New Index Tracking Mortgages for New Homes
June 18, 2014 —
Beverley BevenFlorez-CDJ STAFFThe National Association of Home Builders’ Eye on Housing reported that the Mortage Bankers Association (MBA) completed their Builder Application Survey (BAS), which demonstrated that “mortgage applications for new home purchases decreased by a not seasonally adjusted monthly rate of 8.4% in May 2014. However, on a 12-month basis, mortgage applications for new home purchases in May 2014 were 4.9% higher than their level in May 2013.”
According to Eye on Housing, “This is the fifth consecutive month of year-over-year increases in mortgage applications for new home purchases.”
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Construction Safety Technologies – Videos
November 02, 2017 —
Aarni Heiskanen - AEC BusinessSmart hard hats, drone imaging, indoor positioning, and augmented reality are some of the technologies that can make construction sites safer.
Construction remains one of the most dangerous industries. In the USA, one in ten construction workers are injured every year. According to ILO, there are at least 60,000 fatal accidents on construction sites around the world every year, one in every 10 minutes. Investments in safety will certainly pay off.
Culture, behavior, and attitudes have a great impact on construction safety. Technology can help, but only if it is used properly and consistently. Here’s a collection of recent videos that explain and demonstrate how digital technology can advance construction safety.
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
info@aepartners.fi
Court Bars Licensed Contractor From Seeking Compensation for Work Performed by Unlicensed Sub
June 06, 2022 —
Garret Murai - California Construction Law BlogIt all started with a tree.
A eucalyptus tree to be exact.
What followed is one of the more important cases to be decided under Business and Professions Code section 7031 in recent years. Yes, that Section 7031. The statute variously described by the state’s courts as “harsh[ ],” draconian” and “unjust,” but, importantly, nevertheless valid.
Under Section 7031, an unlicensed contractor is barred from seeking compensation for work requiring a contractor’s license. This has been called the “shield.” However, in addition to the “shield,” project owners can also employ Section 7031’s “sword,” and seek disgorgement of all monies paid to an unlicensed contractor. Section 7031’s “shield” and “sword” applies even if the project owner knew that the contractor was unlicensed. They also apply even if the unlicensed contractor’s work was flawless. And they also apply even if a contractor was unlicensed during a portion of its work. This is because, as courts have stated, Section 7031 is a consumer protection statute intended to protect the public from unlicensed contractors and applies irrespective of the equities.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Wildfire Insurance Coverage Series, Part 3: Standard Form Policy Exclusions
July 11, 2022 —
Scott P. DeVries & Yosef Itkin - Hunton Insurance Recovery BlogEven when claims are within the scope of coverage, insurers often rely on exclusions in an attempt to avoid coverage for wildfire claims. In this post in the Blog’s Wildfire Insurance Coverage Series, we discuss the interplay between coverage grants and exclusions, and the “anti-concurrent cause” provision.
Insurers may cite exclusions in an attempt to reduce or avoid liability. The insurance industry has long relied on the Insurance Services Office (ISO) to draft standard form policy language and secure approval as required by state regulatory agencies. ISO Form HO 00 03 10 00 (Section I—Exclusions, Part B) provides the following form exclusionary language:
We do not insure for loss to property described in Coverages A and B caused by any of the following. However, any ensuing loss to property described in Coverages A and B not precluded by any other provision in this policy is covered.
Reprinted courtesy of
Scott P. DeVries, Hunton Andrews Kurth and
Yosef Itkin, Hunton Andrews Kurth
Mr. DeVries may be contacted at sdevries@HuntonAK.com
Mr. Itkin may be contacted at yitkin@HuntonAK.com
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Robinson+Cole’s Amicus Brief Adopted and Cited by Massachusetts’s High Court
July 31, 2024 —
Erica Whaley - Construction Law ZoneEarlier this year, the
Associated Subcontractors of Massachusetts hired Robinson+Cole attorney
Joseph Barra to submit an amicus brief to the Massachusetts Supreme Judicial Court for consideration in the appeal pending before it in
Business Interiors Floor Covering Business Trust v. Graycor Construction Co., Inc. In its June 17, 2024 decision in that case, the Court interpreted the Massachusetts Prompt Pay Act, which applies to private construction projects and “requires that parties to a construction contract approve or reject payment within” an allotted time period and in compliance with certain procedures else such payments will be deemed approved. Two years ago, the Massachusetts Appeals Court, in
Tocci Building Corp. v. IRIV Partners, LLC, decided that an owner who fails to timely advise its general contractor of the reasons as to why it was withholding payment, coupled with failure to certify that such funds are being withheld in good faith, violates the Prompt Pay Act and makes the owner liable for funds owed.
[1] However, the Tocci Building Court left open the question of whether one who violates the Prompt Pay Act forfeits its substantive defenses to non-payment, such as fraud, defective work, or breach of material obligation of the contract.
The facts of Business Interiors involve a general contractor, Graycor, which subcontracted Business Interiors to perform certain flooring work for a movie theatre in Boston’s North End. When Graycor failed to formally approve, reject, or certify, in good faith, its withholding of payment of three of Business Interiors’ applications for payment as prescribed by the Prompt Pay Act, Business Interiors brought suit alleging, among other things, breach of contract. Business Interiors then moved for summary judgement arguing that Graycor’s failure to comply with the Act rendered it liable for the unpaid invoices.
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Robinson + Cole
Rooftop Solar Leases Scaring Buyers When Homeowners Sell
June 26, 2014 —
Will Wade – BloombergDorian Bishopp blames the solar panels on his roof for costing him almost 10 percent off the value of the home he sold in March.
That’s because instead of owning them he leased the panels from SunPower Corp. (SPWR), requiring the new owner of the house to assume a contract with almost 19 years remaining. He had to shave the asking price for the house in Maricopa, Arizona, to draw in buyers unfamiliar with the financing arrangement.
Leasing is driving a boom in solar sales because most require no money upfront for systems that cost thousands of dollars. That’s made solar affordable for more people, helping spur a 38 percent jump in U.S. residential installations in the past year. Since the business model only gained currency in the past two years, the details embedded in the fine print of the deals are only starting to emerge.
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Will Wade, BloombergMr. Wade may be contacted at
wwade4@bloomberg.net
More Hensel Phelps Ripples in the Statute of Limitations Pond?
February 03, 2020 —
Christopher G. Hill - Construction Law MusingsAs is always the case when I attend the Virginia State Bar’s annual construction law seminar, I come away from it with a few posts on recent cases and their implications. The first of these is not a construction case, but has implications relating to the state project related statute of limitations and indemnification issues for construction contracts brought out in stark relief in the now infamous Hensel Phelps case.
In Radiance Capital Receivables Fourteen, LLC v. Foster the Court considered a waiver of the statute of limitations found in a loan contract. The operative facts are that the waiver was found in a Continuing Guaranty contract and that the default happened more than 5 years prior to the date that Radiance filed suit to enforce its rights. When the defendants filed a plea in bar stating that the statute of limitations had run and therefore the claim was barred, Radiance of course argued that the defendants had waived their right to bring such a defense. The defendants responded that the waiver was invalid in that it violated the terms of Va. Code 8.01-232 that states among other things:
an unwritten promise not to plead the statute shall be void, and a written promise not to plead such statute shall be valid when (i) it is made to avoid or defer litigation pending settlement of any case, (ii) it is not made contemporaneously with any other contract, and (iii) it is made for an additional term not longer than the applicable limitations period.
The Circuit Court and ultimately the Supreme Court agreed with the defendants. In doing so, the Virginia Supreme Court rejected arguments of estoppel and an argument that a “waiver” is not a “promise not to plead.”
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Construction Project Bankruptcy Law
February 05, 2014 —
Beverley BevenFlorez-CDJ STAFFGarret Murai, on the California Construction Law Blog, discusses the ins and outs of bankruptcy in construction projects. Murai discusses “bankruptcy basics” and answers questions regarding filing for project owners, general contractors, and subcontractors.
Murai explained the importance of learning about how bankruptcy affects construction projects: “Bankruptcy on a construction project is one of the biggest fears for owners and contractors. At best it can slow down a project and at worst it can cause a domino effect of bankruptcies as contractors and suppliers aren’t paid, causing the entire project to fail.”
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