Seattle Washington Building Expert Directory

Surety's Settlement Without Principal's Consent Is Not Bad Faith

January 05, 2017 — Tred R. Eyerly – Insurance Law Hawaii
The Sixth Circuit found that the surety did not act in bad faith when it settled the general contractor's claims against the State of Michigan over delays on a construction project. Great Am. Ins. Co. v. E.L. Bailey & Co., 2016 U.S. App. LEXIS 20018 (6th Cir. Nov. 7, 2016). Bailey, the general contractor, entered into a surety agreement under which Great American would issue surety bonds on behalf of Bailey in the construction of a kitchen at a State prison. Bailey, the principal, paid Great American (GAIC), the surety, to provide bonds guaranteeing contract performance to the State, the obligee or owner. GAIC provided a performance bond, guaranteeing performance of the contract work, and a payment bond, guaranteeing payments to subcontractors and suppliers. Under the agreement, Bailey would indemnify GAIC for all payments or other expenses GAIC incurred due on either bond, and would pay upon demand collateral in an amount to be determined by GAIC. In the event of an alleged breach by Bailey, the agreement assigned to GAIC all Bailey's rights under its contract with the State and well as all its claims against any party. Bailey never finalized completion, and GAIC reached agreement with the State for another contractor to complete the project. 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

What Will the 2024 Construction Economy Look Like?

January 02, 2024 — Grace Calengor - Construction Executive
CE just wrapped its "2024 Economic Update and Forecast" webinar, which revealed some interesting insights for 2023 and projections for next year. Anirban Basu, chief economist for ABC and CEO of Sage Policy Group, began his presentation by stating auspiciously: “The economy has been much stronger along more dimensions than I expected.” Polling: good news for the supply chain Not only did Basu's own research reveal strong construction growth in a majority of sectors, a decent number of construction job openings and wage increases, as well as supply-chain improvement and a stagnating federal rate—but webinar attendees who answered Basu's polling questions felt similarly. Reprinted courtesy of Grace Calengor, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Preserving Lien Rights on Private Projects in Washington: Three Common Mistakes to Avoid

September 16, 2024 — Kristina Southwell - Ahlers Cressman & Sleight PLLC
The Washington Construction Lien Statute, RCW 60.04 et seq., exists to help secure payment for work performed for the improvement of real property.[1] The statute grants “any person furnishing labor, professional services, materials, or equipment for the improvement of real property” the authority to claim “a lien upon the improvement for the contract price of labor, professional services, materials, or equipment furnished.” RCW 60.04.021. Exercising lien rights is one of the most useful tools available to a contractor or supplier trying to recover payment owed on a project. A properly recorded lien binds the project property, which is typically the most valuable asset held by the owner, as security for the amounts owed to the lien claimant. Additionally, the lien statute provides a basis for the claimant to recover the costs of recording the lien and its attorneys’ fees and expenses incurred in litigating the foreclosure of the lien. While the lien statute authorizes the right to lien, it also provides a series of strict requirements and procedures that a claimant must follow to properly exercise its rights. The claimant must carefully comply with all statutory requirements. This article does not endeavor to explain all the intricacies of the lien statute, but rather discusses three of the most common mistakes that result in the loss of lien rights. See our lien and bond claim manual for a more detailed guide to construction liens in Washington. Read the court decision
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Reprinted courtesy of Kristina Southwell, Ahlers Cressman & Sleight PLLC
Ms. Southwell may be contacted at kristina.southwell@acslawyers.com

Subcontractor Strength Will Drive Industry’s Ability to Meet Demand, Overcome Challenges

October 10, 2022 — Anwar Ghauche - Construction Executive
Owners, developers and general contractors get a lot of notoriety for construction projects, especially in these infrastructure-focused times. However, the subcontractor is truly the one under the microscope, as this group requires the most care and attention to ensure the owners and operators are able to meet accelerating demand and public expectations. The challenges in the current environment are many. Inflation and supply chain disruptions are highly detrimental to specialty trades in the mechanical, electrical, plumbing, drywall and other areas. Reports show that the construction industry, in particular, has seen an increase of over 20% in the cost of supplies and building materials in the last year alone and, in some cases, over 90% since the start of the pandemic. While these costs are passed along to the owner, the subcontractor still retains significant cash flow risk. This truth is amplified in a volatile market. As if the cost was not enough, equipment and material shortages coupled with rising interest rates only compound the problem—and tenfold for small businesses. Subcontractors are likely to feel the greatest pressure from supply-related issues. Inflation combined with supply chain shortages require subcontractors to prepare earlier for projects and, when possible, purchase materials upfront. However, the consequence of this preliminary preparation equates to further strains on cash flow. In an effort to remain aligned on schedules and budgets, subcontractors frequently buy all of a project’s materials as soon as a contract is signed—if not before. Reprinted courtesy of Anwar Ghauche, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Condo Building Hits Highest Share of Canada Market Since 1971

December 10, 2015 — Theophilos Argitis – Bloomberg
It’s the year of the condo for Canada’s housing market. Construction of multiple units as a share of total new housing starts is at the highest level since 1971, data from Canada Mortgage & Housing Corp. show, as builders in Toronto and Vancouver press ahead with new development. The condo boom -- fueled in part by affordability issues in Canada’s two priciest markets -- is helping offset a slump in construction of single detached homes across the country. Read the court decision
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Reprinted courtesy of Theophilos Argitis, Bloomberg

Pennsylvania Finds Policy Triggered When Property Damage Reasonably Apparent

January 28, 2015 — Tred R. Eyerly – Insurance Law Hawaii
The Pennsylvania Supreme Court addressed when a liability policy was triggered for ongoing property damage. The Court also declined to apply the multiple trigger theory. Pennsylvania Nat'l Mut. Cas. Ins. Co. v. John, 2014 Pa. LEXIS 3313 (Pa. Dec. 15, 2014). In 2002, Appellants, co-owners of a dairy farm, expanded the size of their dairy herd and milking facility. Appellants hired LPH Plumbing to install a new plumbing system, which would include a wastewater drainage system and a separate freshwater drinking system. LPH Plumbing subcontracted with Stoltzfus Welding to weld metal pipes leading to a holding tank for the new freshwater drinking system. Construction was completed in July 2003. Unknown to Appellants, the plumbing system was defective when dairy operations began. PVC piping for the wastewater was cracked, allowing "gray water" to escape. Further Stoltzfus failed to properly weld an intake pipe leading to a holding tank that formed a part of the freshwater drinking system for the dairy herd. Consequently, Appellants' herd was exposed to contaminated drinking water shortly after dairy operations began in July 2003. 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

Certificate of Merit to Sue Architects or Engineers Bill Proposed

May 03, 2011 — CDJ STAFF

North Carolina may become the twelfth state to require a Certificate of Merit to sue an architect or engineer. If North Carolina Senate Bill 435 (SB435) passes, then plaintiffs when filing a complaint will need to also attach an affidavit of a third-party licensed professional engineer or architect stating that the case has merit.

SB435 is a short two pages in its current form. The bill states that the “third-party licensed professional engineer or licensed architect shall (i) be competent to testify and hold the same professional license and practice in the same area of practice as the defendant design professional and (ii) offer testimony based upon knowledge, skill, experience, education, training, and practice. The affidavit shall specifically state for each theory of recovery for which damages are sought, the negligence, if any, or other action, error, or omission of the design professional in providing the professional service, including any error or omission in providing advice, judgment, opinion, or a similar professional skill claimed to exist and the factual basis for each such claim. The third-party licensed professional engineer or licensed architect shall be licensed in this State and actively engaged in the practice of engineering or architecture respectively.”

A few of the amendments allude to disciplining design professionals who certify civil actions that are without merit. The bill has been referred to the Committee on Judiciary I.

While North Carolina is considering enacting a Certificate of Merit law, eleven other states already require one, including Arizona, California, Colorado, Georgia, Maryland, Minnesota, New Jersey, Oregon, Pennsylvania, South Carolina, and Texas. Christopher D. Montez, a partner with Thomas, Feldman & Wilshusen, LLP, has written a useful summary for each state’s certificate of merit scheme.

Read the text of SB435

Track the progress of SB435

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West Coast Casualty’s 25th Construction Defect Seminar Has Begun

May 16, 2018 — Beverley BevenFlorez-CDJ STAFF
The first day of this year’s West Coast Casualty Seminar has concluded, with two more days ahead to learn, network, and discuss the construction defect industry’s current trends. Don’t forget to stop by the Bert L. Howe & Associate’s exhibit so that you can participate in their Sink a Putt for Charity Golf Challenge. As in the past, attendees can participate for free in the BHA golf challenge and win a $25 Amazon gift card, and for every successful putt made, BHA will make a $25 cash donation in the golfer’s name to be distributed equally between each worthy organization. This year, participant’s efforts on the green will help benefit three cancer fighting institutions that are dedicated to treating and eradicating children’s cancer: Hawaii’s Children’s Cancer Foundation, St. Jude Children’s Research Hospital, and Shriners Hospital for Children. BHA is also raffling Dodger’s tickets, so you won’t want to miss their exhibit. You may read more about this year’s exhibit at BHA HAS A NICE SWING and take a look back at previous exhibits, 20 YEARS OF BHA AT WEST COAST CASUALTY'S CD SEMINAR: CHRONICLING BHA'S INNOVATIVE EXHIBITS. Want some help maximizing your work-play schedule? Check out CDJ’s Sample Itinerary to get the Most out of West Coast Casualty’s Construction Defect Seminar that includes the seminar schedule as well as dining and event suggestions. We also have included suggestions for exploring the Greater Anaheim area: BEYOND THE DISNEYLAND RESORT: DINING, BEYOND THE DISNEYLAND RESORT: SPECIAL EVENTS, BEYOND THE DISNEYLAND RESORT: MUSEUMS, and BEYOND THE DISNEYLAND RESORT: WORLD CLASS SHOPPING EXPERIENCES. Last week, Don MacGregor wrote a not-to-be-missed piece on THE EVOLUTION OF CONSTRUCTION DEFECT TRENDS AT WEST COAST CASUALTY SEMINAR. Thursday, this year’s West Coast Casualty awards will be presented. To learn more about these coveted awards, please see A LOOK BACK AT THE OLLIES and AN ERA OF LEGENDS. We hope you enjoy days two and three of the seminar! Read the court decision
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SEATTLE WASHINGTON BUILDING EXPERT DIRECTORY AND CAPABILITIES