Construction Contracts Fall in Denver
October 02, 2013 —
CDJ STAFFAfter nearly a year of growth, residential construction contracts dropped 22% in the Denver area in August. Residential construction contracts are still above what they were before August 2012, but the gains since then have been wiped out. The value of contracts in August 2012 was $219.8 million, and this this August they have fallen to $171.7 million.
Commercial construction also saw a reduction, however, there the fall was only 7%, dropping from $1.54 billion to $1.43 billion.
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Evolving Climate Patterns and Extreme Weather Demand New Building Methods
May 22, 2023 —
Annette Rubin - Construction ExecutiveCompared to the rest of the world, most buildings in the United States are relatively young. But most residential and commercial properties could use a makeover. Buildings constructed over twenty, fifty and one hundred years ago are, unsurprisingly, not as energy-efficient or as safe as new builds following modern methods—especially when considering the effects of climate change and more frequent extreme weather events on the integrity of that infrastructure.
According to the National Association of Home Builders, over 90% of new homes built in the United States today are wood-framed. These homes are incapable of withstanding a tornado or hurricane, yet they are still being built directly in the path of storms. Even buildings constructed in some of the most earthquake-prone areas of the U.S. may contain design flaws that make them susceptible to damage because they are built using a non-ductile concrete method, which experts say has an inadequate configuration of steel reinforcing bars—making the building vulnerable when shaken. While this building method was banned for new construction, it is not yet required to retrofit older construction to improve safety and structural integrity.
Reprinted courtesy of
Annette Rubin, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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“Good Faith” May Not Be Good Enough: California Supreme Court to Decide When General Contractors Can Withhold Retention
March 22, 2018 —
Erinn Contreras and Joy O. Siu – Construction & Infrastructure Law BlogIt is industry standard in California for owners of a construction project to make monthly payments to a contractor for work it has completed, less a certain percentage that is withheld as a guarantee of future satisfactory performance. This withholding is called a retention. Contractors generally pass these withholdings on to their subcontractors via a retention clause in the subcontract. Under such clause, if a subcontractor fails to complete its work or correct deficiencies in its work, the owner and the general contractor may use the retention to bring the subcontractor’s work into conformance with the requirements of the contract.
When and how retention payments must be released are governed by, among other statutes, Civil Code section 8800
et seq. Specifically, Civil Code section 8814, subdivision (a), states that a direct contractor must pay each subcontractor its share of a retention payment within ten days after the general contractor receives all or part of a retention payment. Failure to make payments in accordance with Section 8814 can subject an owner or a contractor to a (1) two percent penalty per a month on the amount wrongfully withheld, and (2) claim for attorney’s fees for any litigation required to collect the wrongfully withheld retention payments. (Civ. Code, § 8818.)
Reprinted courtesy of
Erinn Contreras, Sheppard, Mullin, Richter & Hampton LLP and
Joy Siu, Sheppard, Mullin, Richter & Hampton LLP
Ms. Contreras may be contacted at econtreras@sheppardmullin.com
Ms. Siu may be contacted at jsiu@sheppardmullin.com
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Tenants Underwater: Indiana Court of Appeals Upholds Privity Requirement for Property Damage Claims Against Contractors
April 25, 2022 —
Melissa Kenney - The Subrogation StrategistIn United States Automatic Sprinkler Corp. v. Erie Ins. Exch., et al., No. 21A-CT-580, 2022 Ind. App. LEXIS 87 (Automatic Sprinkler), the Court of Appeals of Indiana (Court of Appeals) considered whether there is a privity requirement for property damage claims against contractors. The court imposed a privity requirement. The court also addressed whether a subrogation waiver in a contract with a tenant applied to damage caused by work done outside the contract, at the landlord’s request. The court held that the waiver did not apply.
In this case, United States Automatic Sprinkler (Automatic Sprinkler) contracted with a tenant (Contract Tenant) to inspect and test a sprinkler system at a commercial building in Indiana. The contract included a waiver of subrogation provision. The building landlord subsequently hired Automatic Sprinkler to repair a leak in the sprinkler system. After completing the repairs, the system failed and flooded the building, causing significant property damage to several tenancies.
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Melissa Kenney, White and Williams LLPMs. Kenney may be contacted at
kenneyme@whiteandwilliams.com
What You Don’t Know About Construction Law Can Hurt Your Engineering Firm (Law Note)
January 28, 2019 —
Melissa Dewey Brumback - Construction Law in North CarolinaWelcome to a new year! By now, you’ve eaten the last of the Christmas cookies, opened all of your presents, and rung in 2019. Back to business, right? The new year is always a good time to remind your employees, and yourself, that there are no shortcuts on the success train.
Sure, you can sometimes skate by for awhile, but karma has a way of catching up with you.
One thing to keep in mind is that if you practice in multiple states: be sure you are well aware of the rules and regulations concerning your license in each state. Each state does things a little differently, and what may be perfectly acceptable in one state may not be in another state.
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Melissa Dewey Brumback, Ragsdale Liggett PLLCMs. Brumback may be contacted at
mbrumback@rl-law.com
Illinois Court of Appeals Addresses Waiver and Estoppel in Context of Suit Limitation Provision in Property Policy
February 05, 2024 —
James M. Eastham - Traub LiebermanIn Naperville Hotel Partners, LLC v. Liberty Mut. Fire Ins. Co., 2023 IL App (3d) 220440-U the Illinois Third District Court of Appeals addressed whether failure to include reference to a limitations provision in reservation of rights correspondence to an insured can be deemed a waiver of the provision or otherwise estop the insurer from relying on the provision.
The claim involved water damage sustained at the Insured’s motel as a result of numerous rain events that occurred between 2015 and 2020. Liberty Mutual issued an insurance policy that covered several buildings including the subject hotel. The policy required that any legal action based on the coverage had to be brought "within two (2) years after the date on which the physical damage occurred, extended by the number of days between the date you submitted the statement of loss to us and the date we deny the claim in whole or in part."
Plaintiffs filed their claim with Liberty Mutual in May 2019. In June of 2019 Liberty Mutual sent a reservation of rights letter to the Insured which requested more information and listed the "immediate written notice of loss" provision as a potential basis for excluding coverage but did not list the two-year time-limitation on legal action. Liberty Mutual also did not mention the provision in subsequent communications with the Insured.
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James M. Eastham, Traub LiebermanMr. Eastham may be contacted at
jeastham@tlsslaw.com
Jobsite Safety, Workforce Shortage Drive Innovation in Machine Automation
August 07, 2018 —
Scott Crozier - Construction ExecutiveFrom 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.
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Scott Crozier, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Make Prudent Decisions regarding your Hurricane Irma Property Damage Claims
September 14, 2017 —
David Adelstein - Florida Construction Legal UpdatesHurricane Irma barreled down on us with all of her forceful winds and torrential rains. She was scary and relentless. There was mass evacuation. Commercial flights were booked. Trains were booked. There was gridlock with the concern as to whether gas would even be available. There were many people that did not evacuate, uncertain as to the eventual path Irma would take. Originally projecting an easterly course, people on the east coast evacuated to the west coast, central Florida or out-of-state. She then shifted to a westerly course forcing people on the west coast to evacuate to the east coast, central Florida, or out-of-state. It was chaos stemming from the total unpredictability of Mother Nature. It was chaos stemming from the dreadful images of Hurricane Harvey. Mother Nature and all of her uncertainty is undoubtedly frightening, as proven by her devastation throughout the amazing state of Florida.
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David Adelstein, Florida Construction Legal UpdatesMr. Adelstein may be contacted at
Dadelstein@gmail.com