Fairfield Connecticut Building Expert Directory

Tips for Drafting Construction Contracts

May 04, 2020 — Stuart Rosen - Construction Executive
When negotiating a construction contract, a contractor and its advisers must first determine the areas of greatest concern. For example, if the contractor believes that the drawings that were prepared by the architect and other design professionals are deficient, the contractor may want to reference those deficiencies in the contract. The contractor should emphasize that it is not responsible for the drawings and to the extent the project schedule is extended to allow the parties to address such issues with the drawings, the contractor would be entitled to additional compensation. This article provides contractors with additional tips, with a broad focus on project delays, for their protection when negotiating and drafting construction contracts, and helps contractors understand the rationale for such tips to better prepare contractors in such negotiations. Contractor’s liability to the owner for delay damages It is imperative that the contract include a waiver of claims for consequential damages. AIA Document A201TM – 2017 includes such a waiver, which provides, in pertinent part, “The Contractor and Owner waive Claims against each other for consequential damages arising out of or relating to this Contract … This mutual waiver is applicable, without limitation, to all consequential damages due to either party’s termination in accordance with Article 14.” Reprinted courtesy of Stuart Rosen, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Mr. Rosen may be contacted at srosen@proskauer.com

Texas Central Wins Authority to Take Land for High-Speed Rail System

October 03, 2022 — Barclay Nicholson & Erica Gibbons - Sheppard Mullin Construction & Infrastructure Law Blog
Move over luxury bus lines and quick flights. Central Texans should be on the lookout for bulldozers and train stops. On June 24, 2022, the Supreme Court of Texas held that Texas Central Railroad & Infrastructure, Inc. and related entities (collectively “Texas Central”) have eminent domain authority to acquire property for a proposed high-speed rail system between Dallas and Houston.[1] Specifically, the Court held that the corporation qualifies as an “interurban electric railway company” under the Texas Transportation Code. This ruling grants Texas Central the broad condemnation authority to procure land for the project. Texas Central has Statutory Authority to Take Land The plaintiff in the matter, a farm owner with property south of Dallas along the proposed path of the bullet train, challenged the companies power to condemn land. The landowner’s declaratory judgment action challenged Texas Central’s eminent-domain authority. Under Texas law, condemnation power must be conferred by the legislature, either expressly or by necessary implication.[2] Here, Texas Central was created for the purpose of constructing, acquiring, maintaining, or operating lines of electric railway between Texas municipalities. The Court found that Texas Central is engaged in activities to further that purpose. Therefore, the Court concluded, that although legislators did not contemplate high-speed railways at the time of drafting the Transportation Code, Texas Central nonetheless qualified as “interurban electric railway companies” under the statute. Reprinted courtesy of Barclay Nicholson, Sheppard Mullin and Erica Gibbons, Sheppard Mullin Mr. Nicholson may be contacted at bnicholson@sheppardmullin.com Ms. Gibbons may be contacted at egibbons@sheppardmullin.com Read the court decision
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NYT Points to Foreign Minister and Carlos Slim for Collapse of Mexico City Metro

July 11, 2021 — Amy Stillman - Bloomberg
The collapse last month of a section of a Mexico City metro line that killed 26 people was likely due to poor construction by Mexican tycoon Carlos Slim’s Grupo Carso while foreign minister Marcelo Ebrard was mayor, according to a New York Times investigation. Problems were identified in the original construction by Slim’s company Carso Infrastructure and Construction, and the collapse was probably caused by bad welding of the steel studs that served as linchpins of the structure, the report revealed. The job may have been rushed because Ebrard sought to open the subway before his mayoral term ended in 2012, the Times said. Read the court decision
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Reprinted courtesy of Amy Stillman, Bloomberg

Daily Reports – The Swiss Army Knife of Project Documentation

June 08, 2020 — Christopher A. Henry - ConsensusDocs
Project “Daily Reports” are some of the most important, yet overlooked aspects of a construction project. These reports serve many beneficial roles such as holding parties accountable to their obligations, providing the basis for an as-built schedule, recording manpower, documenting site conditions, and recording any other important and relevant information that happened on the job site that day. Daily reports can also provide information to help with claims or disputes that may arise in the future, such as noting weather delays, providing backup for future delay claims, and providing information to dispute claims made against your company. Finally, daily reports also serve as a useful communication tool during the project and a source of real time information for parties that want to know how the work is commencing on a day to day basis. Because daily reports are the “Swiss army knife” of project documentation, it is extremely important that a contractor puts for its best effort when creating them. It is no secret that a construction project can become more chaotic as the schedule progresses. Unfortunately, when that is the case, the effort put into creating these reports drops off and sometimes the responsibility of creating such reports is thrown aside altogether. I can speak from experience. Prior to entering the practice of law, I was a project engineer for a general contractor in Atlanta. As an engineer in the field, one of my many responsibilities was to enter the daily reports. Based off this experience, below are some thoughts on how to prepare useful daily reports. 1. Check the contract. The contract you entered may set forth specific requirements for the daily reports, such as where to file them, the required format, and specific information that must be included. Complying with contractual requirements is necessary for a successful project. One word of caution for subcontractors, a subcontract will often incorporate the prime contract. If that is the case, be sure to check the prime contract for any specific language relating to daily reports. Read the court decision
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Reprinted courtesy of Christopher A. Henry, Jones Walker LLP
Mr. Henry may be contacted at chenry@joneswalker.com

Franchisors Should Consider Signing a Conditional Lease Assignment Rather Than a Franchisee’s Lease

November 17, 2016 — Richard H. Herold – Real Estate Litigation Blog
In Franchise & High Properties, LLC v. Happy’s Franchise, LLC, a 2015 decision issued by the Court of Appeals in Michigan, the franchisor, Happy’s Pizza Franchise, LLC, signed a five-year lease for the commercial space to be occupied by its franchisee, Happy’s Pizza #19, Inc. The franchisor did so to secure a right of first refusal to purchase the property and to enforce the franchise agreement to have the lease assigned to the franchisor if the franchisee defaulted. The issue in the case was whether the term “tenant” referred solely to Happy’s Pizza #19 or whether it also included Happy’s Franchise as a co-tenant. “Tenant” was defined as follows: “Happy’s Pizza #19, Inc., 29102 Telegraph Road, Suite 607, Southfield, MI 48034, the lessee, and Happy’s Pizza Franchise, LLC, a Michigan limited liability company (hereinafter referred to as `Franchisor’), hereinafter designated as the Tenant.” Read the court decision
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Reprinted courtesy of Richard H. Herold, Real Estate Litigation Blog
Mr. Herold may be contacted at rherold@swlaw.com

Court Denies Insurers' Motions for Summary Judgment Under All Risk Policies

June 05, 2017 — Tred R. Eyerly - Insurance Law Hawaii
The federal district court found that the insurers could not escape coverage by summary judgment under their all risk policies. Eagle Harbour Condo Assoc'n v. Allstate Ins. Co., 2017 U.S. Dist. LEXIS 54761 (W.D. Wash. April 10, 2017). Eagle Harbour Condominium Association sued several of its insurers who denied coverage for hidden water damage. Various insurers provided coverage from 1988 to 2015. The Association asserted that wind-driven rain and inadequate construction allowed water to penetrate the buildings' sheathing and framing, causing decades of deterioration and decay, until the damage was exposed to view in August 2014. The insurers claimed that the loss resulted from poor decisions in constructing and inadequately maintaining a stucco building in the wet and windy Pacific Northwest. The Association argued that the policies did not explicitly exclude damage caused by wind-driven rain, so there was coverage. 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

Connecticut Grapples With Failing Concrete Foundations

June 22, 2016 — Nadine M. Post – Engineering News-Record
Connecticut’s commissioner of consumer protection, Jonathan A. Harris, expects to issue a report this fall on the “potential cause or causes” of failing concrete foundations in northeastern Connecticut. To date, the state Dept. of Consumer Protection has 225 complaints about foundation troubles from owners of single-family houses built between 1983 and 2003. But other building types also are affected, says William F. Neal, a professional engineer who, since 2010, has examined 300 buildings in 19 towns. Read the court decision
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Reprinted courtesy of Nadine M. Post, Engineering News-Record
Ms. Post may be contacted at postn@enr.com

Although Property Damage Arises From An Occurrence, Coverage Barred By Business Risk Exclusions

July 08, 2011 — Tred R. Eyerly - Insurance Law Hawaii

The homeowners hired the insured to raise the structure of their home twenty-four inches above the flood zone. Lafayette Ins. Co. v. Peerboom, 2011 U.S. Dist. LEXIS 58985 (S.D. Miss. June 2, 2011). When the insured’s crew returned from lunch one day, they found the house had fallen from hydraulic jacks being used to raise the structure a few inches at a time. There was substantial damage to the entire structure.

The homeowners sued, asserting several claims, including negligence and breach of contract. The complaint alleged the homeowners entered a contract with the insured to raise their structure while maintaining its integrity. However, the insured failed to use proper equipment, which caused the house to fall and be completely destroyed.

The insured tendered the claim to its insurer, Lafayette Insurance Company. Lafayette defended under a reservation of rights and filed suit for a declaratory judgment. Lafayette’s subsequent motion for summary judgment contended there was no “occurrence” alleged in the underlying complaint and, even if there was, the business risk exclusions barred coverage.

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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii. Mr. Eyerly can be contacted at te@hawaiilawyer.com

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