Loose Bolts Led to Sagging Roof in Construction Defect Claim
February 10, 2012 —
CDJ STAFFThough the sagging roof is neither leaking nor a safety hazard, the town of Waynesville, North Carolina is suing the builder of its new fire station, as reported in the Smoky Mountain News. The engineers who examined the roof found a substantial number of loose bolts in the roof trusses. Additionally, the trusses themselves have become bent.
Tom Galloway, Waynesville’s Town Manager said “it needs to be remedied and fixed.” He said that the builder, Construction Logic, “never indicated a willingness to fix the roof.” The town is seeking the cost of repair, which Galloway estimated could be $400,000, and an additional $30,000 in damages. The suit states that Construction Logic failed to follow the plan specifications for the roof.
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Good and Bad News on Construction Employment
February 10, 2012 —
CDJ STAFFThe construction industry hit a two-year high in January, with 21,000 jobs added that month. The mild winter is assumed to have helped. According to the General Contractors of America, the construction industry currently employs about 5.57 million people. This is a 21 percent gain over January 2010. Ken Simonson, the chief economist of GCA, noted that “the unemployment rate in construction is still double that of the overall economy.” He said it was not currently clear if “the recent job growth reflects a sustained pickup or merely acceleration of homebuilding and highway projects that normally halt when the ground freezes in December and January.”
Stephen Sandherr, the chief executive officer of the GCA, said that the federal government had to make infrastructure funding a top priority. “Without adequate long-term funding for infrastructure, competitive tax rates and fewer costly regulatory hurdles, the construction industry may lose some of the jobs it gained in the last year.”
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Texas Plans a Texas-Sized Response to Rising Seas
June 27, 2022 —
Francis Wilkinson - BloombergIn coastal Texas and many other places, walled cities are making a comeback. It’s quite a turnabout, as the efficacy of defensive walls had declined precipitously since the age of the long bow. Barbarians still menace, of course. But the rekindled enthusiasm for defensive walls is a response to a different kind of threat.
San Francisco is contemplating a huge tidal wall across its bay to fend off sea rise and the attendant dousing of some of the world’s most expensive real estate. Miami is weighing the damage a sea wall would do to tourist vistas against the damage a rising sea might do absent a wall. New Orleans, after $14 billion in levee construction, is an armored metropolis. Norfolk, Virginia, another low-lying city exposed to a surging sea, is spending a few hundred million federal dollars on a downtown sea wall. New York City, which has flooded in two devastating storms so far this century, is building a $1.45 billion series of walls, floodgates and underground drainage, a modest down payment on the city’s defense against rising tides and storm surge.
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Francis Wilkinson, Bloomberg
Contractor Underpaid Workers, Pocketed the Difference
February 10, 2012 —
CDJ STAFFProperty Casualty 360 reports that the owner of a construction company in California’s Bay Area has been arraigned in San Francisco Superior Court. The fifty-seven felony counts include charges of payroll theft and insurance fraud.
San Francisco District Attorney, George Gascon is quoted as saying that Doherty’s actions “hurts the honest businesses that were unable to successfully compete for these projects which the defendant was able to underbid and win as a result of this scheme.”
Frances Ann Doherty, owner of Doherty Painting & Construction has been charged with submitting false documentation as to what wages she paid her workers. It is alleged that over three years she pocketed $600,000. Additionally, she is charged with underpaying her insurer by more than $100,000 by submitting to them the fake payroll information.
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No Coverage for Sink Hole Loss
June 18, 2019 —
Tred R. Eyerly - Insurance Law HawaiiThe federal district court found there was no coverage under the commercial property policy for loss suffered by the insured condominium association due to a sink hole. Bahama Bay II Condo. Ass'n. v. Untied Nat'l Ins. Co., 2019 U.S. Dist. LEXIS 67487 (M.D. Fla. April 11, 2019).
The plaintiff condominium association had thirteen buildings inside their complex. On December 9, 2016, a sinkhole appeared near Building 43. The building was vacated and declared unsafe. Plaintiff's board excused Building 43 owners from paying association dues.
Plaintiff submitted a claim to the insurer for benefits under the policy. The insurer inspected and accepted coverage for Building 43 under the policy's Catastrophic Ground Cover Collapse (CGCC) provision and issued a check for $290,000 for immediate repairs. The insurer denied coverage for Buildings 42, 44, and 45; repairs to the foundation of all buildings, the retaining wall and outdoor fences; land, landscaping, and patios, uncollected association dues, and condominium unit owner property.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Formal Request for Time Extension Not Always Required to Support Constructive Acceleration
April 25, 2022 —
David Adelstein - Florida Construction Legal UpdatesDoes a constructive acceleration claim require the contractor to always request an extension of time which is then denied by the owner? While this is certainly the preference and the contractor should be requesting an extension of time as a matter of course for an excusable delay, the answer is NO! in certain circumstances. This is conveyed in the factually detailed case discussed below where a formal request for an extension of time was not required for the contractor to support its constructive acceleration claim.
But first, what is constructive acceleration:
Constructive acceleration “occurs when the government demands compliance with an original contract deadline, despite excusable delay by the contractor.” The Federal Circuit in Fraser defined the elements of constructive acceleration as follows:
(1) that the contractor encountered a delay that is excusable under the contract; (2) that the contractor made a timely and sufficient request for an extension of the contract schedule; (3) that the government denied the contractor’s request for an extension or failed to act on it within a reasonable time; (4) that the government insisted on completion of the contract within a period shorter than the period to which the contractor would be entitled by taking into account the period of excusable delay, after which the contractor notified the government that it regarded the alleged order to accelerate as a constructive change in the contract; and (5) that the contractor was required to expend extra resources to compensate for the lost time and remain on schedule.
Nova Group/Tutor-Saliba v. U.S., 2022 WL 815826, *42 (Fed.Cl. 2022) quoting Fraser Constr. Co. v. U.S., 384 F.3d 1354, 1361 (Fed. Cir. 2004) (internal citations omitted).
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Release Of “Unknown” Claim Does Not Bar Release Of “Unaccrued” Claim: Fair Or Unfair?
July 15, 2019 —
David Adelstein - Florida Construction Legal UpdatesA general release of “unknown” claims through the effective date of the release does NOT bar “unaccrued” claims. This is especially important when it comes to fraud claims where the facts giving rise to the fraud may have occurred prior to the effective date in the release, but a party did not learn of the fraud until well after the effective date in the release. A recent opinion maintained that a general release that bars unknown claims does NOT mean a fraud claim will be barred since the last element to prove a fraud had not occurred, and thus, the fraud claim had not accrued until after the effective date in the release. See Falsetto v. Liss, Fla. L. Weekly D1340D (Fla. 3d DCA 2019) (“The 2014 [Settlement] Agreement’s plain language released the parties only from “known or unknown” claims, not future or unaccrued claims. Because there is a genuine issue of material fact as to whether the fraud claim had accrued — that is, whether Falsetto [party to Settlement Agreement] knew or through the exercise of due diligence should have known about the alleged fraud at the time the 2014 Agreement was executed — the trial court erred in granting summary judgment on those fraud claims.”).
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
20 Years of BHA at West Coast Casualty's CD Seminar: Chronicling BHA's Innovative Exhibits
May 03, 2018 —
Beverley BevenFlorez-CDJ STAFFThe Bert L. Howe & Associates, Inc., (BHA) exhibit has been a fixture at West Coast Casualty's Construction Defect Seminar since the mid-1990's. Through the years, BHA has updated their display, but no matter what year, you could count on the BHA exhibit to provide a not-to-be-missed experience.
2008-BHA's sleek, rear projection display includes a screen that promotes the firm's capabilities that can be seen throughout the exhibit hall. This would be one of many innovations BHA has brought to the West Coast Casualty seminar.
2009-With the success of the rear screen projection, BHA adds additional monitors to provide attendees with more information about BHA.
2010-BHA adds an interpretive professional development exhibit targeted to Building Envelope issues allowing adjusters and other non-construction professionals hands on access to the systems and components at the heart of many related such claims.
2011-BHA's Swing for Charity challenge is born.
2012-Always innovating, BHA expands its rear projection and professional development offerings to West Coast attendees.
2013-BHA showcases additional capabilities with a twenty-four foot, custom, convex, immersive video experience.
2014-BHA adds an iPhone display to give a hands-on demonstration of their data collection methods.
2015-BHA's twenty-four foot , custom, convex, immersive video experience was elevated with two additional rear projection screens, reflecting BHA's newest capabilities and services.
2016-BHA dazzles attendees with their new exhibit comprised of more than 15 integrated, high definition, LCD displays. iPads are stationed on tables to conveniently demonstrate BHA's data collection processes.
2017-BHA's Swing for Charity Golf Challenge raised $2,225.00 for the National Coalition for Homeless Veterans and $1,900 for Final Salute.
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