Code Changes Pave Way for CLT in Tall Buildings and Spark Flammability Debate
May 13, 2019 —
Sam Barnes - Construction ExecutiveAlthough nothing new, the debate over which is better as a building material—wood or concrete—intensified in December following the preliminary approval of new codes for cross-laminated timber and mass timber in tall structures.
The discussion among industry professionals has been less about CLT’s structural capabilities and more about its perceived flammability, with either side offering decidedly different perspectives. Comparatively new to the United States, CLT and mass timber products are constructed of several layers of pressed lumber board stacked in alternating directions.
In December, the International Code Council released the unofficial voting results on several code change proposals, including passage of the entire package of 14 tall mass timber codes. The proposals were presented by the ICC’s Ad Hoc Committee on Tall Wood Buildings, comprised mostly of engineers, architects, building and fire code officials, fire service, materials and testing lab representatives.
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Sam Barnes, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Louisiana Court Applies Manifestation Trigger to Affirm Denial of Coverage
June 10, 2015 —
Tred R. Eyerly – Insurance Law HawaiiApplying the manifestation trigger, the Louisiana Court of Appeal affirmed denial of coverage where the property damage manifested after the policy period expired. Landry v. Williamson, 2015 La. App. Unpub. LEXIS 213 (La. Ct. App. May 1, 2015).
On August 28, 2002, the Burkarts purchased a home from the Williamsons. One month later, water started leaking into the home during periods of rainfall. Suit was filed against the contractor, who was insured by Scottsdale. Scottsdale, who was added as a defendant, filed a motion for summary judgment, asserting that it did not insure the developer at the time the alleged property damage occurred. Scottsdale's policy expired on August 1, 2002. The trial court granted Scottsdale's motion, finding coverage under its policy was not triggered because no property damage occurred during the policy period.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Enforceability Of Subcontract “Pay-When-Paid” Provisions – An Important Update
June 15, 2020 —
Patrick McNamara - Porter Law GroupA California Court of Appeals opinion published earlier this month brings a change to payment bond claims brought by unpaid subcontractors and suppliers. The decision (Crosno Construction, Inc. v. Travelers Casualty and Surety Company of America) places limitations on a payment bond surety’s ability to rely on subcontract “pay-when-paid” language, stating that a payment provision typically found in subcontracts is contrary to the “reasonable time” statutory requirement and will not be enforced. This represents a major shift in California construction payment bond claim rights.
Plaintiff Crosno Construction, Inc. (“Crosno) was a subcontractor to general contractor Clark Brothers (“Clark”), who was principal on a public works payment bond issued by Travelers. The owner was a public agency district (“District.”) Crosno had completed most of its subcontract work when a dispute between District and Clark arose, causing the project to stop. Crosno then sought payment through a payment bond claim against Travelers. Travelers denied the claim, relying on the subcontract’s payment provisions and asserting the defense that it had no obligation to pay on the bond claim because the litigation between Clark and the District had not yet reached its conclusion.
Subcontract. The subcontract between Clark and Crosno contained a “pay-when-paid” provision stating that Clark would pay Crosno within a reasonable time after receiving payment from the District. In defining “a reasonable time,” the subcontract language provided that the time for payment “in no event shall be less than the time [Clark] and [Crosno] require to pursue to conclusion their legal remedies against [District] or other responsible party to obtain payment.”
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Patrick McNamara, Porter Law GroupMr. McNamara may be contacted at
pmcnamara@porterlaw.com
No Coverage For Construction Defect Under Illinois Law
January 28, 2015 —
Tred R. Eyerly – Insurance Law HawaiiThe court followed precedent in Illinois and upheld the insurer's denial of coverage for construction defects that did not damage other property. Design Concrete Founds., Inc. v. Erie Ins. Prop. & Cas. Co., 2014 Ill. App. Unpub. LEXIS 2684 (Ill Ct. App. Nov. 26, 2014).
In 2005, the homeowners contracted with the general contractor to build a home. The general contractor hired Design to do the foundation work. Design performed its work in August 2005. After the work was completed, cracks formed in the foundation, allowing water to enter the basement and an inward shifting of the foundation.
The homeowners sued the general contractor and Design. The complaint alleged that Design failed to build the foundation in a workmanlike manner, resulting in the development of cracks in the foundation.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Navigate the New Health and Safety Norm With Construction Technology
August 03, 2020 —
Jeremy Larsen - Construction ExecutiveSafety has always been a pressing issue in construction, and as states reopen and construction projects pick up steam once again, the industry will become even more closely scrutinized than before. Construction safety looks a lot different than it did six months ago. In addition to the concerns around keeping workers safe on construction sites, today’s contractors are faced with a whole new category of risk, and with new health and safety measures that may vary by county, state or region. New requirements range from social distancing and limits on the size of crews, to requiring masks and temperature checks for all workers.
OPERATING IN THE NEW NORM
This sudden onset of COVID-19 put otherwise healthy businesses into a state of chaos that, months later, is still hard to navigate. By March of 2020, reports indicated that nearly one-third of construction projects had come to a halt. Now, as the industry emerges, balancing business continuity efforts with trying to get crews back to work and jobsites moving again will no doubt present challenges. New health and safety measures, plus the fact that no one wants to touch paper in the field, will add another layer of administrative and procedural oversight to the construction process. Of course, these measures are absolutely needed, but construction businesses can’t ignore the fact that it changes the very way projects and jobsites are managed. And, without the right tools in place, it may be a bumpy ride.
Reprinted courtesy of
Jeremy Larsen, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Mr. Larsen may be contacted at
jeremy.larsen@viewpoint.com
Reasonableness of Denial of Requests for Admission Based Upon Expert’s Opinions Depends On Factors Within Party’s Understanding
February 27, 2019 —
Stephen M. Tye & Lawrence S. Zucker II - Haight Brown & Bonesteel LLPIn Orange County Water District v. The Arnold Engineering Company (D070763), the Fourth Appellate District examined the criteria for evaluating the reasonableness of a parties’ denial of requests for admission (RFA’s) based upon their expert’s opinions and the proof required to recover costs for unreasonable denials.
In Orange County Water District, the Orange County Water District (the District) sued several current and former owners and operators of industrial sites, including The Arnold Engineering Company (Arnold), to recover expenses associated with groundwater cleanup efforts intended to address groundwater contamination caused by volatile organic compounds (VOC’s) and other chemicals. Over six years, the parties conducted extensive discovery, including document productions, depositions, and soil sampling and monitoring.
Reprinted courtesy of
Stephen M. Tye, Haight Brown & Bonesteel LLP and
Lawrence S. Zucker II, Haight Brown & Bonesteel LLP
Mr. Tye may be contacted at stye@hbblaw.com
Mr. Zucker may be contacted at lzucker@hbblaw.com
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Texas Construction Firm Officials Sentenced in Contract-Fraud Case
August 07, 2018 —
Tom Ichniowski – Engineering News-RecordTwo top officials of a Texas construction company—Honest, Experienced, Reliable Contracting Solutions LLC—have been sentenced to federal prison terms for defrauding the State Dept. through a plan to steer more than $1 million in contracts to the company, the Dept. of Justice says.
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Tom Ichniowski, ENRMr. Ichniowski may be contacted at
ichniowskit@enr.com
Changes to Pennsylvania Mechanic’s Lien Code
November 05, 2014 —
Christopher G. Hill - Construction Law MusingsFor this week’s Guest Post Friday here at Musings, we welcome Jim Fullerton. Jim is the President of the law firm of
Fullerton & Knowles, P.C., which has attorneys licensed in Virginia, Maryland, Pennsylvania, and the District of Columbia, is a Martindale Hubbell Peer Rated Lawyer AV® Preeminent.™ The firm represents owners, lenders, design professionals, suppliers, subcontractors, general contractors and other members of the real estate and construction industries, filing mechanic’s liens, surety bond and other construction claims across all of the states in the Mid Atlantic region. He also represents creditors in bankruptcy issues nationwide, particularly defense of bankruptcy preference claims; advises owners and lenders in real estate lending and acquisition transactions; on all real estate and construction law issues; contract formation and disputes.
The firm’s Construction Law Survival Manual is well known and widely used by participants in the construction process. The 550 page manual provides valuable information about construction contract litigation, mechanic’s liens, payment bond claims, bankruptcy and credit management and contains over 30 commonly used contract forms. All of this information and recent construction law issues are constantly updated on the firm’s website.
There are two changes to the Pennsylvania Mechanic’s Lien Code that became effective September 2014. First, residential properties built by an owner for their own residence will now have a defense of payment to subcontractor mechanic’s liens. This protects homeowners from mechanic’s liens if they have paid their general contractors in full. Second, construction loan open end mortgages will have priority over mechanic’s liens, as long as at least sixty per cent (60%) of the loan proceeds are used for construction costs. This change was pushed by Pennsylvania lenders in response to a recent court case.
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Christopher G. Hill, Law Office of Christopher G. Hill, PCMr. Hill may be contacted at
chrisghill@constructionlawva.com