FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Risk-Shifting Tactics for Construction Contracts

February 24, 2020 — Nate Budde - Construction Executive
Anyone who has worked in the construction industry is familiar with the financial risks involved. With thin margins, cash flow issues and the litany of potential claims and damages that can arise, contractors need to be able to manage that risk properly. There is the right way of going about it, and there's a wrong way. Unfortunately, the wrong way (which involves using leverage and shifting risk to other parties) is the more prevalent approach. There are different contractual tactics employed by owners and general contractors alike to shift financial risk to other parties. Why is construction so financially risky? There are a few different reasons there is so much risk involved. First and foremost, the construction payment chain itself is inherently risky. Owners and lenders release project funds and trust that the money will reach everyone on the job. But that can’t happen unless each link in the payment chain passes payment to the next. That's a lot of trust for an industry that's not particularly known for it. Another reason is how construction projects begin. Upfront payment is rare in this industry. This leads to floating the initial costs, extending credit and potentially borrowing money to do so. And those who typically bear this burden, lower-tier subs and suppliers, are the least equipped for that level of risk. Reprinted courtesy of Nate Budde, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Mr. Budde may be contacted at nate@levelset.com

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Karen Campbell, Kristen Perkins to Speak at CLM 2020 Annual Conference in Dallas

March 02, 2020 — Karen Campbell & Kristen Perkins - Lewis Brisbois
New York Partner Karen L. Campbell and Fort Lauderdale Partner Kristen D. Perkins will both speak at the upcoming CLM 2020 Annual Conference taking place March 18 to 20 at the Gaylord Texan Resort outside Dallas, Texas. On March 19 at 2:00 p.m., Ms. Perkins will join a panel discussion titled “Predictive Analytics – You Don’t Need a Crystal Ball to Predict the Future,” exploring how predictive analytics affects litigation management programs, including case budgets, case cycle times, and claims outcomes. The panelists will also look at how machine learning picks up on nuances or anomalies that can affect analytics and give attendees a clearer picture on expected case parameters, and how that information can empower claims professionals during firm selection. Then, on March 20 at 10:40 a.m., Ms. Campbell will join a roundtable discussion titled “How to Calculate Damages and Defend in Serious Injury Cases,” covering the calculation of both economic and non-economic damages, as well as trends and recent verdicts involving punitive damages and assessing the various types of third-party liability. Reprinted courtesy of Karen Campbell, Lewis Brisbois and Kristen Perkins, Lewis Brisbois Ms. Campbell may be contacted at Karen.Campbell@lewisbrisbois.com Ms. Perkins may be contacted at Kristen.Perkins@lewisbrisbois.com Read the court decision
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Sacramento Water Works Recognized as a Historic Civil Engineering Landmark

October 03, 2022 — The American Society of Civil Engineers
RESTON, Va. – The American Society of Civil Engineers (ASCE) Sacramento Section today recognized the City of Sacramento Water Works a Historic Civil Engineering Landmark. The landmark, which was completed in 1854, was recognized at a dedication ceremony at the Sacramento History Museum led by ASCE's Sacramento Section, which is celebrating its centennial anniversary of the Section's founding. The section was joined by Ken Rosenfield, director, ASCE Region 9 and Chuck Spinks, chair, Region 9 History and Heritage Committee. ASCE represents more than 150,000 members of the civil engineering profession worldwide. It is the oldest national engineering society in the United States. ASCE recognizes historically significant civil engineering projects, structures, and sites all over the world. More than 280 projects have earned the prestigious title for creativity and innovation, and almost all are executed under challenging conditions. The City of Sacramento Water Works was the first municipal, city-owned water system west of the Mississippi River. This project was inspired by a disastrous fire in 1852 that destroyed 27 blocks in Sacramento and the city did not have a water system capable of putting out fires. The water works site was equipped with a distribution system with hydrants that could fight fires. The City of Sacramento Water Works was nominated by the ASCE Sacramento Section Centennial Committee. For more information about ASCE's Historic Civil Engineering Landmark Program, go to https://www.asce.org/about-civil-engineering/history-and-heritage/historic-landmarks. ABOUT THE AMERICAN SOCIETY OF CIVIL ENGINEERS Founded in 1852, the American Society of Civil Engineers represents more than 150,000 civil engineers worldwide and is America's oldest national engineering society. ASCE works to raise awareness of the need to maintain and modernize the nation's infrastructure using sustainable and resilient practices, advocates for increasing and optimizing investment in infrastructure, and improve engineering knowledge and competency. For more information, visit www.asce.org or www.infrastructurereportcard.org and follow us on Twitter, @ASCETweets and @ASCEGovRel. Read the court decision
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Fannie-Freddie Propose Liquidity Rules for Mortgage Insurers

July 16, 2014 — Clea Benson and Zachary Tracer – Bloomberg
Ms. Benson may be contacted at cbenson20@bloomberg.net; Mr. Tracer may be contacted at ztracer1@bloomberg.net Private mortgage insurers looking to do business with Fannie Mae and Freddie Mac would have to hold minimum amounts of liquid assets under standards proposed by the companies and their regulator. To back loans packaged into securities by the U.S.-owned mortgage-finance giants, insurers would have to hold liquid assets worth at least 5.6 percent of their risk exposure, and possibly more depending on the quality of the loans they cover, according to the proposal released today by the companies and the Federal Housing Finance Agency. “Mortgage insurance counterparties must be able to fulfill their intended role of providing private capital, even in adverse market conditions,” FHFA Director Melvin L. Watt said in an e-mailed statement. Ms. Benson may be contacted at cbenson20@bloomberg.net; Mr. Tracer may be contacted at ztracer1@bloomberg.net Read the court decision
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Reprinted courtesy of Clea Benson and Zachary Tracer, Bloomberg

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Toll Brothers Report End of Year Results

December 11, 2013 — CDJ STAFF
The largest luxury home builder in the U.S. saw some significant gains in their final quarter for 2013. Their pre-tax income for the year was $150.2 million, up from last year’s $60.7 million, more than doubling. The firm’s revenues went up 65% to $1.04 billion, and the average price of homes was up as well. Toll Brothers is currently selling homes in 232 communities, also increasing over 2012. Due to the upcoming acquisition of Shapell, Toll Brothers projects that at the end of 2014 they will be selling in 250 to 290 communities. Read the court decision
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No Coverage for Property Damage That is Limited to Work Completed by Subcontractor

April 25, 2012 — Tred R. Eyerly - Insurance Law Hawaii

The issue before the 11th Circuit was whether, under Florida law, a general contractor had coverage for a property damage claim limited to the defective work performed by a subcontractor, and not affecting any other portion of the project. The court found no coverage in Amerisure Mut. Ins. Co. v. Auchter Co., 2012 U.S. App. LEXIS 5412 (11th Cir. March 15, 2012).



Amelia Island Company contracted with Auchter Company, a general contractor, for construction of an inn and conference room. Auchter subcontracted with Register Contracting Company to install the Inn’s roof. Pursuant to the Florida Building Code, installation of the roof required that it be able to withstand 110 m.p.h. winds.



Register completed installing the roof tiles in January 1998. Beginning in 2002, the tiles began dislodging from the roof. During the 2004 hurricane season, three hurricanes caused more tiles to come off the roof. Some of these tiles hit other tiles, cracking them.



In 2006, the parties went to arbitration over the costs of repairs for the roof.



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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii. Mr. Eyerly can be contacted at te@hawaiilawyer.com

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New York Court Rules on Architect's Duty Under Contract and Tort Principles

November 05, 2014 — Beverley BevenFlorez-CDJ STAFF
According to Traub Lieberman Straus & Shrewsberry LLP's blog, in a recent case, "which involved a five story expansion/conversion of an existing one story commercial building located in Brooklyn, New York," the architect was retained with obligations among five construction phases. Later, the condominium board alleged that construction defects existed and filed suit against contractors, engineers, and the architect. The Court granted the Architect's motion to dismiss the complaint, holding "that the allegations of negligence under the circumstances were based on construction defects and 'as such, sound in breach of contract rather than tort.' This was so, even though plaintiff alleged 'breach of a duty of care,' a traditional tort liability concept. The Court dismissed the breach of contract claim as well, holding that a 'successor in interest' argument should not be permitted to erode the firmly established privity requirement for an architect’s contract-based liability." Read the court decision
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California’s Right to Repair Act not an Exclusive Remedy

August 20, 2014 — Beverley BevenFlorez-CDJ STAFF
Karen L. Moore of Low, Ball & Lynch in JD Supra Business Advisor analyzed “two decisions holding that California’s Right to Repair Act ('SB 800') is not the exclusive remedy for a homeowner seeking damages for construction defects that have also resulted in property damage.” If property damage occurs due to construction defects, a homeowner “may also pursue common law tort causes of action.” After providing a brief background of California’s SB 800 and Aas v. Superior Court (which precluded the Right to Repair Act), Moore discussed the results of Liberty Mutual Insurance Company v. Broofield Crystal Cove, LLC, followed by a review of Burch v. Superior Court. Moore commented that “[t]hese two cases will likely be used by homeowners to avoid application of the Right to Repair Act’s pre-litigation procedures.” Read the court decision
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