Update Relating to SB891 and Bond Claim Waivers
June 10, 2015 —
Christopher G. Hill – Construction Law MusingsSeveral bills were passed and will go into effect on July 1, 2015 that affect the construction industry here in Virginia. The most interesting of these was an amendment to the mechanic’s lien statutes relating to waivers of lien rights.
As I posted in March, SB891 amended the mechanic’s lien statute, Va. Code Section 43-3, to remove proactive waivers of lien and bond rights. This bill has been signed into law with a minor modification.
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Christopher G. Hill, Law Office of Christopher G. Hill, PCMr. Hill may be contacted at
chrisghill@constructionlawva.com
GIS and BIM Integration Will Transform Infrastructure Design and Construction
October 09, 2018 —
Nicolas Mangon - Engineering News-RecordAn unfortunate fact of the architecture and engineering professions and the construction industry is that, between every stage of the process—from planning and design to construction and operations—critical data is lost.
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Nicolas Mangon, ENRENR may be contacted at
ENR.com@bnpmedia.com
Buildings Don't Have To Be Bird-Killers
February 07, 2022 —
Alexandra Lange - BloombergThe narrow stretch that separates Quay Tower from a thatch of bamboo and oaks in Brooklyn Bridge Park doesn’t look like much, especially in winter. Unless you’re a bird.
To a bird, the copper-colored building’s glass is a mirror, reflecting the thick grove of trees and suggesting that the wilderness continues across the road. To a bird, that can be a deadly mistake.
“You see that reflection? To a bird that looks like a tree, that is a tree, and they will go right for the tree,” says Catherine Quayle, social media director at the Wild Bird Fund.
The surprising uptake of birding as a pandemic hobby, along with social media and data collection tools like eBird and dBird, has created new visibility for bird collisions with glass, which kill as many as 1 billion birds in the U.S. per year. At the same time, a new generation of urban parks has given birds more places to roost in highly populated areas. But something else has followed these parks as well: real estate capital. The vogue for urban parks creates more economic impetus to build shiny buildings with big windows opposite those urban wetlands, glades and groves.
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Alexandra Lange, Bloomberg
Environmental Suit Against Lockheed Martin Dismissed
August 13, 2014 —
Beverley BevenFlorez-CDJ STAFFA federal judge dismissed an environmental suit against Lockheed Martin, finding that contamination levels on the plaintiffs’ Moorestown, New Jersey properties were not high enough to pose a health threat, according to the New Jersey Law Journal.
Two owners who live across the street from the plant had “sued under the Resource Conservation & Recovery Act, the Comprehensive Environmental Response, Compensation & Liability Act and various state statutes.” However, “while the suit was pending, the New Jersey Department of Environmental Protection raised the threshold for concentration levels of substances such as TCE and PCE to warrant additional testing.”
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An Occurrence Under Builder’s Risk Insurance Policy Is Based on the Language in the Policy
April 03, 2023 —
David Adelstein - Florida Construction Legal UpdatesBuilder’s risk insurance coverage is a vital property insurance coverage during the course of construction. Builder’s risk insurance is not a one-size-fits-all product so please make sure you are working with your insurance broker to procure this product that factors in and covers risk associated with the project.
Builder’s risk insurance is typically an occurrence-based policy. No different than other occurrence-based policies (such as commercial general liability), a dispute may arise as to the occurrence. This could be due to the triggering of the actual policy during the coverage period or it could be due deductible obligations, as in the case discussed below. When dealing with a builder’s risk insurance policy–again, no different than any policy–the language in the policy matters. Definitions used in the policy to define specific terms matter and, in numerous cases, the ordinary dictionary meanings of terms matter. But it all starts with the policy language.
In KT State & Lemon, LLP v. Westchester Fire Insurance Co., 2023 WL 2456499 (M.D.Fla. 2023), a builder’s risk policy provided coverage from April 2018 through the end of November 2019. There was a $50,000 per occurrence deductible for loss caused by or from water damage. An extension to the builder’s risk policy was negotiated through the end of January 2020 that increased this water damage deductible to $250,000 per occurrence. During construction and the testing of the fire suppression (sprinkler) system, leaks started to occur resulting in water damage. Two leaks occurred in September 2019, one leak in October 2019, one leak in November 2019, and two leaks in December 2019 (during the extension and higher water damage deductible period).
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Construction Warranties and the Statute of Repose – Southern States Chemical, Inc v. Tampa Tank & Welding Inc.
January 20, 2020 —
David R. Cook - AHC Construction and Procurement BlogIn a recent holding by the Georgia Court of Appeals, the court held that Georgia’s eight-year statute of repose applied to bar the project owner’s warranty claims. The renovation work by the contractor on the owner’s chemical tank constituted an improvement of real property, and thus, the statute of repose bared any claims eight years after substantial completion thereof. In addition, the court rejected the project owner’s claim that it qualified as a third-party beneficiary of an extended warranty contained in a report given by a subcontractor to the contractor.
Factual Background
In 2000, Southern States Phosphate and Fertilizer Company (“Southern States”) hired Tampa Tank & Welding, Inc (“Tampa Tank”) to renovate a tank to hold sulfuric acid. The parties’ written contract contained an express one-year warranty for material and workmanship from the date of completion. Two years later, in January 2002, the tank renovation was completed. Tampa Tank contracted with Corrosion Control Inc. (“CCI”) to design, assist with, and test the cathodic corrosion system. CCI provided only consultation and did not provide any onsite installation. Upon completion of installation, CCI supplied a report to Tampa Tank that the system was properly installed and fully functioning. Additionally, a post–installation report from CCI to Tampa Tank calculated an estimated life expectancy of forty-three to forty-five years.
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David R. Cook, Autry, Hall & Cook, LLPMr. Cook may be contacted at
cook@ahclaw.com
A DC Office Building Offers a Lesson in Glass and Sculpture
May 08, 2023 —
Kriston Capps - BloombergFrom the outside, the facade of 2050 M Street, an office building in Washington, DC, looks like it’s made with liquid soap. Standing inside and looking out, its structure is almost invisible. The building, which was finished in 2020, boasts an ethereal curtain wall, created from hundreds of fluted planes of glass treated with a special industrial coating. The result is a multifaceted surface that pushes the limits of transparency, enhanced with a silver opal shine.
According to Joshua Ramus, founding principal of the architecture firm REX, the 12-story structure’s design reflects Washington’s building history, while its construction required a rather novel procurement process. The building, he says, is very much a DC story.
Each of its 978 glass panels is concave, shaped using an innovative machine called a bending tempering furnace. Curving glass makes it stronger as a material, and this building’s panes are strong enough to stand up with minimal infrastructure. The building doesn’t employ mullions, window components that hold glass in place. Even a few years ago, achieving such an effect by shaping pieces of glass would have been prohibitively expensive.
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Kriston Capps, Bloomberg
How Contractors Can Prevent Fraud in Their Workforce
August 13, 2019 —
Sarah Hofmann - Construction ExecutiveThe word fraud might conjure up images of Wall Street executives led out to police cars in cuffs, or sleazy conmen with slicked-back hair. While these ideas might be popular in movies and TV, and often in the news, many small and large businesses fall victim to fraud. Whether it’s a trusted site manager who needed a little extra cash to cover an unexpected bill or the accountant who’s been on board for years and has been slowly siphoning an extra paycheck through a ghost employee each month, fraud might be hitting businesses without them even knowing it.
The construction industry is hardly immune to such schemes. According to the ACFE’s 2018 Report to the Nations on Occupational Fraud and Abuse, organizations lose an estimated 5% of their revenue each year to fraud. The median amount lost per instance of fraud was $130,000 across all industries, but fraud cases in the construction industry cost almost twice that much at $227,000 per fraud. They also last longer on average: fraud schemes in the construction industry continue for 24 months before being detected versus the overall median average of 16 months. The more time a scheme continues, the more money is lost for organizations.
What types of fraud schemes are most common in the construction industry?
The construction industry is more susceptible to certain types of fraud than other industries due to the nature of the work. The companies may be smaller in size leading to fewer resources to combat fraud and more trust among employees. Also, construction companies inherently deal with many vendors, subcontractors, bidding organizations and other various third parties, which can all pose fraud risks.
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Sarah Hofmann, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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