Fairfield Connecticut Building Expert Directory

General Contractor Intervening to Compel Arbitration Per the Subcontract

December 06, 2021 — David Adelstein - Florida Construction Legal Updates
It is not uncommon that a general contractor’s subcontract will include an arbitration provision. Or it will allow the general contractor to select binding arbitration as the method to resolve disputes at the general contractor’s SOLE OPTION. A general contractor’s subcontract should absolutely give the general contractor this important right. (Keep this in mind when drafting dispute resolution provisions for a general contractor.) It is also not uncommon for a subcontractor the sue a general contractor’s payment bond surety, and NOT the general contractor. One reason to do this is to create an argument to avoid the dispute resolution provision in the subcontract. (Another reason is to avoid any pay-if-paid defense.) When this occurs, a general contractor may still want to arbitrate the subcontractor’s payment bond dispute and a way to do so is for the general intervene in the lawsuit and move to compel arbitration. Sometimes, it is even practical for the general contractor to immediately initiate the arbitration process against the subcontractor, particularly if the general contractor wants to assert a counterclaim, so that the motion to compel is supported by the formal demand for arbitration (and filed with the American Arbitration Association or other body administering the arbitration). I have done this on a number of occasions. Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

Assessing Defective Design Liability on Federal Design-Build Projects

March 22, 2021 — Dirk Haire, Adam Hamilton & Dana Molinari - ConsensusDocs
A common misconception by many government officials is that a design-builder is always responsible for every design error or omission on a design-build project. This article examines the actual liability standard applied by the courts and boards of contract appeals when a design defect arises on a federal design-build project. Background: Design-Build Contracts and the Spearin Doctrine Design-build contracts combine the design and construction elements of a construction project into one contract. Design-build contracts often include two types of specifications: design and performance. Design specifications may set forth various parameters, such as precise measurements, tolerances, and materials. In doing so, the specifications create a fixed “roadmap” governing a contractor’s performance of the project. Performance specifications, on the other hand, set forth “operational characteristics” to achieve a particular objective or standard, but generally leave the details to the contractor. Reprinted courtesy of Dirk Haire, Fox Rothschild LLP, Adam Hamilton, Fox Rothschild LLP and Dana Molinari, Fox Rothschild LLP Mr. Haire may be contacted at dhaire@foxrothschild.com Mr. Hamilton may be contacted at ahamilton@foxrothschild.com Ms. Molinari may be contacted at dmolinari@foxrothschild.com Read the court decision
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New York Signs Biggest Offshore Wind Project Deal in the Nation

August 06, 2019 — Will Wade, Chris Martin, & Millicent Dent - Bloomberg
New York has signed the biggest-ever deals for offshore wind power in U.S. history, a key part of the state’s plan to get all of its power from emissions-free sources by 2040. On Thursday, Governor Andrew Cuomo awarded contracts for two projects off Long Island that will total 1,700 megawatts in capacity. Equinor ASA and a joint venture between Denmark’s Orsted A/S and Massachusetts-based Eversource Energy were chosen to build the farms, which will supply enough power to light up a million homes. Cuomo is counting on the wind projects to achieve the most aggressive clean energy goal in the U.S., and signed the state’s 100% renewable energy target into law right after announcing the wind contracts. New York’s ultimate plan is to get enough turbines erected off its shores to generate 9,000 megawatts by 2035. Read the court decision
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Reprinted courtesy of Will Wade, Chris Martin, & Millicent Dent, Bloomberg

Coverage for Faulty Workmanship Denied

September 07, 2020 — Tred R. Eyerly - Insurance Law Hawaii
The court found that the insurer had no duty to defend claims against the insured for faulty workmanship. HT Services, LLC v. Western Heritage Ins. Co., 2020 U.S. Dist. LEXIS 123664 (D. Colo. July 10, 2020). Western Heritage Insurance Company issued three concurrent general liability policies to HT Services, LLC. The policies insured two properties owned by HT in Colorado Springs, its offices and vacant land. HT eventually developed a residential community on the vacant land. In January 2016, the homeowners' association filed suit against HT for negligent design and construction of a retaining wall at the project. HT requested Western to defend and indemnify against the suit. Western denied coverage and HT sued. HT asserted that Western had a duty to defend and asserted claims for declaratory relief, breach of contract and bad faith. HT moved for partial summary judgment on its claims for declaratory relief, seeking a determination of its rights under the policies. Western moved for summary judgment on all of HT's claims. 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

With Historic Removal of Four Dams, Klamath River Flows Again Unhindered

October 21, 2024 — Tim Newcomb - Engineering News-Record
In a period of 16 months, four dams built between 1903 and 1962 came down as part of a monumental effort to clear 35 miles of the Klamath River spanning Oregon and California. The project owner, the Klamath River Renewal Corp., describes it as the largest dam removal effort in U.S.—and possibly world—history. Reprinted courtesy of Tim Newcomb, Engineering News-Record ENR may be contacted at enr@enr.com Read the full story... Read the court decision
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Housing Starts Fall as U.S. Single-Family Projects Decline

February 18, 2015 — Bloomberg News
(Bloomberg) -- Builders broke ground on fewer U.S. residential construction projects in January as demand for single-family homes cooled from an almost seven-year high, signaling the rebound in housing remains uneven. Housing starts declined 2 percent to a 1.07 million annual rate, following the prior month’s 1.09 million pace, a Commerce Department report showed Wednesday in Washington. The median forecast of 82 economists surveyed by Bloomberg was 1.07 million. Permits, a proxy for future construction, also fell. Student debt, tight credit conditions and rising prices are probably preventing would-be first-time homebuyers from entering the market, which will damp construction. At the same time, a strengthening labor market and rising household formation may support building of rental units, underpinning residential real estate. Nina Glinski may be contacted at nglinski@bloomberg.net; Shobhana Chandra may be contacted at schandra1@bloomberg.net Read the court decision
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Termination of Construction Contracts

November 30, 2020 — Stuart Rosen - Construction Executive
Lately, in view of the COVID-19 pandemic, there is a heightened concern that some construction projects will not proceed as planned. Therefore, it is important to review each party’s right to terminate a construction contract and to examine some of the resulting consequences. While the parties to a construction contract can, as always, agree to other mutually acceptable terms and provisions, in broad terms, a typical construction contract includes four triggering events that can lead to termination. First, an owner can terminate a construction contract if the contractor defaults and thereafter fails to cure such default, which may include, without limitation, the failure to remediate deficient work, the failure to meet the construction schedule, the failure to pay subcontractors and the failure to comply with applicable law. A contractor must be mindful of the fact that in the case of such termination by the owner for cause, the vast majority of construction contracts provide that the contractor will not be entitled to receive any further payment for work performed by the contractor until the work is finished. 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

When a Construction Lender Steps into the Shoes of the Developer, the Door is Open for Claims by the General Contractor

February 18, 2015 — Kevin Brodehl – California Construction Law Blog
Thank you to my partner Garret Murai for giving me the opportunity to post again on his excellent California Construction Law Blog. I am the author/editor of the Money and Dirt Blog, where I focus on issues relating to real estate investment, development, and secured lending. On the Money and Dirt Blog, I recently posted an article on an interesting new secured lending opinion from the California Court of Appeal (Fourth District in Riverside), California Bank & Trust v. Del Ponti. That blog post focused on guaranty liability, and the court’s holding that there are limits to the defenses that a guarantor can lawfully waive. But that same decision also highlights valuable lessons regarding the relationship between construction lenders and general contractors in distressed projects, which I’ll cover here. In short, the court held that when a construction lender “steps into the shoes” of the developer to manage a distressed project, the lender might open the door to liability to the general contractor under theories of breach of contract and promissory estoppel. Read the court decision
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Reprinted courtesy of Kevin Brodehl, Wendel Rosen Black & Dean LLP
Mr. Bordehl may be contacted at kbrodehl@wendel.com

FAIRFIELD CONNECTICUT BUILDING EXPERT DIRECTORY AND CAPABILITIES