Colorado’s New Construction Defect Law Takes Effect in September: What You Need to Know
November 21, 2017 —
Jesse Witt - The Witt Law FirmOriginally published by CDJ on September 7, 2017
Colorado’s new construction defect law officially takes effect this month. Although HB 17-1279 was passed in May, the statutory text provides that it only applies “with respect to events and circumstances occurring on or after September 1, 2017.” With that date now upon us, practitioners should be mindful of the law’s new requirements.
The law applies to any lawsuit wherein a homeowner association files a construction defect action on behalf of two or more of its members. “Construction defect action” is defined broadly to include any claims against construction professionals relating to deficiencies in design or construction of real property. Before an association may commence such an action, its board must follow several steps.
First, the board must deliver notice of the potential construction defect action to all homeowners and the affected construction professionals at their last known addresses. This requirement does not apply to construction professionals identified after the notice has been mailed, or to construction professionals joined in a previously-approved lawsuit. The notice must include a description of the alleged construction defects with reasonable specificity, the relief sought, a good-faith estimate of the benefits and risks involved, and a list of mandatory disclosures concerning assessments, attorney fees, and the marketability of units affected by construction defects. The notice must also call a meeting of all homeowners. The notice should be sent to the construction professionals at least five days before the homeowners.
Reprinted courtesy of
Jesse Howard Witt, Acerbic Witt
Mr. Witt may be contacted at www.witt.law
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Firm Offers Tips on Construction Defects in Colorado
February 28, 2013 —
CDJ STAFFAlthough the Tenth Circuit Court determined that construction defects are occurrences under a general liability policy and the passage of CRS Section 13-20-808, in which the Colorado Legislature addressed the definition of occurrences as they relate to construction defects, the insurance industry “will continue to challenge the very concept of coverage for construction defects,” according to five attorneys at the law firm Sherman & Howard.
They suggest that there are lessons to be learned from two recent cases that were recently decided by the Colorado Court of Appeals, TCD, Inc. v. American Family and Colorado Pool Systems, Inc. v. Scottsdale Insurance Company. They suggest that construction professionals to be certain that their insurers are “firmly rooted in insuring the construction industry.” Their broker should also have “specific expertise in insuring the construction industry.” And don’t buy on price alone. Finally, they suggest that construction professionals should “engage an experienced coverage attorney to assess pursuing coverage when an insurance company denies coverage for a construction defect claim.”
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Contractor’s Charge Of Improvements To Real Property Not Required For Laborers To Have Lien Rights
June 13, 2018 —
Matt T. Paxton - Ahlers Cressman & Sleight PLLC BlogIn Washington, persons furnishing labor, professional services, material, or equipment for improvements of real property are generally entitled to a lien on that property, but only if their labor is furnished at the direction of the owner or the owner’s “construction agent.”[1] Whether a lien attaches, therefore, can turn on whether the person directing work is the owner’s construction agent. Washington’s mechanic’s lien statute defines “construction agent” as “any registered or licensed contractor, registered or licensed subcontractor, architect, engineer, or other person having charge of any improvement to real property, who shall be deemed the agent of the owner for the limited purpose of establishing the lien created by this chapter.”[2]
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Matt T. Paxton, Ahlers Cressman & Sleight PLLCMr. Paxton may be contacted at
matt.paxton@acslawyers.com
It Pays to Review the ‘Review the Contract Documents’ Clause Before You Sign the Contract
March 11, 2024 —
Alan Winkler - ConsensusDocsIt is fairly common for a construction contract to include a provision requiring the contractor to perform some level of review of the plans and specifications and perhaps other contract documents as part of their responsibilities. Typically, this provision is found in a section of the contract on the contractor’s responsibilities, although it can be anywhere. Owners and contractors are, with reason, focused on three main issues in reviewing contracts: (1) price, costs, and payments, (2) time and scheduling, and (3) scope of the work. Eyes may glaze over the contractor’s responsibilities section. Not only does it seem to be boilerplate, but industry professionals know what a contractor is supposed to do; in a nutshell, build the project.
An old school type of contractor may regard this role as strictly following the plans and specifications, no matter what they provide. That could lead to a situation where construction comes to a complete stop because, for example, two elements are totally incompatible with each other. If that happens, the contractor would then turn to the owner and architect to ask for a corrective plan and instructions on how to proceed. That may also be accompanied by a request for more time and money while the problem is resolved. The ‘review the contract documents’ clause is designed to avoid this. It is intended to address an understanding that everyone makes mistakes, even architects and engineers whose job it is to design a buildable, functional project. The clause also addresses the understanding that a contractor is more than a rote implementer of plans and specifications because its expertise in building necessarily means the contractor has expertise in understanding the documents that define the construction and how things are put together.
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Alan Winkler, Peckar & Abramson, P.C.Mr. Winkler may be contacted at
awinkler@pecklaw.com
OSHA Begins Enforcement of its Respirable Crystalline Silica in Construction Standard. Try Saying That Five Times Real Fast
November 02, 2017 —
Garret Murai - California Construction Law BlogOn October 23, 2017, the U.S. Occupational Safety and Health Administration (OSHA) began enforcement of its Respirable Crystalline Silica in Construction Standard (Construction Silica Standard). OSHA enforcement of its Construction Silica Standard actually began on September 23, 2017, but for a period of 30 days, OSHA offered compliance assistance in lieu of enforcement for employers who were making good faith efforts to comply with the Construction Silica Standard.
California’s Occupational Safety and Health Administration (Cal/OSHA) has a nearly identical construction silica standard that requires employers to limit worker exposure to respirable crystalline silica above 25 micrograms per cubic meter of air (25 μg/m3) as an 8-hour time-weighted average (TWA) under any foreseeable condition.
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Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
Drawing the Line: In Tennessee, the Economic Loss Doctrine Does Not Apply to Contracts for Services
December 11, 2023 —
Gus Sara - The Subrogation StrategistIn Commercial Painting Co. v. Weitz Co. LLC, No. W2019-02089-SC-R11-CV, 2023 Tenn. LEXIS 39 (Weitz), the Supreme Court of Tennessee (Supreme Court) considered whether the economic loss doctrine barred the plaintiff’s claims for fraud, negligent misrepresentation and punitive damages arising out of a contract with the defendant for construction services. The court held that the economic loss doctrine only applies to product liability cases and does not apply to claims arising from contracts for services. This case establishes that, in Tennessee, the economic loss doctrine does not bar tort claims in disputes arising from service contracts.
In Weitz, defendant, Weitz Co. LLC (Weitz), was the general contractor for a construction project and hired plaintiff Commercial Painting Co. (Commercial) as a drywall subcontractor. Weitz refused to pay Commercial for several of its payment applications, claiming that the applications were submitted untimely and contained improper change order requests. Commercial filed a lawsuit against Weitz seeking over $1.9 million in damages, alleging breach of contract, unjust enrichment, enforcement of a mechanic’s lien, and interest and attorney’s fees under the Prompt Pay Act of 1991. Weitz filed a counterclaim for $500,000 for costs allegedly incurred due to Commercial’s delay and defective workmanship. In response, Commercial amended its complaint to add claims for fraud, intentional and negligent misrepresentation, rescission of the contract and $10 million in punitive damages. Commercial alleged that Weitz received an extension of the construction schedule but fraudulently withheld this information from Commercial and continued to impose unrealistic deadlines.
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Gus Sara, White and WilliamsMr. Sara may be contacted at
sarag@whiteandwilliams.com
Design & Construction Case Expands Florida’s Slavin Doctrine
January 21, 2015 —
Beverley BevenFlorez-CDJ STAFFAccording to Amanda Baggett of Rogers Towers, Florida’s “Fourth District Court of Appeal appears to have expanded the Slavin doctrine in the context of design professional liability” in the case McIntosh v. Progressive Design and Engineering, Inc. (Jan. 7, 2015). McIntosh, a personal injury case, involved whether the design and construction of an intersection with multiple traffic signals in close proximity created confusion for drivers.
Baggett stated that McIntosh expanded the Slavin doctrine in two ways: “first, the ruling eliminates the requirement that the ultimate owner of a project accept the project before the Slavin doctrine may be invoked. Second, the decision applies the Slavin doctrine to completed and accepted design plans without regard to the completion of the project for which they were prepared.”
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ASCE Statement on Calls to Suspend the Federal Gas Tax
June 27, 2022 —
Tom Smith, Executive Director, American Society of Civil Engineers (ASCE)WASHINGTON, D.C. –
ASCE strongly opposes the recent announcement from the Biden Administration to suspend the current 18.4 cents-per-gallon federal gasoline tax for three months. Even at the same modest figure of 18 cents per gallon for over 25 years since 1993, the motor fuel tax has represented a reliable federal revenue source for communities to fix and modernize their network of roads, bridges, and transit systems.
Suspending the gas tax would result in the loss of billions in revenue from the Highway Trust Fund (HTF), significantly diminishing much of the progress made in the Bipartisan Infrastructure Law at a time when Americans expect improvements to the nation's roads, bridges, and transit systems. Replacing this lost revenue with funds from other sources is not a viable long-term solution and sets a damaging precedent. Encouraging states to follow suit will compound this bad idea and further exacerbate our nation's infrastructure funding challenges. Our transportation system, including roadways, bridge spans, and transit networks, can't rely on novel, unpredictable funding.
Further, there is little guarantee that motorists will see any real relief at the pump. Gas holidays aren't price controls; the manager at the gas station still gets to set their price. Oil producers have benefited significantly in the past from previous state-level gas tax holidays. There is no mechanism to ensure that these "savings" are passed on to consumers, but there is a virtual guarantee of disrupting transportation dollars and the HTF. While it sounds like an enticing solution when pocketbooks are strained, Congress knows that a variety of factors, including plain supply and demand, affect the prices that people see at fuel stations.
Now is the time to build on the momentum of the Bipartisan Infrastructure Law which, for the first time in decades, takes significant steps to revitalize our nation's aging infrastructure, improve public safety, strengthen our economy, and deliver well-paying jobs.
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