Fairfield Connecticut Building Expert Directory

Changes to Va. Code Section 43-13: Another Arrow in a Subcontractor’s Quiver

November 02, 2020 — Christopher G. Hill - Construction Law Musings
As is always the case here in Virginia, our General Assembly has made some legislative changes that affect construction contracting. One of these changes is an amendment to Va. Code 43-13 found in the mechanic’s lien section of the Virginia Code. This section of the code has always required that any money paid to a contractor must first go toward paying its subcontractors, suppliers and laborers prior to being used for any other purpose. Prior to 2020, the only remedy for violaiton of Va. Code 43-13 was to go to the local Commonwealth’s Attorney and request a prosecution of the wrongdoer. For various reasons, including that such action did not get the subcontractor or supplier that remained unpaid under this section paid, this remedy was not often pursued except in the most egrigious cases. A key change in the statute occurred during the 2020 legislative session states as follows:

Any breach or violation of this section may give rise to a civil cause of action for a party in contract with the general contractor or subcontractor, as appropriate; however, this right does not affect a contractor’s or subcontractor’s right to withhold payment for failure to properly perform labor or furnish materials on the project. Any contract or subcontract provision that allows a contracting party to withhold funds due under one contract or subcontract for alleged claims or damages due on another contract or subcontract is void as against public policy.

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Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

Build Back Better Includes Historic Expansion of the Low-Income Housing Tax Credit Program

December 20, 2021 — James M. Grosser & David W. Wright - Gravel2Gavel Construction & Real Estate Law Blog
On November 19, 2021, the U.S. House of Representatives passed the Build Back Better Act (H.R. 5376), a bill that represents a large portion of the Biden-Harris Administration’s agenda. Among other spending and tax measures, the bill includes an unprecedented expansion of the Low-Income Housing Tax Credit (LIHTC) program. Four proposals are headlining this expansion:

Increasing the 9% LIHTC allocation cap by 10% plus inflation annually from 2022 to 2024. With this increase, the 2024 LIHTC allocation cap will rise to $3.97 per capita and a small state minimum of around $4.58 million, constituting a 41 percent increase in allocable LIHTC over current levels. The allocation cap would then decrease to $2.65 per capita and a small state minimum of $3.12 million in 2025 and would thereafter be indexed to inflation from the 2025 baseline.
Reducing the 50% threshold for 4% tax-exempt bond-financed projects to 25% for five years, beginning in 2022.

Reprinted courtesy of James M. Grosser, Pillsbury and David W. Wright, Pillsbury Mr. Grosser may be contacted at james.grosser@pillsburylaw.com Read the court decision
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North Carolina Learns More Lessons From Latest Storm

October 16, 2018 — Pam Radtke Russell - Engineering News-Record
There’s no big wall planned to protect North Carolina’s coast from storm surge. There’s no massive tunnel system proposed to keep floodwaters away from populated areas. There are no grant-funded resilience competitions to help the state plan to manage water more effectively. Read the court decision
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Reprinted courtesy of Pam Radtke Russell, ENR
Ms. Russell may be contacted at Russellp@bnpmedia.com

The Contract Disputes Act: What Every Federal Government Contractor Should Know

February 07, 2018 — Sarah K. Carpenter – Smith Currie Blog
Claims on construction projects are unpleasant, but sometimes unavoidable. Contract with the federal government and you are by statute and by contract required to resolve any and all disputes under the Contract Disputes Act. So what is the Contract Disputes Act? This article sets forth basic information all federal government contractors should know when faced with the necessity of making or defending a claim on a federal project. What Is the Contract Disputes Act? The Contract Disputes Act of 1978 (CDA or Act) was enacted by Congress to implement a comprehensive statutory scheme for the resolution of government contract claims. The CDA provides a framework for asserting and handling claims by either the government or a contractor. All disputes under the CDA must be submitted to either the U.S Court of Federal Claims or to an administrative board of contract appeals. The vast majority of board cases are handled by either the Armed Services Board of Contract Appeals or the Civilian Board of Contract Appeals. The ASBCA is generally responsible for deciding appeals from decisions of contracting officers in the Department of Defense, the Department of the Army, the Department of the Navy, NASA, and when specified, the CIA. The CBCA hears disputes from all other executive agencies except the United States Postal Service (USPS), the Postal Rate Commission, and the Tennessee Valley Authority. The USPS is served by the Postal Service BCA. In addition, the Government Accountability Office Contract Appeals Board handles contract disputes arising in the legislative branch, and the Office of Dispute Resolution for Acquisition handles contract disputes and bid protests arising out of Federal Aviation Administration procurements. Read the court decision
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Reprinted courtesy of Sarah K. Carpenter, Smith Currie

TV Kitchen Remodelers Sued for Shoddy Work

December 04, 2013 — CDJ STAFF
Their remodels may dazzle on television, but someone who hired Bunelleschi Construction, the company owned by “Kitchen Cousins” stars John Colaneri and Anthony Carrino, wasn’t quite so dazzled. And now Robert and Peng Avery are suing the two men and their company for a kitchen remodel gone awry. They claim that the company left their Tenafly, New Jersey home uninhabitable. According to the couple, the Brunelleschi’s work included “numerous gaps in sheetrock” and improper installation of ductwork, plumbing, and doors. They also claim that Brunelleschi Construction falsely claimed the work had passed final building and electrical inspections. When the company stopped work, the couple was unable to obtain a certificate of occupancy. Read the court decision
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How Artificial Intelligence Can Transform Construction

February 22, 2021 — Jeff Rubenstone - Engineering News-Record
Artificial intelligence and machine-learning algorithms have struggled to make sense of chaotic construction jobsites, but recent years have seen industry firms build the vast data lakes and analytics systems necessary for these machines to provide useful advice on how to plan, schedule and execute projects. In some cases, these AI advisors have become a standard part of some firms’ project delivery methods. But it’s still a challenge to convince construction professionals to listen to these AI advisors, and there are emerging questions of how risk will be allocated once algorithm-driven decisions start to steer projects. Reprinted courtesy of Jeff Rubenstone, Engineering News-Record Mr. Rubenstone may be contacted at rubenstonej@enr.com Read the full story... Read the court decision
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Baltimore Project Pushes To Meet Federal Deadline

July 22, 2019 — Justin Rice - Engineering News-Record
Two giant anaerobic digesters shaped like Faberge eggs have for years served as landmarks for commuters traveling on Interstate-695 east of downtown Baltimore. And cranes, recently removed, signaled the location of one of the latest projects in a years-long, $1.6-billion construction program to upgrade the 100-year-old Back River Wastewater Treatment Plant. “You probably won’t see a collection of this many ‘sticks’ anywhere else in the city,” Shane Lippert noted back in October. Read the court decision
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Reprinted courtesy of Justin Rice, ENR
Mr. Rice may be contacted at ricej@enr.com

Summary Judgment Granted to Insurer for Hurricane Damage

January 24, 2022 — Tred R. Eyerly - Insurance Law Hawaii
The insurer's motion for summary judgment, contending there was no coverage for hurricane damage, was granted. Laurence v. Liberty Ins. Corp., 2021 U.S. Dist. LEXIS 227807 (S.D. Texas Nov. 29, 2021). When Hurricane Harvey hit, Mike Laurence held a homeowner's policy from Liberty Insurance Corporation and a contractor policy for his business, Pride Plumbing, Inc., issued by State Farm Lloyds. Laurence's property suffered water damage during the storm. State Farm investigated and concluded that all but a small amount, within the policy's deductible, was from flood damage and excluded. Laurence sued. The property covered by the State Farm policy included Laurence's home, Pride Plumbing's office and two sheds. Pride Pluming did not own or lease any of the buildings on the property. Laurence testified in his deposition that the only damage to his property not caused by flood water was to three buildings from fallen tree limbs and equipment from his business. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

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