COLUMBUS OHIO BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Is Construction Heading Off the Fiscal Cliff?

December 20, 2012 — CDJ STAFF
After a period of growth, the construction industry lost 20,000 jobs in November, based on the federal jobs data. Damon Scott of New Mexico Business Weekly suggests that contractors may have laid off employees in anticipation of the “fiscal cliff.” Ken Simpson, the chief economist of the National Association of Home Builders said in a press release that “it is discouraging that construction employment is still struggling after three years of expansion in the overall economy.” Read the court decision
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Mitigate Construction Risk Through Use of Contingency

April 26, 2021 — Laurie A. Stanziale - Construction Executive
Mitigation of risk and costs in a construction project are always priorities for owners. In some contracts, in particular, Guaranteed Maximum Price contracts, some of those monetary risks are shifted to the contractor. Contingency is important because it allows for money to be in the budget for the unexpected and to keep the project moving, which benefits everyone. WHAT IS CONTINGENCY? Contingency is an amount of money built into the contractor’s price to complete the project to address unforeseen (although sometimes very common) costs that arise. This sum of money is generally referred to as the contractor’s contingency. The amount of the contingency is a balance struck between having money on hand to address the unexpected while also not unnecessarily tying up money that could otherwise be used for the project. Contingency is typically 5-10% of the hard costs. However, how the money is actually allocated during the project is not always well thought out, which can be the source of problems during the project. The contractor’s contingency is not to be confused with an owner’s contingency (or reserve) which is outside of the contractor’s budget and generally used for owner driven changes to the project, such as changes to scope, design and schedule. Reprinted courtesy of Laurie A. Stanziale, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Failure to Meet Code Case Remanded to Lower Court for Attorney Fees

May 24, 2011 — CDJ STAFF

Judge Patricia J. Cottrell, ruling on the case Roger Wilkes, et al. v. Shaw Enterprises, LLC, in the Tennessee Court of Appeals, upheld the trial court’s conclusion that “the builder constructed the house in accordance with good building practices even though it was not in strict conformance with the building code.” However, Judge Cottrell directed the lower court to “award to Appellants reasonable attorneys' fees and costs incurred in their first appeal, as determined by the trial court.”

Judge Cottrell cited in her opinion the contract which specified that the house would be constructed “in accordance with good building practices.” However, after the Wilkes discovered water leakage, the inspections revealed that “that Shaw had not installed through-wall flashing and weep holes when the house was built.” The trial court concluded that:

“Separate and apart from the flashing and weep holes, the trial court concluded the Wilkeses were entitled to recover damages for the other defects they proved based on the cost of repair estimates introduced during the first and second trials, which the court adjusted for credibility reasons. Thus, the trial court recalculated the amount the Wilkeses were entitled to recover and concluded they were entitled to $17,721 for the value of repairs for defects in violation of good business practices, and an additional 15%, or $2,658.15, for management, overhead, and profit of a licensed contractor. This resulted in a judgment in the amount of $20,370.15. The trial court awarded the Wilkeses attorneys” fees through the Page 9 first trial in the amount of $5,094.78 and discretionary costs in the amount of $1,500. The total judgment following the second trial totaled $26,973.93.”

In this second appeal, Judge Cottrell concluded, that “the trial court thus did not have the authority to decide the Wilkeses were not entitled to their attorneys” fees and costs incurred in the first appeal.”

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Travelers v. Larimer County and the Concept of Covered Cause of Loss

May 10, 2013 — Brady Iandiorio
Travelers Indemnity Company (“Travelers”) recently won a decision against Larimer County regarding a claim for damage caused to the roofs of several buildings at the County Fairgrounds. Travelers Indemnity Company v. Board of County Commissioners for Larimer County, Slip Copy, 2013 WL 238865, p. 1 (10th Cir. 2013). Larimer County alleged, in district court, that snowstorms and the weight of the snow build-up caused damage to the roof structures. Id. After the district court found for Travelers on a motion for summary judgment, Larimer County appealed the ruling, claiming that Traveler’s was obligated under the insurance policy to pay for repair costs to portions of the roofing structure. Id. The underlying claim for repairs originates with several snowstorms that caused damage to several buildings on the County Fairgrounds. The damage claimed was widespread to the roof structures, evidenced by rolling and buckling purlins (horizontal beams running along the length of the roof, resting upon the principal rafters at right angles and supporting the ordinary rafters). Travelers denied the claim based on its own investigation which concluded the damage was caused by design and construction defects, and therefore excluded from coverage under the insurance policy. Read the court decision
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Reprinted courtesy of Brady Iandiorio
Mr. Iandiorio can be contacted at iandiorio@hhmrlaw.com

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Apple to Open Steve Jobs-Inspired Ring-Shaped Campus in April

February 23, 2017 — Adam Satariano - Bloomberg
Apple Inc. co-founder Steve Jobs’ last public event in 2011 was a city council meeting in Cupertino, California, where he presented plans for a sprawling new campus with a spaceship-shaped building and tree-filled park. Apple announced Wednesday that it will begin moving employees into the 2.9 million-square-foot facility in April. Apple said a new 1,000-seat auditorium at the facility will be named the Steve Jobs Theater in honor of its co-founder, who died four months after his city council presentation and would have turned 62 on Feb. 24. As with many large-scale construction projects, Apple faced budget overruns and delays. The building cost an estimated $5 billion (though Apple has never said how much), and the opening date had initially been set for 2015. Read the court decision
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Reprinted courtesy of Adam Satariano, Bloomberg
Mr. Satariano may be followed on Twitter @satariano

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EPA Coal Ash Cleanup Rule Changes Send Utilities, Agencies Back to Drawing Board

February 21, 2022 — Corinne Grinapol - Engineering News-Record
The U.S. Environmental Protection Agency plans to deny requests by three power facilities for extended deadlines to close unlined coal ash impoundments that are risks to groundwater, while offering only a provisional extension to another. The decision came as part of a larger agency push to strengthen regulation of coal combustion residuals disposal and facilities with unlined storage. Reprinted courtesy of Corinne Grinapol, Engineering News-Record ENR may be contacted at enr@enr.com Read the full story... Read the court decision
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Alleged Negligent Misrepresentation on Condition of Home is Not an Occurrence Causing Property Damage

December 17, 2024 — Tred R. Eyerly - Insurance Law Hawaii
The court found that even if the insured's negligent misrepresentations constituted an accident, the disclosures did not cause physical damage to the property. Wood v. USAA Cas. Ins. Co., 2024 U.S. Dist. LEXIS 180624 (D. S.C. Sept. 12, 2024). The insured, Clinton Wood, purchased a townhome in January 2014. After the purchase, Wood experienced leaks and significant water intrusion, as did other townhome owners in the same development. Wood and the other owners retained an engineer to evaluate the cause of the water damage. The engineer determined that the water intrusion was caused by defects in the design and construction of the residence. The engineer told Wood that the proposed repairs would not adequately address and resolve the water intrusion and leaks, and that the problems would continue even if repairs were made. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

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Two Texas Cities Top San Francisco for Property Investors

October 22, 2014 — Brian Louis – Bloomberg
Houston and Austin are the most attractive U.S. markets for buying and developing real estate, topping San Francisco, as growth potential in the Texas cities draws investors from popular coastal areas, a survey shows. The Northern California city ranked third, down from No. 1 last year, according to a report released today by PricewaterhouseCoopers LLP and the Urban Land Institute. Denver and Dallas-Fort Worth rounded out the five markets offering the best prospects for investors in 2015, the poll of more than 1,400 people in the real estate business shows. Manhattan slipped out of the top 10 to rank 14th. Some non-coastal markets are drawing more property investors partly because they offer higher yields than places such as San Francisco and Manhattan, which led the recovery from the financial crisis. The smaller cities also are benefiting from employment growth and increasing numbers of people moving into urban centers, according to Mitch Roschelle, a partner and U.S. real estate advisory practice leader at PricewaterhouseCoopers in New York. Read the court decision
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Reprinted courtesy of Brian Louis, Bloomberg
Mr. Louis may be contacted at blouis1@bloomberg.net

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