Subcontractors Eye 2022 with Guarded Optimism
October 11, 2021 —
Louise Poirier - Engineering News-RecordWhile work continues to be plentiful for specialty contractors across the five-state region of Arkansas, Louisiana, Mississippi, Oklahoma and Texas, concerns remain for how the project landscape will continue to evolve as the impacts of the COVID-19 pandemic continue to weigh on the world.
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Louise Poirier, Engineering News-Record
Ms. Poirier may be contacted at poirierl@enr.com
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NJ Condo Construction Defect Case Dismissed over Statute of Limitations
June 11, 2014 —
Beverley BevenFlorez-CDJ STAFFAccording to an article by Matthew D. Stockwell of the firm Pillsbury Winthrop Shaw Pittman, LLP published in Lexology, “a trial court in Bergen County, New Jersey dismissed a condominium association's construction defect claims against several construction entities for failure to comply with the applicable statute of limitations.”
Stockwell stated that the “aftermath will be interesting to follow, because the trial court stripped away some of the protection that New Jersey's discovery rule affords to property owners who become aware of latent defects well after a project is substantially completed.”
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“Families First Coronavirus Response Act”: Emergency Paid Leave for Construction Employers with Fewer Than 500 Employees
March 30, 2020 —
Sidney Lewis & Alex Glaser, Jones Walker LLP - ConsensusDocsCOVID-19 has already taken a toll on construction projects across the nation. Construction industry participants, including general contractors, now face risks and challenges that are exceedingly difficult to anticipate and plan for. The spread of this virus has and will continue to create new labor force issues and amplify existing ones.
On March 18, 2020, the House of Representatives passed H.R. 6021, the “Families First Coronavirus Response Act,” which, contains provisions related to mandatory paid leave for employers with fewer than 500 employees. This legislation and the substantial obligations it imposes apply to the overwhelming number of general contractors in the nation—those with less than 500 full-time employees! The bill mandates up to 80 hours of “emergency paid leave” related to COVID-19, and not just for those who contract the illness. However, contractors with less than 50 employees may seek exemption.
Reprinted courtesy of
Sidney Lewis, Jones Walker LLP and
Alex Glaser, Jones Walker LLP
Mr. Lewis may be contacted at slewis@joneswalker.com
Mr. Glaser may be contacted at aglaser@joneswalker.com
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Liquidated Damages: Too High and It’s a Penalty. Too Low and You’re Out of Luck.
November 21, 2022 —
Christian Fernandez - Snell & Wilmer Real Estate Litigation BlogLiquidated damages provisions in commercial and residential real estate contracts play a vital role when a transaction goes south, and should be given careful consideration when negotiating a real estate contract. Liquidated damages may be referred to in a variety of ways, such as “earnest money,” a “good-faith deposit,” or a “non-refundable deposit,” but each typically denote a negotiated amount of money that a seller is entitled to retain should a buyer breach a purchase and sale agreement. The purpose of liquidated damages is to provide the parties with certainty when actual damages arising from a breach of contract may be difficult to calculate. Accordingly, liquidated damages provisions alleviate the need for potentially expensive litigation associated with proving damages.
While parties are free to negotiate the amount of liquidated damages, the amount must approximate the loss anticipated at the time of contracting, or the loss that actually occurs as a result of a breach. Arizona courts have held that where the amount of liquidated damages is unreasonably large when compared to the anticipated loss or actual loss, the liquidated damages provision is unenforceable as a penalty. A breaching party faced with high liquidated damages will often seek to invalidate the provision as a penalty. If a court agrees, the non-breaching party may still recover damages, but must go through the process of proving such damages. Therefore, when negotiating a real estate contract, consideration should be given as to whether a liquidated damages amount is arbitrarily high when compared to an anticipated loss in the event of a breach.
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Christian Fernandez, Snell & WilmerMr. Fernandez may be contacted at
cfernandez@swlaw.com
Examining Best Practices for Fire Protection of Critical Systems in Buildings
July 16, 2023 —
Jon Jones - Construction ExecutiveProtecting building occupants and first responders is critically important when designing and constructing commercial buildings. The National Fire Protection Association (NFPA), devoted to eliminating death, injury, property and economic loss from fire, electrical and related hazards, was formed in 1896. Shortly afterward, in 1897, the National Electrical Code (NEC) was established to standardize electrical safety for wiring, alarms and related equipment. Since the birth of these two important standardizing organizations, fire codes have been constantly modified to meet the changing safety needs of new infrastructure.
In 1996, the NEC identified key circuits for fire survivability, including emergency systems, fire pumps and fire alarms. Per the 1996 code, these circuits needed to be able to survive for one hour in case of fire. However, in the late 1990s and early 2000s, these requirements began to shift to demand two hours of survivability.
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Jon Jones, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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New York Establishes a Registration Requirement for Contractors and Subcontractors Performing Public Works and Covered Private Projects
January 17, 2023 —
Christopher B. Kinzel, K. Greer Kuras, Aaron C. Schlesinger - Peckar & Abramson, P.C.By December 30, 2023, contractors and subcontractors bidding on public contracts and performing work on covered private projects in New York must register with the NYS Department of Labor, Bureau of Public Works, pursuant to the newly enacted Labor Law Section 220-i. The DOL has until June 28, 2023 to establish regulations to carry out the new law. There will be an online system where registrations and disclosures are publicly available.
The stated purpose of the law is to help enforce New York’s prevailing wage and other worker protection laws. The DOL will create an online system through which contractors and subcontractors will have to answer questions and submit documents about:
- the business entity and its owners and officers
- unemployment and workers’ compensation insurance
- any outstanding wage assessments
- debarment under New York or federal law, or any other state’s laws
- final determinations of a violation of any labor laws, employment tax laws, or workplace safety standards (including OSHA)
- association or signatory to an apprenticeship program
If the DOL approves the submission, the contractor will receive a registration certificate that remains valid for two years.
Reprinted courtesy of
Christopher B. Kinzel, Peckar & Abramson, P.C.,
K. Greer Kuras, Peckar & Abramson, P.C. and
Aaron C. Schlesinger, Peckar & Abramson, P.C.
Mr. Kinzel may be contacted at ckinzel@pecklaw.com
Ms. Kuras may be contacted at gkuras@pecklaw.com
Mr. Schlesinger may be contacted at aschlesinger@pecklaw.com
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Specific Performance: Equitable Remedy to Enforce Affirmative Obligation
January 18, 2021 —
David Adelstein - Florida Construction Legal UpdatesWhen a party breaches an agreement, particularly when dealing with real estate, there is an equitable remedy known as specific performance that requests the trial judge issue an order to affirmatively force the breaching party to perform, i.e., close on the real estate contract. You are asking the court to require the other party to specifically perform an affirmative obligation. See Melbourne Ocean Club Condominium Ass’n, Inc. v. Elledge, 71 So.3d 144, 146 (Fla. 2011).
A decree of specific performance is an equitable remedy ‘not granted as a matter of right or grace but as a matter of sound judicial discretion’ governed by legal and equitable principles. Specific performance shall only be granted when 1) the plaintiff is clearly entitled to it, 2) there is no adequate remedy at law, and 3) the judge believes that justice requires it.
Castigliano v. O’Connor, 911 So.2d 145, 148 (Fla. 3d DCA 2005) (internal citations omitted).
An example of specific performance may play out, as mentioned, in a real estate contract where a seller refuses to close on the transaction.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Lorelie S. Masters Nominated for Best in Insurance & Reinsurance for the Women in Business Law Awards 2021
November 08, 2021 —
Adriana A. Perez & Andrea DeField - Hunton Insurance Recovery BlogWe are pleased to announce that Hunton Andrews Kurth LLP insurance coverage partner
Lorelie S. Masters is one of only eight attorneys throughout the nation shortlisted for the Best in Insurance & Reinsurance category for the
Women in Business Law Awards 2021. The award honors “the outstanding achievements of women in over thirty different practice areas in business law from across Americas. These are individuals who stand out as leaders amongst their peers and who have been instrumental to innovative approaches in their field.”
A nationally recognized insurance coverage litigator, Ms. Masters has handled and tried cases in state and federal trial and appellate courts across the country and in arbitrations in the United States and abroad. At issue in these cases, typically, have been millions of dollars of insurance coverage for product and environmental liability, like silicone gel breast implant and asbestos claims. She regularly advises clients on a wide range of liability coverages, including insurance for environmental, cyber, directors and officers, property damage, and other liabilities and loss. Most recently, she has advised clients in a variety of industries on COVID-19 losses under a wide variety of first-party property, business-interruption policies and “package policies,” and obtained multi-million dollar settlements under D&O, Side-A Only D&O and E&O policies.
Reprinted courtesy of
Adriana A. Perez, Hunton Andrews Kurth and
Andrea DeField, Hunton Andrews Kurth
Ms. Perez may be contacted at pereza@HuntonAK.com
Ms. DeField may be contacted at adefield@HuntonAK.com
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