Enforcement Of Contractual Terms (E.G., Flow-Down, Field Verification, Shop Drawing Approval, And No-Damage-For-Delay Provisions)
May 04, 2020 —
David Adelstein - Florida Construction Legal UpdatesWhat you contractually agree to matters, particularly when you are deemed a sophisticated entity. This means you can figuratively live or die by the terms and conditions agreed to. Don’t take it from me, but it take it from the Fourth Circuit’s decision in U.S. f/u/b/o Modern Mosaic, Ltd. v. Turner Construction Co., 2019 WL 7174550 (4th Cir. 2019), where the Court started off by stressing, “One of our country’s bedrock principles is the freedom of individuals and entities to enter into contracts and rely that their terms will be enforced.” Id. at *1.
This case involved a dispute between a prime contractor and its precast concrete subcontractor on a federal project. The subcontractor filed a Miller Act payment bond lawsuit. The trial court ruled against the subcontractor based on…the subcontract’s terms! So, yes, what you contractually agree to matters.
Example #1 – The subcontractor fabricated and installed precast concrete panels per engineering drawings. However, the parking garage was not built per dimensions meaning the panels it fabricated would not fit. The subcontractor had to perform remedial work on the panels to get them to fit. The subcontractor pursued the prime contractor for these costs arguing the prime contractor should have field verified the dimensions. The problem for the subcontractor, however, was that the subcontract required the subcontractor, not the prime contractor, to field verify the dimensions. Based on this language that required the subcontractor to field verify existing conditions and take field measurements, the subcontractor was not entitled to its remedial costs (and they were close to $1 Million). Furthermore, and of importance, the Court noted that the subcontract contained a flow down provision requiring the subcontractor to be bound by all of the terms and conditions of the prime contract and assume those duties and obligations that the prime contractor was to assume towards the owner. While this flow-down provision may often be overlooked, here it was not, as it meant the subcontractor was assuming the field verification duties that the prime contractor was responsible to perform for the owner.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
The Secret to Success Is Doing Things a Little Bit Differently
November 16, 2020 —
Charlie Kimmel - Construction ExecutiveThroughout the 1960s and 1970s, Rick Barry made his mark on the world of college and professional basketball. He was a skilled small forward who averaged 37.4 points per game during his senior year at the University of Miami, and he was the second overall pick in the 1965 NBA draft. But he’s best remembered as a prolific free-throw shooter: he led the NBA in free-throw percentage for several consecutive years. When he retired in 1980, his free-throw percentage (.900) was the highest in NBA history.
So what was the secret to his success? He did things a little bit differently. While the vast majority of basketball players shoot overhand free throws, Barry was famous for his unorthodox underhanded shots. This technique was not only incredibly effective, but it also set him apart as a player and contributed to his popularity.
Construction companies can learn a lot from Barry’s strategy of doing things a little bit differently to achieve success. Most companies don’t need to worry about their employees’ free-throw techniques. But all of them need to set themselves apart from their competition and establish strong reputations in today’s highly competitive market.
Reprinted courtesy of
Charlie Kimmel, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Construction Employment Rises in Half of the States
December 09, 2011 —
CDJ STAFFThe Labor Department has noted that half the states and the District of Columbia saw increases in construction employment during the month of October. During the same month, twenty-three states lost construction jobs.
The biggest gains were in North Dakota, Oklahoma, DC, Texas, and California. The biggest losses were in Georgia, New Mexico, Wisconsin, and Florida. There was no change for Alabama.
The chief executive officer of the Association of General Contractors of America, Stephen E. Sandherr, called for more infrastructure development. “Allowing water, transportation and energy networks to deteriorate will hurt construction employment and force taxpayers to spend more later, to fix broken infrastructure.”
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Brown and Caldwell Team with AECOM for Landmark Pure Water Southern California Program
May 15, 2023 —
Brown and CaldwellLOS ANGELES, May 09, 2023 — A joint venture of AECOM and Brown and Caldwell (AECOM-BC Team) has been chosen to provide program and project management support and engineering design services for the
Pure Water Southern California program, one of the largest water reuse programs in the world.
The innovative program, being developed by the Metropolitan Water District of Southern California (Metropolitan) in partnership with the Los Angeles County Sanitation Districts (Sanitation Districts), will produce up to 150 million gallons of high-quality, purified water per day for up to 15 million people.
Anticipated for water delivery by 2032 and potentially earlier, the program will reuse the largest untapped wastewater source in the region that currently flows to the ocean to increase water resiliency, enhance water quality, and fuel economic growth. It will lower Southern California’s reliance on imported water supplies from the Colorado River and Sierra Nevada and replenish groundwater basins while leveraging cutting-edge research and development to increase regional water reuse.
About Brown and Caldwell
Headquartered in Walnut Creek, California, Brown and Caldwell is a full-service environmental engineering and construction services firm with 52 offices and over 1,900 professionals across North America and the Pacific. For more than 75 years, our creative solutions have helped municipalities, private industry, and government agencies successfully overcome their most challenging water and environmental obstacles. As an employee-owned company, Brown and Caldwell is passionate about exceeding our clients’ expectations and making a difference for our employees, our communities, and our environment. For more information, visit www.brownandcaldwell.com
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“A No-Lose Proposition?”
October 07, 2024 —
Daniel Lund III - LexologyA Miller Act payment bond surety and its principal general contractor both sued in federal court in New Orleans by a project subcontractor sought to compel arbitration the claims against both contractor and surety based on an indisputably enforceable arbitration clause in the subcontract. This was urged to avoid separate actions against the contractor (arbitration) and its surety (litigation), even though the surety was not a party to the subcontract and, therefore, not a party to the arbitration clause.
In the face of the lack of an express agreement to arbitrate, the contractor and contractor argued that “no federal statute or policy prohibits all of Plaintiff’s claims from proceeding to arbitration….” Additionally, those parties urged that the surety should be allowed to affirmatively compel arbitration because the surety “would otherwise have the ability to assert the right to compel arbitration as a defense….”
The New Orleans federal district court was unpersuaded:
“[D]istrict courts within this circuit have recognized that ‘Miller Act claims by a subcontractor for unpaid labor and materials are separate and distinct from those for general breach of contract… [and] arbitration and Miller Act suits, are not, per se, inconsistent with one another.’…[A]bsent express contractual intent to subject Miller Act claims to arbitration, the court [will] not force the parties to arbitrate claims against nonparties to the contract at issue…. [C]laims against a surety, which was a non-signatory to the contract, would not be subject to arbitration without any contractual basis to do so.”
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Daniel Lund III, PhelpsMr. Lund may be contacted at
daniel.lund@phelps.com
Did New York Zero Tolerance Campaign Improve Jobsite Safety?
December 13, 2021 —
Neil Flynn - Construction ExecutiveConstruction work is one of the most dangerous jobs in America, accounting for 19% of all workplace deaths in 2019. In New York City, that number is almost 50% higher, with construction accidents accounting for a quarter of all workplace deaths. One of the most positive developments in this area, despite the presence of COVID-19, has been the recent implementation of the “Zero Tolerance” campaign by the New York City’s Department of Buildings.
The goal of the DOB’s latest construction safety campaign was to reduce the number of building site injuries and fatalities by implementing a zero-tolerance standard. While it is too premature to measure the program’s efficiency, a
preliminary analysis of the first three months’ results appear to be nothing short of impressive.
Reprinted courtesy of
Neil Flynn, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Mr. Flynn may be contacted at
nf@plattalaw.com
Kadeejah Kelly Named to The National Black Lawyers’ “Top 40 Under 40” List
October 17, 2022 —
Lewis BrisboisNew York, N.Y. (October 6, 2022) – New York Associate
Kadeejah J. Kelly was recently named to The National Black Lawyers (NBL) “Top 40 Under 40” list.
The NBL “Top 40 Under 40” recognizes the most talented black attorneys under the age of 40 who have an outstanding reputation among peers, the judiciary and the public. The honorees on this list are nominated from leading lawyers, current members, and Executive Committee members.
Ms. Kelly is a member of the General Liability and Professional Liability Practices. She has extensive experience defending owners, contractors, developers and corporations in high exposure construction cases including New York Labor Law matters, premises liability and construction defect claims. She also has experience defending malpractice claims against attorneys, accountants, architects, engineers, funeral home directors and other miscellaneous professionals.
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Lewis Brisbois
Will They Blow It Up?
March 28, 2012 —
CDJ STAFFThe issues concerning the Harmon Towers building in Las Vegas continue to make their way through the courts. As we noted in a previous piece, Cook County building officials stated that the building could be a hazard if Las Vegas were struck by an earthquake. The question of whether the building will continue to stand is just one of the issues in front of a judge.
MGM Resorts International argued at a March 13 hearing for permission to implode the Harmon hotel building. They claim that more than 1,700 defects have been discovered in the building and that the building is a public safety hazard. Arguing against demolition, Perini Building Company, the general contractor for the hotel, and its subcontractors are claiming that imploding the building would destroy evidence and prejudice juries in the ongoing construction defect claims. They claim that MGM Resorts wishes to abandon the building due to the economic slowdown. Perini Corp, the contractor for the project, claims that the building can be fixed. Perini claims that MGM’s position in the construction trial would be improved if the building is demolished.
After Judge Elizabeth Gonzalez heard the four days of testimony on the Harmon Towers building and whether it should be demolished, she scheduled more testimony, with two days in April and an entire week in July. Judge Gonzalez will be deciding whether the building will be torn down, imploded, or left in place.
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