Cambridge Massachusetts Building Expert Directory

"Repair Work" Endorsements and Punch List Work

May 20, 2019 — Jeremiah M. Welch - Saxe Doernberger & Vita, P.C.
The recent white paper on Repair Work Endorsements by Jeremiah Welch, drew a storm of responses. Most were appreciative and included follow up questions, but there were those that lamented along the lines of: “How can that be? We’ve been doing it this way for years…”. For the skeptics, the best approach to test the premise of the paper (that most “repair work endorsements” are at best redundant with the PCO extension and at worst restrictive) is to try to formulate a scenario where coverage would be available under a “repair work endorsement” but not under a PCO extension. Several folks asked about the impact of PCO extensions and repair work endorsements on “punch list” work. “Punch list” work presents a related but different problem. The first issue is understanding what is meant by the term “punch list”. You won’t find that term in an ISO CGL policy. You may find it defined in a construction contract and a Google search will yield several similar definitions. In general, our industry uses the term “punch list” to describe items identified toward the end of a project (often after the contractually defined point of “substantial completion”) which must be completed in order to fully comply with the contract requirements/scope. In short, “punch list” items are items necessary to complete the work. Read the court decision
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Reprinted courtesy of Jeremiah M. Welch, Saxe Doernberger & Vita, P.C.
Mr. Welch may be contacted at jmw@sdvlaw.com

2015 California Construction Law Update

December 31, 2014 — Garret Murai – California Construction Law Blog
Over 2,200 bills were introduced during the second and final year of the 2013-2014 legislative session of which 931 were signed into law. For the design and construction industry, the end of the second session, like the end of the first session, saw a number of new prevailing wage bills signed into law, which again reflected the strong Democratic majorities in both the Assembly and Senate. The end of the second session also saw the enactment of laws consolidating several existing design-build authorization sections and extending the 5% cap on retention for public works projects. Read the court decision
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Reprinted courtesy of Garret Murai, Wendel Rosen Black & Dean LLP
Mr. Murai may be contacted at gmurai@wendel.com

Updates to the CEQA Guidelines Have Been Finalized

February 06, 2019 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
The California Natural Resources Agency (CNRA) recently posted final adopted text for amendments to the CEQA Guidelines. The result of over five years of development efforts by the Governor’s Office of Planning & Research and CNRA, the amendments are the most comprehensive update to the CEQA Guidelines since 1998. In “Natural Resources Agency Finalizes Updates to the CEQA Guidelines,” Pillsbury environmental attorneys Norman F. Carlin, Kevin Ashe and Eric Moorman explore the wide range of issues covered in the amendments, including the new Vehicle-Miles-Traveled (VMT) methodology for analyzing transportation impacts; use of regulatory standards as significance thresholds; environmental baselines; and numerous procedural and technical improvements. Read the court decision
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Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team

Mortgagors Seek Coverage Under Mortgagee's Policy

July 19, 2021 — Tred R. Eyerly - Insurance Law Hawaii
The mortgagor homeowners survived a motion to dismiss their claim for coverageunder the lender's property policy after their home suffered hurricane damage. Gary v. Am. Sec. Ins. Co., 2021 U.S. Dist. LEXIS 100010 (W.D. La. May 26, 2021). Plaintiffs' home was mortgaged by Pennymac Loan Services, LLC. Pennymac held a property policy with American Security to insure its interest in the home. Plaintiffs were not named as insureds or additional insureds under the policy. Plaintiffs were identified as the borrowers under the policy on the Declarations page. After hurricane damage to their home, plaintiffs sued American Security for coverage for the losses. American Security moved to dismiss, arguing plaintiffs were neither additional insureds nor third party beneficiaries. Lender-placed policies were designed to insure the lender's collateral whenever the borrower failed to maintain adequate insurance. The Loss Payment provisions in the policy stated that "Loss will be made payable to the named insured [Pennymac]. No coverage will be available to any mortgagee other than that shown as the named insured on the Declarations." 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

MTA Debarment Update

December 02, 2019 — Steven M. Charney, Gregory H. Chertoff & Paul Monte - Peckar & Abramson, P.C.
Alliance for Fair and Equitable Contracting Today, Inc., a nonprofit formed by five trade associations, including the GCA, the BTEA and the NY Building Congress, has sued the Metropolitan Transportation Authority over rules that debar contractors for delays and cost overruns on MTA projects without regard to the reasons for the delays and cost overruns. As described in our prior client alert (see here), the current rules automatically debar firms that are determined to have gone over the MTA approved contract price or time by more than 10%. The rules do not consider mitigating circumstances. Delays and cost overruns are often caused by unforeseen conditions, design errors and omissions, and changes requested by the MTA. The MTA’s rules could lead contractors to absorb additional costs they shouldn’t be responsible for rather than face the risk of being debarred. As argued in Alliance’s action, “Debarment is the death penalty for a public works contractor, and not just in New York. A debarment by the MTA could result in debarment nationwide, given that public and private contractors throughout the country commonly inquire about bidders’ debarment history when considering project bids. The Debarment Statute and MTA Regulations thus effectively export an unreasonable law not only throughout New York State, but to all other states as well.” Reprinted courtesy of Saxe Doernberger & Vita, P.C. attorneys Steven M. Charney, Gregory H. Chertoff and Paul Monte Mr. Charney may be contacted at scharney@pecklaw.com Mr. Chertoff may be contacted at gchertoff@pecklaw.com Mr. Monte may be contacted at pmonte@pecklaw.com Read the court decision
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Decline in Home Construction Brings Down Homebuilder Stocks

December 11, 2013 — CDJ STAFF
The main gains in October construction were in commercial construction. The stock market has reacted to the slow-down by selling off homebuilder stocks, leading to a drop in their price. Deutsche Bank did not expect this to be the long term situation in U.S. homebuilding. The bank expects that the dip in residential construction “should reverse course given the ongoing improvement in permits for new construction.” Read the court decision
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It Ain’t Over Till it’s Over. Why Project Completion in California Isn’t as Straightforward as You Think

May 07, 2015 — Garret Murai – California Construction Law Blog
Baseball legend Yogi Berra was famous for his pithy quotes such as “the future ain’t what it used to be,” “half the lies they tell about me aren’t true,” and what is probably his most famous, “it ain’t over till it’s over.” The last, of course, begs the question of when over is over? And, on California construction projects when over is over, or more accurately, when a project is complete, can be as paradoxical as a “yogiism.” Why “Completion” is Important in California In California, project “completion,” is important not only for getting paid, but for knowing the deadlines associated with California’s statutory construction payment remedies. Read the court decision
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Reprinted courtesy of Garret Murai, Wendel Rosen Black & Dean LLP
Mr. Murai may be contacted at gmurai@wendel.com

Georgia Court Rules that Separate Settlements Are Not the End of the Matter

October 14, 2013 — CDJ STAFF
The Georgia Court of Appeals recently took up the question of how parties in a construction defect settlement relate to one another in terms of apportioning the settlement. Scott Murphy, writing on the Barnes & Thornburg blog clarifies the issues. The underlying construction defect case involved a newly-constructed hotel with mold and mildew problems. The owners sued the contractor (for negligent construction) and the architect (for negligent design). Separately, the owners settled with the contractor for $2.3 million and the architect for $100,000. Subsequently, the contractor sued the architect, attempting to recover part of the settlement the contractors had made with the owners. At trial, the architect prevailed, obtaining a summary judgment that under Georgia law, “joint-tortfeasors can no longer assert contribution or non-contractual indemnity claims.” This was reversed by the Court of Appeals, determining that the two were not joint tortfeasors. Mr. Murphy notes that “the court rejected the parties’ attempt to disavow joint and several liability in their respective settlement agreements.” The court ruled that the contractor could proceed with their claims against the argument. Read the court decision
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