Virginia Tech Has Its Own Construction Boom
May 10, 2013 —
CDJ STAFFThe last few years has been a tough time for the construction industry, unless you’re in the proximity to the campus of Virginia Tech. Since 1999, the school has seen more than $1 billion in construction projects. Charles Steger, the president of the university says that “we have no intention of slowing down.”
Steger views some of the construction as vital to the school’s mission, noting that at Davidson Hall, which contains chemistry laboratories, “the wiring and other facilities were almost a health hazard.” The building is undergoing a $31 million renovation.
In order to keep the campus walkable, parking lots are being replaced by parking garages. Four dormitory buildings will be demolished and replaced by new facilities. Funds for the development have come from a mix of student fees, donations, research revenues, bond issues, and taxpayer revenues.
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New Florida Bill Shortens Time for Construction-Defect Lawsuits
September 06, 2023 —
Jessica Zelitt - Construction ExecutiveOn April 13, 2023, Florida Gov. Ron DeSantis signed Senate Bill 360 into law. This legislation alters the time period for bringing forward construction-defect lawsuits, as well as modifies the current private right of action against a contractor for violation of the Florida Building Code.
First, SB 360 amends § 95.11(3)(c), Florida Statutes, to reduce the statute of repose from 10 years to seven years for actions founded on latent construction defects. The legislation also changes the manner in which this time period is calculated under both the seven-year statute of repose and the four-year statute of limitations for construction-defect cases.
Under the prior statute, the time to commence an action began with the later of (i) the date of actual possession by the owner, (ii) the date of the issuance of a certificate of occupancy (CO), (iii) the date of abandonment of construction if not completed or (iv) the date of completion or termination of the contract.
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Jessica Zelitt, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Ms. Zelitt may be contacted at
jessica.zelitt@arlaw.com
Court Grants Summary Judgment to Insurer in HVAC Defect Case
August 04, 2011 —
CDJ STAFFThe US District Court in Colorado has determined in the case of RK Mechanical, Inc. v. Travelers Property Casualty Company of America that Travelers did not breach its insurance contract when it refused to cover RK Mechanical.
RK Mechanical performed an HVAC installation for a residential project for which J.E. Dunn Rocky Mountain was the general contractor. As part of the work, RK “installed approximately one hundred seventy-one CPVC flanges, which were manufactured by Charlotte Pipe and Foundry Company.” Two of these flanges failed in June, 2009 leading to water damage. RK replaced the cracked flanges and engaged in water remediation. “Travelers paid Dunn and RK for the costs associated with the water damage associated with the Flange Failure.” The court notes that Travelers did not pay for the cracked flanges, however.
Subsequently, RK examined the remaining flanges, finding many cracked ones. These were replaced with new ones. Later, all the Charlotte flanges were replaced with ones from another manufacturer. RK applied for coverage.
All sides brought in their experts: “Microbac Laboratories, Inc. prepared a report on behalf of RK concluding that the Flange Failure was due, in part, to an assembly or workmanship defect in addition to manufacturing defects in the flanges. Higgins & Associates prepared a report on behalf of Travelers concluding that the flanges failed due to improper installation. Plastic Failure Labs prepared a report on behalf of the flange manufacturer concluding that the flanges failed due to improper installation by RK.”
At this point, Travelers denied coverage. RK sued alleging that the coverage for flange failure and water damage implicitly includes mitigation costs. The court rejected this claim, noting it would do so even if Travelers had paid for the replacement of the first two flanges. Nor did the court find that replacement of the faulty flanges is not "a covered cause of loss." RK also argued that as it was required to mitigate, Travelers was obligated to cover costs. However, the court found that “the mitigation costs expended by RK were not incurred in an effort to avoid damages from a potential breach of contract by Travelers.” The court additionally noted that despite RK’s claims, the Colorado courts have not found a common law duty to mitigate. Finally, the court found that the exclusions in the policy were not in violation of public policy.
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Patagonia Will Start Paying for Homeowners' Solar Panels
October 15, 2014 —
Caroline Winter – Bloomberg BusinessweekPatagonia plans to use state and federal tax credits to invest $13 million in the construction of solar panels on 1,000 homes in Hawaii, turning the eco-conscious retailer into the financial backer of a green electrical utility.
With the announcement on Wednesday, Patagonia hopes companies across America will follow suit with similar efforts. “Any U.S. public or private company who pays their fair share of taxes can use this strategy to speed up the development of new energy infrastructure,” Rose Marcario, Patagonia’s chief executive, said in an interview. “And they can make money doing it and create jobs.”
Patagonia is joining forces with a tiny solar-financing company, Kina’ole Capital Partners, as well as a local Hawaiian bank to create a $27 million fund to pay for rooftop installation and upkeep. Starting in Hawaii makes sense because of its abundant sunshine and sky-high electrical rates; Hawaiians currently pay three times the U.S. average for electricity.
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Caroline Winter, Bloomberg BusinessweekMs. Winter may be contacted at
cwinter10@bloomberg.net
NYC Airports Get $500,000 Makeover Contest From Cuomo
October 22, 2014 —
Freeman Klopott and Allyson Versprille – BloombergGovernor Andrew Cuomo is holding a competition for plans to upgrade New York City’s two airports, which consistently rank as the worst in the U.S. for design, cleanliness and delays.
Cuomo announced the $500,000 design contest for John F. Kennedy International and LaGuardia airports at a press briefing in Queens with U.S. Vice President Joe Biden, who in February caused a stir when he likened LaGuardia to a facility in a third-world country.
“This is the next phase for New York,” Cuomo said today at Vaughn College of Aeronautics and Technology in Flushing, home of LaGuardia.
The Port Authority of New York and New Jersey, which runs the airports, is allocating $8 billion to construction at the two facilities and Newark-Liberty International over the next 10 years. That includes $2.2 billion as part of a $3.6 billion redesign of LaGuardia’s 50-year-old central terminal, voted America’s dirtiest and most poorly designed by readers of Travel & Leisure magazine in 2012.
Mr. Klopott may be contacted at fklopott@bloomberg.net; Ms. Versprille may be contacted at aversprille1@bloomberg.net
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Freeman Klopott and Allyson Versprille, Bloomberg
New York State Trial Court: Non-Cumulation Provision in Excess Policies Mandates “All Sums” Allocation
October 02, 2018 —
Paul Briganti - White & Williams LLPOn August 18, 2018, the New York Supreme Court, New York County, confirmed a referee’s finding that “all sums” allocation was required under excess policies issued by Midland Insurance Company because they included a non-cumulation provision. See Matter of Liquidation of Midland Ins. Co., Index No. 041294/1986 (N.Y. Sup. Ct. Aug. 18, 2018).
Midland was a multi-line carrier that wrote a substantial amount of excess coverage for Fortune 500 companies. In the 1980s, Midland faced significant exposure for environmental, asbestos and product liability claims. In 1986, it was placed in liquidation and the New York State Superintendent of Insurance (the Liquidator) was appointed as its receiver. Since then, the New York Supreme Court has presided over the liquidation proceedings.
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Paul Briganti, White & Williams LLPMr. Briganti may be contacted at
brigantip@whiteandwilliams.com
Increase in Single-Family New Home Sales Year-Over-Year in January
February 26, 2015 —
Beverley BevenFlorez-CDJ STAFFBuilder magazine reported, “Sales of new single-family houses in January 2015 were at a seasonally adjusted annual rate of 481,000, according to estimates released today by the U.S. Census Bureau. This is 0.2% (±22.2%)* below the revised December rate of 482,000, but is 5.3% (±22.1%)* above the January 2014 estimate of 457,000.”
According to Metrostudy (as reported by Builder), builders seem to be getting ready for increased production this year: “An excellent leading indicator for housing starts is the number of lots reaching development (ready for the builder to start building). Our in-field research shows that lot development has doubled in the last two to three years in many markets.”
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Dynamics of Managing Professional Liability Claims for Design Builders
February 21, 2022 —
Eric M. Clarkson - Saxe Doernberger & Vita, P.C.Nearly half of America’s construction projects are now design-build in a continuing shift. As a result, contractors are taking on more professional liability (“PL”) risk than ever before, and the risk management landscape is changing. There are unique challenges to managing PL risks and claims. Specifically, PL coverage requires proactive claim management and project coordination. As a result, design-build projects should involve significant collaboration amongst all of the parties involved in the project.
Claims Made Coverage Considerations
PL policies typically provide three types of coverage:
- Professional Liability covers defense and indemnity against claims arising out of acts or omissions of the insured in rendering a defined set of professional services –including construction management, project management, and design work in the design build context.
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Eric M. Clarkson, Saxe Doernberger & Vita, P.C.Mr. Clarkson may be contacted at
EClarkson@sdvlaw.com