Seattle Washington Building Expert Directory

Contract Provisions That Help Manage Risk on Long-Term Projects

June 29, 2020 — Jason Lambert - Construction Executive
Few things can dampen the thrill and promise of a newly closed construction deal than the realization that it could quickly become a losing proposition for the contractor depending on economic and other conditions. In an era of instant information, constantly adjusting markets and political extremes, projects that start under one set of assumptions or conditions can occur or conclude under much different ones. While no one has a crystal ball, there are contractual provisions that can provide clear guidance in the face of many “what ifs” that can arise in construction. One of the chief concerns a contractor should have in a project lasting more than a few months is what impact price increases will have on the profitability of the job. On a true cost-plus project, this may be of little concern, but on any project with a limitation on costs or a guaranteed maximum price, contractors should insist on a procedure to revisit the limitation or price if certain conditions change. This can be as simple as allowing the contractor to receive an upward adjustment in the price if costs increase by more than a certain percentage. It can be as complicated as requiring multiple new bids and disclosures to the property owner, architect or project manager and allowing approval of new suppliers or subcontractors to limit cost increases to the cheapest increase. The protection—and certainty—to the contractor though, comes from having a process in the contract to address cost increases, whether it is simple or complex. Reprinted courtesy of Jason Lambert, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Mr. Lambert may be contacted at Jason.lambert@dinsmore.com

Arizona Supreme Court Holds a Credit Bid at a Trustee’s Sale Should Not be Credited to a Title Insurer Under a Standard Lender’s Title Policy To the Extent the Bid Exceeds the Collateral’s Fair Market Value

March 01, 2017 — Richard H. Herold - Snell & Wilmer Real Estate Litigation Blog
The Arizona Supreme Court recently addressed what impact, if any, a lender’s credit bid at an Arizona trustee’s sale has on an insurer’s liability under Sections 2, 7 and 9 of the standard’s lender’s title policy (“Policy”), holding in Equity Income Partners, LP v. Chicago Title Insurance Company, 241 Ariz. 334, 387 P.3d 1263 (February 7, 2017) as follows: 1. Section 2 of the Policy, entitled “Continuation of Insurance,” not Section 9, entitled “Reduction of Insurance; Reduction or Termination of Liability,” applies when a lender acquires property at a trustee sale by “either a full- or partial-credit bid” since Section 2 directly addresses the existence and amount of coverage in such circumstances. Id. at 1267. Read the court decision
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Reprinted courtesy of Richard H. Herold, Snell & Wilmer
Mr. Herold may be contacted at rherold@swlaw.com

Hawaii Supreme Court Finds Excess Can Sue Primary for Equitable Subrogation

October 21, 2015 — Tred R. Eyerly – Insurance Law Hawaii
In responding to a certified question from the U.S. Distric Court, the Hawaii Supreme Court determined that an excess carrier can sue the primary carrier for failure to settle a claim in bad faith within primary limits. St. Paul Fire & Marine Ins. Co. v. Liberty Mut. Ins. Co., 2015 Haw. LEXIS 142 (Haw. June 29, 2015). St. Paul, the excess carrier, and Liberty Mutual, the primary carrier, issued polices to Pleasant Travel Service, Inc. The primary policy covered up to $1 million. Pleasant Travel was sued for damages resulting from an accidental death. St. Paul alleged that Liberty Mutual rejected multiple pretrial settlement offers within the $1 million primary policy limit. A trial resulted in a verdict of $4.1 million against Pleasant Travel. The action settled for a confidential amount in excess of the Liberty Mutual policy limit. St. Paul paid the amount in excess. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

A New Study on Implementing Digital Visual Management

July 31, 2024 — Aarni Heiskanen - AEC Business
A new paper, “Implementing Digital Visual Management: A Case Study on Challenges and Barriers,” discusses situational management in complex infrastructure projects. It’s worth reading for anyone interested in improving project management with digital tools. A complex infrastructure project The authors interviewed nine project management professionals who worked for the client on constructing the western part of the Metro in Helsinki and Espoo, Finland. The project lasted eight years and had a budget of 1,200 million euros. The project used a Digital Visual Management (DVM) tool, and the paper discusses the challenges and barriers faced during the tool’s implementation. At the time of the study, the system was used to manage the final documentation and testing status. KPI management The project management team was involved in developing a system for combining collected data into a central dashboard and using it to manage the whole project. Read the court decision
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Reprinted courtesy of Aarni Heiskanen, AEC Business
Mr. Heiskanen may be contacted at aec-business@aepartners.fi

Caltrans to Speak before California Senate regarding Bay Bridge Expansion

August 06, 2014 — Beverley BevenFlorez-CDJ STAFF
The San Francisco Chronicle reported that at an upcoming California Senate hearing, Caltrans is expected to defend itself against “allegations that they ‘gagged and banished’ engineers who identified construction problems on the new Bay Bridge eastern span and that the agency failed to maintain basic quality control on the project.” Members of the “Senate Transportation and Housing Committee will question Caltrans Director Malcolm Dougherty, other state officials and the head of the bridge's lead contractor, American Bridge/Fluor, about two reports last week from an investigator and a panel of six engineers who were critical of how the $6.4 billion project was managed.” Read the court decision
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Congratulations to San Diego Partner Johnpaul Salem and Senior Associate Scott Hoy for Obtaining a Complete Defense Verdict!

November 13, 2023 — Dolores Montoya - Bremer Whyte Brown & O'Meara LLP
Partner Johnpaul Salem and Senior Associate Scott Hoy just concluded a 4-week trial defending a local renowned hotel in San Diego. Plaintiff alleged premises liability against BWB&O’s client arguing plaintiff was injured while riding in an elevator due to alleged negligent maintenance and inspection. Plaintiff brought in a “hired gun” elevator expert from Missouri and sought $25 million in damages for two fractured ankles, a compound tibia fracture, and lifelong CRPS/PTDS/anxiety. BWB&O argued any injuries sustained were a direct result of Plaintiff’s actions. After a passionate and powerful closing argument by Mr. Salem, attacking the foundation of Plaintiff’s expert’s opinions and presenting vigilance of the hotel in the safety of its guests, the jury unanimously ruled in BWB&O’s client’s favor. Reprinted courtesy of Dolores Montoya, Bremer Whyte Brown & O'Meara LLP Read the full story... Read the court decision
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Thank Your Founding Fathers for Mechanic’s Liens

August 04, 2015 — Craig Martin – Construction Contract Advisor
Yep, our founding fathers, Thomas Jefferson and James Madison specifically, Craig Martin, Construction Attorney Lamson Dugan & Murray LLPwere responsible for proposing the first mechanic’s lien laws in the United States. Mechanic’s liens were not a new concept when the first law was passed in the United States; France, Spain and other countries already had them. But, in England, where landownership was limited to the upper classes, the concept of giving a tradesman an interest in the land for his labors was a truly foreign concept. The Early Years—Pre Mechanic Lien In the 1700s, there was no right to a mechanic’s lien. The possession of land was never deemed to be changed by its improvement and the laborer or material supplier was held to have acquired no right of lien in the property. The only remedy the laborer or material supplier had was to bring an action against the land owner. If the laborer or material supplier obtained a judgment, he would acquire the lien of a judgment creditor. A Treatise on the law of Mechanics’ Liens on Real and Person Property, 1893. 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

Holding the Bag for Pre-Tender Defense Costs

February 02, 2017 — John J. Kozak, Esq. - Florida Construction Law News
For a variety of reasons, additional insureds (and even named insureds) under commercial general liability policies will sometimes wait months, and even years, to tender the defense of a claim or lawsuit, incurring significant legal fees in the interim. When the claim finally is tendered, a dispute often arises over who should pay the pre-tender defense costs. Surprisingly, there is very little Florida legal authority specifically dealing with this issue. However, the recent federal 11th Circuit Court of Appeals case of EmbroidMe.com, Inc. v. Travelers Property Casualty Co. of America, No. 14-10616, 2017 U.S. App. LEXIS 368 (11th Cir. Jan. 9, 2017), applying Florida law, addresses the issue head-on and provides CGL carriers with a large hammer in refusing to pay pre-tender fees. Read the court decision
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Reprinted courtesy of John J. Kozak, Esq., Cole, Scott & Kissane, P.A.
Mr. Kozak may be contacted at john.kozak@csklegal.com

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