Fairfield Connecticut Building Expert Directory

Force Majeure Under the Coronavirus (COVID-19) Pandemic

March 08, 2021 — Lindsay T. Watkins - Ahlers Cressman & Sleight PLLC
As COVID-19 disrupts work and life as we know it, the question many contractors have is what protections are available against the inevitable project impacts and delays? Generally, construction contracts require a contractor to timely perform work until project completion or potentially face damages (liquidated or actual) and possible termination. When events occur, however, that are beyond our control (such as a national pandemic), it is important to review and understand what contract provisions or avenues are available for potential relief. 1. Review Your Contract For A Force Majeure Provision. A “force majeure” contract provision is commonly included in construction contracts, service agreements, purchase orders, etc. It typically covers events or conditions that can be neither anticipated nor controlled. These provisions, however, will vary greatly from contract to contract and may not include the language “force majeure” but rather may be included in general delay or impact clauses. For example, some common provisions include:

Washington State Department of Transportation Clause (2018 Standard Specifications for Road, Bridge and Municipal Construction): The Contractor shall rebuild, repair, restore, and make good all damages to any portion of the permanent or temporary Work occurring before the Physical Completion Date and shall bear all the expense to do so, except damage to the permanent Work caused by: (a) acts of God, such as earthquake, floods, or other cataclysmic phenomenon of nature, or (b) acts of the public enemy or of governmental authorities; or (c) slides in cases where Section 2-03.3(11) is applicable; Provided, however, that these exceptions shall not apply should damages result from the Contractor’s failure to take reasonable precautions or to exercise sound engineering and construction practices in conducting the Work.

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Reprinted courtesy of Lindsay T. Watkins, Ahlers Cressman & Sleight PLLC
Ms. Watkins may be contacted at Lindsay.Watkins@acslawyers.com

Federal Court Again Confirms No Coverage For Construction Defects in Hawaii

July 28, 2016 — Tred R. Eyerly – Insurance Law Hawaii
The Hawaii federal district court confirmed its prior holdings that there is no duty to defend or indemnify for property damage caused by faulty workmanship. State Farm Fire & Cas Co. v. GP West, Inc., 2016 U.S. Dist. LEXIS 74240 (D. Haw. Jun 7, 2016). (Full disclosure - our office represents GP West in this matter). GP West, the contractor, and Air Conditioning of Maui, Inc. (AC Maui), the subcontractor, were sued by the owner of a veterinary clinic for installation of an alleged defective HVAC system. GP West contracted with the owner to build the clinic. AC Maui was the HVAC subcontractor and designed, sized and priced a HVAC system for the clinic. The underlying complaint alleged that after the building was substantially complete, the HVAC system experienced multiple equipment defects and mechanical breakdowns, and did not properly dehumidify the building. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

The Real Estate Crisis in North Dakota's Man Camps

October 02, 2015 — Jennifer Oldham – Bloomberg
Chain saws and staple guns echo across a $40 million residential complex under construction in Williston, North Dakota, a few miles from almost-empty camps once filled with oil workers. After struggling to house thousands of migrant roughnecks during the boom, the state faces a new real-estate crisis: The frenzied drilling that made it No. 1 in personal-income growth and job creation for five consecutive years hasn’t lasted long enough to support the oil-fueled building explosion. Civic leaders and developers say many new units were already in the pipeline, and they anticipate another influx of workers when oil prices rise again. But for now, hundreds of dwellings approved during the heady days are rising, skeletons of wood and cement surrounded by rolling grasslands, with too few residents who can afford them. Read the court decision
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Reprinted courtesy of Jennifer Oldham, Bloomberg

Court Extends Insurer Rights to Equitable Contribution

October 28, 2015 — Christopher Kendrick & Valerie A. Moore – Haight Brown & Bonesteel LLP
In Underwriters of Interest v. ProBuilders Specialty Ins. Co. (No. D066615; filed 10/23/15), a California appeals court refused to enforce an “escape” other insurance clause in an insurer versus insurer contribution action, refused to enforce a Contractors Special Conditions endorsement and found that equitable tolling applied to rule that a nondefending insurer was obligated to reimburse defense costs incurred defending the two insurers’ common insured. Certain Underwriters provided CGL insurance to Pacific Trades Construction & Development in effect between October 23, 2001 and October 23, 2003. ProBuilders Specialty insured Pacific Trades from December 9, 2002 to December 9, 2004. When Pacific Trades was sued in construction defect actions arising out of the development and construction of single family homes, Underwriters provided a defense, while ProBuilders declined to participate. The case was ultimately settled and when Underwriters sued ProBuilders for contribution to the defense costs, the trial court granted summary judgment for ProBuilders, finding its other insurance clause precluded any obligation to contribute or reimburse Underwriters. Reprinted courtesy of Christopher Kendrick, Haight Brown & Bonesteel LLP and Valerie A. Moore, Haight Brown & Bonesteel LLP Mr. Kendrick may be contacted at ckendrick@hbblaw.com Ms. Moore may be contacted at vmoore@hbblaw.com Read the court decision
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Show Me the Money: The Good Faith Dispute Exception to Prompt Payment Penalties

March 13, 2023 — Garret Murai - California Construction Law Blog
California has a number of prompt payment penalty statutes on the books. Among them is Civil Code section 8800 which requires project owners on private works projects to pay progress payments to direct contractors within 30 days after demand for payment pursuant to contract or be subject to prompt payment penalties of two percent (2%) per month on the amount wrongfully withheld. Like California’s other prompt payment penalty statutes, however, there is an important carve out: If there is a good faith dispute between the project owner and the direct contractor the project owner may withhold up to 150% of the dispute amount and not be subject to prompt payment penalties. And that, my friends, is a higher-tiered party’s “get out of jail free” card. In a case of first impression, the 1st District Court of Appeals, in Vought Construction Inc. v. Stock (2022) 84 Cal.App.5th 622, examined whether a project owner’s claim for liquidated damages constitutes a good faith dispute under Civil Code section 8800. Read the court decision
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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

Wreckage Removal Underway at Site of Collapsed Key Bridge in Baltimore, But Weather Slows Progress

April 15, 2024 — Jim Parsons - Engineering News-Record
Note: The text of this article was updated 4/3/24 to reflect new information. Weather and water conditions are hampering the piece-by-piece process of cutting and removing wreckage from the collapsed Francis Scott Key Bridge in Baltimore, while officials consider potentially utilizing progressive design-build for a replacement bridge. Officials remain uncertain as to how long the meticulous effort to clear the key shipping channel will take. Reprinted courtesy of Jim Parsons, Engineering News-Record ENR may be contacted at enr@enr.com Read the full story... Read the court decision
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Insured's Jury Verdict Reversed After Improper Trial Tactics

October 09, 2018 — Tred R. Eyerly - Insurance Law Hawaii
The appellate court reversed a jury verdict for the insured due to improper trial tactics by his attorney. Homeowners Choice Property and Cas. Ins. Co., Inc. v. Kuwas, 2018 Fla. Ct. App. LEXIS 9500 (Fla. Ct. App. July 5, 2018). The insured sued Homeowners Choice (HCI) alleging breach of contract due to a denial of coverage for property damage as a result of water loss. During the trial, HCI raised objections to various questions posed by the insured's counsel during the testimony of HCI's litigation manager, as well as various closing arguments made by the insured. The jury entered a verdict for the insured for a substantial sum. HCI appealed. 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

The Dangers of an Unlicensed Contractor from Every Angle

January 11, 2021 — William L. Porter - Porter Law Group
The State of California requires that contractors in the building trades be licensed. Individuals and business entities obtain their contractors licenses by demonstrating to the California Contractors State License Board that they have the requisite knowledge, skill, and experience to be licensed. The CSLB issues licenses to those meeting requirements. As a construction attorney of longstanding tenure, I have witnessed the impact of unlicensed building contractors from every point of view. If you are considering hiring an unlicensed contractor, acting as an unlicensed contractor or even working for an unlicensed contractor as an employee, please consider the following perils: To the Owner Considering Hiring an Unlicensed Contractor: On the positive side for owners considering hiring an unlicensed contractor, the general rule in California is that an owner can escape the obligation to pay an unlicensed contractor for work performed and materials supplied because unlicensed contractors are prohibited from bringing legal actions against owners for payment. The law even goes so far as to allow the Owner to bring a legal action against the unlicensed Contractor for reimbursement of anything the owner paid to the unlicensed contractor. This is done through a “disgorgement” action (see, Business and Professions Code 7031. See also, the following article: Disgorgement Article). Despite this, there are a great many negative potential consequences to be considered by any owner who might consider hiring an unlicensed contractor. Among them are the following:

If you are considering not paying your unlicensed contractor because Business and Professions Code 7031 allows it, please consider that unlicensed contractors, who have clearly demonstrated a disinclination to follow legal obligations in the first place, may resort to “less than socially acceptable” means of exacting retribution against those who do not pay them or who demand the return of money paid through a disgorgement action I am sorry to say this. Let us leave it at that.

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Reprinted courtesy of William L. Porter, Porter Law Group
Mr. Porter may be contacted at bporter@porterlaw.com

FAIRFIELD CONNECTICUT BUILDING EXPERT DIRECTORY AND CAPABILITIES