stone floor tiles at the Ritz-Carlton residences at the L.A. Live complex in Los Angeles. But the tiles began to crack even before installation was finished. The building management had all the tiles ripped out and replaced, although only 10% of the tiles were defective. The building management then claimed Webcor owed them $40 million, but settled for $8 million. $7 million of that claim was paid by Steadfast Insurance Co., with the remaining $1 million paid by Webcor. The two other insurers involved, American Home and The Insurance Company of the State of Pennsylvania, are attempting to deflect Webcor or Steadfast from making claims against them. Both insurers claim no obligation to indemnify the contractor or subcontractors as the claims do not involved “property damage,” as defined in the policy. Read the court decision
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Construction Defects #10 On DBJ’s Top News Stories of 2015

December 10, 2015 — Beverley BevenFlorez-CDJ STAFF
The Denver Business Journal’s top 15 news stories of 2015 covers the “Battle Over Construction Defects.” Some developers and other groups have blamed the lack of condominium development in Denver and other Colorado cities on the state’s defect laws. After a construction-defects reform bill failed to pass the Colorado Legislature, several cities passed construction defect-related ordinances, according to the Denver Business Journal: “In November the Denver City Council voted 12-1 to approve an ordinance aimed at making it harder to file class-action lawsuits over construction defects within the city.” Read the court decision
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Where-Forum Art Thou? Is the Chosen Forum Akin to No Forum at All?

May 30, 2022 — William Doerler - The Subrogation Strategist
Many courts enforce forum selection clauses in contracts between parties. In W. Bay Plaza Condo. Ass’n v. Sika Corp., No. 3D21-1834, 2022 Fla. App. LEXIS 1637 (W. Bay Plaza), the Court of Appeal of Florida, Third District (Court of Appeal) answered the question of whether a mandatory forum selection clause in a manufacturer’s warranty was enforceable as to a condominium association, who was a non-signatory. The trial court enforced the forum selection clause – calling for litigation in New Jersey rather than Florida – and the Court of Appeal affirmed the ruling. As stated in W. Bay Plaza, in late 2013 and early 2014, West Bay Plaza Condominium Association (W.B. Plaza Condo. Ass’n) contracted with Built Right Installers International Corporation, R.J. Miranda Consultants, Inc. and UCI Engineering Inc. (collectively, the Construction Defendants) to have repairs done to the exterior of the property. In 2016, Sika Corporation (Sika), a New Jersey corporation, gave a five-year warranty to W.B. Plaza Condo. Ass’n for three sealant products used to repair the garage at the property. In 2019, W.B. Plaza Condo. Ass’n sued the Construction Defendants for breach of contract and professional negligence. Subsequently, W.B. Plaza Condo. Ass’n amended its complaint and filed a claim against Sika, alleging that Sika breached its warranty because its products failed to provide a watertight barrier. Sika filed a motion to dismiss the action, alleging that Florida was an improper venue because its’ warranty contained a mandatory forum selection clause. W.B. Plaza Condo. Ass’n argued that it was not bound by the forum selection clause because it was a non-signatory to the warranty and, even if it was bound by the clause, there were compelling reasons not to enforce it. Read the court decision
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Reprinted courtesy of William Doerler, White and Williams LLP
Mr. Doerler may be contacted at doerlerw@whiteandwilliams.com

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