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    Chicago Debt Document Says $8.5B O'Hare Revamp May Be Delayed

    Other Colorado Cities Looking to Mirror Lakewood’s Construction Defect Ordinance

    Brenner Base Tunnelers Conquer Peaks and Valleys in the Alps

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    Harmon Towers to Be Demolished without Being Finished

    Texas Walks the Line on When the Duty to Preserve Evidence at a Fire Scene Arises

    THE CALIFORNIA SUPREME COURT HAS RULED THAT THE RIGHT TO REPAIR ACT (SB800) IS THE EXCLUSIVE REMEDY FOR CONSTRUCTION DEFECT CLAIMS NOT INVOLVING PERSONAL INJURIES WHETHER OR NOT THE UNDERLYING DEFECTS GAVE RISE TO ANY PROPERTY DAMAGE in McMillin Albany LL

    Don’t Forget to Mediate the Small Stuff

    How is Negotiating a Construction Contract Like Buying a Car?

    Ex-Construction Firm That Bought a $75m Michelangelo to Delist

    Housing Starts in U.S. Climb to an Almost Eight-Year High

    Breach Of Duty of Good Faith And Fair Dealing Packaged With Contract Disputes Act Claim

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    Real Estate & Construction News Roundup (10/16/24) – Chevron Ruling’s Impact on Construction Industry, New Kind of Public Housing and Policy Recommendations from Sustainable Building Groups

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    FAIRFIELD CONNECTICUT BUILDING EXPERT
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    The Fairfield, Connecticut Building Expert Group is comprised from a number of credentialed construction professionals possessing extensive trial support experience relevant to construction defect and claims matters. Leveraging from more than 25 years experience, BHA provides construction related trial support and expert services to the nation's most recognized construction litigation practitioners, Fortune 500 builders, commercial general liability carriers, owners, construction practice groups, and a variety of state and local government agencies.

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    Fairfield, Connecticut

    Jobsite Safety, Workforce Shortage Drive Innovation in Machine Automation

    August 07, 2018 —
    From driverless cars and drones, to robots working in operating rooms, manufacturing plants and fast food restaurants, machine automation is making headlines – and will continue to do so for the foreseeable future. And when it comes to machine automation, the construction industry is poised to be a hotbed of innovation. Equipment manufacturers and technology providers in the construction industry have the benefit of using the lessons learned from the manufacturing and automotive industries to meet the needs of contractors, project owners and machine operators through more efficient, highly automated equipment. According to the Society of Automotive Engineers (SAE), there are six stages of automation, ranging from zero autonomy to full automation, where a vehicle is capable of performing all driving functions under all conditions. The construction industry is somewhere in the middle of these six stages, with some automation functionality available on some equipment today, but still requiring an operator to remain engaged with the driving task and the environment. Reprinted courtesy of Scott Crozier, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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    Viva La France! 2024 Summer Olympics Construction Features Sustainable Design, Including, Simply Not Building at All

    August 26, 2024 —
    If you’re like me and many others you’ve probably been watching the 2024 Summer Olympics in Paris, France. We were in Paris last year and we passed the construction site of the Aquatics Centre, one of only three new permanent facilities that was constructed for this year’s Olympics. On a side note, Parisian Uber drivers are some of the most aggressive drivers I’ve seen, replete with honking, hand gestures, and cursing at other drivers and pedestrians in, of course, French. Putain! In recent history, Olympic construction costs have skyrocketed, often vastly exceeding the planned budgets of the host cities, and, in recent years, has caused even some host city hopefuls to reconsider whether to even throwing their hats in the ring. The 2020/2021Summer Olympics in Tokyo, for example, had an original budget of $7.5 billion. The actual cost was over $13 billion and, depending on what beans you count, may have been over twice that! Paris seeks to change all of this. Read the court decision
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    Reprinted courtesy of Garret Murai, Nomos LLP
    Mr. Murai may be contacted at gmurai@nomosllp.com

    One Way Arbitration Provisions are Enforceable in Virginia

    October 07, 2019 —
    Here at Construction Law Musings, I’ve discussed arbitration clauses (pros and cons) as well as the fact that in our fair Commonwealth, contracts are enforced as written (for better or worse). A case out of the Eastern District of Virginia takes both of these observations and uses them to make it’s decision. In United States ex rel. Harbor Constr. Co. v. T.H.R. Enters., the Newport News Division of the Eastern District of Virginia federal court considered the following provision and it’s enforceability:
    At CONTRACTOR’s sole election, any and all disputes arising in any way or related in any way or manner to this Agreement may be decided by mediation, arbitration or other alternative dispute resolution proceedings as chosen by CONTRACTOR…. The remedy shall be SUBCONTRACTOR’s sole and exclusive remedy in lieu of any claim against CONTRACTOR’s bonding company pursuant to the terms of any bond or any other procedure or law, regardless of the outcome of the claim. The parties further agree that all disputes under this Subcontract shall be determined and interpreted pursuant to the laws of the Commonwealth of Virginia….
    This provision was the crux of the argument made by T. H. R., the Defendant, in making a motion to dismiss or stay the lawsuit for payment filed by Harbor Construction. As background, Harbor Construction contracted with T. H. R. to perform work at Langley Air Force Base. Alleging non-payment of approximately $250,000.00, Harbor filed a complaint with three counts, one under the Federal Miller Act, one for breach of contract, and a third for unjust enrichment. Read the court decision
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    Reprinted courtesy of The Law Office of Christopher G. Hill
    Mr. Hill may be contacted at chrisghill@constructionlawva.com

    Thanks for Four Years of Recognition from JD Supra’s Readers’ Choice Awards

    May 20, 2019 —
    A big thank you to the folks at JD Supra and its readers for recognizing us in its Construction category for its 2019 Readers’ Choice Awards! We’re honored to be among the 228 authors recognize for their visibility, engagement and thought leadership out of more than 50,000 who have published articles on JD Supra this past year. Congratulations as well to the other JD Supra 2019 Readers’ Choice Award recipients whose hard work encourages us to be better authors. 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

    Steps to Curb Construction Defect Actions for Homebuilders

    June 15, 2017 —

    The homebuilding and construction industries in California are at a record high in 2017 according to the National Homebuilders Association. While there is finally prosperity and growth for builders, developers and contractors after suffering from the recession of 2008, there is also a growth in construction defect claims. As with every industry and especially with construction, there are several risk prevention methods that can help curb this litigation.

    Time Frames for Pursuing Construction Defect Claims

    It is important to know and understand the time frames for which construction defect claims can be pursued by homeowners. There is a hard cut-off for construction defect litigation in California known as the Statute of Repose of 10 years. California Code of Civil Procedure (“CCP”) §337.15 provides a statute of repose that bars actions to recover damages for construction defects more than 10 years after substantial completion of the work of improvement. This provision is limited to property damage claims and does not extend to personal injuries (See, Geertz v. Ausonio, 4 Cal.App.4th 1363 (1992) and willful misconduct or fraudulent concealment claims. (See, Acosta v. Glenfed Development Corp., 128 Cal.App. 4th 1278 (2005).

    There are also interim statutes of limitations for “patent” and “latent” defects discovered at the home also from the date of substantial completion. CCP §337.1(e) provides for a four year window to bring suit for deficiencies that are apparent by reasonable inspection (patent deficiencies). CCP §337.15(b) provides for deficiencies that are not apparent by reasonable inspection or hidden defects that require invasive testing to become apparent (latent deficiencies). A latent defect can become patent after it “manifests itself” (i.e. becomes observant – for example a roof leak) for which the four year window from the date of discovery would become the applicable statute of limitations.

    The discovery rule effectively acts to toll the statute of limitation period on construction defect claims until they become reasonably apparent. (See, Regents of the University of CA v.Harford Accident & Indemnity, Co., 21 Cal.3d 624, 630 (1978). This is similar to a breach of contract claim, also a four year statute of limitation. Finally, the California Right to Repair Statute (SB800) – Civil Code §§895, et seq. specifically Civil Code §896 sets forth the “Functionality Standards” or a list of actionable defect items, including items affecting the component’s “useful life” and a catch-all provision for all items not expressed listed as defects in the statute. (Civil Code §897). The majority of the defects alleged have a 10 year statute of limitations. However, there are shortened statute of limitations for the following items:

    Functionality StandardsStatute of Limitations
    Noise Transmission 1 year from original occupancy of adjacent unit
    Irrigation 1 year from close of escrow
    Landscaping Systems & Wood Posts (untreated) 2 years from close of escrow
    Electrical systems, pluming/sewer systems, steel fences (untreated), flatwork cracks 4 years from close of escrow
    Paint/Stains 5 years from close of escrow
    All other functionality standards (Civil Code §941(a)) 10 years after substantial completion(date of recordation of valid NOC)

    Preventative Measures to Curb Construction Defect Litigation

    Once the builder knows the time frames for construction defect claims, the following are some preventive measures to limit construction defect claims. As a reminder, homeowners are less likely to bring construction defect action if they feel that the builders are taking care of them.

    1. Communicate With Homeowners Prior to Claims

    It is imperative to communicate with the homeowners throughout the ten years statute of repose period. For example, most builders provide a limited warranty to the homeowners at the time of purchase. Homeowners are generally confused as to the length of the warranty and what the warranty covers. A practical tip to help curb construction defect claims is for the builder to send postcards or letters to the homeowners at the six month, one year and nine-year marks to advise the homeowner of: (1) the existence of the warranty and what is covered at each time frame; (2) the maintenance obligations of the homeowner at the various time frames; and (3) the fact that the home is approaching the ten-year mark. Most builders would rather deal directly with the homeowners through customer service than defend a construction defect litigation action where the costs to defend the claim will vastly exceed the cost to address the individual homeowner issues. The more the builder communicates with the homeowner in advance, the less likely it is that the homeowner engages in litigation against the builder.

    2. Timely Response to Homeowner Claims

    During the purchase process, provide the homeowners instructions on how to send in a customer service or warranty requests. Provide multiple methods for notification to the builder by the homeowner when issues arise in their home (fax, email, website forms, etc.). The builder should provide a timely response – within 48 hours of the notice if possible. The homeowner wants to receive some notification from the builder that they received their request and, at the very least, will investigate the claim. Even if it is determined to be a maintenance item or homeowner caused damage, the homeowner should receive: (1) an acknowledgement of the claim; (2) an investigation report of the issue; and (3) an action plan or conclusion statement – this can be a declination of repairs with an explanation as to the cause not being the result of original construction. Sometimes even sending a customer service representative to the home to listen to the homeowner claims and explaining that there are not repairs required is sufficient to satisfy the homeowner. The goal is to make sure the homeowner’s claims are acknowledged and that the builder is standing behind its product. In my experience, the fact that the builder failed to respond in a timely fashion to the homeowner is a significant motivating factor as to why the homeowner elected to enter formal litigation against the builder.

    3. Be Proactive When Litigation Ensues Despite the fact that the homeowner has engaged an attorney and joined a construction defect action, the builder is not precluded from continuing to communicate with its homeowners. Several builders send letters to the non-plaintiff homeowners reminding them to contact the builder should they have issues at their homes rather than join the ongoing construction defect action. Under the law, clients can always talk to clients even if they are represented by counsel. While the attorneys for the builders cannot speak to the represented construction defect homeowners, the builder can communicate directly with its homeowners offering to honor its warranty and customer service procedures in lieu of the homeowner proceeding with the litigation. Both of these builder attempts to communicate with homeowners post-litigation have a dual effect – some homeowners elect to contact the builder to effectupate repairs and drop the litigation; while others elect to continue with the litigation. So proceed cautiously in this regard.

    It is noted, there are many motivating factors for homeowners to bring a lawsuit against homebuilders that have nothing to do with the construction practices or customer service and are merely economically driven. However, these small steps in addition to providing solid construction practices should help curb construction defect litigation by homeowners.

    Jason Daniel Feld is a founding partner of Kahana & Feld LLP, an AV Preeminent boutique litigation firm in Orange County specializing in construction defect, insurance defense, employment and general business litigation matters. The firm was founded with the goal of providing high-quality legal services at fair and reasonable rates. The firm believes that what defines attorneys is not their billing rates, but their record of success, which speaks for itself. For more information, please visit: www.kahanafeld.com.

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    Texas Legislative Update

    July 19, 2017 —
    The marquee fight between Lt. Governor Patrick and Speaker Straus, otherwise known as the 85th Regular Legislative Session, concluded on May 29, 2017. While the political clash over the controversial “bathroom bill” will continue during the special legislative session, this article is intended to provide a brief summary of the construction-related bills that passed during the regular session and a few notable ones that did not pass. A special session has been called by Governor Abbott, but no construction-related bills were included on the agenda. What Passed? HB 2121 – Attorney’s fees for state breach of contract claims. A contractor who prevails on a state breach of contract claim pursuant to Chapter 2260 of the Government Code, that is also valued at less than $250,000.00, may recover attorney’s fees. By using the word “may”, the bill implies that the award of attorney’s fees will be at the discretion of the administrative law judge. This bill became law on June 15, 2017. HB 1463 – Right to cure ADA violations. A person with a disability may assert a claim for discrimination based on a violation of the building and architectural standards established in Chapter 469 of the Government Code. However, this bill requires the claimant to provide the respondent written notice at least sixty (60) days before filing an action for the violation and further gives the respondent an opportunity to cure the alleged violation within the sixty (60) day period. The obvious benefit of this bill is that it allows the respondent, e.g., the owner or potentially the contractor, an opportunity to remediate the violation without incurring litigation costs. This bill becomes effective law on September 1, 2017. Reprinted courtesy of Matthew S.C. Moore, Peckar & Abramson, P.C. and Justin (JD) D. Holzeauser, Peckar & Abramson, P.C. Mr. Moore may be contacted at mmoore@pecklaw.com Mr. Holzheauser may be contacted at jdholzheauser@pecklaw.com Read the court decision
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    Fast-Moving Isaias Dishes Out Disruption in the Mid-Atlantic, Northeast

    August 24, 2020 —
    Far from the most powerful storm to strike the Eastern Seaboard, Hurricane Isaias nevertheless proved disruptive enough to rival some infrastructure impacts from Superstorm Sandy in 2012 while also raising concerns about the potential of additional doses of destruction arriving in the coming months. Jim Parsons, Engineering News-Record ENR may be contacted at ENR.com@bnpmedia.com Read the full story... Read the court decision
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    No Coverage for Faulty Workmanship Causing Property Damage to Insured's Product Only

    October 07, 2016 —
    The Nebraska court found there was no coverage for rebar that did not meet specifications and did not cause property damage to other portions of the construction project. Drake-Williams Steel, Inc. v. Cont'l Cas. Co., 2016 Neb. LEXIS 116 (Neb. Aug. 5, 2016). The general contractor was hired by the city to build an arena. Drake-Williams Steel, Inc. (DWS) was hired to supply rebar for the arena. The rebar was improperly bent when it was fabricated by DWS and did not conform to the terms of the contract. The rebar was incorporated into three components of the arena: the columns, the grade beams, and the pile caps. The pile caps were made of concrete with reinforcing rebar and were installed below ground level on top of the concrete piles that extended to the bedrock. The grade beams were also made of concrete and rebar. The beams formed an oval around the arena and connected different pile caps together and were also installed below ground level. No corrections were made to the grade beams. 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