Sioux City Building Owners Sue Architect over Renovation Costs
December 04, 2013 —
CDJ STAFFAccording to the architects, it should have cost a few hundred thousand dollars to strengthen the floors of Sioux City’s Badgerow Building. Instead, the upgrades cost somewhere between $3 and $5 million, which Mako One, the builder’s owners, said would have dissuaded them from starting had they known. Mako is suing M Plus Architects, for this and for its recommendation that the building’s windows be changed. That change ran foul of historic preservation guidelines, and the windows will have to be replaced.
M Plus is, in return, suing Mako One over $150,000 in unpaid bills. Meanwhile, a data center is moving in on the fourth floor.
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Liquidated Damages: A Dangerous Afterthought
January 15, 2019 —
Trevor B. Potter - Construction ExecutiveOwners and contractors frequently treat liquidated damages provisions as an afterthought, but they deserve to be treated as a key deal term. If a contractor breaches a contract by failing to complete the work in a timely manner, the remedy is typically an agreed upon amount or rate of liquidated damages.
Liquidated damages provisions seldom get more than a cursory, “back of the napkin” analysis, or worse, parties will simply plug in a number. This practice is dangerous because liquidated damages typically represent the owner’s sole remedy for delay and, more importantly, they are subject to attack and possible invalidation if certain legal standards are not met. The parties to a construction contract should never agree to an amount of liquidated damages without first attempting to forecast and calculate actual, potential damages.
Reprinted courtesy of
Trevor B. Potter, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Despite Feds' Raised Bar, 2.8B Massachusetts Offshore Wind Project Presses On
November 04, 2019 —
Mary B. Powers - Engineering News-RecordDevelopers of the 800-MW, 84-turbine Vineyard Wind offshore wind energy farm in Massachusetts, set to be the first and largest commercial-scale project in the U.S., say they are committed to pushing through its $2.8-billion construction despite a sudden Trump administration permitting setback.
Reprinted courtesy of
Mary B. Powers, Engineering News-Record
ENR may be contacted at ENR.com@bnpmedia.com
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Fifth Circuit Asks Texas Supreme Court to Clarify Construction Defect Decision
November 07, 2012 —
CDJ STAFFThe Fifth Circuit Court has withdrawn its decision in Ewing Construction Company v. Amerisure Insurance Company, pending clarification from the Texas Supreme Court of its decision in Gilbert Texas Construction, L.P. v. Underwriters at Lloyd’s London. The Fifth Circuit had applied the Gilbert case in determining that a contractual liability exclusion barred coverage for faulty workmanship. The Insurance Journal reports that this decision was both applauded and criticized, with a concern noted that “an insurer would now have its pick of either the ‘your work’ exclusion or the contractual liability exclusion without the exception for subcontracted work.”
The Fifth Circuit is now asking the Texas Supreme Court two questions to clarify Gilbert, which Brian S. Martin and Suzanne M. Patrick see as a sign that the Court has realized that it overly expanded the scope of the earlier ruling. A response is expected from the Texas Supreme Court by spring 2013.
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Touchdown! – The Construction Industry’s Winning Audible to the COVID Blitz
February 08, 2021 —
Bill Shaughnessy, Jones Walker, LLP - ConsensusDocsCOVID-19 has changed the way we live, work, play football, and build. As with all of society (and our football leagues and teams), the construction industry was impacted over the last year through the implementation of new safety protocols in response to COVID-19. While some construction projects were delayed or put on hold, much of the construction industry was fortunate to continue to build throughout the pandemic. Building under COVID-19 safety protocols led contractors to “call an audible” in order to make up for lost time and to save costs. In doing so, many contractors started incorporating or expanding the use of under-utilized tools, resources, capabilities, and technology such as pre-fabrication, and modular construction, while at the same time reexamining planning methods, monitoring critical schedule activities, and ways to better execute construction.
In many ways, the effects of COVID-19 safety protocols and measures implemented by contractors in the past year have led to more efficient and cheaper construction projects now and for the future. So, it is not surprising as we turn our calendars to 2021 that contractors can expect these tools, resources, and technologies to be utilized more in the years ahead, even once the pandemic subsides. This article highlights some of the “positive” effects of COVID-19 on projects and highlights several ways contractors attempted to increase efficiency and reduce costs in response to the pandemic.
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Bill Shaughnessy, Jones Walker, LLPMr. Shaughnessy may be contacted at
bshaughnessy@joneswalker.com
Illinois Legislature Passes Bill Allowing Punitive Damages In Most Wrongful Death Actions
June 05, 2023 —
John Hackett & Jarred Reed - Lewis BrisboisMadison County, Ill. (May 19, 2023) – On May 18, 2023, the Illinois legislature passed House Bill 0219, amending the Illinois Wrongful Death Act to allow for the recovery of punitive damages in wrongful death actions. The bill will soon be sent to the Governor’s desk for signature. If signed into law, the statutory change will allow heirs of decedents to recover punitive damages in wrongful death actions.
The proposed amendment to the Illinois Wrongful Death Act is underlined below:
Whenever the death of a person shall be caused by wrongful act, neglect or default, and the act, neglect or default is such as would, if death had not ensued, have entitled the party injured to maintain an action and recover damages including punitive damages when applicable, in respect thereof, then and in every such case the person who or company or corporation which would have been liable if death had not ensued, shall be liable to an action for damages, including punitive damages when applicable, notwithstanding the death of the person injured, and although the death shall have been caused under such circumstances as amount in law to felony. Nothing in this Section affects the applicability of Section 2-1115 of the Code of Civil Procedure or Section 2-102 or 2-213 of the Local Governmental and Governmental Employees Tort Immunity Act. Punitive damages are not available in action for healing art malpractice or legal practice or in an action against the State or unit of local government or an employee of a unit of local government in his or her official capacity. The changes made to this Section by this amendatory Act of the 103rd general Assembly apply to actions filed on or after the effective date of this amendatory Act.
Reprinted courtesy of
John Hackett, Lewis Brisbois and
Jarred Reed, Lewis Brisbois
Mr. Hackett may be contacted at John.Hackett@lewisbrisbois.com
Mr. Reed may be contacted at Jarred.Reed@lewisbrisbois.com
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Is Your Design Professional Construction Contract too Friendly? (Law Note)
July 09, 2014 —
Melissa Dewey Brumback – Construction Law North CarolinaMy husband often travels the back roads between Chapel Hill and Fuquay Varina to visit friends. En route (a circuitous route that goes past Sharon Harris Nuclear Power Plant, among other places), he passes by the “Friendly Grocery.”
[Sign]
No *Loitering*Littering*Alcoholic Beverages on Premises*Bike*Skateboard*
*10 minutes Parking Limit*Towing Enforced*
I’m not sure which is the “friendly” part of that sign. In fact, the sign seems to be the antithesis of friendly.
What does this have to do with your construction contracts? Sometimes, in an effort to please the client and/or secure the project, architects and engineers have the habit of being too friendly in their contract language. That is, you make promises or proposals that may promise too much of a good thing for the client. This can cause big problems. Bigger than being towed away from a rural grocery store in the middle of nowhere. You could be putting your insurance coverage at risk.
Have you ever promised to use “best efforts” in your design or plans? Promised to design to a specific LEED standard? Guaranteed 100% satisfaction? You might be putting your errors & omission coverage at issue. By warrantying or guaranteeing something, you are assuming a level of liability well beyond the standard of care required by law. By law, you only need to conform to the standard of care, and your insurance will only provide coverage up to that standard of care. In other words, if you make guarantees or promise “best efforts,” you are contracting to something that will *not* be insured. If something goes wrong, you will be without the benefit of your professional liability coverage.
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Melissa Dewey Brumback, Construction Law in North CarolinaMs. Brumback may be contacted at
mbrumback@rl-law.com
Nevada Assembly Passes Construction Defect Bill
October 30, 2013 —
CDJ STAFFThe Nevada Speaker says that AB401 gives contractors what they want, but a contractors’ group has asked a Senate committee to kill the bill. Supporters of AB 401 say that it clarifies what qualifies as a construction defect and shortens the statute of limitations.
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