Fairfield Connecticut Building Expert Directory

Mediating Contract Claims and Disputes at the ASBCA

December 20, 2021 — Brian Waagner - Construction Executive
The Contract Disputes Act establishes the formal process for resolving nearly all claims and disputes that arise under federal government contracts. It is the source of the requirement that contractors certify claims in excess of $100,000, the contracting officer’s final decision and the deadlines for bringing a dispute to the court of federal claims or an agency board of contract appeals. It is also the source of the federal government’s authority to use mediation and other forms of alternative dispute resolution. Here are six key factors contractors should know about mediating contract claims and disputes at the Armed Services Board of Contract Appeals (ASBCA). 1. The Parties Control the Parameters of ADR Proceedings Many commercial contracts and court rules require mediation of every dispute. There is no settlement meeting, mediation or any other type of mandatory ADR proceedings in cases brought to the ASBCA. The parties control the process, and they may adopt any approach to ADR that they believe will be effective. Mediation is nevertheless voluntary. Without the agreement of both parties, it won’t happen. Reprinted courtesy of Brian Waagner, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Claimants’ Demand for Superfluous Wording In Release Does Not Excuse Insurer’s Failure to Accept Policy Limit Offer Within Time Specified

September 15, 2016 — Christopher Kendrick & Valerie A. Moore – Haight Brown & Bonesteel LLP
In Barickman v. Mercury Casualty Co. (No. B260833, filed 7/25/16, ord. pub. 8/15/16) a California appeals court affirmed a $3 million bad faith award against Mercury Casualty Co. based upon its failure to accept a policy limit demand within the time provided, finding that wording inserted by the claimants’ counsel into the release did not affect the insured’s rights such that the refusal to agree to the wording was unreasonable and in bad faith, exposing the insurer to liability for the insured’s stipulated judgment. Reprinted courtesy of Christopher Kendrick, Haight Brown & Bonesteel LLP and Valerie A. Moore, Haight Brown & Bonesteel LLP Mr. Kendrick may be contacted at ckendrick@hbblaw.com Ms. Moore may be contacted at vmoore@hbblaw.com Read the court decision
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When Is a Project Delay Material and Actionable?

January 11, 2022 — Rick Erickson - Snell & Wilmer Real Estate Litigation Blog
Welcome to 2022! This year, the construction industry will undoubtedly reflect on the last two years as unprecedented times plagued by construction project delays. The COVID-19 pandemic contributed to suspension of work and closure of construction projects worldwide in 2020. The end of 2021 brought additional delays caused by an inexplicable clog in the supply chain of construction materials. The combined impact of these events on project milestones and completion deadlines led our clients to ask, with unusual and particular urgency, who is liable for such delays and how do contracting parties lessen the consequences from such unexpected and uncontrollable delays. Granted that project delays are nothing new or unusual. They were common enough before inflation caused shipping complications and pandemic decimated the construction labor force. All delays, whatever the source, variably cause loss to all players on a construction project. But not all delays matter when it comes to claims and remedies available to the contracting parties in dispute resolution, where the determinative focus is on material delays impacting the entire project and on delays the claimant can credibly prove. Most, if not all, jurisdictions interpret actionable delays from the contract documents for the project. The contract is definitely where you should start before pursuing any delay remedies. Delay remedies may be a time extension only, or a time extension plus your additional general conditions. Some delay remedies may be barred by the contract’s express terms and may be enforced adversely by the courts when such contract terms are indisputable. See Quinn Constr. v. Skanska USA Bldg., Inc., 730 F. Supp. 2d 401, 411 (D.C. Pa. 2010) (enforcing the subcontractor’s contractual waiver of claims for delay and disruption damages). On the other hand, delay damages that are expressly allowed by the contract—like overtime necessitated by the delays—are usually actionable and recoverable. Id. However, not only the contract terms, but applicable law, may affect the outcome. Read the court decision
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Reprinted courtesy of Rick Erickson, Snell & Wilmer
Mr. Erickson may be contacted at rerickson@swlaw.com

Save a Legal Fee: Prevent Costly Lawsuits With Claim Limitation Clauses

April 25, 2012 — Douglas Reiser, Builders Council Blog

Ever had that lingering problem with a contracting partner that went away for awhile and then came back to bite you ? years later? In Washington, construction contract claims can be raised for up to six years after substantial completion. Six years!? Why would I want to wait that long to find out if I have a problem? You don’t have to.

Over the past few years, I have discussed the notion of “contractual claim periods” on The Builders Counsel. For today’s Save a Legal Fee column, I cannot think of a better topic. These provisions are specifically intended to save you from unnecessary legal fees that might arise if a problem goes unnoticed for too long.

Contractual claim periods are simply a way to reduce the amount of time that a contracting party has to raise a claim against its contracting partner. For example, a subcontractor might require that a general contractor raise any claim that it might have ? for defective or incomplete work, injury, damages, etc ? within a particular amount of time or forever lose the ability to raise the claim in a legal proceeding.

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Reprinted courtesy of Douglas Reiser of Reiser Legal LLC. Mr. Reiser can be contacted at info@reiserlegal.com

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Former Trump Atlantic City Casino Set for February Implosion

December 29, 2020 — Stephanie Loder - Engineering News-Record
The 39-story main tower of the former Trump Plaza hotel-casino on the Atlantic City, N.J., boardwalk, sold to investor Carl Icahn in 2016, will be imploded in February by a Philadelphia general contractor already in the process of dismantling the former showplace of President Donald Trump's real estate holdings. Reprinted courtesy of Stephanie Loder, Engineering News-Record ENR may be contacted at ENR.com@bnpmedia.com Read the full story... Read the court decision
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Forget the Apple Watch. Apple’s Next Biggest Thing Isn’t for Sale

May 20, 2015 — Garret Murai – California Construction Law Blog
Apple released its much anticipated Apple Watch this past month. The Apple Watch is significant for Apple, not only because its profit and loss statement has a lot riding on it, but because it’s the company’s first foray into consumer “wearables.” This isn’t the first time the Cupertino company has ventured into new areas, through. Since its first consumer product, the Apple I, was released in 1976, Apple has gone from personal computers – and its iterations, including, desktops, laptops and tablets – to music players, cell phones and now watches. Today, Apple is less a computer company than a consumer electronics company, and even that doesn’t quite seem to go far enough, as it has become a lifestyle brand for many. Comparisons can be drawn to Sony during the mid-1980s when everyone aspired to a home filled with Sony televisions, Sony receivers and Sony Walkmans. Part of Apple’s success is that it sells a lifestyle that transcends its products, in which a glossy, sophisticated minimalism and simplicity, are among its most recognizable characteristics. It goes beyond their products, and is embodied in their advertising, their online and retail stores, and their packaging. And while the Apple Watch may be Apple’s latest “big” thing, I think something even bigger is underfoot at Apple, and it’s something you can’t buy. Read the court decision
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Reprinted courtesy of Garret Murai, Wendel Rosen Black & Dean LLP
Mr. Murai may be contacted at gmurai@wendel.com

Include Contract Clauses for Protection Against Ever-Evolving Construction Challenges

May 30, 2022 — Michael Henry & Kevin J. Riexinger - Construction Executive
The first quarter of 2022 provided a valuable glimpse into some of the major issues the construction industry can expect to continue impacting jobsites for the rest of the year. Early in the pandemic, construction was not immune from the shut-downs that swept across market sectors. Workers were staying home to shield themselves and their families from the COVID-19 virus (and variants). This caused delays with construction projects and failures to meet negotiated benchmarks or deadlines. Contractors were left to wonder whether they remained obligated to perform under their contracts, or whether COVID-19 allowed them to invoke force majeure clauses. Over the past two years, there has been much debate about whether force majeure clauses encompass COVID-19 risks. Traditionally, force majeure is only invoked for significant weather events or natural disasters. Unsurprisingly, outcomes of legal actions regarding COVID-19 and force majeure varied by state and by contract. It didn’t take long for contractors to seek a more predictable and certain solution. Reprinted courtesy of Michael Henry & Kevin J. Riexinger, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Mr. Riexinger may be contacted at kriexinger@gllawgroup.com Mr. Henry may be contacted at MbHenry@tcco.com Read the court decision
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Single-Family Home Gain Brightens U.S. Housing Outlook: Economy

January 21, 2015 — Shobhana Chandra – Bloomberg
Builders broke ground in December on the most single-family homes in almost seven years, propelling an unexpectedly large gain in U.S. housing starts that signals construction will contribute more to economic growth in 2015. Work began on 728,000 houses at an annual rate, a 7.2 percent increase from November and the most since March 2008, a Commerce Department report showed Wednesday in Washington. Total housing starts, which include apartments, climbed 4.4 percent to a 1.09 million pace. Read the court decision
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Reprinted courtesy of Shobhana Chandra, Bloomberg
Ms. Chandra may be contacted at schandra1@bloomberg.net

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