Cambridge Massachusetts Building Expert Directory

Accounting for Payments on Projects Became Even More Crucial This Year

September 21, 2020 — Christopher G. Hill - Construction Law Musings
I discussed several of the statutory changes affecting the construction industry here at Construction Law Musings in the run-up to July 1, 2020. One of those changes, an amendment to Virginia Code Section 43-13, may add another arrow to the collection quiver of subcontractors and suppliers. As part of the previously-linked rundown, I highlighted one of the big additions in 2020, namely the amendment making those pesky clauses that let those up the payment chain from you hold money on “this or any other project” void as against public policy. The other big addition to 43-13 is the change that adds a possible civil cause of action for downstream and unpaid subcontractors and suppliers in the event that funds paid to a general contractor or subcontractor are not first used to pay their downstream contractors and suppliers. Prior to July 1, 2020, this statute provided criminal penalties for such behavior but did not contain the possibility of a civil penalty. The operative language for the change is as follows:

The use by any such contractor or subcontractor or any officer, director, or employee of such contractor or subcontractor of any moneys paid under the contract before paying all amounts due or to become due for labor performed or material furnished for such building or structure for any other purpose than paying such amounts due on the project shall be prima facie evidence of intent to defraud. Any breach or violation of this section may give rise to a civil cause of action for a party in contract with the general contractor or subcontractor, as appropriate; however, this right does not affect a contractor’s or subcontractor’s right to withhold payment for failure to properly perform labor or furnish materials on the project.

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Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

Heathrow Speeds New-Runway Spending Before Construction Approval

August 13, 2019 — Elena Mazneva - Bloomberg
London’s Heathrow Airport intends to speed up spending on its controversial third runway, even before getting approval for the 14 billion-pound ($18 billion) project, according to the industry regulator. Europe’s busiest airport plans to boost early spending to 2.9 billion pounds, in 2014 prices, so it can stay on schedule for a planned 2026 opening, the Civil Aviation Authority said in a consultation document on its website. The costs will be incurred before the airport wins permission to build the runway, which the operator expects to happen in late 2021, according to the document. The Financial Times reported the plan earlier. Read the court decision
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Reprinted courtesy of Elena Mazneva, Bloomberg

National Coalition to Provide Boost for Building Performance Standards

March 14, 2022 — Pam McFarland - Engineering News-Record
Energy efficiency advocates are hopeful that a new Biden administration coalition to promote and strengthen building performance standards could accelerate federal, state and local efforts to reduce carbon emissions from buildings. Reprinted courtesy of Pam McFarland, Engineering News-Record Ms. McFarland may be contacted at mcfarlandp@enr.com Read the full story... Read the court decision
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NARI Addresses Construction Defect Claim Issues for Remodeling Contractors

November 05, 2014 — Beverley BevenFlorez-CDJ STAFF
The blog of the National Association of the Remodeling Industry (NARI) reported on issues for remodeling contractors that could result in construction defect claims. The most common problems "include water intrusion and water damage (windows, roofs, siding, etc.), heaving/settlement of flatwork areas, structural deficiencies/damage and material defects, etc." NARI suggests starting by analyzing contractual provisions. A few of the provisions addressed by NARI include Dispute Resolution, Performance Guidelines, and Notice of Claim Provisions. The article also covers Warranties, Applicable Laws, Potential Legal Action, and Insurance Coverage. Read the court decision
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Chicago Criticized for Not Maintaining Elevator Inspections

October 29, 2014 — Beverley BevenFlorez-CDJ STAFF
According to Crain’s Chicago Business, “as few as a fifth of elevators get the required annual checkup,” Chicago Inspector General Joe Ferguson claimed. Ferguson audited the roughly 5,100 buildings that city inspectors were assigned to inspect elevators, and found that only 965 were actually inspected, reported Crain’s Chicago Business. Furthermore, “when problems were found in inspections conducted by city personnel, they often were not fixed in a timely manner, again according to city records.” Read the court decision
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In Supreme Court Showdown, California Appeals Courts Choose Sides Regarding Whether Right to Repair Act is Exclusive Remedy for Homeowners

August 10, 2017 — Garret Murai - California Construction Law Blog
Earlier, we wrote about an appellate court split concerning the Right to Repair Act (Civil Code sections 895 et seq.) which applies to construction defects in newly constructed residential properties including single-family homes and condominiums (but not condominium conversions) sold after January 1, 2003. The California Court of Appeals for the Fourth District, in Liberty Mutual Insurance Company v. Brookfield Crystal Cove LLC (2013) 219 Cal.App.4th 98, held that the Right to Repair Act does not provide the exclusive remedy when pursing claims for construction defects involving “actual” property damage (e.g., a defectively constructed roof causing actual physical damage due to water intrusion as opposed to a defectively constructed roof that while constructed improperly does not cause actual physical damage). However, the California Court of Appeals for the Fifth District, in McMillin Albany LLC v. Superior Court (2015) 239 Cal.App.4th 1132, which is currently pending before the California Supreme Court, held that the Right to Repair Act does in fact provide the exclusive remedy when pursuing claims for construction defects whether they involve “actual” property damage or merely “economic” damages. For homeowners, they would prefer the option of pursuing remedies under either or both the Right to Repair Act (which includes detailed pre-litigation procedures and statutory construction standards) or under common law claims such as negligence (which do not include pre-litigation procedures and have more flexible standards of care). The California Court of Appeals for the Third District has now thrown its hat into the ring . . . on the side of McMillan. 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

Reduce Suicide Risk Among Employees in Remote Work Areas

November 24, 2019 — Sandra Moran - Construction Executive
In the construction industry, a disturbing and unnerving trend has been developing over the past few decades. Construction and resource extraction have the highest rate of deaths by suicide compared to any other industry. This phenomenon is not limited to a single country. The statistics from three developed countries with strong construction and resource extraction industries (United States, United Kingdom and Australia), reflect the same pattern. A major risk factor that has not been given much attention and scrutiny is the requirement for many workers to be away from their homes for long periods of time, based in remote locations and basecamps. This isolation contributes to loneliness and disconnectedness that increases the vulnerability to employees at risk due to underlying mental health disorders, such as depression and anxiety, or those with suicidal ideations or prior attempts. Basecamps or remote work locations remove workers from the support networks of family, friends, and even medical and psychological caregivers. Employers placing employees in remote work locations should be mindful that simply wanting to work in a remote location does not necessarily equate to being able to cope well in such an environment—unless appropriate supports are provided. Companies need to become proactive to lead employees to become true teams to help reduce the risk of suicide among their workers. Reprinted courtesy of Sandra Moran, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Recovering Unabsorbed Home Office Overhead Due to Delay

May 30, 2022 — David Adelstein - Florida Construction Legal Updates
In the preceding article, I discussed the use of a retrospective as-built delay analysis in a case before the Civilian Board of Contract Appeals (CBCA). This case also discussed a damages component in certain delay claims known as unabsorbed home office overhead—a challenging damages component to recover because this deals with indirect costs as opposed to direct costs. Unabsorbed home office overhead is a damages component when the contractor is on standby, but this is NOT as easy as just claiming standby thereby you are automatically entitled to unabsorbed home office overhead. There are requirements that MUST be met.

To obtain an equitable adjustment for unabsorbed home office overhead as compensation for being on standby, [the contractor] must initially show “[1] a government-caused delay of uncertain duration,” that “[2] the delay extended the original time for performance” or precluded the contractor from finishing earlier than scheduled, and that “[3] the contractor [was] on standby and unable to take on other work during the delay period. CTA I, LLC v. Department of Veteran Affairs, CBCA 5826, 2022 WL 884710 (CBCA 2022) quoting Nicon, Inc. v. U.S., 331 F.3d 878, 883 (Fed. Cir. 2003).

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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

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