Cambridge Massachusetts Building Expert Directory

California Contractor License Bonds to Increase in 2016

December 02, 2015 — Garret Murai – California Construction Law Blog
The post, which originally appeared on The Surety Bond Insider, was written by Jon Gottschalk, a member of the SuretyBonds.com Educational Outreach team. on SuretyBonds.com helps contractors fulfill their bonding requirements. The Contractors State License Board (CSLB) is requiring all California contractors to purchase a $15,000 bond by January 1, 2016— a $2,500 increase from the $12,500 amount that was previously required. The additional $2,500 was previously accounted for by an additional requirement to obtain a contractor’s license. Those applying for the license had to post the $12,500 surety bond and proof of financial solvency in the amount of $2,500. Essentially, contractors were required to show that their current assets were greater than their liabilities by no less than $2,500. By increasing the bond amount to include that additional $2,500, the CSLB has removed the burden of proving financial solvency from those who wish to obtain their license. 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

Fifth Circuit Reverses Summary Judgment Award to Insurer on Hurricane Damage Claim

December 18, 2022 — Tred R. Eyerly - Insurance Law Hawaii
The Fifth Circuit reversed the district court's grant of summary judgment to the insurer on a property damage claim arising from Hurricane Harvey. Advanced Indicator and Manufacturing, Inc. v. Acadia Ins. Co., 50 F.4th 469 (2022). After Hurricane Harvey struck southern Texas in 2017, Advanced submitted a claim to Acadia for damage to its building that it claimed was caused by the hurricane's winds. Acadia sent an adjuster, Nick Warren, as well as an engineer, Jason Watson. Watson determined that pre-existing conditions - including ongoing leaks from deterioration and poor workmanship - caused the damage, rather than winds from Hurricane Harvey. Warren adopted these conclusions in his recommendations to Acadia. Acadia denied Advanced's claim based on these reports. Advanced sued Acadia, alleging breach of contract and bad faith. Advanced filed a motion to remand to state court which was denied. Acadia moved for summary judgment arguing that it did not breach the policy and that Advanced could not segregate any damages caused by hurricane from pre-existing damage. The district court granted Acadia's motion, finding that Acadia's denial of Advanced's claim was based on "extensive consideration of the evidence." Further, Advanced failed to carry its burden of showing that covered and non-covered damages could be segregated as required by Texas's concurrent causation doctrine. Finally, the bad faith claim was dismissed because there was no breach of contract. 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

Preserving your Rights to Secure Payment on Construction Projects (with Examples)

March 22, 2017 — David Adelstein – Florida Construction Legal Updates
All participants across the construction industry should understand what efforts they should take to maximize and collateralize payment. No one wants to work for free and, certainly, no one in the construction industry wants to work without ensuring there is some mechanism to recover payment in the event they remain unpaid. Being proactive and knowledgeable can go a long way when it comes to recovering your money. Your Contract – It starts with the contract. You should understand those risks that are allocated to you and those that are allocated to another party. And, you should understand the contractual mechanism to resolve claims and disputes and whether your contract has a prevailing party attorney’s fees provision. In addition to contractual rights, there are tools for you to maximize your collection efforts. Read the court decision
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Reprinted courtesy of David Adelstein, Florida Construction Legal Updates
Mr. Adelstein may be contacted at dadelstein@gmail.com

Water Leak Covered for First Thirteen Days

April 11, 2018 — Tred R. Eyerly - Insurance Law Hawaii
The Florida Court of Appeals recently held the policy's exclusion for repeated water seepage over a period of fourteen days or more does not exclude loss caused by the seepage for the first thirteen days. Hicks v. Am. Integrity Ins. Co. of Florida, 2018 Fla. App. LEXIS 2616 (Fla. Ct. App. Feb. 23, 2018). Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Natural Disasters’ Impact on Construction in the United States

December 14, 2020 — Robert S. Peckar & Crystal T. Dang - Construction Executive
In these times of easy and instant access to news from around the globe, the effects of major earthquakes in Indonesia and Mexico, cyclones in Southeast Asia, Tsunamis around the world, volcanoes in Europe in unexpected places and, of course, raging forest fires and hurricanes in the United States are frequently in the news. Accompanying each of these disasters are immediate threats to construction projects, both physical and those affecting the safety and health of personnel. However, after the dust settles or the waters recede, myriad issues will become obstacles to the road to recovery for a contractor to navigate. In 2020 alone, the volume of strong storms and forest fires have focused so much attention on the impact of disasters. The purpose of this article is to provide guidelines in anticipation of disasters, for reviewing the impact of a disaster as it is happening, and developing a mitigation plan to limit losses. Anticipating Disasters The best time to prepare for a disaster on a project is before the project starts. Reviewing contract rights, insurance policies and company disaster response protocols while a category 3 hurricane is a day away is not a best practice. To avoid falling into that situation, a contractor should follow the following guidelines. Doing so facilitates proper action during the actual disaster itself and in the aftermath. Reprinted courtesy of Robert S. Peckar & Crystal T. Dang, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Mr. Peckar may be contacted at rpeckar@pecklaw.com Ms. Dang may be contacted at cdang@pecklaw.com Read the court decision
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CDJ’s #6 Topic of the Year: Does Colorado Need Construction Defect Legislation to Spur Affordable Home Development?

December 31, 2014 — Beverley BevenFlorez-CDJ STAFF
The question involves whether a Colorado law passed in 2005 has made it too easy for homeowners to sue developers for construction defects, allegedly causing a decline in condominium building in the state. The Construction Defect Journal became a forum for this lively debate with two prominent, Colorado, construction defect attorneys providing their views on the subject: Jesse Howard Witt, of the Witt Law Firm, published “Colorado Mayors Should Not Sacrifice Homeowners to Lure Condo Developers.” Read the full story... In response, James M. Mulligan of Snell & Wilmer, LLP presented his perspective in, “Are Construction Defect Laws Inhibiting the Development of Attached Ownership Housing in Colorado?” Read the full story... The city of Lakewood did not wait for the state, but instead passed its own ordinance, which “gives developers and builders a ‘right to repair’ defects before facing litigation and would require condominium association boards to get consent from a majority of homeowners — rather than just the majority of the board — before filing suit,” according to John Aguilar’s piece in The Denver Post. Read the full story... Read the court decision
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President Trump’s “Buy American, Hire American” Executive Order and the Construction Industry

June 05, 2017 — Garret Murai - California Construction Law Blog
On April 18, 2017, President Trump signed Executive Order No. 13788 implementing his “Buy American, Hire American” campaign promise. Federal construction contractors familiar with “Buy American” clauses in federal contracts under the Federal Acquisition Regulations (FAR)–which require materials to be manufactured in the United States (or, depending on the clause, not manufactured in certain countries) unless a waiver is obtained–have waited anxiously to see what Trump’s “Buy American, Hire American” promise would mean for them. Well . . . as it turns out, not much, at least not yet. 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

Colorado homebuilders target low-income buyers with bogus "affordable housing" bill

March 05, 2015 — Jesse Howard Witt – Acerbic Witt
“Affordable housing” is the latest catchphrase for Colorado homebuilders seeking immunity from warranty claims and repair requests. In 2013, the homebuilders’ lobby said it was about public transportation. In 2014 they said it was about community building. Now it’s 2015, and the lobbyists are claiming that a lack of affordable housing is the reason why politicians should eliminate consumer protections for homebuyers. The Colorado Senate recently announced the introduction of SB 15-177. If passed, the bill will make it illegal for homeowner associations to hire construction experts or lawyers unless they can first satisfy a complicated disclosure and voting process. Although sponsors portray the bill as an innocuous measure that merely requires more community involvement, its provisions have actually been tailored to take advantage of recent court decisions that make it difficult for homeowner associations to vote on measures outside of a meeting or act quickly to resolve construction defect disputes. The intent is to make it nearly impossible for homeowners to retain construction experts or legal representation before the statute of limitations period expires, thereby making homebuilders immune from any potential claims. The bill will also eliminate the right to a jury trial in many cases, forcing any disputes that overcome the procedural hurdles into costly, private arbitration proceedings. The sponsors argue that these measures are necessary to encourage builders to erect more cheap condominiums. Read the court decision
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Reprinted courtesy of Jesse Howard Witt, The Witt Law Firm
Mr. Witt welcomes comments at www.acerbicwitt.com

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