Seattle Washington Building Expert Directory

Boilerplate Contract Language on Permits could cause Problems for Contractors

March 19, 2014 — Beverley BevenFlorez-CDJ STAFF
Craig Martin on his blog Construction Contractor Advisor discusses the potential problems for a contractor that a “boilerplate contract” could cause: “A recent case revealed the problems a contractor had with permits when the contractor’s estimate contemplated an easy permitting process and compliance, but in actuality it was much, much more difficult.” Martin cites the case Bell/Heery v. United States, where a contractor discovered that the permit process would be much more time-consuming and expensive than originally planned. When Bell/Heery asked for additional funds to cover the additional costs, the “contracting officer rejected the request, finding that Bell/Heery had assumed the risk of the permitting process and it was liable for any costs associated with the permitting process and construction methods required by the permitting process.” “Bell/Heery appealed to the Court of Claims,” but lost the battle. The contractor had to absorb $7 million in costs to comply with the required permits. Read the court decision
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Understanding Indiana’s New Home Construction Warranty Act

April 30, 2014 — Beverley BevenFlorez-CDJ STAFF
Marisa L. Saber on the Subrogation & Recovery Law Blog, discussed Indiana’s New Home Construction Warranty Act, and how it can benefit both builders and plaintiffs in construction defect cases. Saber stated that the “Indiana New Home Construction Warranty Act (the “Act”) (see Indiana Code §32-27-2-1 et. seq.) allows a builder to provide specific warranties and disclaim all implied warranties if the text of the statute is followed.” Furthermore, the warranties must be backed by an insurance policy. Saber answers the question as to why a builder would choose to provide express warranties: “The likely answer is that it allows the builder to have control over its liability if a construction defect occurs.” For instance, “[i]f a builder provides express warranties via the Act, it is assured that any warranty liability will be covered by insurance.” This benefits a plaintiff working in a subrogation case, “as there will be guaranteed insurance for the construction defect if the builder complies with the Act.” Read the court decision
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Meet Your Future Team Members: AI Agents

December 10, 2024 — Aarni Heiskanen - AEC Business
If you’ve been following the discussion around AI, you’re familiar with the concept of AI agents. AI agents can be understood as intelligent automation that operates independently, monitoring its environment and taking action without constant human input. Unlike traditional software requiring specific inputs to produce predictable outputs, AI agents can adapt to varying conditions and user needs. AI agents can be based on various technologies, including Large Language Models. They can also be constructed using other AI technologies, such as rule-based systems, machine learning algorithms, and specialized models tailored to specific tasks. 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

Dusseldorf Evacuates About 4,000 as World War II Bomb Defused

August 20, 2014 — Dorothee Tschampa – Bloomberg
Emergency services in the northern German city of Dusseldorf are preparing to evacuate more than 4,000 people, including residents of a retirement home, as work gets under way to disarm a World War II bomb discovered during construction work yesterday. A further 15,000 people, living within a 1 kilometer (0.6 mile) radius of the site, are being asked to stay indoors and keep away from windows, authorities said in a press release published on its website. The disposal is scheduled for 4 p.m. Roads in the vicinity are expected to remain closed until at least 5 p.m. The 500-kilogram (1,100 pound) U.S. aircraft bomb was unearthed on the site of the former Reitzenstein army barracks, which is being redeveloped as a residential area. It’s the fourth or fifth find since last year in the northeastern district of Moersenbroich, where new apartment buildings and houses are under construction, Tobias Schuelpen, a press spokesman for the local fire service, said by phone. Read the court decision
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Reprinted courtesy of Dorothee Tschampa, Bloomberg
Ms. Tschampa may be contacted at dtschampa@bloomberg.net

Regional US Airports Are Back After Years of Decay

September 23, 2024 — Lebawit Lily Girma - Bloomberg
The ski resorts near Gunnison and Crested Butte, Colorado, are so close to Aspen, you’d think the area wouldn’t need its own airport. Their glitzier neighbor is just 48 miles north as the crow flies, though that’s roughly 150 miles by road. But people flocking to Crested Butte’s laid back town, extreme ski slopes and epic mountain biking have a new reason to bypass farther-away Aspen: the destination’s gleaming new airport, which debuted in January 2023. Not only is the Gunnison-Crested Butte Regional Airport terminal easy to get across quickly, at just 40,000 square feet, it's also heated and cooled with geothermal energy and uses triple glazed windows to keep travelers warm in a town known to be one of the coldest places in the US. And Crested Butte isn’t the only small town airport receiving an upgrade. All across the US, at least a dozen small and medium-size facilities are being renovated and, in some cases, entirely rebuilt—typically on budgets that stretch eight and nine figures. That contradicts a long-held belief among aviation industry pros that these regional facilities were destined to gather dust and die out. Read the court decision
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Reprinted courtesy of Lebawit Lily Girma, Bloomberg

An Occurrence Under Builder’s Risk Insurance Policy Is Based on the Language in the Policy

April 03, 2023 — David Adelstein - Florida Construction Legal Updates
Builder’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). 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

Business and Professions Code Section 7031, Demurrers, and Just How Much You Can Dance

February 14, 2022 — Garret Murai - California Construction Law Blog
Fights between owners and contractors under Business and Professions Code section 7031 can get nasty and detailed. An owner’s remedy under Section 7031, as courts have stated, can be “harsh[ ],” “draconian” and even “unjust” and damages can be significant. Panterra GP, Inc. v. Superior Court, 2022 WL 289216 (2022), a case decided this past month, is no different. It even involved a disagreement between the very justices deciding the case. The Panterra GP Case Panterra GP, Inc. was a licensed general contractor. Rosedale Bakersfield Retail VI, LLC and Movie Grill Concepts XX, LLC intended to hire Panterra GP to perform renovation work at the Studio Movie Grill in Bakersfield, California, but drafted a construction contract mistakenly listing Panterra Development Ltd., LLP as the contractor on the project. Panterra GP was the general partner of Panterra Development. Read the court decision
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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

First Circuit: No Coverage, No Duty to Investigate Alleged Loss Prior to Policy Period

May 18, 2020 — Eric B. Hermanson & Austin D. Moody - White and Williams
On April 1, 2020, the First Circuit, applying Massachusetts law, issued a potentially useful decision addressing the Montrose “known loss” language in ISO Form CGL policies. In Clarendon National Insurance Company v. Philadelphia Indemnity Insurance Company,[1] the court applied this language to allow denial of defense for claims of recurring water infiltration that began before the insurer’s policy period, and it found an insurer had no duty to investigate whether the course of property damage might have been interrupted, or whether other property damage might have occurred during the policy period, so as to trigger coverage during a later policy. In the underlying dispute, a condominium owner (Doherty) asserted negligence claims against her association’s property management company (Lundgren) stemming from alleged water infiltration into her condominium. The complaint said leaks developed in 2004 in the roof above Doherty’s unit, and repairs were not made in a timely or appropriate manner. The following year, the complaint said, a Lundgren employee notified Doherty that the threshold leading to her condominium's deck was rotting. In February 2006, Doherty discovered a mushroom and water infiltration on the threshold and notified Lundgren. At that time, Lundgren asked its maintenance and repair contractor (CBD) to replace the rotting threshold. According to the complaint, CBD did not do this repair in a timely manner and left debris exposed in Doherty’s bedroom. In March 2006, the complaint said, a mold testing company hired by Lundgren found hazardous mold in Doherty's unit, caused by water intrusions and chronic dampness. Lundgren’s attempts at remediation were ineffectual. In September 2008, Doherty's doctor ordered her to leave the condominium and not to return until the leaks were repaired and mold was eliminated. Reprinted courtesy of Eric B. Hermanson, White and Williams and Austin D. Moody, White and Williams Mr. Hermanson may be contacted at hermansone@whiteandwilliams.com Mr. Moody may be contacted at moodya@whiteandwilliams.com Read the court decision
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