Address 'Your Work' Exposure Within CPrL Policies With Faulty Workmanship Coverage
December 29, 2020 —
Joseph Reynolds - Construction ExecutiveNew faulty workmanship coverage forms have emerged to potentially address the “your work” exposure found in most contractors professional liability (CPrL) policies. Once offered by only a single carrier, several insurers have recently entered the marketplace to cover the cost to repair or replace faulty work or the related material costs associated with the “self-performed work” of general and trade contractors.
Commonly serving as a separate insuring agreement and offered in carrier-specific CPrL policies, faulty workmanship coverage forms are designed to protect contractors from the “your work” claims triggered by project owners and other third parties. This includes the contractor’s workmanship as well as the equipment, parts and materials such as steel beams, epoxy activators and anchor bolts used to perform construction work.
Insureds should be aware that exclusions and strict conditions apply. For instance, faulty workmanship policies typically do not cover resulting bodily injury and property damage and some policies even exclude project delays and other business risks that can arise from the claims of unhappy customers. Another potentially confusing issue is the scope of coverage offered under a ‘faulty work’ endorsement. While some faulty workmanship enhancements are specifically-designed to cover “your work,” claims, others may only cover the products manufactured or fabricated by the insured and not the work they perform or install.
Reprinted courtesy of
Joseph Reynolds, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Read the court decisionRead the full story...Reprinted courtesy of
Mr. Reynolds may be contacted at
joseph.reynolds@rtspecialty.com
The Great London Property Exodus Is in Reverse as Tenants Return
June 06, 2022 —
Lizzy Burden - BloombergTenants flocking to London are driving up rents in the capital, reversing the pandemic “race for space” and adding to the UK’s cost-of-living crisis.
A record 30% of homes let in London this year went to people who previously lived outside the city, according to estate agent Hamptons. The surrounding areas of Berkshire, Buckinghamshire, Essex, Hertfordshire, Kent and Surrey –- known as the Home Counties – now account for more than half of tenants moving in.
However, people are tending to move to London for lifestyle reasons rather than because they are being summoned back to the office, Hamptons said. Study and changes in family circumstances are often providing the trigger.
Read the court decisionRead the full story...Reprinted courtesy of
Lizzy Burden, Bloomberg
The Top 10 Changes to the AIA A201: What You Need to Know
May 24, 2018 —
Christopher G. Hill - Construction Law MusingsFor this week’s Guest Post Friday here at Musings, we welcome back Melissa Dewey Brumback. Melissa is a construction law attorney with Ragsdale Liggett in Raleigh, North Carolina. Aside from the fact that she is a UNC grad and fan, she’s okay!
In 2017, as it does every ten years, the American Institute of Architects (AIA) updated most of its standard form contract documents, including the A201 General Conditions. This cycle, the contract changes are evolutionary in nature, not revolutionary. Even so, it is crucial to know the changes to avoid making a fatal mistake that could cost you money on a construction project. In reverse order, the top 10 changes you need to know include:
# 10: Differing Site Conditions
Prior editions of the A201 provided that upon encountering differing site conditions, the Contractor was to promptly provide notice to the Owner and Architect, before the conditions are disturbed, and in no event later than 21 days after the conditions were first observed. A201–2017 shortens the time for notice from 21 to 14 days.
Read the court decisionRead the full story...Reprinted courtesy of
Christopher G. Hill, The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Return-to-Workplace Checklist: Considerations and Emerging Best Practices for Employers
July 20, 2020 —
Nancy Conrad & George C. Morrison - White and Williams LLPAs employers plan to return employees to the workplace, they should proceed with careful planning and incorporate best practices and measures to assure a safe, responsible and productive workplace. While there is no "one size fits all" plan, the following checklist will assist in assuring that your work environment includes the key safety components to return to the workplace in the midst of a pandemic.
PREPARING THE WORKPLACE FOR RETURN & GENERAL HEALTH AND SAFETY
- Create a company task force, safety committee or coordinator to oversee implementation of policies that address and enforce practices related to COVID-19.
- Ensure HVAC systems are functional, have been properly cleaned and serviced and tuned to maximize airflow and filtration.
- Review and increase cleaning protocols in coordination with lease terms and cleaning contracts. Ensure regular and thorough office cleanings, with a focus on high-touch surfaces and areas. Document cleaning protocols and schedule.
- Implement social distancing requirements and provide visual markers on floors in compliance with applicable federal, state and local orders.
- Rearrange work spaces, conference rooms and lunchrooms to comply with social distancing requirements.
- Post notices about the number of individuals permitted in elevators, stairwells, rooms and on the premises.
- Restrict movement between departments and floors.
Reprinted courtesy of
Nancy Conrad, White and Williams LLP and
George C. Morrison, White and Williams LLP
Ms. Conrad may be contacted at conradn@whiteandwilliams.com
Mr. Morrison may be contacted at morrisong@whiteandwilliams.com
Read the court decisionRead the full story...Reprinted courtesy of
Insurance Tips for Contractors
December 08, 2016 —
Patrick McNamara - Porter Law GroupMany contractors contentedly accept the insurance policies presented to them by their insurance carriers. However, it is a much better practice to be an active participant in choosing the most appropriate coverage for your business and the specific jobs that you are performing. Use the following tips to be sure your company has the best and most comprehensive coverage.
- Never purchase a Commercial General Liability (“CGL”) policy with a “sunset” provision limiting coverage under Products & Completed Operations liability (P&CO) to a 2, 3 or 4-year term. Why? Because the California statute of limitations for construction defect claims is generally 10 years.
- Never consider a “Claims-made” or “Modified Occurrence” coverage form which also have a built-in limitation as to the length or term of P&CO coverage. Example: If you purchase a claims-made policy and decide to “switch” your insurance to the preferred “occurrence” coverage form, unless a special provision is made prior to the new purchase, the claims-made coverage would become worthless after the sixty (60) day claims-reporting period.
Read the court decisionRead the full story...Reprinted courtesy of
Patrick McNamara, Porter Law GroupMr. McNamara may be contacted at
pmcnamara@porterlaw.com
School District Practice Bulletin: Loose Lips Can Sink More Than Ships
April 08, 2014 —
Gregory J. Rolen – Haight Brown & Bonesteel LLPWe all understand how idle conversation and gossip can negatively impact relationships and workplace morale. But can they cause a school district to lose their lawyer? It is black-letter law that confidential communications between attorney and client are privileged, inadmissible, and cannot be later used against that client by third parties. However, under many circumstances confidential communications that occurred just outside the traditional attorney-client relationship can result in disqualification of counsel. In an environment when many educators become lawyers and education lawyers go from job to job and from client to client, care must be given to the context in which such communications occur.
I. The Ethical Duty of Confidentiality Is Broader Than the Attorney-Client Privilege.
Generally, every lawyer has a duty to refuse to disclose, and to prevent another from disclosing, a confidential communication between the attorney and client. (Fox Searchlight Pictures, Inc. v. Paladino (2001) 89 Cal. App .4th 294, 309; Evid. Code § 954.) The attorney-client privilege is statutory and permits the holder of the privilege to prevent disclosure, including testimony by the attorney, as to communications that are subject to the privilege. (Evid. Code §§ 952-955.)
The attorney’s ethical duty of confidentiality under Business & Professions Code section 6068(e) is broader than the attorney-client privilege. It extends to all information gained in the professional relationship that the client has requested be kept secret or the disclosure of which would likely be harmful or embarrassing to the client. (See Cal. State Bar Formal Opns. No. 1993-133, 1986-87, 1981-58, and 1976-37; Los Angeles County Bar Association Formal Opns. Nos. 456, 436, and 386. See also In re Jordan (1972) 7 Cal.3d 930, 940-41.) However, if the status of the person and the purpose of the conversation is unclear to the attorney, highly negative outcomes may result.
Read the court decisionRead the full story...Reprinted courtesy of
Gregory J. Rolen, Haight Brown & Bonesteel LLPMr. Rolen may be contacted at
grolen@hbblaw.com
Constructive Suspension (Suspension Outside of an Express Order)
December 13, 2022 —
David Adelstein - Florida Construction Legal UpdatesIn the federal procurement arena, there is a concept known as “constructive suspension.” Constructive suspension, while known in the federal arena, should reasonably apply to all projects when work is stopped outside of an express order to stop the work based on the law below. An unreasonable suspension is an unreasonable suspension and an express order to stop the work does not negate the effects of what really amounts to a suspension.
“Constructive suspension occurs when work is stopped absent an express order by the contracting officer and the government is found to be responsible for the work stoppage.” P.R. Burke Corp. v. U.S., 277 F.3d 1346, 1359 (Fed. Cir. 2002). The government delay must be unreasonable to support a constructive acceleration claim. Id.
“To demonstrate such a constructive suspension of work, the contractor must show that the delay (1) was for an ‘unreasonable length of time,’ (2) was proximately caused by the government’s actions, and (3) resulted in some injury to the contractor.” Fireman’s Fund Ins. Co. v. U.S., 2001 WL 36415627, *6 (Fed.Cl. 2001) (citation omitted). “Relative to proving that the delay was directly caused by the government, the contractor must concomitantly show that it was not delayed by any concurrent cause that would have independently generated the delay during the same time period even if it does not predominate over the government’s action as the cause of the delay.” Beauchamp Const. Co. v. U.S., 14 Cl.Ct. 430, 437 (Cl.Ct. 1988).
Read the court decisionRead the full story...Reprinted courtesy of
David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Vegas Hi-Rise Not Earthquake Safe
July 12, 2011 —
CDJ STAFFIf an earthquake hit Las Vegas, the Harmon Tower would not withstand it. A report from Weidlinger Associates told MGM Resorts that “in a code-level earthquake, using either the permitted or current code specified loads, it is likely that critical structural members in the tower will fail and become incapable of supporting gravity loads, leading to a partial or complete collapse of the tower.” The inspection came at the request of county officials, according to the article in Forbes.
According to Ronald Lynn, directory of the building division in the county’s development services division, “these deficiencies, in their current state, make the building uninhabitable.” The county is concerned about risks to adjacent buildings.
MGM Resorts is currently in litigation, separate from the stability issues, with Perini Corp., the builders of Harmon Tower.
Read the full story…
Read the court decisionRead the full story...Reprinted courtesy of
