Fairfield Connecticut Building Expert Directory

Builder and County Tussle over Unfinished Homes

November 13, 2013 — CDJ STAFF
Rivard, Florida has been trying to get rid of a group of unfinished homes destroyed. Now Hernando County officials have decreed that the partially-built homes are unsafe and must be demolished. However, after the building permits were withdrawn, Costa Homes filed a lawsuit asking that they be reinstated. The county had given the builder a deadline to file new permits, but were met with a lawsuit. Costa Homes seeks to be relived of the county’s requirement that each of the six homes be provided with $10,000 bond and also finds the county’s completion schedule to be “so short it constitutes a prescription for failure.” Building officials had declared the structures unsafe in August and had stipulated that they had to be made safe. Read the court decision
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Netflix Plans $900M Facility At Former New Jersey Army Base

January 23, 2023 — The Associated Press (Wayne Parry) - Bloomberg
(AP) -- Netflix said Wednesday it plans to build a state-of-the-art production facility at a former Army base at the Jersey Shore that will cost more than $900 million, and create thousands of jobs. The subscription video streaming company will pay $55 million for a 292-acre site on the former Fort Monmouth military base in Eatontown and Oceanport. The California-based company plans an additional $848 million worth of investments in 12 sound stages and for other uses related to the film industry. “We’re thrilled to continue and expand our significant investment in New Jersey and North America,” said Ted Sarandos, the company's co-CEO and chief content officer. “We believe a Netflix studio can boost the local and state economy with thousands of new jobs and billions in economic output, while sparking a vibrant production ecosystem in New Jersey.” Read the court decision
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Reprinted courtesy of Bloomberg

Have the Feds Taken Over Arbitration?

September 25, 2023 — Christopher G. Hill - Construction Law Musings
All of us in construction have run into mandatory arbitration clauses in our contracts. These clauses are more or less desirable based upon the size of project and other factors that will provide a topic for another post here at Musings or in my class at Solo Practice University (and likely both). In drafting and considering the usefulness of these clauses, make sure that you keep in mind that the Federal Arbitration Act applies to actions in federal court. In short, the FAA gives parties to a contract containing an arbitration clause the absolute right to a stay of a law suit pending arbitration. While this seems obvious, a recent U. S. Supreme Court decision expanded the universe of people that can demand such a stay. In Arthur Andersen LLP v. Carlisle, et. al., the Court stated that any person who is allowed to enforce a contract under state law can obtain such a stay. In short, if a person can make an argument that they have some sort of right to enforce a contract’s terms, that person can get a stay, at least until a court says otherwise. Read the court decision
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Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

UPDATE: Texas Federal Court Permanently Enjoins U.S. Department of Labor “Persuader Rule” Requiring Law Firms and Other Consultants to Disclose Work Performed for Employers on Union Organization Efforts

December 08, 2016 — Aaron C. Schlesinger & Gregory R. Begg – Peckar & Abramson, P.C.
As an update to our prior alert, on November 16, 2016, a federal judge in Texas issued a permanent injunction blocking the U.S. Department of Labor’s (“DOL”) “persuader rule” – a preliminary injunction had been granted this past June. In rendering the permanent injunction, the court adopted the reasoning of its prior June 27, 2016 decision that granted a nationwide preliminary injunction on the rule. In the earlier decision, the court held that a temporary injunction was appropriate because the parties challenging the rule were likely to succeed on the merits of their claim […]. Reprinted courtesy of Aaron C. Schlesinger, Peckar & Abramson, P.C. and Gregory R. Begg, Peckar & Abramson, P.C. Mr. Schlesinger may be contacted at aschlesinger@pecklaw.com Mr. Begg may be contacted at gbegg@pecklaw.com Read the court decision
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You Are on Notice: Failure to Comply With Contractual Notice Provisions Can Be Fatal to Your Claim

September 26, 2022 — Jenifer B. Minsky - ConsensusDocs
Imagine your firm is the construction manager on a multi-million-dollar project. At the end of the project you are five million dollars out-of-pocket. You have a stack of claims for additional and extended work which led to the overrun, payment for which will easily cover the shortfall. However, the owner refuses to compensate you until you can satisfactorily answer their inquiry: “Where are the notices that are expressly required under the terms of the contract?” You had a good relationship with the owner’s field representative who was aware you were performing the work and understood that your company was compiling claims. The once cooperative owner, now suffering financial restraints of their own, is resolute in their refusal leaving you no choice but to expend substantial sums of money to litigate the claims, the success of which is far from assured. What Contract Language Can Be A Trap For An Unwary Contractor? While courts are generally hesitant to order a forfeiture and some courts disfavor condition precedents, a judge’s hands may be tied by particular contract language requiring the strict enforcement of notice requirements. Such provisions may include: (1) an explicit clause that there be precise compliance with notice requirements; (2) express consequences for noncompliance (e.g., if the required notice is not provided the claim will be waived, forfeited or abandoned); (3) a statement that the notice requirements are a condition precedent to recovery; (4) language such as “if,” “provided that,” “or else” or “on condition that” (e.g., the owner shall review the claim, “provided such claim” was received within the applicable notice period) or (5) prohibition of any waiver of the notice requirement. To the extent the notice provision includes such language, a contractor can be without recourse even when the owner has actual knowledge of the claims or cannot show prejudice by the lack of notice. Read the court decision
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Reprinted courtesy of Jenifer B. Minsky, Peckar & Abramson, P.C.
Ms. Minsky may be contacted at jminsky@pecklaw.com

Performance Bonds: Follow the Letter of the Bond and Keep The Surety Informed

December 06, 2021 — Bill Shaughnessy, Jones Walker, LLP - ConsensusDocs
Construction surety bonds are risk management tools utilized by parties on large construction projects. However, bonds are not insurance, and a surety is not an “insurer” of the project. Different from insurance, a surety’s obligation to act typically arises if the principal fails to perform in accordance with the construction contract, and if the claimant satisfies the conditions precedent to enforcing the bond.[1] This article focuses exclusively on performance bonds on private projects,[2] and highlights practical considerations and surety defenses to enforcement of the performance bond.[3] Spoiler alert – the party making a claim on the bond must strictly adhere to the conditions precedent set forth in the bond throughout the construction project and when calling upon the surety to take action, otherwise the performance bond may be rendered void and unenforceable. Read the court decision
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Reprinted courtesy of Bill Shaughnessy, Jones Walker, LLP
Mr. Shaughnessy may be contacted at bshaughnessy@joneswalker.com

How to Mitigate Lien Release Bond Premiums with Disappearing Lien Claimants

May 20, 2019 — Scott MacDonald - Ahlers Cressman & Sleight PLLC
It is one of those dreaded business situations that plagues the construction industry, especially in times of economic downturn—what to do when a lower-tier entity files a lien against a property then disappears. It has happened to countless owners, general contractors, subcontractors, and even some particularly unlucky sub-tier subcontractors and suppliers. Here is how it arises: a project is moving along, then performance or payment issues arise, and a company that is over extended or unwilling to continue work stops performance, walks off the job, and files a lien against the property for whatever amounts were allegedly unpaid. Often, the allegedly unpaid sums were legitimately withheld due to a good faith dispute over payment/performance, and it is not unusual for the defaulting entity to not be entitled to any of the sums claimed in the lien. Regardless, the lien stays on the property, and pressure is applied from the “upstream” entities to the party who contracted with the defaulting entity to “deal” with the lien. Oftentimes, a contract will require the parties to “deal” with a lien by obtaining a lien release bond (“release bond”). For those lucky enough to not have encountered this issue, a release bond is a nifty statutory device whereby a surety agrees to record a release bond for the full claimed amount of the lien, with the release bond substituting in for the liened property, effectively discharging the property from liability under the lien. In other words, the lien is released from the property and attaches to the release bond. If the lien claimant recovers on its lien, it is technically satisfied by the surety providing the release bond (or the party who agrees to indemnify and defend the release bond). In exchange for delivering the release bond, the surety demands yearly premiums be paid on the release bond amount Read the court decision
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Reprinted courtesy of Scott MacDonald, Ahlers Cressman & Sleight PLLC
Mr. MacDonald may be contacted at scott.macdonald@acslawyers.com

ASCE Statement on EPA Lead Pipe and Paint Action Plan

December 27, 2021 — Tom Smith, Executive Director - American Society of Civil Engineers (ASCE)
WASHINGTON, DC. – The American Society of Civil Engineers applauds the Lead Pipe and Paint Action Plan released yesterday by the Environmental Protection Agency to help communities across the country remove lead pipes out of their drinking water systems. Access to clean and safe drinking water is critical to public health and economic prosperity, and ASCE's 2021 Report Card for America's Infrastructure. gave a grade of C- for the drinking water category. It is estimated that as many as 10 million American households still have lead water pipes in use, which can put at risk the health and safety of families, particularly children. For utilities, moving forward with completing an inventory of lead service lines as part of the Lead and Copper Rule is a critical step, so we can get a better national picture of the scope of the problem. This plan will allocate nearly $3 billion from the recently passed Infrastructure Investment and Jobs Act (IIJA) to states for lead service line replacements in FY 2022 and will prioritize communities with the highest lead levels. While additional investment will be needed, it is a significant down-payment on a national shared priority of clean drinking water for all Americans. It will allow utilities of all sizes to accelerate their rate of lead pipe replacement and offer technical assistance to those communities just embarking on these types of projects. For more information about the American Society of Civil Engineers, visit www.asce.org or www.infrastructurereportcard.org and follow us on Twitter, @ASCETweets and @ASCEGovRel. Read the court decision
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FAIRFIELD CONNECTICUT BUILDING EXPERT DIRECTORY AND CAPABILITIES