Specification Challenge; Excusable Delay; Type I Differing Site Condition; Superior Knowledge
January 02, 2024 —
David Adelstein - Florida Construction Legal UpdatesAn Armed Services Board of Contract Appeals dispute, Appeal of L.S. Black-Loeffel Civil Constructors JV, ASBCA No. 62402, 2023 WL 5827241 (ASBCA 2023), involved which party bore liability for delay—the federal government or the prime contractor–based on various legal theories. Without detailing the factual details, a number of interesting legal issues were raised in this dispute including (1) a defective specification challenge, (2) excusable delay, (3) Type I differing site condition, and (4) superior knowledge. These legal issues are discussed below.
1. Specification Challenge (Defective Specifications)
The contractor claimed that the government’s specifications were defective in regard to a thermal control plan. The government countered that the specifications were not design specifications but performance specifications. The specifications were performance based because they did not tell the contractor how to achieve the performance-based criteria.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
A WARNing for Companies
March 13, 2023 —
Abby M. Warren & Sapna Jain - Construction ExecutiveSince last fall, news of layoffs in the technology sector have set off a ripple effect in a variety of other industries. Companies engaging in layoffs must be thoughtful and prepared when it comes to taking such action. While the construction industry generally has one of the highest layoff rates, and human resource personnel may be very knowledgeable with regard to related risks and exposure, there are a number of additional issues to consider when there are mass layoffs or closings. Further, expensive litigation awaits if companies are not meticulous in complying with state and federal laws regarding such large scale reductions in force.
Under federal law, the primary legislation governing mass layoffs and closing is the Worker Adjustment and Retraining Notification (“WARN”) Act which generally covers employers with 100 or more employees. This law was enacted to protect employees by requiring companies to provide 60 days’ notice to employees in advance of certain plant closings and mass layoffs. In addition, many states, such as California, Connecticut and New York, have enacted similar state laws, referred to as “mini-WARN” laws, which impose additional requirements, including increasing the length of the required advance notice and broadening the scope of employers to which the law applies.
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Abby M. Warren and Sapna Jain, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Adobe Opens New Office Tower and Pledges No Companywide Layoffs in 2023
April 18, 2023 —
Edward Ludlow & Brody Ford - BloombergAdobe Inc., breaking ranks with an industry cutting costs and laying off workers, has opened a new office tower in its home city, adding new capacity for staff and pledging no companywide job cuts in 2023.
The Founders Tower is an 18-story, 1.25 million-square-foot shimmering glass addition to San Jose, California, a city Adobe has called home since the early ’90s. The software company’s fourth tower has capacity for 3,000 employee workstations, Adobe said Wednesday in a statement. Despite opening a new office with amenities, the company remains supportive of hybrid and flexible work arrangements.
“We’re actually committed to continuing to grow here,” Adobe Chief People Officer Gloria Chen said in an interview with Bloomberg Television to air Wednesday. “We are committed to not having companywide layoffs.”
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Edward Ludlow, Bloomberg and
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Defining Catastrophic Injury Claims
December 16, 2019 —
Bremer Whyte Brown & O'Meara LLPHow do we define circumstances and injuries that go beyond a typical claim and severely impact a person’s life? How do we characterize the types of claims where an individual’s enjoyment of life is affected in an extraordinary manner? Typically, attorneys refer to these types of cases as “catastrophic injury” claims. These are the type of personal injury claims where the health of an individual has been so seriously impacted that their life has been irreparably altered. Defining these claims legally is somewhat murky and case law has done little to provide attorneys with a specific definition of the term. However, a recent Workers Compensation Appeals Board ruling attempted to list factors in order to establish a catastrophic injury claim. These include:
- An intensity and seriousness of treatment received for an injury;
- The ultimate outcome when a person’s physical injury is permanent and stationary;
- Whether the severity of the physical injury impacts the person’s ability to perform daily activities;
- Whether the physical injury is closely analogous to one of the injuries specified in various statutes, including loss of a limb, paralysis, severe burns, or a severe head injury; and
- If the physical injury is incurable or progressive. Wilson v. State of California CAL Fire (5/10/19) 2019 Cal.Wrk.Comp. LEXIS 29.
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Bremer Whyte Brown & O'Meara LLP
Public Works Bid Protests – Who Is Responsible? Who Is Responsive?
December 14, 2020 —
Eric Divine - Porter Law GroupMost Public Works Solicitations Are Low Bid
The process for awarding public works projects in California is controlled by the Public Contract Code. Generally, regardless of whether the public agency is the State, a county, a city or a local district, the project is awarded to the contractor who is “responsible” and submits the least expensive “responsive” bid. This is generally known as a “low bid” contract. In the context of public works, the terms responsible and responsive have very important meanings. As a result, State and local governments have gotten into very expensive trouble for not following the law. So, to understand how to best present a bid protest on a low bid solicitation, you, as a contractor should have a good understanding of the meaning of these terms.
Note: There are other methods of contracting for public works that are not low bid, which are typically called “best value” contracts because the procurement process considers factors other than just price. These methods are typically used for large projects because the added complexity and expense of the procurement process only makes sense when the project is itself complex and expensive.
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Eric Divine, Porter Law GroupMr. Divine may be contacted at
edivine@porterlaw.com
Approaches to Managing Job Site Inventory
January 04, 2018 —
Jessica Stark - Construction InformerOriginally Published by CDJ on August 30, 2017
There is no question that organization on the job site can mean the difference between efficient performance and costly errors. A simple mistake can cost a company thousands, which is why details are carefully articulated and supervisors become better scrutinizers than magazine editors. But for some reason, many companies don’t consider managing job site inventory under this same attentive category, or perhaps they don’t know about the technology available to help them do it.
For contractors, keeping track of every piece of material and equipment lowers losses and keeps crews busy. This is especially true for contractors in the trades who often have specialized equipment in inventory such as power supplies, HVAC “smart energy” components or inspection equipment. Once everything is accounted for, the possibility of loss is decreased and there’s a chance to evaluate the use of all materials and equipment. This can show the efficiency of allotted resources. Is there enough equipment on the site to get tasks completed? Is there a need for more? Less? Having excess equipment can sometimes prepare a crew for problem scenarios. But it can also mean the construction company is overpaying for unneeded resources. However, the only way to know is by effectively managing job site inventory. That includes all equipment and materials
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Jessica Stark, Construction Informer
Two Worthy Insurance Topics: (1) Bad Faith, And (2) Settling Without Insurer’s Consent
February 20, 2023 —
David Adelstein - Florida Construction Legal UpdatesThe recent Eleventh Circuit Court of Appeals’ decision, American Builders Insurance Company v. Southern-Owners Insurance Company, 56 F.4th 938 (11th Cir. 2023), is an insurer versus insurer case that touches on two important insurance topics: (1) common law bad faith against an insurance company, and (2) an insurer’s affirmative defense that an insured settled a claim without its consent. The Eleventh Circuit provides invaluable legal discussion on these topics that any insured (and an insured’s counsel) need to know and appreciate. While this article won’t go into the granular facts as referenced in the opinion, it will go into the law because it is the law the facts of a case MUST cater to and address.
In this case, a person performing subcontracting work fell from a roof without fall protection and became paralyzed from the waist down. The general contractor had a primary liability policy and an excess policy. The general contractor’s primary liability insurer investigated the accident and assessed the claim. The subcontractor’s liability insurer, which was the primary insurance policy (the general contractor was an additional insured for work the subcontractor performed for the general contractor), did little to investigate and assess the claim and then refused to pay any amount to settle the underlying claim or honor its defense and indemnity obligation to the general contractor.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
N.J. Appellate Court Confirms that AIA Construction Contract Bars Insurer's Subrogation Claim
September 10, 2019 —
Saxe Doernberger & Vita, P.C.On April 4, 2019, the Appellate Division of the New Jersey Superior Court confirmed that the waiver of subrogation provision in a commonly used form construction contract, American Institute of Architects (AIA) form A201 — 2007 General Conditions of the Contract for Construction, precluded an insurer’s claims against a subcontractor.
In Ace American Ins. Co. v. American Medical Plumbing, Inc., the court considered Ace American Insurance Company’s (Ace) subrogation claim against a plumbing subcontractor who was allegedly responsible for a water main leak that caused approximately $1.2 million in damages to Ace’s insured, Equinox Development Corporation (Equinox).
In March 2012, Equinox entered into a contract with Grace Construction Management Company, LLC (Grace) to build the “core and shell” of a new health club. Equinox and Grace used AIA form A201 for their contract. Grace then hired American Medical Plumbing, Inc. (American) as a plumbing subcontractor for the project. In April 2013, the water main failed, flooding the health club.
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Saxe Doernberger & Vita, P.C.Saxe Doernberger & Vita, P.C. may be contacted at
coverage@sdvlaw.com