FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Fourth Circuit Clarifies What Qualifies As “Labor” Under The Miller Act

May 08, 2023 — Jeffrey Hummel - The Construction Seyt
Under the Miller Act, 40 U.S.C. §§ 3131 et seq., contractors hired to work on federal construction projects are required to furnish payment bonds in order to ensure payment to certain persons that provide labor for the project. The United States Court of Appeals for the Fourth Circuit recently issued a published decision clarifying the type of work that qualifies as “labor” under the Miller Act. Elliot Dickson v. Fidelity and Deposit Company (issued April 26, 2023). In that case, the U.S. Department of Defense hired Forney Enterprises (Forney) as the prime contractor on a renovation project at the Pentagon. Forney retained Fidelity and Deposit Company of Maryland (Fidelity) to provide the required Miller Act payment bond. Forney then entered into a subcontract with Elliott Dickson (Dickson), a professional engineer, to work as a project manager on the contract. Dickson primarily supervised labor on the site, but also performed other tasks, including logistical and clerical duties, taking various field measurements, cleaning the worksite, moving tools and materials, and sometimes even watering the concrete himself. Dickson’s work required him to be onsite on a daily basis. Read the court decision
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Reprinted courtesy of Jeffrey Hummel, Seyfarth
Mr. Hummel may be contacted at jhummel@seyfarth.com

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Making the Construction Dispute Resolution Process More Efficient and Less Expensive, Part 2

July 16, 2014 — Beverley BevenFlorez-CDJ STAFF
John P. Ahler, on the Ahlers & Cressman PLLC blog, has posted the second part of his two-part series on Ways to Make the Construction Dispute Resolution Process More Efficient and Less Expensive. In this post, Ahler discussed “tips on how lawyers and stakeholders can make things move quicker in arbitration.” For example, Ahler looked at the arbitration clause in the initial contract, various options for arbitration, evidence decisions, and others. Read the court decision
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COVID-19 Likely No Longer Covered Under Force Majeure

February 01, 2023 — Rachel E. Pelovitz - Construction Executive
A recent decision by the U.S. Government Accountability Office (GAO) has shaken up construction contracts. While companies could claim “force majeure” to exempt themselves from contractual obligations during much of the pandemic, this decision challenges ongoing validity of those claims. The decision was based on the Army Corps of Engineers deeming a bid from Boulder, Colorado–based American Mine Services (AMS) as nonresponsive because it included a COVID-19 force majeure clause. In reviewing the Corps’ decision, GAO—referencing the Federal Acquisition Regulation—found that “epidemics” and “quarantine restrictions” were already included in the contract between the Corps and AMS. Although AMS claimed that “COVID-19 is considered a force majeure event along with any other similar disease, epidemic or pandemic event,” the GAO concluded that this interpretation limited the rights of the government too much. Reprinted courtesy of Rachel E. Pelovitz, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Ms. Pelovitz may be contacted at pelovitz@abc.org

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Affirmed: Insureds Bear the Burden of Allocating Covered Versus Uncovered Losses

September 28, 2017 — C. Lily Schurra & K. Alexandra Byrd – Saxe Doernberger & Vita, P.C.
The Second Circuit recently affirmed a district court decision that an insured bears the burden of establishing what portion of a jury verdict constitutes covered damages1. The case arose out of claims for property damage resulting from construction defects in a homebuilding project. The homeowners fired the construction manager, J. Barrows, Inc. (“JBI”), who then sued the homeowners in state court for unpaid fees (the “Underlying Action”). The homeowners counterclaimed, alleging breach of contract and negligence. JBI’s commercial general liability insurer, Harleysville Worcester Insurance Company (“Harleysville”), agreed to defend JBI under a reservation of rights. Reprinted courtesy of C. Lily Schurra, Saxe Doernberger & Vita, P.C. and K. Alexandra Byrd, Saxe Doernberger & Vita, P.C. Ms. Schurra may be contacted at cls@sdvlaw.com Ms. Byrd may be contacted at kab@sdvlaw.com Read the court decision
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Microsoft Urges the Construction Industry to Deliver Lifecycle Value

June 25, 2019 — Aarni Heiskanen - AEC Business
Digitalization is changing the way that we operate and use buildings. Salla Palos is directing Microsoft towards a future that inspires innovative changes in both the mindset and the business models of AECO industry stakeholders. Salla Palos moved from Finland to the United States in July 2015 and settled down in Seattle, one of the fastest growing areas in the USA. She was versed in digitalization of construction industry in Finland as well as Europe and sought the opportunity to bring that knowledge into the US market. As the Director of Emerging Technology and Innovation for Sellen Construction, one of the largest general contractor companies in the Pacific Northwest United States, Salla started developing digital building lifecycle as a strategy to solve number of industry problems. “I zeroed in on developing digital construction strategy, re-engineering processes, and innovating how emerging technology supports digital construction. My approach was open innovation, pulling the industry along with our own digital transformation. I set up collaboration with both local and international partners to be successful in driving change and transforming AEC,” Salla recalls. 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

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Construction Defect Journal Marks First Anniversary

January 06, 2012 — CDJ STAFF

November 2011 marked the first anniversary of the Construction Defect Journal. During the first year our staff and contributors in the insurance and legal communities have compiled several hundred articles of interest to the construction defect and claims community.

Each of these articles are maintained in the CDJ archives, and are accessible at http://www.constructiondefectjournal.com/archives.html. Each story in the archives is listed in the order it was posted to the archives. Each story in the archives opens up in its own page, so you can easily locate topics and articles of interest.

If you’re new to Construction Defect Journal, or just want peruse past articles, please take a moment to visit the CDJ Archives page. Also please feel encouraged to submit your firm’s articles or legal publications of interest to the CD community at http://www.constructiondefectjournal.com/submitStory.html.

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General Contractor’s Intentionally False Certifications Bar It From Any Recovery From Owner

November 03, 2016 — Masaki James Yamada – Ahlers & Cressman PLLC
In a public works dispute in Massachusetts, a Massachusetts Court judge ruled that a general contractor could not recover any of its over $14 million claim against a public owner because it had violated its contract with the Owner by certifying that it had paid its subcontractors in full and on time when in fact it had not.[i] The case involves a contract dispute arising from a state and federally-funded project to design and construct a fiber optic network in western Massachusetts. The Owner was a state development agency established and organized to receive both state and federal funding to build a 1,200–mile fiber optic network known as MassBroadband123 in Western Massachusetts (the Project). Of that amount, $45.4 million was awarded pursuant to the American Recovery and Reinvestment Act of 2009 (ARRA). One of the stated goals of ARRA was (as its title suggests) to create jobs in the wake of the 2008 recession and to provide a direct financial boost to those impacted by the economic crisis. In the context of the instant case, that meant that, if there were to be subcontractors on the job providing labor and materials, they needed to be paid on a timely basis in keeping with the statutory purpose of stimulating the economy. Read the court decision
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Reprinted courtesy of Masaki James Yamada, Ahlers & Cressman PLLC
Mr. Yamada may be contacted at myamada@ac-lawyers.com

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The Ghosts of Baha Mar: How a $3.5 Billion Paradise Went Bust

January 06, 2016 — John Lippert & Dawn McCarty – Bloomberg
Beyond the tropical waters, across palm-fringed sands and behind locked gates, looms Baha Mar -- the largest and, at $3.5 billion, priciest resort in the Caribbean. Here, no one frolics pool-side, pina colada in hand, or hits irons on the Jack Nicklaus golf course. No slot machines jingle-jangle in the casino. The Flamingo Bar, the Brasserie des Arts and the Cartier boutique lie dark. On this bright October morning in the Bahamas, all 2,200 guest rooms are empty. The quiet is almost spooky here on the outskirts of Nassau, where the waterscape frills of nearby Paradise Island give way to the vast ghost-resort that is Baha Mar. Just how the place ended up like this -- in a bankruptcy so colossal that it’s jeopardizing the Bahamas’s credit rating -- is the biggest business story to hit this Caribbean nation for as long as anyone here can remember. It stretches far beyond the white beaches and across time zones, to none other than the State Council of China. Reprinted courtesy of John Lippert, Bloomberg and Dawn McCarty, Bloomberg Read the court decision
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