Can General Contractors Make Subcontractors Pay for OSHA Violations?
March 05, 2015 —
Craig Martin – Construction Contractor AdvisorOSHA has long held the opinion that general contractors may be held liable for subcontractor’s OSHA violations and the Eighth Circuit Court of Appeals, overseeing the Midwest, has agreed since 2009. To combat this risk, general contractors would be well served to incorporate targeted indemnity provisions into their subcontracts that require subcontractors to pay for all claims and costs associated with subcontractor caused OSHA violations.
OSHA’s Multi-Employer Policy
OSHA’s Multi-Employer Policy, a/k/a OSHA Instruction CPL 02-00-124, allows OSHA to cite multiple employers at a single worksite for creating a hazard, or for failing to prevent or correct a hazard, even if their own workers are not exposed to the hazard. A ‘‘controlling’’ or ‘‘correcting’’ employer is liable for hazards that it did not take ‘‘reasonable care’’ to detect and prevent.
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Craig Martin, Lamson, Dugan and Murray, LLPMr. Martin may be contacted at
cmartin@ldmlaw.com
Dealing with Hazardous Substances on the Construction Site
July 10, 2018 —
Christopher G. Hill - Construction Law MusingsFor this week’s Guest Post Friday here at Construction Law Musings, we welcome Vickie Lane. Vickie is the primary point of contact for Business Development with HAZMAT Plans & Programs, a consulting and training firm that also works under the name of HP&P Safety. Vickie’s functions with HP&P include extensive pre-project research and support though estimating, planning and cost administration. Vickie attended Ohio State University and now enjoys her role as a first time grandmother and spending free time up in the Colorado Rocky Mountains. Vickie can be reached at vlane@hppsafety.com or on Twitter @HAZMATPlans and @hpandpsafety.
Most of us perceive hazards on a construction site to be those that can be readily visualized or perhaps easily imagined, like trench cave-ins or falls from heights. These are the obvious, but what about the nocuous, microscopic hazards that can’t be seen by the human eye, but can destroy the health of your workers? Welcome to the world of hazardous materials.
The inherent danger associated with hazardous substances is workers might not be not aware of exposure. Think of a snake in the dark scenario. If it is a rattlesnake, you have warning before the bite. A cobra on the other hand gives no such warning and the bite can be fatal. So it can be with hazardous and toxic substances.
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Christopher G. Hill, The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Will COVID-19 Permanently Shift the Balance between Work from Home and the Workplace?
April 13, 2020 —
Adam Weaver - Gravel2Gavel Construction & Real Estate Law BlogOn March 15, 2020, the Center for Disease Control and Prevention (CDC) issued formal guidance to combat the spread of the coronavirus by recommending against gatherings of 50 or more people for the next eight weeks (CDC guidance), which includes nearly every office building in America. Thus, began the most significant work from home experiment this country has ever seen.
With the majority of the workforce working from home, many employees see this as an opportunity to finally prove that, “yes, that meeting could have been an email.” However, while workers will not be distracted by constant (and potentially unnecessary) meetings, a number of issues and questions arise with working from home.
Most importantly, is this working from home experiment a temporary opportunity for businesses to test remote work ideas or is this the new normal? And how will this affect commercial real estate moving forward?
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Adam Weaver, PillsburyMr. Weaver may be contacted at
adam.weaver@pillsburylaw.com
Real Estate & Construction News Round-Up (01/25/23) – Artificial Intelligence, Proptech Innovation, and Drone Adoption
February 14, 2023 —
Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law BlogThis week’s round-up explores new artificial intelligence tools and their projected impact on real estate agents, key trends driving proptech innovation, barriers to adopting drones in the construction industry, and more.
- Artificial intelligence (AI) has the potential to become an invaluable tool to streamline the selling journey of a property, empower buyers to make informed decisions, and enhance the work of real estate agents. (Alexandra Cain, The Urban Developer)
- Miami real estate agents experiment with the new artificial intelligence tool, ChatGPT, which can generate text based on simple prompts, to write house listings, communicate with developers, and produce content. (Martin Vassolo, Axios)
- Asset owners in Asia and Europe turn to artificial intelligence to collect ESG information across public and private markets, including from residential buildings in Japan. (Hugo Cox, Asian Investor)
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Pillsbury's Construction & Real Estate Law Team
Contractor Sues Construction Defect Claimants for Defamation
June 28, 2013 —
CDJ STAFFAndrew Smith and Armando Delgado both own condos in the Willowbrook condominium complex in East Manatee, Florida, and they’ve both been dealing with structural problems with their homes. Now they’re together in another matter as the contractor who has been hired to do the repairs has sued them for defamation. The homeowners claim that the construction company is trying to intimidate them.
KB Homes, which built the Willowbrook complex, hired Dueall Construction to repair the buildings. Anthony Robbins, one of the owners of Dueall, is currently on probation for cocaine trafficking. Smith put this information on a website associated with complaints about KB Homes, while Delgado put a banner on the back of his pickup truck. The lawsuit claims that Smith and Delgado “have initiated a campaign to smear and defame Dueall and its owners.”
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Ohio “property damage” caused by an “occurrence.”
May 18, 2011 —
CDCoverage.comIn JTO, Inc. v. State Automobile Mut. Ins. Co., No. 2010-L-062 (Ohio Ct. App. March 25, 2011), general contractor JTO was sued by hotel project owner Marriott for breach of contract and warranties seeking damages for the repair of construction defects resulting in moisture penetration property damage to interior components. JTO filed a third party complaint against subcontractor Farizel and also tendered its defense as an additional insured under Farizel’s State Auto CGL policy.
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Reprinted courtesy of CDCoverage.com
Census Bureau, HUD Show Declines in Residential Construction
May 17, 2011 – CDJ Staff
The U.S. Census Bureau and the Department of Housing and Urban Development released their summary of residential construction for April 2011 on May 17.
Building permits for privately owned housing units were down 4% from last month and 12% from last year. Similarly, privately-owned housing starts were down 10% from March and 23% below the previous year.
For further details, read the Census Bureau/HUD report
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Critical Updates in Builders Risk Claim Recovery: Staying Ahead of the "Satisfactory State" Argument and Getting the Most Out of LEG 3
December 11, 2023 —
Gregory D. Podolak & Cheryl L. Kozdrey - Saxe Doernberger & Vita, P.C.Builders risk claims routinely involve complicated and aggressive debate about the interplay between covered physical loss and uncovered faulty work. However, denials on this front have recently experienced a noticeable uptick in frequency, creativity, and aggressiveness. The insurer arguments concentrate in two key areas with a common theme – that any damage associated with a construction defect is not covered:
- Defective construction does not qualify as a “physical” loss to trigger the insuring agreement; and
- Any natural results of defective construction are excluded as faulty workmanship, even with favorable LEG 3 or similar language.
Neither of these arguments should impede access to coverage in the majority of scenarios. To ensure as much, it is incumbent on the savvy policyholder to understand the insurer tactics, be prepared to spot them early, and have thoughtful counter positions at the ready to address them decisively.
Reprinted courtesy of
Gregory D. Podolak, Saxe Doernberger & Vita, P.C. and
Cheryl L. Kozdrey, Saxe Doernberger & Vita, P.C.
Mr. Podolak may be contacted at GPodolak@sdvlaw.com
Ms. Kozdrey may be contacted at CKozdrey@sdvlaw.com
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First Suit Filed for Losses Caused by COVID-19
March 30, 2020 —
Tred R. Eyerly - Insurance Law HawaiiLast week, the first lawsuit was filed seeking insurance coverage for business-interruption due to losses caused by COVID-19. The case, Cajun Conti, LLC, et al. v. Certain Underwriters at Lloyd's of London, ,et al., was filed in Louisiana. A New Orleans restaurant, Oceana Grill," seeks a declaratory judgment that its "all risks" policy issued by Lloyd's covers losses resulting from the closure of its restaurant due to the Governor's order restricting public gatherings and the Mayor of New Orleans' order closing restaurants.
The lawsuit contends that "contamination of the insured premises by the coronavirus would be a direct physical loss needing remediation to clean the surfaces of the establishment." The lawsuit further alleges the policy contains no exclusions for a "viral pandemic." The suit seeks a declaration that "the policy provides coverage to plaintiffs for any future civil authority shutdowns of restaurants in the New Orleans area due to physical loss from coronavirus contamination and that the policy provides business income coverage in the event that the coronavirus has contaminated the insured premises." The obvious dispute will be whether the coronavirus constitutes a "direct physical loss or damage" as required by the policy.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com