Your Contract is a Hodgepodge of Conflicting Proposals
January 06, 2016 —
Craig Martin – Construction Contractor AdvisorOuch. That’s what a court called a contract to remediate petroleum contamination at a number of gas stations in New York. Sometimes, it’s hard to believe the contracts that get signed.
Environmental Risk hired Science Applications to remediate petroleum contamination at 47 gas stations. Environmental Risk had previously entered into a Professional Services Master Agreement with Science Applications, but also required Science Applications to sign three separate, but basically identical, subcontracts called the Project Specific Scopes of Work. So, right from the start, there were four contracts that could apply to Science Applications’ work.
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Craig Martin, Lamson, Dugan and Murray, LLPMr. Martin may be contacted at
cmartin@ldmlaw.com
Incorporate Sustainability in Building Design to Meet Green Construction Goals
September 25, 2018 —
Norma Lehman - Construction ExecutiveA few miles outside the city limits of Austin, Texas, construction work is expected to soon begin on the Austin Ridge Bible Church’s tri-level, 80,000-square-foot building. The building will house a 2,500-seat sanctuary, classrooms and other spaces where congregants can gather for prayer and fellowship.
When the project is completed, scheduled for the end of 2019, it will produce a worship place that will significantly reduce the building’s energy costs in the years ahead.
Reprinted courtesy of
Norma Lehman, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Product Defect Allegations Trigger Duty To Defend in Pennsylvania
August 31, 2020 —
Stacy M. Manobianca - Saxe Doernberger & VitaThe Third Circuit Court of Appeals recently concluded, in Nautilus Insurance Co. v. 200 Christian Street Partners, LLC., that a duty to defend is triggered when product-related allegations are pled in connection with a claim for defective construction.
In Nautilus, the coverage dispute arose out of two independent underlying lawsuits in which homeowners alleged that the homes built by 200 Christian Street Partners (“Christian Street”) were defectively constructed. Christian Street tendered the claim to its insurer, Nautilus Insurance Co. (“Nautilus”), for defense and indemnity.1
Nautilus filed a lawsuit in the United States District Court for the Eastern District of Pennsylvania, seeking a declaration that it was not obligated to defend Christian Street in the underlying actions.2 Specifically, Nautilus asserted that it was not required to provide a defense in the underlying actions because Pennsylvania law does not consider faulty workmanship to constitute an “occurrence” and, therefore, to trigger the policy’s insuring agreement and the insurer’s duty to defend.3
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Stacy M. Manobianca, Saxe Doernberger & VitaMs. Manobianca may be contacted at
smm@sdvlaw.com
How Will Today’s Pandemic Impact Tomorrow’s Construction Contracts?
October 26, 2020 —
Levi W. Barrett, Nathan A. Cohen & Mark A. Snyder - Peckar & AbramsonThe emergence of COVID-19 has created a new set of challenges in the already complex world of negotiating construction contracts. In the pre-COVID-19 era, general contractors, construction managers and those negotiating on their behalf, needed to balance a variety of fairly well-established legal risks and exposures and commercial realities with the need to maintain a positive relationship with their counterparty. While many are rightfully concerned with addressing the impacts of COVID-19 to their on-going projects, those negotiating new contracts now are undoubtedly cognizant that they are negotiating in the midst of an unpredictable future that is tipping the historical negotiating balance. The following presents some crucial areas to focus on when negotiating and drafting your contracts in this new era.
Contract Terms Through the COVID-19 Lens
Contractors should examine proposed new contracts carefully to identify rights that afford COVID-19 protections and identify contractual obligations that create COVID-19 commercial risks.
Specific attention should be paid to those sections relating to force majeure/excusable delay, emergencies, changes (including changes in law), contingency, suspension and termination, site investigation as well as all representations and warranties. The paramount concern in examining these provisions is to ensure that they not only entitle the contractor to relief for those unknown events, emergencies and changes, but that they also contain sufficient entitlement for the contractor to obtain both time extensions and financial compensation for unknown impacts of a known event – the COVID-19 pandemic.
Reprinted courtesy of
Levi W. Barrett, Peckar & Abramson, P.C.,
Nathan A. Cohen, Peckar & Abramson, P.C.and
Mark A. Snyder, Peckar & Abramson, P.C.
Mr. Barrett may be contacted at lbarrett@pecklaw.com
Mr. Cohen may be contacted at ncohen@pecklaw.com
Mr. Snyder may be contacted at msnyder@pecklaw.com
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Measures Landlords and Property Managers Can Take in Response to a Reported COVID-19 Infection
May 18, 2020 —
Kyle Janecek & Jason Morris - Newmeyer DillionMost landlords and property managers are now familiar with steps they should be taking to reduce the spread of COVID-19. But what if a tenant or employee has tested positive with COVID-19? Unfortunately, many landlords and property managers are grappling with this very question. While there’s some clarity as it pertains to evictions in the landlord-tenant context, other considerations like disinfection, required notices, and maintenance, are evolving or unclear. Here are steps landlords and property managers can take in response to an employee or tenant testing positive with COVID-19.
Measures Landlords Can Take for Employees
For workplaces, there is a large variety of guidelines and procedures that are generally available to review. The Centers for Disease Control and Prevention (CDC) has valuable guidance available online here and here. The Occupational and Safety Health Administration (OSHA) has valuable guidance available online here. In short, if there is an incident where one employee may have exposed others to COVID-19, here are five steps employers should take:
- Send the affected employee home and instruct them not to return to work until the criteria to discontinue home isolation are met in consultation with healthcare providers, and state and local health departments. Make sure to maintain all information about employee illnesses as a confidential medical record.
- Ask the affected employee whether they have had close contact with any other workers.
Reprinted courtesy of
J. Kyle Janecek, Newmeyer Dillion and
Jason L. Morris, Newmeyer Dillion
Mr. Janecek may be contacted at kyle.janecek@ndlf.com
Mr. Morris may be contacted at jason.morris@ndlf.com
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Are Construction Defect Laws a Factor in Millennials Home Buying Decisions?
March 12, 2015 —
Beverley BevenFlorez-CDJ STAFFKimberly A. O’Hagan of Otten Johnson Robinson Neff + Ragonnetti PC discussed Millennials in Denver, Colorado, and how their desire to buy may cause them to leave the area due to a lack of affordable housing.
O’Hagan describes various possible reasons for the lack of affordable housing: “Some cite the inability to qualify for financing and low demand as the reasons for the decreased number of condominium projects. Others, including Denver’s Mayor Hancock, credit the chill on condominium construction to Colorado’s construction defect laws, which they say have resulted in increased insurance costs that make condominium development economically infeasible.”
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Florida “get to” costs do not constitute damages because of “property damage”
August 11, 2011 —
CDCoverage.comIn Palm Beach Grading, Inc. v. Nautilus Ins. Co., No. 10-12821 (11th Cir. July 14, 2011), claimant general contractor Palm Beach Grading (?PBG?) subcontracted with insured A-1 for construction of a sewer line for the project.  A-1 abandoned its work and PBG hired another subcontractor to complete construction of the sewer line.  The new subcontractor discovered that A-1?s work was defective requiring repair and replacement of portions of the sewer line which also required the destruction and replacement of surrounding work.
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Reprinted courtesy of CDCoverage.com
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In South Carolina, Insurer's Denial of Liability Does Not Waive Attorney-Client Privilege for Bad Faith Claim
October 14, 2019 —
Ashley L. Cooper & Bethany L. Barrese - Saxe Doernberger & Vita, P.C.Determining the scope of discovery can be challenging, particularly when an insurance bad faith claim is involved. Courts often face the difficult decision of weighing the importance of preserving attorney-client privilege with the public policy rationale of protecting an insured against their insurer’s bad faith behavior. The Supreme Court of South Carolina recently recognized this dilemma by rejecting a hardline approach to bad faith discovery disputes and adopting a case-by-case analysis.
The case, In re Mt. Hawley Ins. Co.,1 arose out of a construction defect claim. ContraVest Construction Company (“ContraVest”) constructed a development in South Carolina and was later sued for alleged defective construction. ContraVest sought coverage for the lawsuit from its insurers, including Mount Hawley Insurance Company (“Mount Hawley”), which had provided excess commercial liability insurance to ContraVest during the relevant timeframe. Mount Hawley denied the claim, which prompted ContraVest to sue it for bad faith, breach of contract, and unjust enrichment.
Reprinted courtesy of
Ashley L. Cooper, Saxe Doernberger & Vita, P.C. and
Bethany L. Barrese, Saxe Doernberger & Vita, P.C.
Ms. Cooper may be contacted at alc@sdvlaw.com
Ms. Barrese may be contacted at blb@sdvlaw.com
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