Notice and Claims Provisions In Contracts Matter…A Lot
February 27, 2023 —
David Adelstein - Florida Construction Legal UpdatesTechnical contractual provisions in contracts can carry the day. Whether you like it or not, and whether you appreciate the significance of the provisions, they matter. Notice provisions in a contract mean something. Following the claims procedure in a contract means something. The moment you think they don’t mean anything is the moment they will be thrown in your face and used as a basis to deny your position for additional money or time. You may think these provisions are being used as a “gotcha” tactic. They very well might be. But these are provisions included in the contract you agreed to so you know this risk before any basis for additional money or time even arises.
The recent bench trial opinion in Metalizing Technical Services, LLC v. Berkshire Hathaway Specialty Ins. Co., 2023 WL 385413 (S.D.Fla. 2023) illustrates the reality of not properly complying with such provisions. The keys when dealing with any notice or claims provision, or really any technical provision in your contract, is to (a) negotiate the risk before you sign the contract, (b) chart the provisions so your team know how to ensure compliance, and (c) make sure you comply with them. Period!
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Not So Fast, My Friend: Pacing and Concurrent Delay
April 25, 2022 —
William E. Underwood - ConsensusDocsWhen critical path activities are delayed by the owner (or another party), contractors will sometimes “pace,” or slow down, other activities to match the owner-caused delay. After all, why should the contractor hurry up and wait? But paced activities can often appear as concurrent delays on a project’s overall schedule. And all too often, contractors fail to contemporaneously document their efforts to pace work. Not only can this create avoidable disputes with owners and other contractors, but it can also create future roadblocks to the recovery of delay damages. This article examines the interplay between pacing and concurrent delay[1] and what contractors should do to minimize risk and preserve their rights to obtain more than a simple time extension for project delays.
Pacing versus Concurrent Delay
As a basic matter, most contracts allocate responsibility/liability for a schedule delay to the party that caused the delay. For example, if an owner is contractually required to provide equipment for a contractor to install, then the owner likely bears responsibility for any delays caused if the equipment is delivered late. If, however, the contractor was also behind schedule on other activities during this time and the project would have been delayed regardless of the owner’s late deliveries, then the delay is probably concurrent. And the contractor will generally be entitled to only an extension of time, and no other monetary relief.
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William E. Underwood, Jones Walker LLP (ConsensusDocs)Mr. Underwood may be contacted at
wunderwood@joneswalker.com
Technology and the Environment Lead Construction Trends That Will Continue Through 2019
June 03, 2019 —
Ryan Gould - Construction ExecutiveThere are common factors that have always defined trends in the construction industry. Elements such as labor (be it shortages or surpluses), the economy and technology determine what gets built where, when and how.
These elements have led to the rise of entire philosophies to boost profits and maximize value, such as the lean construction movement. Often these trends appear in the form of answers that help construction companies eliminate waste, curb overproduction, use talent properly, manage inventory more effectively, boost process workflow, reduce defects, and help to plan and schedule projects more efficiently.
In 2019, two factors are driving trends that are overtaking the industry: technology and the environment. They’re not only informing construction industry trends today, but they’re going to last and evolve into the foreseeable future.
Offsite construction becomes standard
Obviously, this isn’t a new trend. The earliest origins of this method, at least in North America, date to colonists importing pre-packaged construction materials from Europe to the New World in the 17th century. Then there were the kit homes sold by Sears, Roebuck, and Co. at the turn of the 20th century. And of course, the trend reached its zenith in the World War II construction boom with pre-fab companies selling ready-to-go homebuilding components to builders.
Reprinted courtesy of
Ryan Gould, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Regional US Airports Are Back After Years of Decay
September 23, 2024 —
Lebawit Lily Girma - BloombergThe ski resorts near Gunnison and Crested Butte, Colorado, are so close to Aspen, you’d think the area wouldn’t need its own airport. Their glitzier neighbor is just 48 miles north as the crow flies, though that’s roughly 150 miles by road.
But people flocking to Crested Butte’s laid back town, extreme ski slopes and epic mountain biking have a new reason to bypass farther-away Aspen: the destination’s gleaming new airport, which debuted in January 2023.
Not only is the Gunnison-Crested Butte Regional Airport terminal easy to get across quickly, at just 40,000 square feet, it's also heated and cooled with geothermal energy and uses triple glazed windows to keep travelers warm in a town known to be one of the coldest places in the US.
And Crested Butte isn’t the only small town airport receiving an upgrade.
All across the US, at least a dozen small and medium-size facilities are being renovated and, in some cases, entirely rebuilt—typically on budgets that stretch eight and nine figures. That contradicts a long-held belief among aviation industry pros that these regional facilities were destined to gather dust and die out.
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Lebawit Lily Girma, Bloomberg
Texas “your work” exclusion
January 06, 2012 —
CDCoverage.comIn American Home Assurance Co. v. Cat Tech, L.L.C., No. 10-20499 (5th Cir. Oct. 5, 2011), claimant Ergon hired insured Cat Tech to perform service on a reactor at Ergon’s refinery. During a start-up of the reactor after Cat Tech had completed its work, the reactor suffered damage. Cat Tech performed additional service and repairs. However, again upon start-up of the reactor, it suffered additional damage. Ergon hired another contractor to repair the reactor. Ergon initiated arbitration proceedings against Cat Tech. Cat Tech’s CGL insurer American Home defended Cat Tech against the Ergon arbitration under a reservation of rights.
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Reprinted courtesy of CDCoverage.com
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New Jersey’s Governor Puts Construction Firms on Formal Notice of His Focus on Misclassification of Workers as Independent Contractors
May 24, 2018 —
Kevin J. O'Connor & Joseph M. Vento - Peckar & Abramson, P.C.We have written quite a bit about the mounting threat to employers, both nationally and locally, of claims of misclassification of workers as independent contractors rather than employees. New Jersey’s new Gov. Phil Murphy signed an executive order last week that establishes a task force on employee misclassification to punish contractors who commit fraud by classifying their employees as independent contractors.
In the words of Governor Murphy: “I am signing this order to crack down on unscrupulous contractors who commit 1099 fraud to exploit workers and rob them of family and medical leave and safe workplace protections that the law provides,” Murphy said. “The employer gives themselves an unfair business advantage and this practice is illegal. This is a question of enforcing what is already on the books.” He has vowed that any employer caught misclassifying workers will either be brought into compliance or put out of business. The task force will foster compliance with the law and conduct a comprehensive review of existing practices.
Reprinted courtesy of
Kevin J. O'Connor, Peckar & Abramson, P.C. and
Joseph M. Vento, Peckar & Abramson, P.C.
Mr. O'Connor may be contacted at koconnor@pecklaw.com
Mr. Vento may be contacted at jvento@pecklaw.com
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Depreciation of Labor in Calculating Actual Cash Value Against Public Policy
February 16, 2016 —
Tred R. Eyerly – Insurance Law HawaiiThe insurer's depreciation of labor in the calculation of actual cash value was found to be against Arkansas public policy. Shelter Mut. Ins. Co. v. Goodner, 2015 Ark. LEXIS 460 (Ark. Dec. 10, 2015).
Shelter Mutual's policy provided that it would pay the insured "the actual cash value of all the damaged parts of the covered property." "Actual cash value" was defined as "total restoration cost less depreciation." The policy explained, "When calculating depreciation, we will include the depreciation of the materials, the labor, and the tax attributable to each party which must be replaced to allow for replacement of the damaged part, whether or not that part is damaged."
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Outcry Over Peru’s Vast Graft Probe Prompts Top Lawyer to Quit
January 15, 2019 —
John Quigley - BloombergPeru’s Attorney General Pedro Chavarry quit his post amid allegations he sought to sabotage a plea deal with a major construction company and derail the country’s biggest corruption probe.
The board of supreme prosecutors accepted his resignation Tuesday and appointed Zoraida Avalos as his replacement, according to a post on the account of the attorney general’s office. Chavarry will continue to sit on the five-member board.
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John Quigley, Bloomberg