Supply Chain Delay Recommendations
August 07, 2022 —
Denise Motta - Gordon & Rees Construction Law BlogThis Bulletin provides guidance to contractors, subcontractors, suppliers, and others to ensure compliance with contractual change order requirements in the event work on a construction project is impacted by supply chain delays.
Contract Protection Tips:
The construction industry is being impacted substantially by inability to obtain necessary construction products due to supply chain issues. Most construction contracts do not accommodate time extensions due to supply chain impacts. To address this gap in contract terms, we recommend including language such as: “lack of or failure of or other inability to obtain necessary transportation, fuel, power, materials, machinery, equipment or facilities, delays caused by other contractors, subcontractors or their subcontractors of any tier, or any materialmen or suppliers” as part of the defined force majeure event under the contract.
This provision can be included in the Change Order section of the contract as well by including a provision such as: “If the Work is delayed by the failure of or other inability to obtain necessary transportation, fuel, power, materials, machinery, equipment or facilities, delays caused by other contractors, subcontractors or their subcontractors of any tier, or any materialmen or suppliers, contractor shall be entitled to a change order for its costs and time associated with the delay.”
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Denise Motta, Gordon Rees Scully Mansukhani, LLPMs. Motta may be contacted at
dmotta@grsm.com
ACEC Statement on Negotiated Bipartisan Debt Limit Compromise
June 05, 2023 —
The American Council of Engineering CompaniesWashington, D.C. – The American Council of Engineering Companies (ACEC) released the following statement applauding the negotiated bipartisan compromise to raise the debt limit ahead of the scheduled House vote tonight:
"The American Council of Engineering Companies (ACEC) applauds President Biden and Speaker McCarthy for negotiating a bipartisan compromise to raise the debt limit and avoid a catastrophic default. We are particularly pleased that the bipartisan deal protects the critical funds provided under the Infrastructure Investment and Jobs Act (IIJA) and does not include any changes to the Inflation Reduction Act's (IRA) climate and clean energy provisions, which the engineering industry is working hard to deliver successfully. ACEC also strongly supports the provisions in the deal to reform the federal permitting process. These commonsense measures to modernize the National Environmental Policy Act (NEPA), particularly through the use of digital technologies, will improve interagency collaboration and allow engineering firms to help their clients deliver project benefits more efficiently while ensuring strong environmental protections and opportunities for community and stakeholder engagement."
The American Council of Engineering Companies (ACEC) is the business association of the nation's engineering industry. Founded in 1909, ACEC is a national federation of 51 state and regional organizations representing more than 5,500 engineering firms and 600,000+ engineers, surveyors, architects, and other specialists nationwide. ACEC member firms drive the design of America's infrastructure and the built environment.
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The Economic Loss Rule: From Where Does the Duty Arise?
January 24, 2022 —
Taylor Hite - Colorado Construction LitigationWhen entering a contract under Colorado law or attempting to enforce your rights when the other party breaches a contract, it is important to know and understand what rights you have and what claims you can bring or defenses you may have. One important consideration is Colorado’s version of the economic loss rule. The Colorado Supreme Court has issued several opinions clarifying the scope of the economic loss rule since it adopted the rule in 2000. The purpose of the economic loss rule is to maintain the boundary between contract law and tort law.
In Colorado, the economic loss rule provides that a party suffering only economic loss from the breach of an express or implied contractual duty may not assert a tort claim for the breach without an independent duty of care under tort law. In most instances the economic loss rule will not bar intentional tort claims. The question becomes: from where does the duty arise? Is there an independent duty in tort law? Did the duty arise solely from the contract?
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Taylor Hite, Higgins, Hopkins, McLain & Roswell, LLCMs. Hite may be contacted at
Hite@hhmrlaw.com
Just When You Thought the Green Building Risk Discussion Was Over. . .
May 25, 2020 —
Christopher G. Hill - Construction Law MusingsAs a reader of Construction Law Musings, you no doubt realize that I am a big proponent of “green” or sustainable building. I have also been known to sound a bit like Eeyore when discussing the charge into the breach of green building without considering the potential risks. Thankfully, and despite some of the risk predictions made here (and elsewhere for that matter) there have not been but so many major court cases relating to these risks.
However, as a recent article in ENR Magazine warns, this lack of litigation does not mean that you should let your guard down. Just because the economy, warnings by attorneys and others, and possible lack of financial incentive to sue have kept the litigation numbers down does not mean that the risks have gone away. LEED requirements, time horizons and other risks that have become evident during the process of vetting green building contracts and practices still must be dealt with in contracts and insurance policies. These risks are well laid out in the ENR article and in other places here at Musings so I won’t outline them in detail here.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Who is a “Contractor” as Used in “Unlicensed Contractor”?
June 08, 2020 —
Taylor Orgeron - Autry, Hall & Cook, LLPA recent Georgia Court of Appeals case established a rule concerning the effect of an unlicensed contractor failing to disclose that he is unlicensed. In Fleetwood v. Lucas,[1] the contractor was hired by the homeowners to perform renovations on two homes. One of the projects went over budget, and the homeowners failed to pay the remaining balances on both projects. Following their failure to pay, the contractor sued the homeowners for breach of contract, and the jury delivered a verdict in his favor. The homeowners appealed on the grounds that the contractor was barred from bringing suit because the contractor did not have a license to perform the work.
Generally, if a contractor does not have a residential or general contractor’s license but performs work when a license is required, the contract is unenforceable. O.C.G.A. § 43-41-17(b). However, under O.C.G.A. § 43-41-17(g), a contractor may perform repair work without a license if the contractor discloses that he does not have a license, and the work does not affect the structural integrity of the project. In this case, the contractor failed to disclose that he did not have a license.
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Taylor Orgeron, Autry, Hall & Cook, LLPMr. Orgeron may be contacted at
orgeron@ahclaw.com
North Carolina Should Protect Undocumented Witnesses to Charlotte Scaffolding Deaths, Unions Say
April 03, 2023 —
Engineering News-RecordCharlotte Observer
More than two months after a scaffolding collapse in Charlotte killed three men, labor unions are urging state leaders to protect undocumented construction workers who witnessed the collapse so they can safely talk to investigators.
Reprinted courtesy of
Engineering News-Record
ENR may be contacted at enr@enr.com
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Remodel Leaves Guitarist’s Home Leaky and Moldy
October 03, 2013 —
CDJ STAFFThe entertainment site TMZ reports that Eddie Van Halen is suing the contractor who remodeled his home. Mr. Van Halen claims that the contractor’s poor workmanship lead to water intrusion. According to the lawsuit, the roof and chimney leaked, and gutters and flashing were poorly installed. As a result, parts of the home suffered from mold damage. The lawsuit claims that Mr. Val Halen spent more than $1 million to repair his home after the remodel.
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“Freelance Isn’t Free” New Regulations Adopted in New York City Requiring Written Contracts with Independent Contractors
June 15, 2017 —
Kevin J. O'Connor - Peckar & Abramson. P.C.Attacks on employers for alleged misclassification of workers—particularly independent contractors—are continuing unabated, and the risk of liability for employers operating in New York City just increased. New York City has just adopted sweeping regulations requiring written contracts with certain freelancers and independent contractors. Anyone doing business in that jurisdiction should take notice and take action to comply with the law.
New York City’s “Freelance Isn’t Free Act,” N.Y.C. Administrative Code §§ 20-927 et seq. (“FIFA”) went into effect on May 15, 2017. This new law substantially regulates the relationship between a business and an independent contractor or “freelancer” working in New York City.
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Kevin J. O'Connor, Peckar & Abramson. P.C.Mr. O'Connor may be contacted at
koconnor@pecklaw.com