A Classic Blunder: Practical Advice for Avoiding Two-Front Wars
August 23, 2021 —
William Underwood - ConsensusDocs“Ha ha! You fool! You fell victim to one of the classic blunders – the most famous of which is ‘never get involved in a land war in Asia’ – but only slightly less well-known is this: ‘Never go in against a Sicilian when death is on the line.’”[1]
Vizzini forgot to include “never fight a two-front war with your owner and a subcontractor” on his list of classic blunders, but it certainly belongs there. This article examines practical tips and tricks for general contractors to avoid the classic blunder of a two-front war, including recommended contract provisions and sound project documentation practices.
Admittedly, general contractors face a wide array of obligations on a project. And perhaps one of the most delicate balancing acts is managing relationships with the owner and your subcontractors. But far too often general contractors find themselves in the difficult position of fighting a two-front war against one (or more) of their subcontractors and the project owner.
But this does not always have to be the case—there are ways for general contractors to reduce the risk of finding themselves in a two-front war. And every project does not have to devolve in a circular firing squad with you in the middle. That said, this article comes with the caveat that a general contractor cannot avoid a two-front war in every instance, nor does this article examine every imaginable way to reduce the risk of a two-front war (see e.g. https://www.consensusdocs.org/pass-through-subcontractor-claims-liquidating-agreements-and-avoiding-a-two-front-war/). But this article will provide an overview of several key tools that can be used to minimize the risk of falling into a classic blunder.
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William Underwood, Jones Walker LLPMr. Underwood may be contacted at
wunderwood@joneswalker.com
Couple Claims Poor Installation of Home Caused Defects
December 30, 2013 —
CDJ STAFFRobert and Tracy Samosky of Spanishburg, West Virginia have filed a lawsuit claiming that the improper delivery of their modular home caused defects and damages, preventing them from actually using their home. The couple purchased a modular home from J&M Quality Construction for a home designed and built by Mod-U-Kraf Homes. They are suing the two firms for $50,000 in damages, reports the West Virginia Record.
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ASCE Statement on House Passage of the Water Resources Development Act of 2024
August 05, 2024 —
Marsia Geldert-Murphey, P.E., President of the American Society of Civil EngineersWASHINGTON — The American Society of Civil Engineers (ASCE) commends the House of Representatives for passing H.R. 8812, the bipartisan Water Resources Development Act (WRDA) for 2024. The House WRDA 2024 bill will help improve America's ports and inland waterways, enhance flood risk management and storm risk reduction programs, and prioritize ecosystem restoration. While we urge the Senate to swiftly vote on its version of WRDA, we are encouraged that our nation's critical water resources infrastructure remains a congressional priority.
The House version of WRDA includes several key provisions to enhance the safety of America's dams and levees, which each received a 'D' on the 2021 Report Card for America's Infrastructure, as well as provisions to modernize the nation's inland waterways system, which received a 'D+' in the 2021 Report Card. This includes one of ASCE's top legislative priorities for this year, the reauthorization of the National Dam Safety Program through 2028. But beyond the reauthorization, this bill reduces restrictions on the amount of funds states can receive in National Dam Safety Program State Assistance Grants; improves access to the High Hazard Potential Dam Rehabilitation Grant Program; and requires the incorporation of low-head dams into the National Inventory of Dams. Each of these provisions are critical to ensuring the long-term safety of our nation's dams and ASCE applauds the House for their inclusion. Furthermore, ASCE was pleased to see that the House legislation extends the National Levee Safety Program through 2033, which will help support the establishment of state levee safety programs, develop and publish national guidelines for levee safety, and enhance flood protection nationwide.
While these measures are not included in the Senate version of WRDA, we encourage lawmakers to ensure they are included in a final conference version of the bill.
We thank the House of Representatives for moving forward WRDA 2024 and strongly encourage the Senate to pass its version so that Congress can keep this vital water resources legislation on a biennial schedule and ensure our nation's dams, levees, ports, and inland waterways can support the American economy and protect public safety.
ABOUT THE AMERICAN SOCIETY OF CIVIL ENGINEERS
Founded in 1852, the American Society of Civil Engineers represents more than 160,000 civil engineers worldwide and is America's oldest national engineering society. ASCE works to raise awareness of the need to maintain and modernize the nation's infrastructure using sustainable and resilient practices, advocates for increasing and optimizing investment in infrastructure, and improve engineering knowledge and competency. For more information, visit www.asce.org or www.infrastructurereportcard.org and follow us on Twitter, @ASCETweets and @ASCEGovRel.
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Your Work Exclusion Applies to Damage to Tradesman's Property, Not Damage to Other Property
March 30, 2016 —
Tred R. Eyerly – Insurance Law HawaiiThe New Mexico Court of Appeals presented a cogent analysis of claims for construction defects and the application of the "your work" exclusion under a CGL policy in Pulte Homes of New Mexico, Inc. v. Indiana Lumbermens Ins. Co., 2015 N.M. App. LEXIS 134 (N. M. Ct. App. Dec. 17, 2015).
Pulte built 107 homes. Pulte contracted with 'Western Building Supply (WBS) to provide windows and sliding glass doors for the homes. Pulte was named as an additional insured under WBS's policy with Lumbermens (ILM).
In 2007, a large group of homeowners sued Pulte, alleging numerous construction defects in their homes. Among the defects were windows that leaked and sliding glass doors that stuck and did not close completely. Many of the homeowners arbitrated their claims against Pulte. In May 2009, Pulte tendered its first demand for a defense to ILM. The arbitration award against Pulte found that windows and doors did not operate properly and had been replaced by Pulte.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Leftover Equipment and Materials When a Contractor Is Abruptly Terminated
November 06, 2023 —
Brian Perlberg - ConsensusDocsTermination for cause is costly and adversarial and has been covered in this
article. But can a terminating party use equipment and tools left behind on the worksite (i.e., a crane)? The answer depends on what is in your contract.
Under
ConsensusDocs, a constructor must give its permission to use any equipment or supplies left at the worksite, such as a crane.
[i] Moreover, the owner must indemnify the constructor for using their equipment. This makes sense because even if a constructor were appropriately terminated for cause, using their equipment and materials they no longer possess or control unfairly creates additional liability exposure. At a minimum, the owner should take on the risk of using the equipment and materials since they benefit from such use.
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Brian Perlberg, ConsensusDocs CoalitionMr. Perlberg may be contacted at
bperlberg@ConsensusDocs.org
Revised Cause Identified for London's Wobbling Millennium Bridge After Two Decades
December 20, 2021 —
Peter Reina - Engineering News-RecordU.S. and British researchers claim to have found a better explanation for the wobble of London's River Thames Millennium pedestrian suspension bridge than the one prevailing for over 20 years. Alarming swaying of the bridge was caused not by synchronization of walkers' footsteps, as previously believed, but the negative damping effect of their efforts not to fall over.
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Peter Reina, Engineering News-Record
Mr. Reina may be contacted at reina@btinternet.com
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Why A.I. Isn’t Going to Replace Lawyers Anytime Soon
April 18, 2023 —
Amir Kahana - Kahana FeldIn a recent article entitled, “A.I. Is Coming for Lawyers, Again” the New York Times explored the longstanding idea that the legal profession is most at risk of being disrupted by A.I. The article claimed that: “There are warnings that ChatGPT-style software, with its humanlike language fluency, could take over much of legal work.” And that: “Law is seen as the lucrative profession perhaps most at risk from the recent advance in A.I. because lawyers are essentially word merchants.”
The problem with these predictions is that they are based on a fundamental misunderstanding of what lawyers do, which is primarily to provide sound advice and formulate sophisticated strategy. All the wordsmithing in the world won’t make a bad case good, or vice versa. Lawyers do not have a Jedi mind trick. We analyze the facts, we make the best arguments possible under the circumstances, we advise our clients on their prospects, and we come up with a strategy for an optimal outcome, which almost always includes a path towards settlement. We are strategists and trusted advisors. Not wordsmithers.
This is not anything ChatGPT or current A.I. can do, or even come close to doing. And how do I know that? Because in a recent Wall Street Journal article, experts on self-driving cars explain that A.I. is nowhere close to being able to drive a car autonomously. In an article entitled “When Will Cars Be Fully Self-Driving?” the experts explain that the main impediment to fully autonomous vehicles is how dumb A.I. is. As one of the leading experts explains, fully autonomous cars “would require human-level artificial intelligence, and there is no commonly accepted theory on how to get there. As long as there is no human-level AI, autonomous mobility will be limited.”
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Amir Kahana, Kahana FeldMr. Kahana may be contacted at
akahana@kahanafeld.com
Prevailing Parties Entitled to Contractual Attorneys’ Fees Under California CCP §1717 Notwithstanding Declaration That Contract is Void Under California Government Code §1090
December 20, 2017 —
Zachary Price & Lawrence ZuckerIn California-American Water Co. v. Marina Coast Water District (Nos. A146166, 146405, filed 12/15/17), the First District Court of Appeal held that a prevailing party was entitled to an award of contractual attorneys’ fees under Code of Civil Procedure §1717 even though the underlying contracts were declared void under Government Code §1090.
Appellant Marina Coast Water District (“Marina”) and Respondent Monterey County Water Resources Agency (“Monterey”), both public water agencies, and Respondent California-American Water Company (“California-American”), a water utility, entered into several contracts to collaborate on a water desalination project. The parties agreed that the prevailing party of any action in any way arising from their agreements would be entitled to an award of attorneys’ fees.
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Zachary Price, Haight Brown & Bonesteel LLP and
Lawrence Zucker, Haight Brown & Bonesteel LLP
Mr. Price may be contacted at zprice@hbblaw.com
Mr. Zucker may be contacted at lzucker@hbblaw.com
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