You’re Only as Good as Those with Whom You Contract
April 17, 2019 —
Christopher G. Hill - Construction Law MusingsI have been beating the drum of the need to have a solid construction contract as the basis for your construction project and contractor/subcontractor/supplier relationships. I have also emphasized that communication early and often is one of the best ways to assure a smooth project. However, the sad truth is that even with the best contract drafted with the assistance of an experienced construction attorney, if the other party to the contract simply decides not to perform, whether that is through unjustified non-payment or simple refusal to complete a scope of work without reason, it will be an expensive proposition to force compliance or be compensated for the monetary damage caused by such actions.
It is this often unmentioned truth relating to any contract, including those that construction professionals in Virginia deal with on a daily basis, that makes having a good knowledge of those with whom you plan to contract is key to a successful (read profitable) construction project. Of course be sure that any contractor or subcontractor you contract with has the basics of propoer insurance, the right experience and of course a contractor’s license with the proper specialty or specialties. These basics will get you most of the way to assuring that those that contract with you at least are responsible in business. Another key component, if you can find this information out, is the financial wherwithall of the other party. For a General Contractor, this means both sides of the equation: Owner and Subcontractors. For a Subcontractor, the key is the Contractor, but any other information you can get on the Owner is helpful (though this can be difficult) particularly in the face of a “pay if paid” clause.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Alabama Court Determines No Coverage For Insured's Faulty Workmanship
June 28, 2013 —
Tred EyerlyThe Alabama Supreme Court found there was no coverage for the insured cabinet maker for claims arising from alleged faulty workmanship. Shane Traylor Cabinetmaker, L.L.C. v. Am. Resources Ins. Co., Inc., 2013 Ala. LEXIS 42 (May 3, 2013).
The insured was sued by a homeowner for property damage caused by faulty workmanship. The insurer refused to defend, contending there was no "occurrence." The trial court granted summary judgment to the insurer.
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Tred EyerlyTred Eyerly can be contacted at
te@hawaiilawyer.com
Daily Construction Reports: Don’t Leave the Job Without Them
January 11, 2022 —
Patrick Barthet - Construction ExecutiveTrying to remember exactly what was done at a job site last week, last month or last quarter along with knowing who worked at the site is nearly impossible without a written, video or electronic record for reference. That’s why daily construction reports are so important.
Yet many contractors fail to create these reports. And those that do create them, may do it only at the beginning of a project or sporadically throughout the progress of a job, and generally only when they are reminded to do so. Daily reports only become truly effective when they are, in fact, done daily. Whether it is to help resolve a pending delay issue or clarify a job site access claim, or any number of other matters where what happened at the time is so critical, those daily construction reports should be completed daily.
Be Timely
The reason that daily reports are admissible in court (with corroborating testimony) is that they are interpreted as being recorded at or about the time the events in question occurred. Field managers should, therefore, write up these reports daily while the work is occurring or very soon thereafter to capture as accurate an account as possible. If these reports are not created until the end of the week or month, the information will not be as accurate and may not be as helpful in supporting a particular position.
Reprinted courtesy of
Patrick Barthet, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Mr. Barthet may be contacted at
pbarthet@barthet.com
Take Advantage of AI and Data Intelligence in Construction
May 06, 2019 —
Nick Carter - Construction ExecutiveFor consumers, AI and data intelligence are daily activities. Purchase recommendations from Amazon simplify holiday shopping. Music options from Spotify helps employees focus during the workday and relax at night. Car-sharing apps remove the stress from post-happy hour transport.
It is time for this kind of data-driven ease to hit the construction industry. Building is booming, yet despite the good times, the industry still lags in terms of data intelligence and AI. With them, construction providers can transform document and jobsite information into intelligent insights, reduce errors, keep projects on schedule and predict and prevent costly inefficiencies. Artificial intelligence is the “connective tissue” that construction is missing--if it is used wisely.
Why Construction is Ready for AI
With its endless stream of owners, architects, engineers, contractors, subcontractors and suppliers, the construction industry manages more critical information on a day-to-day basis than nearly any other business. As a result, there are dozens of potential miscommunications just waiting to happen every day.
Reprinted courtesy of
Nick Carter, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Houston Bond Issue Jump-Starts 237 Flood Control Projects
September 10, 2018 —
Louise Poirier & Pam Radtke Russell - Engineering News-RecordMore than $3 billion in flood risk reduction and repair projects can move forward in Houston following a vote held on Hurricane Harvey's anniversary that authorized a $2.5-billion bond program.
Reprinted courtesy of
Louise Poirier, ENR and
Pam Radtke Russell, ENR
Ms. Poirier may be contacted at poirierl@enr.com
Ms. Russell may be contacted at Russellp@bnpmedia.com
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Construction Litigation Roundup: “Wrap Music to an Insurer’s Ears?”
February 05, 2024 —
Daniel Lund III - LexologyThe general contractor on a New Orleans condominium construction project obtained a Contractor Controlled Insurance Program/CCIP policy or "Wrap-Up" policy for the job.
An accident occurred on the job when a construction elevator/hoist fell, injuring several workers. The elevator/hoist was provided by a subcontractor, pursuant to a rental agreement and related subcontract with the general contractor. Contained within the subcontract was a provision which states that the general contractor "has arranged for the Project to be insured under a controlled insurance program (the "CCIP" or "WrapUp"),” and that the CCIP shall provide "commercial general liability insurance and excess liability insurance, in connection with the performance of the Work at the Project site."
A third-party administrator for the wrap-up policy had been in communication with the subcontractor prior to the commencement of the work, “specifically advising that insurance coverage was not automatic” and providing the subcontractor with an enrollment form for the CCIP. Ultimately, the subcontractor “declined to comply with the request,” stating that the subcontractor would "not participate in paying any wrap insurance premiums" – because the subcontractor had its own insurance.
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Daniel Lund III, PhelpsMr. Lund may be contacted at
daniel.lund@phelps.com
When Do Hard-Nosed Negotiations Become Coercion? Or, When Should You Feel Unlucky?
October 21, 2019 —
Stan Millan, Jones Walker, LLP - ConsensusDocsConflict in a negotiation is to be expected and is arguably healthy for the process. Owners and contractors are constantly engaged in negotiations; whether it be negotiating changes to the work, changes to the schedule, or changes to the contractual terms. But at what point does taking a strong position in a negotiation cross the line and become coercion or bad faith?
A recent decision from the Armed Services Board of Contract Appeals touched on this very issue. While this is a government contract case, the issues discussed in this case (namely negotiating a change) are routinely encountered in just about every construction project. This decision is instructive because it adds to a trending line of cases that limit an owner’s and contractor’s negotiation tactics.
On August 5, 2019, the board issued an opinion in the appeal of Sand Point Services, LLC vs. NASA, ASBCA Nos. 6189. In Sand Point Services, the contractor was hired by the owner to repair the Wallops Flight Facility’s aircraft parking apron. During its work, the contractor hit a differing site condition, namely unsuitable soils. The contractor sought additional time and money for this differing site condition. The owner ultimately responded with a show cause letter to the contractor claiming, among other breaches, that the contractor was significantly behind schedule. This was generally viewed by all parties as the start of default proceedings against the contractor.
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Stan Millan, Jones Walker, LLPMr. Millan may be contacted at
smillan@joneswalker.com
Public Projects in the Pandemic Pandemonium
September 07, 2020 —
Ashlynn E. Hutton, Michael J. Crook & Christian F. Torgrimson - Construction ExecutiveDespite the ongoing pandemic, states are opening up for business and establishing a new normal. This determination to move forward includes pushing public transportation projects full steam ahead. While this may be good news for certain industries, it may not be for commercial property owners hoping to see a slow down to public projects and avoid a taking of private property. As many grapple with new economic realities, we examine the approaches employed by states in the southeast to manage construction of public projects in this unprecedented time.
GEORGIA
The Georgia Department of Transportation (GDOT) is moving forward with all of its previously funded public projects, including the massive I-285 Top-End Project, designated as a “Major Mobility Project” for the Atlanta metro region. Affecting approximately 260 property owners along I-285 and Georgia Highway 400, environmental review of the project continues. GDOT anticipates a contract let date in 2022 and construction start in 2023. Like ocean liners, these projects don’t turn on a dime. Under the 2015 Transportation Funding Act, the budgeted funds cannot be shifted to other needs or projects due to economic shutdown. Once environmental review is complete, GDOT will approve the final design and move toward acquiring right-of-way from affected property owners.
Reprinted courtesy of
Ashlynn E. Hutton, Michael J. Crook & Christian F. Torgrimson, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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