CAMBRIDGE MASSACHUSETTS BUILDING EXPERT
DIRECTORY AND CAPABILITIES

New 2021 ALTA/NSPS Land Title Survey Standards Effective February 23, 2021

March 01, 2021 — Emily K. Bias & Josh D. Morton - Gravel2Gavel Construction & Real Estate Blog
The “Minimum Standard Detail Requirements for ALTA/NSPS Land Title Surveys” is a document jointly promulgated by the American Land Title Association (ALTA), representing the title insurance industry, and the National Society of Professional Surveyors (NSPS), representing professional land surveyors, which describes the uniform minimum standards with which surveyors must comply when preparing a survey to be used by a title insurance company for the purpose of deleting the general survey exception from ALTA title policy forms. The first such set of standards was developed in 1962 and has since been revised 10 times. The standards are currently updated every five years and are relied on by real estate professionals, including purchasers, lenders, title insurers and their attorneys, nationwide. In October 2020, a joint committee comprising representatives of both ALTA and NSPS adopted the “2021 Minimum Standard Detail Requirements for ALTA/NSPS Land Title Surveys,” which will become effective on February 23, 2021. The significant changes between the 2021 standards and the previous 2016 standards are summarized below. Survey Matters The 2021 standards clarify that only survey-related matters must be summarized on the survey. This revision was intended to foreclose a practice common among some institutional lenders to require that the survey list all items shown in Schedule BII of the title commitment on the face of the survey regardless of whether those items may in fact be survey related. The 2021 standards also add a requirement that the surveyor include a note specifying whether the location of a right of way, easement or other survey-related matter is shown on the survey. This change incorporates common lender and purchaser requirements that were not previously enumerated in the survey standards. Reprinted courtesy of Emily K. Bias, Pillsbury and Josh D. Morton, Pillsbury Ms. Bias may be contacted at emily.bias@pillsburylaw.com Mr. Morton may be contacted at josh.morton@pillsburylaw.com Read the court decision
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Faulty Workmanship may be an Occurrence in Indiana CGL Policies

April 07, 2011 — Beverley BevenFlorez CDJ STAFF

The question of whether construction defects can be an occurrence in Commercial General Liabilities (CGL) policies continues to find mixed answers. The United States District Court in Indiana denied the Plaintiff’s Motion for Summary Judgment in the case of General Casualty Insurance v. Compton Construction Co., Inc. and Mary Ann Zubak stating that faulty workmanship can be an occurrence in CGL policies.



Judge Theresa L. Springmann cited Sheehan Construction Co., et al. v. Continental Casualty Co., et al. for her decision, ”The Indiana Supreme Court reversed summary judgment, which had been granted in favor of the insurer in Sheehan, holding that faulty workmanship can constitute an ‘accident’ under a CGL policy, which means any damage would have been caused by an ‘occurrence’ triggering the insurance policy’s coverage provisions. The Indiana Supreme Court also held that, under identically-worded policy exclusion terms that are at issue in this case, defective subcontractor work could provide the basis for a claim under a CGL policy.”



As we reported on April 1st, South Carolina’s legislature is currently working on bill S-431 that would change the wording of CGL policies in their state to include construction defects. Ray Farmer, Southwest region vice president of the American Insurance Association spoke out against the bill. “CGL policies were never meant to cover faulty workmanship by the contractor,” he said. “The bill’s supplementary and erroneous liability provisions will only serve to unnecessarily impact construction costs in South Carolina.”

 

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You Are Your Brother’s Keeper. Direct Contractors in California Now Responsible for Wage Obligations of Subcontractors

January 31, 2018 — Garret Murai – California Construction Law Blog
If there’s one law from the 2017 Legislative Session that’s garnered a lot of attention in the construction press, it’s AB 1701. Under AB 1701, beginning January 1, 2018, for contracts entered into on or after January 1, 2018, direct contractors may be found liable for unpaid wages, fringe or other benefit payments or contributions, including interest, but excluding penalties or liquidated damages, owed by a subcontractor of any tier to their workers. Here’s what you need to know about AB 1701. What code section did AB 1701 amend? AB 1701 added a a new section 218.7 to the Labor Code. To whom does AB 1701 apply? AB 1701 applies to direct contractors only. A direct contractor is defined as a “contractor that has a direct contractual relationship with an owner.” On what types of projects does AB 1701 apply? AB 1701 applies to private works projects only. When does AB 1701 take effect? AB 1701 took effect on January 1, 2018 and applies to all contracts entered into on or after January 1, 2018. 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

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Contract And IP Implications Of Design Professionals Monetizing Non-Fungible Tokens Comprising Digital Construction Designs

December 26, 2022 — Colin C. Holley - ConsensusDocs
There is an emerging market that appears poised to increasingly provide opportunities to monetize architectural and other construction designs through the sale of non-fungible tokens (NFTs). Last year, artist Krista Kim reportedly made the first sale of a digital home design via an NFT marketplace, for over $500,000. With some NFTs selling for millions of dollars, monetizing digital designs is undoubtedly an enticing prospect for architects, engineers, and other design professionals. It is thus critical to understand the application of intellectual property rights to NFTs and to address those rights in contracts involving design professionals. What is an NFT? To understand the market for NFTs it is necessary to first understand blockchain technology. A blockchain is a decentralized system of recording information via a digital ledger of transactions duplicated and distributed across many computers. The manner in which each block of the ledger chain is created—using a cryptographic mathematical algorithm tied into the previous block, a timestamp, and transaction data—prevents it from being changed retroactively without a change to all subsequent blocks and consensus of the decentralized network. An NFT is a ‘token’ secured to a blockchain. It can represent ownership of any item that is non-fungible, i.e., any item that has unique qualities that add value and make the item non-interchangeable. NFTs can take unlimited forms, including, for example, tokens representing unique artwork, music, fashion items, in-game items, essays, collectibles, memorabilia, furniture, and real estate. Read the court decision
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Reprinted courtesy of Colin C. Holley, Watt, Tieder, Hoffar, & Fitzgerald, LLP (ConsensusDocs)
Mr. Holley may be contacted at cholley@watttieder.com

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Being the Bearer of Bad News (Sounding the Alarm on Construction Issues Early and Often) (Law Note)

October 02, 2023 — Melissa Dewey Brumback - Construction Law in North Carolina
Our recent look into termination brings up another issue important to architects and engineers– how to sound the alarm about construction or building code violations. Sometimes, a project owner may be so focused on project completion that they want to overlook the sub-par work that may be occurring in an effort to get project open “on time.” In such cases, only if a life safety violation is reported to the authority having jurisdiction will the owner finally terminate a faulty contractor from a construction project. Even if the work is not a life/safety issue, it is important that when delivering bad news about the quality of work that your notice be early, loud, and frequent. Basically, everyone involved should be aware, through written communications, that there is an issue that needs to be addressed on site, the contractor is messing up the construction, and what needs to be done to fix the issue(s). If the owner is willing to live with the faulty work (and it is not a life/safety matter), then at least you’ve provided notice and warned them of the issue. Read the court decision
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Reprinted courtesy of Melissa Dewey Brumback, Ragsdale Liggett
Ms. Brumback may be contacted at mbrumback@rl-law.com

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New Jersey School Blames Leaks on Construction Defects, May Sue

January 28, 2013 — CDJ STAFF
The Carlstadt Board of Education recently commissioned a investigation into the water leaks at Carlstadt Public School. The report has not been released in full, but redacted board minutes make reference to "a lack of waterproofing, drainage and clogged or buried weep holes." The investigation is ongoing and the board's business administrator, Pamela Baxley, states that its "ability to recover damages in potential litigation may be impacted should this information be released prior to the conclusion of their investigation." The building in question opened in April 2007, and the leaking began that October. The contractor has fixed leaks, but further leaks have occurred. Read the court decision
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San Francisco House that Collapsed Not Built to Plan

February 14, 2014 — Beverley BevenFlorez-CDJ STAFF
Last December, a San Francisco, California “developer’s Twin Peaks house collapsed and slid down a hill during renovations.” The San Francisco Chronicle reported that the house “was being supported by three reinforcing towers, rather than the nine required under its approved plans, according to documents provided to city building inspectors.” According to a report by Department of Building Inspection chief Tom Hui, developer Mel Murphy "’failed to follow and implement the approved plans and the sequence of construction’ in his permit,” as quoted by The San Francisco Chronicle. The report also stated that the work “was not independently inspected as required” though this is “vehemently disputed by Murphy.” Read the court decision
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Lucky No. 7: Seventh Circuit Court of Appeals Issues Pro-Policyholder Decision Regarding Additional Insured Coverage for Upstream Parties

November 02, 2020 — Daniela Aguila - Saxe Doernberger & Vita
In Scottsdale Ins. Co. v. Columbia Ins. Group, Inc,1 the Seventh Circuit Court of Appeals recently held that a subcontractor’s insurer was obligated to defend and indemnify the project owner’s insurer for damages associated with the subcontractor's employee's personal injury lawsuit where the underlying complaint alleged negligence by the additional insureds. The case cements the notion that under Illinois law, one can significantly benefit from the facts presented in third party complaints as a basis for additional insured coverage. Rockwell Properties (“Rockwell”) was the project owner, along with Prairie Management & Development (“Prairie”), the general contractor, on a construction project in Chicago. Prairie subcontracted HVAC services to TDH Mechanical (“TDH”). When an employee of TDH Mechanical sustained serious injuries performing work at a construction site, a suit was lodged against Rockwell and Prairie in state court. The lawsuit did not bring any claims against TDH but instead alleged that both Rockwell and Prairie had negligently failed to supervise the subcontractors’ work on-site, thus contributing to the worker’s injuries. Read the court decision
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Reprinted courtesy of Daniela Aguila, Saxe Doernberger & Vita
Ms. Aguila may be contacted at dag@sdvlaw.com

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