Cambridge Massachusetts Building Expert Directory

When Is a Project Delay Material and Actionable?

January 11, 2022 — Rick Erickson - Snell & Wilmer Real Estate Litigation Blog
Welcome to 2022! This year, the construction industry will undoubtedly reflect on the last two years as unprecedented times plagued by construction project delays. The COVID-19 pandemic contributed to suspension of work and closure of construction projects worldwide in 2020. The end of 2021 brought additional delays caused by an inexplicable clog in the supply chain of construction materials. The combined impact of these events on project milestones and completion deadlines led our clients to ask, with unusual and particular urgency, who is liable for such delays and how do contracting parties lessen the consequences from such unexpected and uncontrollable delays. Granted that project delays are nothing new or unusual. They were common enough before inflation caused shipping complications and pandemic decimated the construction labor force. All delays, whatever the source, variably cause loss to all players on a construction project. But not all delays matter when it comes to claims and remedies available to the contracting parties in dispute resolution, where the determinative focus is on material delays impacting the entire project and on delays the claimant can credibly prove. Most, if not all, jurisdictions interpret actionable delays from the contract documents for the project. The contract is definitely where you should start before pursuing any delay remedies. Delay remedies may be a time extension only, or a time extension plus your additional general conditions. Some delay remedies may be barred by the contract’s express terms and may be enforced adversely by the courts when such contract terms are indisputable. See Quinn Constr. v. Skanska USA Bldg., Inc., 730 F. Supp. 2d 401, 411 (D.C. Pa. 2010) (enforcing the subcontractor’s contractual waiver of claims for delay and disruption damages). On the other hand, delay damages that are expressly allowed by the contract—like overtime necessitated by the delays—are usually actionable and recoverable. Id. However, not only the contract terms, but applicable law, may affect the outcome. Read the court decision
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Reprinted courtesy of Rick Erickson, Snell & Wilmer
Mr. Erickson may be contacted at rerickson@swlaw.com

Hawaii Supreme Court Bars Insurers from Billing Policyholders for Uncovered Defense Costs

April 23, 2024 — Amanda C. Stefanatos - Saxe Doernberger & Vita, P.C.
Across the country, there is a split in authority as to whether an insurance company should be allowed to recoup defense costs where it is ultimately determined that the carrier has no duty to defend under the policy and the policy is silent as to such reimbursement. The Hawaii Supreme Court is the latest to enter the fray to address this very question, ruling in favor of policyholders in the recent case of St. Paul Fire & Marine Insurance Company v. Bodell Construction Company. Facts of the Case and Procedural History The Bodell case arose in response to a pair of certified questions from the US District Court for Hawaii to the Hawaii Supreme Court. The case involved a group of primary and excess insurers that sold liability policies to Bodell Construction and sought reimbursement of defense costs that the insurers had paid to defend a construction defect claim against Bodell. In the Underlying Action, the District Court ultimately ruled that the claims against Bodell Construction were not covered under the policies. Because the claims were not covered, the insurers demanded reimbursement of the defense fees from Bodell . Having determined there was no Hawaii state law on this issue, and in light of conflicting decisions in the district courts, the US District Court for Hawaii requested guidance from the Hawaii Supreme Court. Read the court decision
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Reprinted courtesy of Amanda C. Stefanatos, Saxe Doernberger & Vita, P.C.
Ms. Stefanatos may be contacted at AStefanatos@sdvlaw.com

Five "Boilerplate" Terms to Negotiate in Your Next Subcontract

November 08, 2017 — James R. Lynch - Ahlers & Cressman PLLC
Whether you negotiate your own subcontracts or rely on your lawyer to do the heavy lifting at contract time, a savvy subcontractor should understand the basic purpose of common subcontract provisions, and be prepared to negotiate for fair and commercially reasonable terms. While most sophisticated subcontractors are skilled at negotiating the core terms of a subcontract—scope of work, price, and time—a few simple but less obvious tweaks to common subcontract terms and conditions can go a long way to protect a subcontractor from unfair results when a dispute arises. From the desk of an experienced construction lawyer, below are the first three of the top five “boilerplate” provisions that subcontractors too often overlook during contract negotiations, along with tips on language to include and to avoid. Read the court decision
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Reprinted courtesy of James R. Lynch, Ahlers & Cressman PLLC
Mr. Lynch may be contacted at jlynch@ac-lawyers.com

Sustainable, Versatile and Resilient: How Mass Timber Construction Can Shake Up the Building Industry

April 10, 2023 — Cait Horner, Adam J. Weaver & Allan C. Van Vliet - Gravel2Gavel Construction & Real Estate Law Blog
Design professionals, real estate developers and builders alike are advocating for a relatively new way of using one of the world’s oldest building materials—wood—in large-scale commercial and residential construction projects. Mass timber, or structural timber, touts such benefits as carbon reduction and seismic durability—all with a lower construction time. With ESG on the minds of clients, investors and tenants, mass timber projects present an attractive construction option for the integration of sustainable resources and these various benefits. The most common and popular form of mass timber, cross-laminated timber (CLT), has been recently gaining popularity in the U.S. after widespread adoption in Europe over the past 20 years. CLT consists of layers of trimmed and kiln-dried lumber boards, usually three, five or seven across, stacked and glued crosswise at 90-degree angles. These stacked lumber boards create large slabs that are used to build floors, walls and ceilings—put those fabricated pieces together, and you have a whole building constructed of CLT. Reprinted courtesy of Cait Horner, Pillsbury, Adam J. Weaver, Pillsbury and Allan C. Van Vliet, Pillsbury Ms. Horner may be contacted at cait.horner@pillsburylaw.com Mr. Weaver may be contacted at adam.weaver@pillsburylaw.com Mr. Van Vliet may be contacted at allan.vanvliet@pillsburylaw.com Read the court decision
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Bankrupt Canada Contractor Execs Ordered to Repay $26 Million

April 25, 2022 — Scott Van Voorhis - Engineering News-Record
John Aquino, the former president of a major and now bankrupt Ontario construction contractor, plans to appeal a provincial court ruling that puts him and his associates on the hook for $26.2 million drained from the company, according to his attorney. Reprinted courtesy of Scott Van Voorhis, Engineering News-Record ENR may be contacted at enr@enr.com Read the full story... Read the court decision
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Google’s Biggest Moonshot Is Its Search for a Carbon-Free Future

November 15, 2021 — Mark Bergen - Bloomberg
Google Bay View, the company’s newest campus, consists of three squat buildings nestled near the San Francisco Bay shoreline a few miles east of its headquarters in Mountain View, Calif. The first things visitors notice are the roofs. They curve down gently from pinched peaks, like circus tents, sloping almost to the ground. Each roof is blanketed with overlapping solar panels that glisten with a brushed metal sheen on the edges. Google calls this design Dragonscale, and indeed it looks as if a mystical beast is curled up by the water in Silicon Valley. Google envisions its latest campus as the embodiment of a grander ambition to run its operations entirely free of carbon. The company plans to open Bay View in January to “a limited number” of employees, depending on the pandemic. Beneath the buildings, thousands of concrete pillars plunged into the ground will serve as a sort of geothermal battery, storing heat to warm the building and water supply without natural gas. The roof panels were constructed with a unique textured glass to prevent glare and with canopies that emit a soft, glowing light into the spacious atria inside. “We call this the Cathedral of Work,” says Asim Tahir, who oversees energy decisions in Google’s real estate division. He stands by the southern entrance in a hard hat, mask, and safety vest. Read the court decision
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Reprinted courtesy of Mark Bergen, Bloomberg

Adobe Opens New Office Tower and Pledges No Companywide Layoffs in 2023

April 18, 2023 — Edward Ludlow & Brody Ford - Bloomberg
Adobe Inc., breaking ranks with an industry cutting costs and laying off workers, has opened a new office tower in its home city, adding new capacity for staff and pledging no companywide job cuts in 2023. The Founders Tower is an 18-story, 1.25 million-square-foot shimmering glass addition to San Jose, California, a city Adobe has called home since the early ’90s. The software company’s fourth tower has capacity for 3,000 employee workstations, Adobe said Wednesday in a statement. Despite opening a new office with amenities, the company remains supportive of hybrid and flexible work arrangements. “We’re actually committed to continuing to grow here,” Adobe Chief People Officer Gloria Chen said in an interview with Bloomberg Television to air Wednesday. “We are committed to not having companywide layoffs.” Reprinted courtesy of Edward Ludlow, Bloomberg and Brody Ford, Bloomberg Read the court decision
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That’s What I have Insurance For, Right?

December 31, 2014 — Craig Martin – Construction Contractor Advisor
Ah, the age old question, What does my insurance really cover? A federal court in Georgia recently weighed in on this issue in Standard Contractors, Inc. v. National Trust Insurance Company, and ruled that a contractor’s commercial general liability insurer did not have to pay for damage caused by a subcontractor. Standard Contractors was hired to renovate the pool on an army base. Standard hired a subcontractor to for design and installation work. The subcontractor’s work was subpar in that the subcontractor omitted a number of parts, installed the wrong parts, and caused more than $400,000 in damage to the pool. Standard submitted a claim to its insurer seeking coverage for the loss under its commercial general liability policy. Read the court decision
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Reprinted courtesy of Craig Martin, Lamson, Dugan and Murray, LLP
Mr. Martin may be contacted at cmartin@ldmlaw.com

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