Fairfield Connecticut Building Expert Directory

SFAA Commends Congress for Maintaining Current Bonding Protection Levels in National Defense Authorization Act (NDAA)

December 20, 2021 — The Surety & Fidelity Association of America
December 15, 2021 (WASHINGTON, DC) – The Surety & Fidelity Association of America (SFAA), a nonprofit, nonpartisan trade association representing all segments of the surety and fidelity industry, commends the U.S. Senate and House for passing the National Defense Authorization Act (NDAA) for Fiscal Year 2022, and including Section 877, which exempts the Miller Act from periodic indexing for inflation. SFAA would like to thank Miller Act exemption bill sponsors, Representatives Nydia Velazquez (D-NY) and Byron Donalds (R-FL), as well as Senators Robert Portman (R-OH), Gary Peters (D-MI) and Mazie Hirono (D-HI), for their leadership and commitment on the passage of this bill. Exempting the Miller Act from periodic indexing for inflation ensures essential payment protections remain in place for subcontractors, suppliers, and workers on all federal construction contracts subject to the Miller Act. The exemption also ensures performance protections for taxpayers will remain in place on federal construction contracts of $150,000 and more. For over 80 years, the federal Miller Act has protected taxpayers against risk of loss by requiring payment and performance bonds on federal construction contracts. President Biden is expected to sign the NDAA into law in the coming days. The Surety & Fidelity Association of America (SFAA) is a nonprofit, nonpartisan trade association representing all segments of the surety and fidelity industry. Based in Washington, D.C., SFAA works to promote the value of surety and fidelity bonding by proactively advocating on behalf of its members and stakeholders. The association’s more than 450 member companies write 98 percent of surety and fidelity bonds in the U.S. For more information visit www.surety.org. Read the court decision
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EEOC Chair Issues New Report “Building for the Future: Advancing Equal Employment Opportunity in the Construction Industry”

June 05, 2023 — The U.S. Equal Employment Opportunity Commission
WASHINGTON – The U.S. Equal Employment Opportunity Commission (EEOC) Chair Charlotte A. Burrows issued a report today titled, “Building For The Future: Advancing Equal Employment Opportunity in the Construction Industry.” The report provides findings and next steps based on the agency’s enforcement experience, witness testimony presented at the EEOC’s May 2022 hearing on discrimination and harassment in construction and other Commission hearings, and academic research. “The recent historic federal infrastructure investments provide a once-in-a-generation opportunity to break down barriers and expand opportunity in the construction industry,” said EEOC Chair Charlotte A. Burrows. “While discrimination has long been an issue in the industry, we can decide the future. I look forward to working with industry leaders, employers, and unions to help ensure safe and inclusive workplaces for all workers.” Read the court decision
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Joint Venture Dispute Over Profits

January 28, 2019 — David R. Cook, Jr. - Autry, Hall, & Cook, LLP
A recent Georgia Court of Appeals case demonstrates the risk of joint ventures failing to carefully define accounting rules in their joint venture agreement. Two trade contractors teamed up to accomplish certain tasks on a job at a wastewater lift station at Fort Gordon. A joint venture agreement provided for an equal split of the profits and losses. Unfortunately, the parties did not define “profit,” and particularly did not define what cost would be deducted in calculating profit. They disputed in particular whether certain large payments to individuals and 15% overhead charges should be deducted in calculating profits. One party presented the expert testimony of an accountant while the other did not. The party presenting expert testimony asked the court to dismiss the other party’s claim because it was not supported by expert testimony of an accountant. The trial court granted the motion and dismissed the claim. Read the court decision
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Reprinted courtesy of David R. Cook, Jr., Autry, Hall, & Cook, LLP
Mr. Cook may be contacted at cook@ahclaw.com

Lumber Liquidators’ Home-Testing Methods Get EPA Scrutiny

June 10, 2015 — Matthew Townsend – Bloomberg
The home testing method Lumber Liquidators Holdings Inc. is using to reassure customers that their floors are safe is being questioned by the U.S. Environmental Protection Agency. In response to allegations that its Chinese-made laminate flooring emitted excessive levels of formaldehyde, a known carcinogen, Lumber Liquidators sent thousands of do-it-yourself tests to people who’d purchased the products. Customers use a device in the kit to measure the air in their homes for 24 hours, then send the package back to have the results evaluated. While the EPA didn’t take a position on the specifics of Lumber Liquidators’ test program, the agency said on its website that home air testing “may not provide useful information due to the uncertainties” of the method. Air tests don’t pinpoint the specific source of a contaminant, and there are no widely accepted standards for indoor formaldehyde levels, the agency said. Read the court decision
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Reprinted courtesy of Matthew Townsend, Bloomberg

Not If, But When: Newly Enacted Virginia Legislation Bans “Pay-If-Paid” Clauses In Construction Contracts

August 22, 2022 — Joseph A. Figueroa & Thomas E. Minnis - ConsensusDocs
Recently passed legislation in Virginia is likely to dramatically change contractual relationships between prime contractors and subcontractors in the Commonwealth. Abrogating well-established common-law principles set forth by the Supreme Court of Virginia, on April 27, 2022, the Virginia General Assembly, after receiving input from Virginia Governor Glenn Youngkin, passed Senate Bill 550 banning “pay-if-paid” clauses in public and private construction contracts. Contractors performing work in Virginia should take note of the new law, which goes into effect next year and will apply to any contracts executed after January 1, 2023. The History Of Pay-if-Paid Clauses In Virginia Broadly speaking, “pay-if-paid” clauses are a commonly used tool by prime contractors on construction projects to shift the risk to subcontractors in the event that the owner does not pay the prime contractor for work. Such clauses usually include language creating an express condition precedent to the subcontractor’s right to be paid for work under a subcontract, stating that the prime contractor shall be under no obligation to pay the subcontractor for work unless and until the prime contractor first receives payment for that work by the project owner. The “pay-if-paid” clause also has a less extreme cousin, the “pay-when-paid” clause, which merely delays the time in which the prime contractor is obligated to pay the subcontractor to the time in which the prime contractor is paid by the owner. It does not, however, extinguish the prime contractor’s ultimate obligation to pay the subcontractor. Reprinted courtesy of Joseph A. Figueroa, Watt, Tieder, Hoffar, & Fitzgerald, LLP (ConsensusDocs) and Thomas E. Minnis, Watt, Tieder, Hoffar, & Fitzgerald, LLP (ConsensusDocs) Mr. Figueroa may be contacted at jfigueroa@watttieder.com Read the court decision
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Can a Contractor be Liable to Second Buyers of Homes for Construction Defects?

November 05, 2014 — Craig Martin - Construction Contractor Advisor
Whether a contractor will be liable to a second purchaser, even though the contractor never contracted with the second purchaser, varies state to state. The Pennsylvania Supreme Court, in Conway v. The Cutler Group, is the latest court to rule that a subsequent purchaser lacks privity and cannot pursue an action against the builder. In that case, the Conways purchased a home from the original owner. After living in the home for about two years, the Conways discovered water leaking around the windows. The Conways sued the builder, alleging breach of the implied warranty of habitability. The builder defended the claim, asserting that it had not contracted with the Conways and thus had not provided any warranties to the Conways. The trial court agreed and dismissed the claim. The first level of appellate court reversed the trial court, holding that the warranty of habitability was intended to level the playing field between the builder and purchaser of a home and it should be extended to subsequent purchasers. The Pennsylvania Supreme Court disagreed and refused to extend any warranties to subsequent purchasers. Read the court decision
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Reprinted courtesy of Craig Martin, Lamson, Dugan and Murray, LLP
Mr. Martin may be contacted at cmartin@ldmlaw.com

The Contractor’s Contingency: What Contractors and Construction Managers Need to Know and Be Wary Of

December 04, 2023 — Skyler L. Santomartino - Peckar & Abramson, P.C.
Contractors and construction managers who enter into cost reimbursable contracts subject to a guaranteed maximum price (GMP) are responsible for all project costs exceeding the GMP. For this reason, it is imperative that contractors negotiate and incorporate into the GMP a financial buffer that accounts for the unanticipated project costs that are not reimbursable as change orders or costs of the work. This is where the contractor’s contingency comes into play.[1] The contractor’s contingency is a vehicle that allows contractors to mitigate some of the risks inherent in GMP contracts. When drafted properly, a contingency clause allows the contractor and only the contractor to access funds set aside by the owner to address unpredictable or unknown project costs. Read the court decision
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Reprinted courtesy of Skyler L. Santomartino, Peckar & Abramson, P.C.
Mr. Santomartino may be contacted at ssantomartino@pecklaw.com

Wreckage Removal Underway at Site of Collapsed Key Bridge in Baltimore, But Weather Slows Progress

April 15, 2024 — Jim Parsons - Engineering News-Record
Note: The text of this article was updated 4/3/24 to reflect new information. Weather and water conditions are hampering the piece-by-piece process of cutting and removing wreckage from the collapsed Francis Scott Key Bridge in Baltimore, while officials consider potentially utilizing progressive design-build for a replacement bridge. Officials remain uncertain as to how long the meticulous effort to clear the key shipping channel will take. Reprinted courtesy of Jim Parsons, Engineering News-Record ENR may be contacted at enr@enr.com Read the full story... Read the court decision
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FAIRFIELD CONNECTICUT BUILDING EXPERT DIRECTORY AND CAPABILITIES