Commerce City Enacts Reform to Increase For-Sale Multifamily Housing
August 19, 2015 —
David M. McLain – Colorado Construction LigitationMany cities in Denver’s metropolitan areas are experiencing tremendous growth. For more than a year, Colorado has been reported to be in a building boom. However even with the noticeable expansion, some areas still suffer from a lack of housing options specific to multifamily developments. Sean Ford, Mayor of Commerce City, stated that “[the city] has not approved a new condominium or multi-family project since 2008.”[1] Those of us in the construction industry attribute this shortage, at least in part, to construction defect litigation, which is often drawn-out, complicated, and very costly to builders.
Predicting that light rail service will intensify the need for owner-occupied units among Commerce City residents, the city council enacted legislation to address this scarcity. Ordinance No. 2060 which took effect August 1, 2015 provides “reasonable steps to encourage prompt and voluntary correction of construction defects … in order to enhance the health and safety of residents of Commerce City.”
The ordinance requires a homeowner who discovers a defect to provide written notice via certified mail or personal delivery to the responsible builder, contractor, engineer, or design professional. The notice may include requests for relevant construction documentation, maintenance recommendations, and warranty information. The builder must acknowledge receipt of notice and provide requested documents within 14 days.
Read the court decisionRead the full story...Reprinted courtesy of
David M. McLain, Higgins, Hopkins, McLain & Roswell, LLCMr. McLain may be contacted at
mclain@hhmrlaw.com
Understand and Define Key Substantive Contract Provisions
March 23, 2020 —
Phillip L. Sampson Jr. & Richard F. Whiteley, Construction ExecutiveThe following contract provisions should be clearly understood before undertaking any construction project commences.
Force Majeure
Often referred to as an “Act of God,” a force majeure is an event, typically beyond the parties’ control, that prevents performance under a contract. To determine if a contractor need a force majeure clause in its contract, it should ask whether there may be instances where events beyond the contractor’s control could impact its contractual performance? If so, it will want this clause.
Courts currently treat force majeure as an issue of contractual interpretation, focusing on the express language in the contract. Consequently, the scope and applicability of a force majeure clause depends on the contract’s terms. Using broad language in a force majeure clause may help protect against unforeseen events. But to the extent possible, parties should describe with particularity the circumstances intended to constitute a force majeure.
The law relating to force majeure also fairly consistently provides that parties cannot avoid contractual obligations because performance has become economically burdensome. Courts have refused to apply force majeure clauses where an event only affects profitability. Recent attempts to categorize tariffs on construction materials as a force majeure have failed. Unless a tariff or tax is specifically listed as a force majeure event, it is unlikely to constitute a force majeure because it only affects profitability.
Reprinted courtesy of
Phillip L. Sampson Jr. & Richard F. Whiteley, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Read the court decisionRead the full story...Reprinted courtesy of
Another Case Highlighting the Difference Between CGL Policies and Performance Bonds
January 07, 2015 —
David M. McClain – Colorado Construction Litigation During the summer of 2011, Ellis Construction hired Cool Sunshine Heating & Air Conditioning to install the HVAC systems in a single-family home it was building for Gary Doberman and Ellen Robertson in Boulder, Colorado. The homeowners took issue with much of the work performed on their home and tried to negotiate directly with Ellis Construction. When those negotiations broke down, the homeowners sent a notice of claim pursuant to the Construction Defect Action Reform Act, C.R.S. § 13-20-801, et seq. One of the defects alleged in the notice of claim was that the SEERS 13 compressor installed by Cool Sunshine was inappropriate for the system and that because it was installed to run on only one stage, it did not meet the City of Boulder’s code requirements for noise levels. The homeowners therefore requested that the compressor be replaced with a SEERS 20 compressor, which would comply with the Boulder City Code.
Read the court decisionRead the full story...Reprinted courtesy of
David M. McLain, Higgins, Hopkins, McLain & Roswell, LLCMr. McLain may be contacted at
mclain@hhmrlaw.com
JPMorgan Blamed for ‘Zombie’ Properties in Miami Lawsuit
June 18, 2014 —
Christie Smythe – BloombergJPMorgan Chase & Co. (JPM) engaged in a “pattern of discriminatory” lending that led to foreclosures, the city of Miami said in a lawsuit filed last week in federal court, the latest in a series of similar claims against the nation’s largest banks.
Last month, Banco Santander SA’s (SAN) U.S. unit was sued by the city of Providence, Rhode Island, over claims it stopped issuing mortgages in minority neighborhoods after the housing bubble burst. Santander Bank, previously named Sovereign Bank, pulled out of the neighborhoods and focused on white communities after being acquired by the Madrid-based lender in 2009, the city alleged.
Miami and Los Angeles are among cities to have filed similar lawsuits against Bank of America Corp., Citigroup Inc. (C) and Wells Fargo & Co. (WFC) for allegedly “red-lining” black and Hispanic areas as no-loan zones, and then “reverse red-lining,” flooding the areas with predatory mortgages even when minorities qualified for better terms.
Read the court decisionRead the full story...Reprinted courtesy of
Christie Smythe, BloombergMs. Smythe may be contacted at
csmythe1@bloomberg.net
Changes to Va. Code Section 43-13: Another Arrow in a Subcontractor’s Quiver
November 02, 2020 —
Christopher G. Hill - Construction Law MusingsAs is always the case here in Virginia, our General Assembly has made some legislative changes that affect construction contracting. One of these changes is an amendment to Va. Code 43-13 found in the mechanic’s lien section of the Virginia Code.
This section of the code has always required that any money paid to a contractor must first go toward paying its subcontractors, suppliers and laborers prior to being used for any other purpose. Prior to 2020, the only remedy for violaiton of Va. Code 43-13 was to go to the local Commonwealth’s Attorney and request a prosecution of the wrongdoer. For various reasons, including that such action did not get the subcontractor or supplier that remained unpaid under this section paid, this remedy was not often pursued except in the most egrigious cases.
A key change in the statute occurred during the 2020 legislative session states as follows:
Any breach or violation of this section may give rise to a civil cause of action for a party in contract with the general contractor or subcontractor, as appropriate; however, this right does not affect a contractor’s or subcontractor’s right to withhold payment for failure to properly perform labor or furnish materials on the project. Any contract or subcontract provision that allows a contracting party to withhold funds due under one contract or subcontract for alleged claims or damages due on another contract or subcontract is void as against public policy.
Read the court decisionRead the full story...Reprinted courtesy of
The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Don’t Miss the 2015 West Coast Casualty Construction Defect Seminar
April 01, 2015 —
Beverley BevenFlorez-CDJ STAFFThe 22nd West Coast Casualty (WCC) Construction Defect Seminar returning to the Disneyland Hotel in Anaheim, California is just six weeks away.
The annual event begins on Thursday, May 14th, with breakfast and registration starting at 7:30am. Panel discussions on various construction defect related topics begin at 8:30am and continue through the morning and afternoon, followed by a cocktail reception in the early evening. The following day includes break-out sessions with the event concluding in the afternoon.
Attendees can enhance their seminar experience with the WCC Construction Defect Seminar Mobile App. The event schedule, speaker information, product information, sponsor details, and interactive floorplan can all be accessed through the app. Furthermore, registered attendees will have access to session presentations.
The discounted, early registration ends April 15th, 2015.
Download an Invitation and Register for the Event...
Read the court decisionRead the full story...Reprinted courtesy of
Texas Public Procurements: What Changed on September 1, 2017? a/k/a: When is the Use of E-Verify Required?
October 11, 2017 —
Timothy D. Matheny – Peckar & Abramson, P.C.Every contractor that does business with the federal government is familiar with the requirement to use of E-Verify in order to document the employability of a contractor’s employees. But, when is a contractor required to use E-Verify in Texas? And, does this requirement to use E-Verify extend to the contractor’s subcontractors? All contractors and each of their subcontractors will be required to use E-Verify for a variety of goods and services contracts with state agencies. Failure to understand these requirements could lead to your company losing out on the award of the next Texas public procurement contract.
Read the court decisionRead the full story...Reprinted courtesy of
Timothy D. Matheny, Peckar & Abramson, P.C.Mr. Matheny may be contacted at
tmatheny@pecklaw.com
Defective Concrete Blocks Spell Problems for Donegal Homeowners
October 30, 2013 —
CDJ STAFFA number of recently built homes in Donegal, Ireland are suffering from crumbing cement blocks used in the construction. This was previously seen in homes in the Leinster Region, and seems to be more widespread than previously thought.
Damien McKay, an engineer who specializes in building litigation noted that the blocks started cracking about five years after the homes were constructed. In some cases, “the actual concrete blocks beneath the plaster can be easily broken and in some occasions with as little effort as rubbing with your fingers.”
Read the court decisionRead the full story...Reprinted courtesy of