Seattle Washington Building Expert Directory

The Basics of Subcontractor Defaults – Key Considerations

February 15, 2021 — Gerard J. Onorata - Peckar & Abramson, P.C.
The success of general contractors in completing a construction project is often dependent upon the performance of their subcontractors. General contractors have frequently said exactly this. Traditionally, the key subcontractors on a project are the electrical, plumbing, HVAC and structural steel subs. Due to the fundamental nature of the work performed by these trades, the risk of defaulting and terminating one or more of them is likely to have a substantial impact on the project, more so than with the trade contractors that perform their work after a building is made weather tight (i.e., drywall, tile, painting). Most general contractors have, over a period of years, established longstanding relationships with certain subcontractors that they have come to depend upon. The risk of having to default and terminate one of these subs is minimal. Nevertheless, there will inevitably arise occasions when even a once reliable subcontractor fails to perform and it becomes necessary to invoke the remedies of default and termination. Areas ripe for controversy with subcontractors that often can lead to default and termination often involve disputes over change orders and the scope of work, the installation of defective work and the back-charges that ensue therefrom, and, to a lesser extent, conflicts that arise from ambiguous plans and specifications and the extra work and delays caused by the discovery of unforeseen site conditions. Read the court decision
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Reprinted courtesy of Gerard J. Onorata, Peckar & Abramson, P.C.
Mr. Onorata may be contacted at gonorata@pecklaw.com

If You Don’t Like the PPP Now, Wait a Few Minutes…Major Changes to PPP Loan Program as Congress Passes Payroll Protection Program Flexibility Act

July 27, 2020 — Ryan J. Udell & Adam J. Chelminiak - White and Williams LLP
On June 5, 2020, President Trump signed into law the Payroll Protection Program Flexibility Act of 2020 (the Flexibility Act). The Flexibility Act provides much-needed flexibility for the Paycheck Protection Program (PPP) and its millions of business participants. The PPP offers loans to small businesses that have been adversely impacted by the COVID-19 pandemic and the measures taken by various governmental authorities to stem the spread of the virus so that they could keep their employees on the payroll during an eight-week period after receiving the funds. The PPP was particularly alluring to borrowers because the loans could be forgiven. But as the duration of lockdown orders and the accompanying economic aftershocks have extended longer than initially anticipated, particularly in those sectors that depend on in-person business such as restaurants, hospitality and other “main street” retail establishments, many recipients of PPP loans have found it challenging to use the PPP funds for payroll and other authorized purposes within the eight-week period after they had received the PPP funds, as is necessary to preserve eligibility for forgiveness. The Flexibility Act makes several key changes to the PPP program in order to allow borrowers who need a longer re-opening runway to do so without jeopardizing their ability to qualify for loan forgiveness. This alert outlines the key changes to the PPP made by the Flexibility Act. Reprinted courtesy of Ryan J. Udell, White and Williams LLP and Adam J. Chelminiak, White and Williams LLP Mr. Udell may be contacted at udellr@whiteandwilliams.com Mr. Chelminiak may be contacted at chelminiaka@whiteandwilliams.com; Read the court decision
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More Fun with Indemnity and Construction Contracts!

June 04, 2024 — Christopher G. Hill - Construction Law Musings
Well, I’m back. It’s been quite a while since my last post due to some busy family times and running my law practice. Hopefully, you will hear from me more often in the future. Now. . . on with the post: I have often discussed indemnity provisions here at Construction Law Musings. I’ve posted on a range of things relating to indemnity from when those sticky clauses are unenforceable to what to look out for in such a clause when reviewing your construction contract. A recent case out of Fairfax examines another wrinkle in these indemnity clauses. In Leesburg Pike, Falls Church, LLC v. Paramount Constr. Servs., LLC, the Court examined the language of a fairly typical indemnity clause in a construction contract. The general facts of the case are as follows. The Plaintiff alleged that it owns the property at 6129 Leesburg Pike, that it entered into a contract with Paramount Construction Services LLC to install clothes washers and dryers in individual units at the property, and that, in the process, Paramount (or one of its subcontractors) negligently severed a water pipe, which caused significant damage to the property. The plaintiff’s property insurance carrier agreed to pay the plaintiff $2,598,918.41. But the actual damages exceeded that payment by $952,020.90. The plaintiff sued Paramount for $952,020, pursuant to an indemnity provision in the contract. Paramount demurred to the Complaint arguing that the indemnity clause did not apply to create liability for Paramount. Read the court decision
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Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

Construction Defects Up Price and Raise Conflict over Water Treatment Expansion

August 27, 2013 — CDJ STAFF
The owner of a regional water treatment plant in California has filed a lawsuit against the where they operate. Construction defects lead to cost overruns at the Modesto Irrigation District’s water treatment plant. Now the question is whether MID or Modesto will be paying for the expenses. Both parties sued Black & Veatch and others, receiving $14.9 million. But the problems have lead to the cost of the water treatment plant expansion ballooning to $107.5 million, a big jump over the planned $62.9 million. Also, instead of being completed in 2009, the completion date has been pushed to 2015. Modesto originally agreed to pay for the expansion, which will increase plant’s ability to provide drinking water to 66 million gallons per day with the agreement that MID would provide the water at the cost of producing it. But now the cost to Modesto of those additional 36 million gallons a day is an additional $44.6 million. Read the court decision
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Construction Worker Dies after Building Collapse

November 18, 2011 — CDJ STAFF

A Bronx construction worker died when the pillars gave way in the basement where he was working. The two-story commercial building collapsed, burying Mr. Kebbeh under about six feet of rubble. The New York Times reports that firefighters dug him out with their bare hands. Mr. Kebbeh was taken to Jacobi Medical Center where he died. Two other construction workers escaped unharmed.

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Claims Against Broker Dismissed

June 20, 2022 — Tred R. Eyerly - Insurance Law Hawaii
Claims that the broker failed to secure adequate coverage for condominium owners were dismissed. Ting Lin v. Mountain Valley Indemn. Co., 2022 N.Y. Misc. LEXIS 1254 (N.Y. Sup. Ct. March 10, 2022). The amended complaint alleged the agent, Century Max Inc., breached its duty to advise and sell to plaintiffs a homeowners and fire policy far in excess of $100,000 for their condominium unit, which was worth in excess of $600,000. Century moved to dismiss A fire in the building forced all owners to vacate their units. The entire building was thereafter declared unsafe for habitation by the City of New York. The condominium owners met and voted to not restore the building, but to sell the burnt-out shell and distribute the sales proceeds and the condominium's insurance among the unit owners. There was no indication that the owners would not be made whole once the funds were distributed. 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

Alexis Crump Receives 2020 Lawyer Monthly Women in Law Award

August 31, 2020 — Alexis Crump - Lewis Brisbois
Los Angeles Partner Alexis G. Crump has been recognized with a 2020 Lawyer Monthly "Women in Law Award." In receiving this honor, Ms. Crump joins an elite group of women from around the world who have influenced the legal profession with their experience and expertise. Lawyer Monthly’s "Women in Law Awards" emerged as one of the first industry awards to celebrate the achievements and contributions made by women working globally in the legal sector and in business. Recognizing women at all levels of seniority, the publication seeks to acknowledge the challenges that female legal professionals regularly overcome to serve their clients and perform at their best. “It is an honor to be recognized alongside so many outstanding and accomplished women. I look forward to continuing to support my colleagues in their work and participating in the global network of female attorneys,” Ms. Crump said. Read the court decision
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Reprinted courtesy of Alexis Crump, Lewis Brisbois
Ms. Crump may be contacted at Alexis.Crump@lewisbrisbois.com

EEOC Builds on Best Practice Guidance Regarding Harassment Within the Construction Industry

August 12, 2024 — Abby M. Warren & Christohper A. Costain - Construction Law Zone
In June 2024, the Equal Employment Opportunity Commission (EEOC) issued guidance tailored to the construction industry concerning harassment in the workplace or at the jobsite. The guidance is important for construction industry leaders and employers to understand how to prevent and remedy harassment in the workplace — more than a third of all EEOC discrimination charges filed between 2019 and 2023 asserted harassment. The guidance represents the EEOC’s latest effort in executing its Strategic Enforcement Plan for Fiscal Years 2024 to 2028, which, in part, focuses on combatting systemic harassment and eliminating barriers in recruitment and hiring, particularly for underrepresented groups in certain industries, including women in construction, through the EEOC’s enforcement efforts. In this article, we highlight key principles and practices from this guidance Leadership and Accountability The guidance reiterates that consistent and demonstrated leadership is critical to creating and maintaining a workplace culture where harassment is unacceptable and strictly prohibited. Worksite leaders, including project owners, crew supervisors, and union stewards, are each expected to regularly communicate that harassment is intolerable through several suggested efforts. Reprinted courtesy of Abby M. Warren, Robinson+Cole and Christohper A. Costain, Robinson+Cole Ms. Warren may be contacted at awarren@rc.com Mr. Costain may be contacted at ccostain@rc.com Read the court decision
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