Fairfield Connecticut Building Expert Directory

Federal Contractors – Double Check the Terms of Your Contract Before Performing Ordered Changes

July 08, 2019 — Jonathan Schirmer - Ahlers Cressman & Sleight PLLC
As federal contractors may be aware, the general rule when performing a contract for the federal government is that only the contracting officer (“CO”) can bind the government. Often, the CO delegates responsibility to a contracting officer’s representative (“COR”). While in some cases a COR may be able to bind the federal government, the contract may limit that ability exclusively to the CO. Important for our clients, it is the responsibility of the contractor to determine whether the COR can legally bind the federal government when ordering changes to the scope of work. [1] This is true even when a COR possesses apparent authority to order changes to the work, and when the project is almost exclusively overseen by COR’s. [2] A recent case highlights the dangers of a contractor relying on the orders of a COR when performing work outside the scope of a contract. In Baistar Mechanical Inc., a contractor was awarded a maintenance and snow removal contract with the federal government. The contract expressly stated that only the CO had contracting authority regarding additional or changed work. [3] However, Baistar, the contractor, argued it was directed by the contracting officer’s representatives to perform work outside of the contract. Read the court decision
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Reprinted courtesy of Jonathan Schirmer, Ahlers Cressman & Sleight PLLC
Mr. Schirmer may be contacted at jonathan.schirmer@acslawyers.com

Is It Time to Get Rid of Retainage?

June 15, 2020 — David K. Taylor - Construction Executive
Many debate the pros, cons and claims of retainage—when one party to a construction contract withholds a percentage (typically 5%-10%) from an otherwise approved contractor pay application, and which typically is not paid until a project is substantially complete. If an owner withholds retainage from a prime contractor, typically the contractor will in turn withhold retainage from its subcontractors. While retainage has been part of the construction industry for decades, its concept, use (and abuse) have been under more discussion during the past 10 years. Based on heavy lobbying from primary subcontractor groups, state legislatures have passed laws to regulate retainage in commercial projects. Lenders have become more careful about loans and are frequently involved in retainage discussions. Bonded projects are subject to criticism when a surety does not step in and, like the mythical insurance company, write a check. Reprinted courtesy of David K. Taylor, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Mr. Taylor may be contacted at dtaylor@bradley.com

Construction Job Opening Rise in October

December 20, 2012 — CDJ STAFF
There was a significant increase in the number of open construction jobs during October, according to a report for the National Association of Home Builders. Working from preliminary data provided by the Bureau of Labor Statistics, the NAHB said that the number of open positions reached “levels and rates last seen in 2007.” As the data is still preliminary, the NAHB noted that the conclusions should be taken with caution. While there was a spike in job openings, the hiring of people to fill these positions hasn’t caught up with it, and there was a small decline in hires. But to return to the good news, there was also a drop in layoffs in that same period. Through October, about 8,000 people have been hired in the construction sector. The NAHB notes that this does not correspond with the recent increases with home construction. They suggest that “it may be the case that startups in the home building and remodeling sectors are being missed by the establishment survey.” Another possibility they raise is that already-employed construction workers are simply working more hours. Read the court decision
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Insureds' Not Entitled to Recovery for Partial Collapse

February 04, 2025 — Tred R. Eyerly - Insurance Law Hawaii
The Sixth Circuit affirmed the District Court's decision that the insureds could not recover for a partial collapse of a wall. Builders Mut. Ins. Co. v. GCC Construction, LLC, 2024 U.S. App. LEXIS 31518 (6th Cir. Dec. 11, 2024). Tahini Main Street bought a century-old building in Chattanooga, Tennessee. The building was constructed using what masons call three-wythe construction. This meant that the building's walls consisted of three brick layers - each layer was a "wythe" - that sit next to each other. When Tahini renovated the building, it hired GCC Construction, LLC (GCC). GCC planned to add windows which meant cutting a new opening into the building's western wall, boring straight through all three brick layers. When they finished slicing through the wall, some bricks fell from the opening's top. The middle rows fell into the new gap, leaving the two outside row with nothing in between. Accordingly, the wall lost its middle. 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

Chicago Aldermen Tell Casino Bidders: This Is a Union Town

June 13, 2022 — Shruti Singh - Bloomberg
Several Chicago aldermen on Monday sent gaming companies that are bidding on building the city’s first casino a message: this is a union town. During a special casino committee of the city council hearing on Monday, the aldermen expressed concerns that the three bidders -- Bally’s Corp., Hard Rock International and Rush Street Gaming -- that are seeking to construct and operate a gaming and entertainment complex don’t have a deal with local labor groups. Chicago Chief Financial Officer Jennie Bennett said during the hearing that a deal with labor was part of the requirements laid out in the city’s request for proposals. None of the three bidders have committed to labor standards, and moving forward without an agreement on items such as a living wage “is a slap in the face,” Robert Reiter Jr., president of the Chicago Federation of Labor, said during the public testimony portion of the meeting. The federation represents 300 affiliated unions and their half a million members. Read the court decision
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Reprinted courtesy of Shruti Singh, Bloomberg

Corps Spells Out Billions in Infrastructure Act Allocations

February 14, 2022 — Tom Ichniowski - Engineering News-Record
The Army Corps of Engineers has released a detailed project-by-project breakdown outlining how it plans to spend the 2022 portion of the $17.1-billion infusion provided for its civil works program in the Infrastructure Investment and Jobs Act (IIJA). Reprinted courtesy of Tom Ichniowski, Engineering News-Record Mr. Ichniowski may be contacted at ichniowskit@enr.com Read the full story... Read the court decision
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White House Seeks $310M To Fix Critical San Diego Wastewater Plant

December 04, 2023 — James Leggate - Engineering News-Record
The Biden administration’s $55.9-billion supplemental funding request to Congress for disaster response and other issues includes $310 million for a project to repair and expand the ailing South Bay International Wastewater Treatment Plant in San Diego, Calif. The plant is part of a repeatedly overwhelmed wastewater treatment system on the U.S.-Mexico border that has allowed untreated sewage flows to foul area beaches. Reprinted courtesy of James Leggate, Engineering News-Record Mr. Leggate may be contacted at leggatej@enr.com Read the full story... Read the court decision
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New York Appellate Court Applies Broad Duty to Defend to Property Damage Case

January 03, 2022 — Craig Rokuson - Traub Lieberman Insurance Law Blog
In the recent case of New York Marine and Gen. Ins. Co. v. Eastman Cooke & Associates, 153 N.Y.S.3d 840, 841 (N.Y. App. Div. 1st Dept. 2021), New York’s first department affirmed a duty to defend under New York law. In the underlying action, the plaintiff alleged property damages due to prolonged construction work in a different unit of the subject property. The underlying plaintiff sued the owner of the subject property, which in turn sued Eastman Cooke, the general contractor at the premises. New York Marine denied coverage to Eastman Cooke, asserting that the underlying suit did not seek damages occurring during the New York Marine policy period, and commenced a declaratory judgment action. The trial court held—and the First Department affirmed—that New York Marine has a duty to defend Eastman Cooke. Initially, the court found that the underlying suit alleged property damage as required for coverage, because there were allegations regarding loss of use of the property. The court also found that the underlying suit alleged damages occurring during the New York Marine policy period. Although the underlying complaint alleged that the underlying plaintiffs were reimbursed for damages occurring during the New York Marine policy period by another insurer, the court held that the evidence was that the payments only covered a certain part of the damages sought. Accordingly, because there was a reasonable possibility that some unreimbursed damages may fall within the New York Marine policy period. Read the court decision
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Reprinted courtesy of Craig Rokuson, Traub Lieberman
Mr. Rokuson may be contacted at crokuson@tlsslaw.com

FAIRFIELD CONNECTICUT BUILDING EXPERT DIRECTORY AND CAPABILITIES