Construction May Begin with Documents, but It Shouldn’t End That Way
March 02, 2020 —
Christopher G. Hill - Construction Law MusingsFor this week’s Guest Post Friday here at Musings, we welcome back Rob Mathewson. In his role as CEO, Rob handles strategy and partnerships for Geedra in addition to overseeing technology architecture and implementation. He has spent twenty years in sales and marketing management roles with experience in industrial, consumer and construction markets. Rob believes the construction industry is ripe for innovation, based on its massive size, yet low productivity. Even with such inefficiencies, a building still rises from the ground. Rob’s goal with Geedra is to leverage technology to increase transparency and communication so that projects can be completed with less risk, effort and cost. Prior to founding Geedra, Rob was the Chief Marketing Officer for Construction Documentation Services, where he was responsible for sales, marketing and business development. He spent 15 years in the chemical distribution business, including eleven years as the Northwest Branch Manager of a $50 million distributor. Rob was the founder and CEO for On The Spot Games, a board game startup. He is currently in the midst of a streak of over 2,900 consecutive days without a bad hair day.
An avid mentor himself, his own business inspirations come from problem solvers like Dean Kamon, innovative communicators like Seth Godin, fierce competitors like Lance Armstrong and global gurus like Thomas Friedman. When he’s not creating innovations in the construction industry, his passions include bike riding, throwing the ball around with his kids, and cooking. He is an accomplished public speaker and is a past president of Emerald City Toastmasters. Rob holds a B.S. in Manufacturing Engineering from Boston University and a MBA from Seattle University.
Construction folks are a focused bunch. Once a contractor signs a deal for a project, its team will immediately get to work generating and then executing a construction document set. For the entire duration of the schedule to follow, the construction team eats, sleeps and dreams about those documents. Their monomaniacal efforts continue until a building rises up from a patch of dirt in a matter of months.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Waiver of Consequential Damages: The Most Important Provision in a Construction Contract
March 08, 2021 —
Jeremy P. Brummond - Construction ExecutiveConstruction agreements can be lengthy. They often include terms covering everything from logistics for working on the project site to complicated provisions regarding intellectual property. Many provisions in a construction agreement deal with risk and who is going to pay for damage claims if or when they occur.
However, not all risk-shifting provisions are equally important. While provisions that impose obligations on the contractor to maintain confidentiality, indemnify for personal injury or property damage, or correct defective work can expose a contractor to substantial damage claims and are thus important, contractors can significantly control the amount of damages the owner can claim by including a well-drafted waiver of “consequential damages” provision in the agreement.
Because the waiver of consequential damages can significantly control the amount of damages for which a contractor is assuming risk and greatly limit the owner’s ability to recoup many damages, it is arguably the most important provision in a construction contract. Therefore, it is essential for contractors and owners to carefully consider the waiver of consequential damages before entering into any construction agreement.
Reprinted courtesy of
Jeremy P. Brummond, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Mr. Brummond may be contacted at
jbrummond@lewisrice.com
Florida’s New Civil Remedies Act – Bulletpoints As to How It Impacts Construction
April 10, 2023 —
David Adelstein - Florida Construction Legal UpdatesThere has been much talk about Florida’s new Civil Remedies Act (
House Bill 837) that Governor DeSantis approved on March 24, 2023. As it pertains to construction, here is how I see it with key bulletpoints on the impact this new Act has on the construction industry:
- New Florida Statute s. 86.121 – This is an attorney’s fees statute for declaratory relief actions to the prevailing insured to determine insurance coverage after TOTAL COVERAGE DENIAL. (Note: A defense offered pursuant to a reservation of rights is not a total coverage denial.) This right only belongs to the insured and cannot be transferred or assigned. And the parties are entitled to the summary procedure set forth in Florida Statute s. 51.011 requiring the court to advance the cause on the calendar. The new statute does say it does NOT apply to any action arising under a residential or commercial property insurance policy. (Thus, since builder’s risk coverage is a form of property insurance, the strong presumption is this new statute would not apply to it.) Rather, the recent changes to Florida Statute s. 626.9373 would apply which provides, “In any suit arising under a residential or commercial property insurance policy, there is no right to attorney fees under this section.”
- Florida Statute s. 95.11 – The statute of limitations for negligence causes of action are two years instead of four years. This applies to “causes of action accruing after the effective date of this act.”
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
NYC Developer Embraces Religion in Search for Condo Sites
October 15, 2014 —
Oshrat Carmiel – BloombergExtell Development Co., the New York builder that set off a luxury residential construction boom with its One57 project, is expanding its reach on Manhattan’s west side with a pending purchase of a synagogue and a plan to redevelop a Baptist church.
Extell is in advanced talks to buy the Congregation Habonim synagogue at 44 W. 66th St. in a deal valued at $75 million, with plans to build condominiums on the site, according to documents the synagogue filed in New York State Supreme Court seeking permission for a sale. Extell also is negotiating with Calvary Baptist Church for a potential project at its 123 W. 57th St. site, on the same block as One57, the church’s 2014 annual report shows.
Religious institutions across New York are pursuing real estate sales as land prices escalate. Manhattan development sites sold for an average of $657 a square foot in the third quarter, up 29 percent from a year earlier and a record for the period, Massey Knakal Realty Services said this month. Three purchases completed in the quarter were for more than $1,000 a square foot, the firm’s data show.
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Oshrat Carmiel, BloombergMs. Carmiel may be contacted at
ocarmiel1@bloomberg.net
Consequential Damages Flowing from Construction Defect Not Covered Under Florida Law
November 17, 2016 —
Tred R. Eyerly -Insurance Law HawaiiInterpreting Florida law, the United States District Court found there was no duty to defend a contractor against construction defect claims. Evanston Ins. Co. v. Dimmucci Dev. Corp. of Ponce Inlet, Inc., 2016 U.S. Dist. LEXIS 123678 (M.D. Fla. Sept 13, 2016).
The insured built condominiums and townhomes. It held three successive CGL policies issued by Evanston. The "your work" exclusion in the policies barred coverage as follows:
"Property Damage" to "your work" arising out of it or any part of it and included in the "products-completed operations hazard."
This exclusion does not apply if the damaged work or the work out of which the damage arises was performed on your behalf by a subcontractor.
The insured constructed the Towers Grande Condominium. In 2012 the Towers Grande Condominium Association, Inc. initiated the underlying action alleging that the insured's failure to construct the Towers Grande properly resulted in building defects and deficiencies. Damage to the roof, generator exhaust pipe, and HVAC system was alleged. Further, water intrusion and decking/structural issues were claimed. In addition to the construction defects, the Association also alleged that the insured's faulty work led to additional damages.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Massive Redesign Turns Newark Airport Terminal Into a Foodie Theme Park
March 05, 2015 —
Belinda Lanks – BloombergYou wait on what looks like a Soviet bread line. You show your I.D. to a guard. You take off your shoes, empty your pockets, and surrender to a digital scanner.
Fortunately, there’s always a bevy of gleaming cocktail bars and foodie outposts welcoming you to the other side.
No? Get ready. That’s the plan for United Airlines’ Terminal C at Newark Liberty International Airport—a $120 million redesign that includes 55 dining venues with enough celebrity-chef cameos to rival the glitziest of Las Vegas casinos. Instead of the usual McDonald’s, TCBY, and Sbarro, there will be restaurants serving up far-ranging cuisine, from authentic ramen and tacos to gourmet, Neapolitan-style pizza and Swedish meatballs. Since the terminal must remain in operation, all the structures will be assembled off-site and dropped in next year to keep construction time to a minimum.
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Belinda Lanks, Bloomberg
New Tariffs Could Shorten Construction Expansion Cycle
March 22, 2018 —
Anirban Basu - Construction Executive, A publication of Associated Builders and Contractors. All Rights Reserved.The Trump administration’s recent focus on tariffs on steel and aluminum has largely been in the context of potential trade wars, discordant views regarding globalism, renegotiating NAFTA, and exemptions for key allies and trading partners such as Canada and Mexico. But there is a broader context that implicates not only the construction industry and materials prices, but also the future trajectory of the U.S. economy.
The tariffs come during the ninth year of U.S. economic expansion. The economy gained momentum for much of 2017 and enters 2018 with considerable strength. The broadening of the U.S. economic expansion from merely being consumer led to also being associated with surging manufacturing output, construction activity, rising exports and business investment is attributable to many factors, including elevated business confidence and recently enacted tax reform.
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Anirban Basu, Sage Policy GroupMr. Basu may be contacted at
basu@abc.org
Court Finds No Coverage for Workplace “Prank” With Nail Gun
April 04, 2022 —
Craig Rokuson - Traub Lieberman Insurance Law BlogIn the recent case of Metro. Prop. & Cas. Ins. Co. v. Burby, 2022 NY Slip Op 22070, ¶ 1 (Sup. Ct.) Justice Richard M. Platkin of the Supreme Court of Albany County, New York examined a homeowners insurance policy and determined that a duty to defend was triggered in a case seeking recovery for injuries sustained when the insured, Burby allegedly discharged a nail gun in the bathroom of a work facility at which both Burby and the underlying plaintiff worked. Burby pled guilty to assault in the third degree for recklessly causing physical injury. MetLife, Burby’s carrier, disclaimed coverage based on lack of an occurrence, the business activities exclusion and the intentional loss exclusion, which bars coverage for injuries expected or intended by the insured or injuries that are the result of the insured’s intentional and criminal acts or omissions. Justice Platkin initially reviewed the intentional loss exclusion and lack of an occurrence and found that, from a duty to defend perspective, neither provided a dispositive coverage defense. However, the court found that the broadly worded business activities exclusion, which was not the subject of MetLife’s motion and instead was the subject of a cross motion by Burby, applied to bar coverage. In doing so, the court searched the record and granted summary judgment on the issue, despite MetLife not moving for relief under the exclusion.
With respect to the expected or intended prong of the intentional loss exclusion, the court found that, even if Burby did intend to pull the trigger of the nail gun, it was not pled in the underlying complaint that the harm that resulted to the plaintiff was expected or intended. As such, the court concluded that MetLife did not prove that there was no possible factual or legal basis upon which it could be found that Burby did not reasonably expect or intend to cause injury to the plaintiff.
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Craig Rokuson, Traub LiebermanMr. Rokuson may be contacted at
crokuson@tlsslaw.com
