Seattle Washington Building Expert Directory

Why Do Construction Companies Fail?

February 14, 2023 — The Hartford Staff - The Hartford Insights
If a construction company takes on a lot of work, it’s a good thing, right? Not exactly. In fact, overextension is one of the primary reasons why contractors fail. And it’s something that contractors should consider as a priority for their risk management plan. Of the 43,277 construction businesses that started in March 2011, only 37.6% of companies survived 10 years later.1 “The construction industry has a high rate of failure,” explains Tim Holicky, senior executive underwriter in The Hartford’s construction central bond team. “And more often than not, it’s because of too much work, rather than too little of it. The key to a contractor’s long-term survival is knowing when to say no.” Read the court decision
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Reprinted courtesy of The Hartford Staff, The Hartford Insights

The Top 10 Changes to the AIA A201: What You Need to Know

May 24, 2018 — Christopher G. Hill - Construction Law Musings
For this week’s Guest Post Friday here at Musings, we welcome back Melissa Dewey Brumback. Melissa is a construction law attorney with Ragsdale Liggett in Raleigh, North Carolina. Aside from the fact that she is a UNC grad and fan, she’s okay! In 2017, as it does every ten years, the American Institute of Architects (AIA) updated most of its standard form contract documents, including the A201 General Conditions. This cycle, the contract changes are evolutionary in nature, not revolutionary. Even so, it is crucial to know the changes to avoid making a fatal mistake that could cost you money on a construction project. In reverse order, the top 10 changes you need to know include: # 10: Differing Site Conditions Prior editions of the A201 provided that upon encountering differing site conditions, the Contractor was to promptly provide notice to the Owner and Architect, before the conditions are disturbed, and in no event later than 21 days after the conditions were first observed. A201–2017 shortens the time for notice from 21 to 14 days. Read the court decision
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Reprinted courtesy of Christopher G. Hill, The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

Home Builders Wear Many Hats

May 10, 2013 — CDJ STAFF
George McMahan, the president of the West Texas Home Builders Association, writes in the Lubbock Avalanche-Journal about what it takes to be a home builder. He notes that “a home builder guides dozens of skilled artisans and professionals,” and must “understand all of the home’s complex systems and know enough about each contractor’s trade in order to coordinate this skilled team to build and sell a quality product.” Additionally, home builders must “serve as liaisons with their communities and local government officials.” After the site is selected and homes are being built, “a home builder acts as an inspector.” McMahan notes that “a professional home builder will make certain the home meets both code and warranty guidelines long before and after the officials show up.” “Home builders,” he says, “are schedulers and record keepers.” They have to “tackle multiple tasks simultaneously in order to keep the construction process moving forward.” They “wear many, many hats,” so that they can “deliver a home where the new owners can hang their own hats, raise a family and build lifelong memories.” Read the court decision
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Reprinted courtesy of

San Diego Developer Strikes Out on “Disguised Taking” Claim

October 26, 2017 — Michael C. Parme – Haight Brown & Bonesteel LLP
In Dryden Oaks, LLC v. San Diego County Regional Airport Authority et al.(D068161, filed 9/26/17, publication order 10/19/17), the California Court of Appeal, Fourth Appellate District held that the County of San Diego (County) and the San Diego Regional Airport Authority (Authority) were entitled to summary judgment on a developer’s “disguised taking” theory of inverse condemnation. In 2001, the developer purchased two large lots (designated Lot 24 and Lot 25) adjacent to the end of a runway at the Palomar Airport in Carlsbad. Plaintiff obtained the necessary permits from the City of Carlsbad and successfully completed construction of an industrial building on Lot 24 in 2005. However, the plaintiff never began development of Lot 25 and the building permit for the property expired in 2012. The developer was then unable to renew the building permit because the Authority had adopted the Airport Land Use Compatibility Plan (ALUCP) in the interim period, which reclassified the Lots as part of a Runway Protection Zone (RPZ). The developer received a letter explaining that “despite the earlier approval the proposed development was no longer feasible because the ALUCP was more restrictive than the prior compatibility plan and the application's proposed use of ‘research and development’ was not permissible.” Read the court decision
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Reprinted courtesy of Michael C. Parme, Haight Brown & Bonesteel LLP
Mr. Parme may be contacted at mparme@hbblaw.com

Cooperating With Your Insurance Carrier: Is It a Must?

January 02, 2024 — Susana Arce - Saxe Doernberger & Vita, P.C.
A majority of insurance policies require the insured to cooperate with the insurer. The cooperation clause generally states, “the insured agrees to Cooperate with us in the investigation, settlement or defense of the suit.” The “cooperation clause” is often an afterthought because once litigation has ensued an insured is focused on other important considerations. However, insureds should not forget that complying with the cooperation clause can make the difference between the insurer covering or denying a claim. The Cooperation Clause in Action The Court in HDI Glob. Specialty SE v. PF Holdings, LLC,1 highlighted the importance of cooperating with an insurance carrier. In the underlying litigation, residents of an apartment complex sued four entities, all insured by the same insurance policy: two were named insureds and two were additional insureds. The primary insurer provided a defense for the named insureds. Read the court decision
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Reprinted courtesy of Susana Arce, Saxe Doernberger & Vita, P.C.
Ms. Arce may be contacted at SArce@sdvlaw.com

Claims for Bad Faith and Punitive Damages Survive Insurer's Motion for Summary Judgment

August 02, 2017 — Tred R. Eyerly - Insurance Law Hawaii
The court denied the insurer's motion for partial summary judgment seeking to dismiss claims for bad faith and for punitive damages. Van Der Weide v. Cincinnati Ins. Co., 2017 U.S. Dist. LEXIS 101735 (N.D. Iowa June 30, 2017). The homeowner sued the insured general contractor after water was found leaking into the home, causing significant water damage. Cincinnati rejected the general contractor's tender and denied any duty to defend, contending that the alleged defects were discovered after Cincinnati's policy period had ended. Cincinnati was advised that two experts for the insured would testify that the property damage occurred due to construction defects and that the damage began shortly after completion of the home. Cincinnati still refused to defend. 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

Agile Project Management in the Construction Industry

January 09, 2023 — Mohammad Saki - AEC Business
The linear workflows used in the construction industry, such as the RIBA plan of work, have a history of starting when the previous phases end. The stages in these workflows are often distinct and sequential, and it might be difficult or expensive to go back after a stage is finished. Design reviews are required in this method, which is also known as the “Waterfall,” and they must be completed before moving on to the next level. Cross-phase iterations are a rare symptom of problems, and the majority of design specifications will be locked early to prevent rework. Additionally, common planning and scheduling methods for the construction industry, like the Critical Path Method (CPM) and Program Evaluation and Review Technique (PERT), lack the ability to represent feedback and iteration in projects because they only permit one-way progression. As a result, these processes have come under fire for being a linear paradigm that encourages a fragmented approach to project management, and the need for a more iterative procedure has increased. Read the court decision
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Reprinted courtesy of Mohammad Saki, AEC Business

How to Cool Down Parks in Hot Cities

July 08, 2024 — Todd Woody - Bloomberg
The drive to be outside, even in hot weather, is hard to overcome. People without air conditioning would be more likely to seek relief at their local park, according to Elie Bou-Zeid, a professor of civil and environmental engineering at Princeton, than at a government building where they can feel like climate refugees. “It’ll certainly be more pleasant to be in a park than in some indoor stadium where nobody wants to go,” he says. The scientists are combining inexpensive technologies, some novel, some already in use, that they plan to test first in New Jersey for deployment in hot spots like Phoenix. Kirigami The art of cutting and folding paper, kirigami is inspiring researchers to design structures that control wind in specific ways. A kirigami structure made from fabric and placed over misters could regulate wind speed to maximize cooling. Or it could form the roof of a pavilion, steering air into the structure. Misters They spray small water droplets that quickly evaporate, cooling the air. But the effectiveness of misters, which have long been used in cities such as Las Vegas and Phoenix, depends on wind speed. If there’s too little wind, the droplets won’t all evaporate; too much wind and the cooling effects dissipate. Read the court decision
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Reprinted courtesy of Todd Woody, Bloomberg

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