Fairfield Connecticut Building Expert Directory

Be Careful When Walking Off of a Construction Project

November 24, 2019 — Christopher G. Hill - Construction Law Musings
I am truly grateful that my buddy Craig Martin (@craigmartin_jd) continues his great posts over at The Construction Contractor Advisor blog. He is always a good cure for writer’s block and once again this week he gave me some inspiration. In his most recent post, Craig discusses a recent Indiana case relating to the ever present issue of termination by a subcontractor for non-payment. In the Indiana case, the court looked at the payment terms and determined that the subcontractor was justified in walking from the project when it was not paid after 60 days per the contract. This result was the correct, if surprising. Why do I say surprising? Because I am always reluctant to recommend that a subcontractor walk from a job for non payment if it is possible to continue. This is not so much for legal reasons (not paying a sub is a clear breach of contract by a general contractor) but practical ones. The practical effect of walking from the job is that the subcontractor is put on the defensive. Instead of arguing later that it performed but was not paid, that subcontractor is put in the position of arguing that the general contractor cannot collect its completion related and other damages because it breached first. This is a more intuitively difficult argument and one that is not as strong as the first. Of course, all of this is contingent on the language in your contract (is there a “pay if paid” or language like that in the Indiana case?). Read the court decision
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Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

McGraw Hill to Sell off Construction-Data Unit

March 19, 2014 — Beverley BevenFlorez-CDJ STAFF
McGraw Hill Financial announced “plans to sell a construction-data unit concentrated on the U.S. market” according to The Wall Street Journal. This follows McGraw Hill’s determination to “focus on global operations and cutting costs.” “The construction division ‘is not a business linked to the global markets,’” Douglas L. Peterson, McGraw Hill’s Chief Executive said to The Wall Street Journal. “’It's very different’ than its other units, such as Standard & Poor's Ratings Services, J.D. Power or S&P Capital IQ, with the potential for larger international footprints.” McGraw Hill’s construction division “sells commercial-real-estate information to developers and manufacturers” and “generates about $170 million in annual revenue.” The division “employs about 650 people.” Read the court decision
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Deescalating Hyper Escalation

July 05, 2023 — Paul F. Williamson - Construction Executive
Recent years have seen the construction industry get hit by a perfect storm of rising costs, workforce shortages, delivery delays, supply-chain issues, inflation, interest-rate hikes and materials price escalation. The cost of construction has become more expensive, leaving all parties to grapple with the sufficiency of their risk-management strategies and the ramifications of contracts that are ill-equipped to deal with unprecedented cost increases. Of particular concern to industry participants are the volatile price fluctuations that construction materials have undergone and how to appropriately mitigate the risks they present. Although owners, general contractors and subcontractors may seek to mitigate future risks, many who are party to an existing contract all too often must scramble to divine how to absorb significantly more financial risk than they expected pre-pandemic. Contracts that were bid and entered into prior to the pandemic may have seen, in some instances, double- and triple-digit percent increases in prices due to hyper escalation, with little recourse to address such situations. While parties to private contracts are free to mitigate their risk through contract negotiations, parties to federal or state public procurements are somewhat more constrained. Reprinted courtesy of Paul F. Williamson, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Rams Owner Stan Kroenke Debuts His $5.5 Billion Dream Stadium

September 14, 2020 — Christopher Palmeri - Bloomberg
The first thing you notice that’s different about SoFi Stadium is that you can walk from the parking lot almost directly into the fifth level of the arena. There’s no passing through gate after gate or ascending endless circular walkways. Construction workers dug up over 7 million cubic yards of dirt to build an arena that sits 100 feet (30 meters) below grade. It’s one of the many features that make SoFi, the National Football League’s biggest stadium, surprisingly visitor-friendly. Not that fans will be able to experience it just yet. When the stadium debuts Sunday with the first game of the Los Angeles Rams’ season, it will be spectator-free -- the result of pandemic-spurred restrictions on gatherings. But it will still be a spectacle. Read the court decision
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Reprinted courtesy of Christopher Palmeri, Bloomberg

A Vision and Strategy for the Adoption of Open International Standards

November 18, 2019 — Aarni Heiskanen - AEC Business
The final report of RASTI is now available in English. The project outlined a national vision and strategy for the adoption of open international standards in the real estate and construction industries. The Finnish version includes several appendices. One of the frameworks that RASTI devised was a built environment life-cycle process map. It is derived from the model of Antti Autio of the Ministry of the Environment. The map presents the processes of the four “lanes”: the customer’s/users value creation processes, public sector processes, information work, and production. Ideally, data and information flow across the processes, using open standards. Read the court decision
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Reprinted courtesy of Aarni Heiskanen, AEC Business
Mr. Heiskanen may be contacted at aec-business@aepartners.fi

Endorsements Do Not Exclude Coverage for Wrongful Death Claim

August 30, 2017 — Tred R. Eyerly - Insurance Law Hawaii
The insurer's motion for summary judgment, attempting to bar coverage under two endorsements for a wrongful death suit, was denied. Essex Ins. Co. v. FD Event Co., LLC, 2017 U.S. Dist. LEXIS 124400 (C.D. Calif. July 25, 2017). FD Event owned an amusement attraction known as Free Drop, which was operated at county fairs and festivals. Participants paid an admission fee to FD Event in order to jump from a scaffold structure onto an inflatable airbag below. FD Event had a policy with Essex. When securing the policy, FD Event understood that there was no coverage for amusement devices, inflatables, rides or animals. 28th Event, who ran the San Bernardino County Fair, was an additional insured on the policy. Read the court decision
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Reprinted courtesy of Tred R. Eyerly - Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Condo Collapse Spurs Hometown House Member to Demand U.S. Rules

July 19, 2021 — Parker Purifoy - Bloomberg
A Florida congresswoman called for stricter federal building-safety standards on Thursday to prevent a repeat of the condominium collapse that killed at least 60 people and left dozens more missing in her state. Representative Debbie Wasserman Schultz, a Democrat whose congressional district includes the condo development in Surfside, said more buildings could collapse or break down as they age and the federal government needed to have a “minimum floor” of safety requirements. “We do have standards that are tangentially related at the federal level and so I do think it’s important to look into what standards should be adopted at the national level, at a minimum, because this is a tragedy of epic proportions,” she said on Bloomberg Television’s “Balance of Power” with David Westin. “We can’t allow this to ever happen again.” Read the court decision
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Reprinted courtesy of Parker Purifoy, Bloomberg

Party Cannot Skirt Out of the Very Fraud It Perpetrates

January 09, 2023 — David Adelstein - Florida Construction Legal Updates
An interesting case came out of Florida’s Fourth District Court of Appeal that touches upon two important points. First, the independent tort doctrine does not apply when there is not a contract between the parties. Second, an officer cannot escape fraud simply by claiming his or her actions were done as an officer of the company when he or she actively participated in the fraud. Both of these points are best explained by initially going into the facts of this case. As you will see, the Court’s rationale relates to the premise that a party should not be able to skirt out of the very fraud it perpetrates. Factual Background Costa Investors, LLC v. Liberty Grande, LLC, 48 Fla.L.Weekly D7b (Fla. 4th DCA 2022) involved the ultimate development and construction of four adjacent properties into the Costa Hollywood Hotel. The properties were purchased by a company called Liberty Grande. Its president / manager was also the president of Liberty Grande’s wholly owned subsidiary called Costa Hollywood Property. Liberty Grande transferred the properties to Costa Hollywood Property and the deed was signed by the president / manager. Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

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