SEATTLE WASHINGTON BUILDING EXPERT
DIRECTORY AND CAPABILITIES

SFAA Commends Congress for Maintaining Current Bonding Protection Levels in National Defense Authorization Act (NDAA)

December 20, 2021 — The Surety & Fidelity Association of America
December 15, 2021 (WASHINGTON, DC) – The Surety & Fidelity Association of America (SFAA), a nonprofit, nonpartisan trade association representing all segments of the surety and fidelity industry, commends the U.S. Senate and House for passing the National Defense Authorization Act (NDAA) for Fiscal Year 2022, and including Section 877, which exempts the Miller Act from periodic indexing for inflation. SFAA would like to thank Miller Act exemption bill sponsors, Representatives Nydia Velazquez (D-NY) and Byron Donalds (R-FL), as well as Senators Robert Portman (R-OH), Gary Peters (D-MI) and Mazie Hirono (D-HI), for their leadership and commitment on the passage of this bill. Exempting the Miller Act from periodic indexing for inflation ensures essential payment protections remain in place for subcontractors, suppliers, and workers on all federal construction contracts subject to the Miller Act. The exemption also ensures performance protections for taxpayers will remain in place on federal construction contracts of $150,000 and more. For over 80 years, the federal Miller Act has protected taxpayers against risk of loss by requiring payment and performance bonds on federal construction contracts. President Biden is expected to sign the NDAA into law in the coming days. The Surety & Fidelity Association of America (SFAA) is a nonprofit, nonpartisan trade association representing all segments of the surety and fidelity industry. Based in Washington, D.C., SFAA works to promote the value of surety and fidelity bonding by proactively advocating on behalf of its members and stakeholders. The association’s more than 450 member companies write 98 percent of surety and fidelity bonds in the U.S. For more information visit www.surety.org. Read the court decision
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Oregon Construction Firm Sued for Construction Defects

July 31, 2013 — CDJ STAFF
Home Forward, the housing authority in Multnomah County, Oregon, is suing Tom Walsh & Company over allegations of construction defects in low-income housing projects the firm built for the county. Walsh’s firm was hired about ten years ago to construct apartments in Portland and adjacent Gresham. But the housing authority claims that the buildings are suffering water damage. The authority requested that Tom Walsh & Company repair the problems. Walsh claimed that the problems were not due to construction defects, but to the agency’s failure to maintain the properties. Home Forward has gone forward with lawsuits of a combined $3.8 million. If the case goes to trial, according to Walsh, it will be only the second time for him in 50 years of business. Read the court decision
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Insurer Has Duty to Defend Sub-Contractor

July 25, 2022 — Tred R. Eyerly - Insurance Law Hawaii
Interpreting Connecticut law, the federal district court had that the insured sub-contractor was entitled to a defense. County Wide Mech. Servs. LLC v. Regent Ins. Co., 2022 U.S. Dist. LEXIS 86726 (D. Conn. May 13, 2022). The underlying plaintiff, The Saybrook at Haddam, entered a contract with PAC Group to serve as general contractor for construction of an addition to The Saybrook's facility. PAC Group sub-contracted with County Wide Mechanical Services to install the HVAC system. The HVAC system was put into service on November 14, 2014. In October 2019, The Saybrook filed the underlying action against PAC group, County Wide, and others. The underlying complaint alleged that there had been at least seven "critical failures" of the HVAC system. As a result, The Seabrook had to replace multiple compressors and several circuit boards, valves, and other components. Further, the entire system had to be replaced. The underlying complaint alleged breach of contract against PAC Group and County Wide. In addition to the alleged breach of contract between The Saybrook and County Wide, the Saybrook also alleged it was a third-party beneficiary of PAC Group's contract with County Wide regarding installation of the HVAC system. PAC Group cross-claimed against County Wide, asserting one count of contractual indemnification and one count of breach of contract under the PAC Group's contract with County Wide. 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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Construction Litigation Roundup: “Wrap Music to an Insurer’s Ears?”

February 05, 2024 — Daniel Lund III - Lexology
The general contractor on a New Orleans condominium construction project obtained a Contractor Controlled Insurance Program/CCIP policy or "Wrap-Up" policy for the job. An accident occurred on the job when a construction elevator/hoist fell, injuring several workers. The elevator/hoist was provided by a subcontractor, pursuant to a rental agreement and related subcontract with the general contractor. Contained within the subcontract was a provision which states that the general contractor "has arranged for the Project to be insured under a controlled insurance program (the "CCIP" or "WrapUp"),” and that the CCIP shall provide "commercial general liability insurance and excess liability insurance, in connection with the performance of the Work at the Project site." A third-party administrator for the wrap-up policy had been in communication with the subcontractor prior to the commencement of the work, “specifically advising that insurance coverage was not automatic” and providing the subcontractor with an enrollment form for the CCIP. Ultimately, the subcontractor “declined to comply with the request,” stating that the subcontractor would "not participate in paying any wrap insurance premiums" – because the subcontractor had its own insurance. Read the court decision
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Reprinted courtesy of Daniel Lund III, Phelps
Mr. Lund may be contacted at daniel.lund@phelps.com

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Harmon Hotel Construction Defect Update

July 18, 2011 — CDJ STAFF

Coverage of the ongoing litigation concerning the Harmon Hotel continues to proliferate. Architectural Record and a number of other news outlets continue to provide additional details and coverage of the matter. Chief among the conditions alleged are improperly installed reinforcing steel inside link beams on 15 floors. MGM Claims that the conditions amount to hundreds of millions of dollars in damages, while Perini (the builder) indicated in a July 12th statement that the buildings problems are related to the design, and the they are “fixable.”



There is significant speculation that MGM Resorts International isn’t interested in repairing the hotel due to a glut of hotel rooms attendant to the troubled economy. In a statement Tuesday Perini reportedly stated that “Repairing and opening the Harmon would only create a greater glut of unused hotel rooms for MGM,” “If market conditions were better and MGM found that demand existed for the Harmon hotel rooms, MGM would not be claiming that the Harmon is unstable.”



MGM asserts that Perini failed to ”properly construct” the project. Clark County’s Department of Development Services has reportedly asked MGM to provide a plan to fix the project by August 15th.



The Harmon is part of the $8.5 billion CityCenter project that opened in the fourth quarter of 2009 and is jointly owned by MGM Resorts and Dubai World.



Prior reports indicated that the owner (MGM) had considered razing the entire project. The future of the project remains uncertain.