No Coverage for Additional Insured for Construction Defect Claim
July 02, 2024 —
Tred R. Eyerly - Insurance Law HawaiiThe Seventh Circuit affirmed the district court's grant of summary judgment to the insurers, finding there was no coverage for the additional insured on a construction defect claim. St. Paul Guardian Ins. Co. v. Walsh Construction. Co., 2024 U.S. App. LEXIS 10285 (7th Cir. April 29, 2024).
The City of Chicago hired Walsh Construction Company as general contractor for the Facade and Circulation Enhancement (FACE) project at O'Hare International Airport. The FACE project involved building and installing a new canopy for Terminals 1, 2 and 3. The project also called for the construction of a steel and glass curtain wall that would be integrated with the curtain wall at Terminals 2 and 3. Walsh contracted with Carlo Steel Corporation to manufacture the steel and curtain wall. Carlo, in turn, subcontracted with LB Steel, LLC to manufacture and install the steel elements of the wall, which included steel columns, hammer heads and box girders. The subcontract between Carlo and LB Steel included an indemnity provision that required LB Steel to indemnify Carlo and Walsh for any property damage resulting from LB Steel's negligent performance.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Safe Commercial Asbestos-Removal Practices
April 18, 2023 —
Emily Newton - Construction ExecutiveContractors must proceed with caution to safely remove asbestos and protect employees and commercial buildings. Only contractors licensed by the Environmental Protection Agency (EPA) in abatement should dispose of it, because the best asbestos-removal practices require high degrees of care and safety.
Asbestos is a stealthy material, quickly becoming airborne and contaminating other areas of the building and humans. No matter a contractor's tenure in the field, it's vital to remember the top practices in the industry as people learn more about elusive, toxic asbestos-containing materials (ACMs).
Wait for Technician and Inspector Feedback
It’s important to find out if a jobsite contains asbestos. Proceed with caution if the structure was built before the 1990s. The removal process shouldn't start immediately if a business suspects asbestos and reaches out to a company. Inspectors scope the situation and grab samples for lab testing to determine how abaters should handle the case. They will need to know every potential hiding place for the asbestos, analyzing everything from caulking to wiring for asbestos coatings and other variants of the substance. This may take time, but commercial contractors must wait until they receive this information before proceeding.
Reprinted courtesy of
Emily Newton, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Killer Subcontract Provisions
January 20, 2020 —
Patrick McNamara - Porter Law GroupWe are frequently requested by subcontractor clients to review the subcontract that has been prepared by the prime contractor, before our client signs it. While no two agreements are identical, there are a number of problematic contract provisions that appear in many agreements. Here is a list of ten such provisions (and their variations) that are potential “deal breakers”:
- PAY IF/WHEN PAID (e.g. “Contractor shall have the right to exhaust all legal remedies, including appeals, prior to having an obligation to pay Subcontractor.”) “Pay-if-paid” provisions (“Receipt of payment from Owner shall be a condition precedent to Contractor’s duty to pay Subcontractor”) are illegal in California. However, the only legal limit on “Pay-When-Paid” provisions is that payment must be made “within a reasonable time.” The example above, as written, essentially affords the prime contractor a period of several years following completion of the project before that contractor has an independent duty to pay its subcontractors – not a “reasonable” amount of time, to those waiting to be paid. A compromise is to provide a time limit, such as 6 months or one year following substantial completion of the project.
- CROSS-PROJECT SET-OFF (e.g. “In the event of disputes or default by Subcontractor, Contractor shall have the right to withhold sums due Subcontractor on this Project and on any other project on which Subcontractor is performing work for Contractor.”) Such provisions are problematic and likely unenforceable, as they potentially bar subcontractors’ lien rights. Such provisions should be deleted.
- CONTRACTOR/SUBCONTRACTOR RESPONSIBILITY FOR DESIGN QUALITY (e.g. “Subcontractor warrants that the Work shall comply with all applicable laws, codes, statutes, standards, and ordinances.”) Unless a subcontractor’s scope of work expressly includes design work, this provision should either be deleted or modified, with the addition of the following phrase: “Subcontractor shall not be responsible for conformance of the design of its work to applicable laws, codes, statutes, standards, and ordinances.”
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Patrick McNamara, Porter Law GroupMr. McNamara may be contacted at
pmcnamara@porterlaw.com
Make Sure to Properly Perfect and Preserve Construction Lien Rights
December 07, 2020 —
David Adelstein - Florida Construction Legal UpdatesIf you recording a construction lien (referred to as a claim of lien) and looking to perfect your construction lien foreclosure rights, it is imperative that you work with counsel to ensure your rights are properly preserved. This is good practice!
A claim of lien must be served on an owner within 15 days after recording. Florida Statute s. 713.08(4)(c) says: “The claim of lien shall be served on the owner. Failure to serve any claim of lien in the manner provided in s. 713.18 before recording or within 15 days after recording shall render the claim of lien voidable to the extent that the failure or delay is shown to have been prejudicial to any person entitled to rely on the service.”
Florida Statute s. 713.18, hyperlinked for your review, includes the statutory ways to serve “notices, claims of lien, affidavits, assignments, and other instruments permitted or required under [Florida Statutes Chapter 713].”
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
KB Home Names New President of its D.C. Metro Division
November 05, 2014 —
Beverley BevenFlorez-CDJ STAFFThe Washington Business Journal reported that Jon Adler has been named president of Los Angeles-based KB Home's D.C. Metro division. Adler "most recently a partner with The Georgelas Group in McLean, and served as president and CEO of its Bryton Homes division. Prior to that, he held executive roles at Reston-based NVR Inc."
KB Home, since 1957, "has built more than half of a million homes," according to the Washington Business Journal. "It currently builds in 10 states."
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Union THUGS Plead Guilty
October 15, 2014 —
Craig Martin – Construction Contractor AdvisorSome time ago, I wrote about union THUGS (The Helpful Union Guys) that tormented merit shops to force contractors to use union labor on projects. The THUGS set fire to equipment, beat contractors with baseball bats, and picketed apartment complexes where contractors lived.
Recently two of the ten union members plead guilty to arson-related charges, including two counts of maliciously damaging property by means of fire, extortion, and RICO conspiracy charges.
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Craig Martin, Lamson, Dugan and Murray, LLPMr. Martin may be contacted at
cmartin@ldmlaw.com
Triple Points to the English Court of Appeal for Clarifying the Law on LDs
July 01, 2019 —
Vincent C. Zabielski & Julia Kalinina Belcher - Gravel2GavelCan an employer recover liquidated damages (LDs) from a contractor if the contract terminates before the contractor completes the work?
Surprisingly, heretofore, English law provided no clear answer to this seemingly straightforward question, and inconsistent case law over the past century has left a trail of confusion. Given the widespread use of English law in international construction contracts, this uncertainty had gone on far too long.
The good news is that drafters of construction contracts throughout the world can now have a well-deserved good night’s sleep courtesy of the English Court of Appeal’s March 2019 decision in Triple Point Technology, Inc. v PTT Public Company Ltd [2019] EWCA Civ 230.
The Triple Point case concerned the delayed supply by Triple Point (the “Contractor”) of a new software system to employer PTT. The contract provided for payments upon achievement of milestones, however order forms incorporated into the contract set out the calendar dates on which fixed amounts were payable by PTT, resulting in an apparently contradictory requirements on when payment was due. Triple Point achieved completion (149 days late) of a portion of the work milestones, and were paid for that work. Triple Point then sought payment for the work which was not yet completed, relying on the calendar dates in the order forms rather than achievement of milestone payments. Things got progressively worse as PTT refused payment, Triple Point suspended the work for PTT’s failure to pay, PTT terminated the contract and then appointed a new contractor to complete the work.
Reprinted courtesy of
Vincent C. Zabielski, Pillsbury and
Julia Kalinina Belcher, Pillsbury
Mr. Zabielski may be contacted at vincent.zabielski@pillsburylaw.com
Ms. Belcher may be contacted at julia.belcher@pillsburylaw.com
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Creating a Custom Home Feature in the Great Outdoors
July 09, 2014 —
Beverley BevenFlorez-CDJ STAFFWhen a resort designer and a spa director join together to create a custom home, what do you get? An outdoor tub that resides on a balcony overlooking the San Francisco Bay.
According to Custom Home, Scott Lee, president of SB Architects, and his wife had the “custom cast concrete tub…craned into place on the third-story deck while avoiding an established oak tree.” A radiant heat lamp makes the outdoor bathing area practical, while the curved backrest, remote controlled dimmable lights, and music make the experience luxurious.
“Tubs are more about relaxing then getting clean,” Lee told Custom Home. “Being out here among the branches with views of San Francisco, it really is like a resort.”
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