Bid Bonds: The First Preventative Measure for Your Project
September 03, 2019 —
Christopher G. Hill - Construction Law MusingsFor this week’s Guest Post Friday, Construction Law Musings welcomes Danielle Rodabaugh. Danielle is a principal for Surety Bonds.com, an agency that issues surety bonds to individuals and businesses across the nation. She writes articles to clarify bonding rules and regulations for those who have a stake in the surety bond industry–from contractors to telemarketers, and every professional in between.
In construction we often value performance and payment bonds when considering how to protect the financial investments put into a project. We do so because these bonds provide a legal financial guarantee that the selected contractor will fulfill the contract. However, a third, equally protective kind of construction bond is often overlooked.
Before an official contract has been agreed to and successfully executed, bid bonds guarantee that the selected low-bidder will officially enter into the contract at a later date. Bidders must submit a bid bond with their bid. Without doing so, the bidder becomes non-responsive–or an invalid candidate. Sometimes we overlook the benefits provided by this kind of Virginia surety bond, and yet they frequently act as the only legal protection for a project prior to groundbreaking.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Going Digital in 2019: The Latest Technology for a Bright Future in Construction
February 18, 2019 —
Jim Romeo - Construction ExecutiveThe spectrum of technology available to today’s contractors is wide and deep. This techno-ecosystem will change just about every operational tick and tock needed to build world-class projects—from where and how people work to what equipment they use and how they record payments.
“Generally speaking, the use of technology in construction is surging, particularly in the past three to five years,” says Chris Amato, principal and national advisory leader for the Chicago-based management consultancy Grant Thornton. “It’s becoming the cost of doing business; every player, at some point or another, is going to need to embrace it to some degree. The key questions are where to start, where to invest and how to minimize risk.”
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Jim Romeo, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Is the Manhattan Bank of America Tower a Green Success or Failure?
April 15, 2014 —
Beverley BevenFlorez-CDJ STAFFConstruction Digital reported that the Bank of America tower in Manhattan, New York, “has been conversely hailed as both the greenest skyscraper in the world and an energy-guzzling toxic tower that exposes the charade of the LEED rating system.” It is the first skyscraper to ever achieve the highest LEED Platinum rating. However, a critic alleged that the eighty-year old Empire State Building “uses half the energy” of the new Bank of America tower.
The Bank of America tower, designed by architects Cook and Fox, was built with “local and recycled materials,” as well as “floor-to-floor insulated glazing” that maximizes “natural light and traps heat, and lights are automatically dimmed in daylight.” Rainwater is captured for reuse, and “waterless urinals save an estimated 8,000,000 US gallons of water per year.”
However, Construction Digital reported that Sam Roudman in New Republic Magazine “pointed out that buildings contribute more to global warming than any other sector of the economy, consuming more energy and producing more greenhouse gas emissions in America than every car, bus, jet, and train combined; and furthermore, than every factory combined.”
Joel Levy writing for Construction Digital declared, “We can call LEED a failed artifice and even suggest abandoning it as a pointless charade, but unless we want to live in caves and go back to using candles for light, we must accept the fact that the 155,000,000 people that make up America’s workforce power the country and indeed the world’s economy…need somewhere to work.”
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Contractors: Consult Your Insurance Broker Regarding Your CGL Policy
February 15, 2018 —
David Adelstein – Florida Construction Legal UpdatesContractors: do yourself a favor and consult your insurance broker regarding your commercial general liability (CGL) policy. Do this now, especially if you subcontract out work.
CGL policies contain a “your work” exclusion. The CGL policy is written such that it excludes “‘property damage’ to ‘your work’ arising out of it or any part of it and included in the ‘products-completed operations hazard.’” This exclusion will be raised in the post-completion latent construction defect scenario. (There are other exclusions that will be raised to a defect discovered during construction.) Certain policies will contain a subcontractor exception to this “your work” exclusion. You WANT this exception- no doubt about it so that this exclusion does not apply to work performed by your subcontractors. Without this subcontractor exception, truth be told, this “your work” exclusion is a total back-breaker to contractors. It will give your insurer an immediate out for many latent defect property scenarios since excluded from coverage is property damage to your work including work performed by your subcontractors.
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David Adelstein, Florida Construction Legal UpdatesMr. Adelstein may be contacted at
dadelstein@gmail.com
Is Construction Defect Notice under Florida Repair Statute a Suit?
September 03, 2015 —
Beverley BevenFlorez-CDJ STAFFIn Altman Contractors, Inc. v. Crum & Forster Specialty Ins. Co., “the United States District Court for the Southern District of Florida addressed what constitutes a ‘suit’ within the context of Florida’s right-to-repair procedure for construction defect disputes,” according to Keith Moskowitz, Michael Barnes, J. Stephen Berry, and Cynthia Liu of Dentons. The district court “held that a notice under Chapter 558 of the Florida statutes, the ‘notice and repair’ statute, ‘does not constitute a “civil proceeding”’ and thus ‘is not a “suit”’ triggering an insurer’s duty to defend under Altman’s Crum & Forster commercial general liability (CGL) policies.”
The article states that “[w]hether the 11th Circuit affirms the district court’s decision or not, its opinion will be important to insurers questioning when insurance coverage is triggered by an event other than a formal proceeding initiated in a court of law.”
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Insurer’s Consent Not Needed for Settlement
October 14, 2013 —
CDJ STAFFThe Texas Supreme Court has concluded in Lennar Corp. v. Markel Am. Ins. Co. that “the costs incurred by a builder to locate and repair damage caused by the builder’s defective product are covered under its general liability insurance policy.” Hunton & Williams have issued a Client Alert discussing the case.
For the background of the case, Lennar built about 800 homes using EIFS. The EIFS trapped water and the homes suffered from rot, structural damage, mold, mildew, and termites. Lennar fixed all the homes so built, avoiding litigation. Lennar “notifed its insurers of the defects and invited its insurers to participate in the proactive remediation program.”
A lower court had agreed with Markel, one of Lennar’s insurers, that the losses were not “caused by property damage,” and that Lennar should not have made “voluntary payments without Markel’s consent.” The Texas Supreme Court granted review, rejecting Markel’s argument and affirming the jury’s finding.
According to Hunton & Williams, the implications of the Texas Lennar decision is that it “confirms that all insurers with policy in effect at the time of property damage are responsible for all sums for which the policyholder is liable.”
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Nevada Supreme Court Declares Subcontractor Not Required to Provide Pre-Litigation Notice to Supplier
September 24, 2014 —
Beverley BevenFlorez-CDJ STAFFAccording to the Traub Lieberman Straus & Shrewsberry LLP blog on Construction Law, even though the Nevada Revised Statutes Annotated (NRS) Chapter 40 requires a general contractor “to provide pre-litigation notice (followed by an opportunity to repair) to a subcontractor or supplier the general contractor believes to be responsible” for the issue prior to filing suit, the Nevada Supreme Court “determined that NRS Chapter 40 imposes no such requirement upon a subcontractor.”
In Barrett v. Eighth Judicial District Court, “the court reasoned that ‘while the statutes’ and, indeed, chapter’s purpose is, in part, to allow defendants an initial opportunity to repair, the Legislature chose to carry out that purpose in the manner provided by the statutes, and [the Supreme Court] will not read into the statutes a notice requirement between a subcontractor and another subcontractor or supplier where none exist.’”
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Mega-Consulate Ties U.S. to Convicted Billionaire in Nigeria
May 30, 2022 —
Neil Munshi & William Clowes - BloombergOn March 31, billionaire Gilbert Chagoury stood atop the plot of land he’d dredged from the sea around Lagos, beaming in the sweltering heat alongside U.S. Consul-General to Nigeria Claire Pierangelo, as they broke ground for America’s largest consulate in the world.
As a cool spring rain fell on Washington that day, Republican Congressman Jeff Fortenberry, of Nebraska, resigned from the House of Representatives after a conviction announced a week earlier. His crime: lying to the Federal Bureau of Investigation about illegal campaign contributions he’d received from Chagoury.
The pageantry in Lagos obscured the uncomfortable fact that by placing its $537 million consulate on Chagoury’s Eko Atlantic development, the U.S. government was becoming the anchor tenant for a project run by a man who was once convicted of laundering money for a Nigerian dictator and who’s admitted to making illegal campaign contributions in the U.S. Ethics groups and Nigeria experts aren’t pleased with the choice.
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Neil Munshi, Bloomberg and
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