Fairfield Connecticut Building Expert Directory

Construction Defect Not an Occurrence in Ohio

November 07, 2012 — CDJ STAFF
The Ohio Supreme Court has concluded that claims of defective construction or workmanship are not an occurrence under a general liability policy. The court looked at appellate decisions and concluded that CGL policies are not intended to insure against risks under the control and management of the insured. These risks should instead be mitigated with performance bonds. The question was raised in the case Westfield Ins. Co. v. Custom Agri Systems, Inc. The Sixth District Court of Ohio concluded it was an “open question under Ohio law whether a CGL policy covers defective construction claims.” Westfield filed a motion, granted by the Sixth Circuit, to certify the question to the state Supreme Court. The Sixth Court additionally found that the contractual liability exclusion barred coverage in the case, issues a summary judgment to Westfield. Read the court decision
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Read Her Lips: “No New Buildings”

November 18, 2011 — CDJ STAFF

Martha Johnson, the head of the General Services Administration, has said that her agency will not be building any new buildings in the near future. Among other duties, the GSA is responsible for the building, renovating, and leasing of federal office space. The White House had proposed $840 million in new construction, the Senate only $56 million. The House did not appropriate any money for the agency to use for new construction.

In addition to cutbacks on new buildings, Congress is suggesting only $280 million in repairs of existing government buildings. In order to cut back, the GSA has dropped plans to renovate their own offices in favor of renovations at the Department of Homeland Security and the Food and Drug Administration.

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Your “Independent Contractor” Clause Just Got a Little Less Relevant

January 12, 2015 — Garret Murai – California Construction Law Blog
Construction projects are complex, multi-partied, multi-disciplinary endeavors, in which subcontracting all or a portion of the work to be performed is not uncommon. When subcontracting work, parties usually make it clear in their contracts that the party performing work is acting as an “independent contractor.” Here’s a fairly typical provision from the AIA A201 General Conditions:

The parties agree that the contractual relationship on Contractor to Owner is one solely of an independent contractor in all respects and that the Contract Documents do not in any way create a partnership, joint venture or any other relationship between Owner and Contractor other than the contractual relationship as specified in this Agreement.

These provisions are intended to shield the contracting party from claims that it is responsible for workers’ compensation premiums, retirement contributions, health care insurance, or other benefits provided for the benefit of employees of the company performing the work. Fair enough. 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

Harmon Towers to Be Demolished without Being Finished

October 02, 2013 — CDJ STAFF
Engineering.com looks at why the Harmon Tower in Las Vegas will be coming down at some point in the future. Construction stopped, unfinished in 2008. Taking the building down will cost about $400 million, which the building’s owner feels that the developer should pay. Inspectors concluded that the building did not meet the earthquake specifications for Las Vegas. The contractor claimed that the fault was due to the design specifications and that the supports were further weakened during destructive testing. Read the court decision
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Mortgage Firms Face Foreclosure Ban Until 2022 Under CFPB Plan

April 05, 2021 — Alex Wittenberg - Bloomberg
Millions of homeowners who’ve fallen behind on mortgage payments due to the pandemic would have more time before facing foreclosure under rules proposed Monday by the Consumer Financial Protection Bureau. The revamp would generally prohibit mortgage servicers from starting foreclosures until after Dec. 31, the CFPB said in a statement. The goal is to give the nearly 3 million borrowers who’ve delayed or stopped making payments a chance to resume them before lenders initiate forced home sales. A key reason why the CFPB said the change is necessary is because an estimated 1.7 million consumers will exit U.S. forbearance relief programs in September and the ensuing months, meaning they will have to start making payments again. Read the court decision
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Reprinted courtesy of Alex Wittenberg, Bloomberg

Illinois Court Addresses Coverage Owed For Subcontractor’s Defective Work

May 06, 2019 — Brian Bassett - TLSS Insurance Law Blog
In Acuity Ins. Co. v. 950 W. Huron Condo. Assoc’n, 2019 IL App (1st) 180743, the Illinois Court of Appeals held that a claim against a subcontractor for damage caused to property outside the scope of its work satisfied the insuring agreement of a CGL policy. The condominium association for the building located at 950 West Huron Street in Chicago, Illinois (“the Association”), sued its general contractor and construction manager Belgravia Group, Ltd., and Belgravia Construction Corporation (collectively “Belgravia”). The Association sought to recover for alleged defects from Belgravia’s unworkmanlike construction of the building that permitted water to permeate and cause damage. In the Association’s complaint, it alleged that in June 2002, after the Association took possession of the building but prior to the completion of construction, Belgravia became aware of numerous conditions and defects, including extensive water infiltration of the building. After discussing the issues with Belgravia, the Association claimed that Belgravia retained contractors to provide cosmetic fixes. However, this did not address the problems and defects. The Association alleged that it spent a substantial amount of money to identify and correct the damage and that it would incur additional costs for future repairs. Read the court decision
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Reprinted courtesy of Brian Bassett, Traub Lieberman
Mr. Bassett may be contacted at bbassett@tlsslaw.com

Women in Construction Aren’t Silent Anymore. They Are Using TikTok to Battle Discrimination

March 06, 2022 — Workwear Guru
How does it feel to be a woman working in a male-dominated industry? It means an everyday fight on gender bias, discrimination, pay inequality, and a bunch of mansplaining. Though the construction industry progressed– over 1.2 million women work in construction, up from 619,000 in 1985–women continue to be a minority. Among the women working in the industry, almost 9 out of 10 women have an office role, while only 2.5% are tradespeople. The situation looks grimmer for women in higher positions as only 16% hold executive roles, and only 2% are CEOs. The issue becomes troublesome considering that 45% of women indicated that the lack of women role models working in senior positions halted advancement in their careers. Gender discrimination was always prevalent in the construction industry, though it shows higher in today’s statistics. In 2020, the annual study of women in construction showed 72% of women in construction face discrimination, up from 66% in 2005. The increase doesn’t mean there is an increase in workplace discrimination; instead, it shows women are raising their voices for the issue. Today, women are using social media to show the prejudice they confront every day, inspire each other to speak up, and showcase their competencies within the industry. Read the court decision
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Reprinted courtesy of Workwear Guru

California Enacts New Claims Resolution Process for Public Works Projects

January 19, 2017 — Garret Murai – California Construction Law Blog
If you’re a public entity or contractor involved in public works construction you should be aware of a new law, AB 626, which took effect on the first of this year and establishes a new mandatory claims resolution process for disputes on public works projects. Here’s what you need to know: What is the new law and where is it codified at? AB 626 added new Public Contract Code Section 9204 that according to the bill’s author, Assemblymember David Chiu of San Francisco, establishes “a claim resolution process applicable to any claim by a contractor in connection with a public works project.” 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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