Cambridge Massachusetts Building Expert Directory

Tech to Help Contractors Avoid Litigation

November 01, 2022 — Brian Poage - Construction Executive
Risk mitigation is a bigger part of managing construction projects than most people outside the industry realize. Construction is a risky business by nature. However, with the right tools, contractors can protect their businesses from costly litigation and keep jobsites safer and more productive. Modern technology helps increase project visibility for internal and external stakeholders, helping them monitor risks and resolve potential issues as quickly as possible. How does increased visibility reduce risk? The most common causes of litigation in construction are quality issues, schedule delays and injuries. Each of these risks can be reduced with better communication and documentation. Reprinted courtesy of Brian Poage, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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"My Bad, I Thought It Was in Good Faith" is Not Good Enough - Contractor Ordered to Pay Prompt Payment Penalties

February 23, 2016 — David A. Harris & Jesse M. Sullivan – Haight Brown & Bonesteel LLP
Retention clauses are almost always included in California construction contracts and permit an Owner to withhold a portion of what is owed to the General Contractor as security to ensure the proper completion of the work. General Contractors pass the withholding of retention down to the subcontractors. Thus, if the subcontractor fails to complete its work, or fails to correct deficiencies, the Owner/General Contractor can use the retention to pay the costs of completing or correcting the subcontractor’s work. The contractor must release any retention it receives from the owner within ten days unless a “good faith dispute exists between the direct contractor and the subcontractor.” (Civil Code section 8814.) Where there is a good faith dispute, the contractor “may withhold from the retention to the subcontractor an amount not in excess of 150 percent of the estimated value of the disputed amount.” (Civil Code section 8814(c).) If the contractor wrongfully withholds retention, it must not only pay the retention but must also pay the subcontractor “a penalty of 2 percent per month on the amount wrongfully withheld.” The contractor must also pay the subcontractor’s costs and reasonable attorney’s fees incurred in collecting the retention. (Civil Code section 8818.) Reprinted courtesy of David A. Harris, Haight Brown & Bonesteel LLP and Jesse M. Sullivan, Haight Brown & Bonesteel LLP Mr. Harris may be contacted at dharris@hbblaw.com Mr. Sullivan may be contacted at jsullivan@hbblaw.com Read the court decision
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Ornate Las Vegas Palace Rented by Michael Jackson for Sale

August 13, 2014 — Emily Heffter – Bloomberg
A unique and ornate palace for sale in Las Vegas was home to Michael Jackson in the strange and isolated years before his death. In fact, the King of Pop was the last tenant in the 24,000-square-foot estate, and his portrait still hangs above the fireplace. Jackson eschewed the main house and lived in the guest villa while he was rehearsing for his Las Vegas show, The One, from 2007-2009, according to listing agent Eddy Martinez of Miami Beach-based Worldwide Properties. To avoid the paparazzi, Jackson traveled through a tunnel under the main house and got directly into a car parked at the end of it, Martinez said. The Hacienda Palomino has only had two owners since theater developer Horst Schmidt built it in 1952. The home at 2710 Palomino Ln is "enchanting," said Martinez, and the property's unique features — including a musical note insignia used as an architectural feature — intrigued the late superstar. Read the court decision
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Reprinted courtesy of Emily Heffter, Bloomberg

New Braves Stadium Is Three Months Ahead of Schedule, Team Says

September 03, 2015 — Michael Buteau – Bloomberg
Construction of the new $1.1 billion home of Major League Baseball’s Atlanta Braves is about three months ahead of schedule, according to team executives. “We’ve built a really solid, aggressive, efficient plan,” Mike Plant, head of the team’s business operations, said in an interview Thursday during a brick-laying ceremony. “No one has ever built a ballpark of this scale and scope in 39 months, and we’re going to do it in 36.” The 41,500-seat stadium, 14 miles northwest of Turner Field and known as SunTrust Park, will be about 20 percent smaller than the existing ballpark and could be completed by mid-November 2016, Plant and Braves Chairman Terry McGuirk said. The complex will include a 250-room Omni hotel, a nine-story corporate office for Comcast Corp. and the Roxy Theatre, a 4,000-seat music venue. Read the court decision
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Reprinted courtesy of Michael Buteau, Bloomberg

Hawaii Federal District Court Compels Appraisal

December 03, 2024 — Tred R. Eyerly - Insurance Law Hawaii
The Hawaii federal district court denied the insurers' motion to dismiss on forum non convenient grounds and granted the insured's motion to compel arbitration. BRE Hotels and Resorts LCC, et al. v. Ace Am Ins. Co., et al., 2024 U,.S. Dist. LEXIS 163852 (D. Haw. Sept. 11, 2024). BRE Hotels & Resorts LLC (BRE) owned the Grand Wailea Resort on Maui and the Turtle Bay Resort on Oahu. Both hotels were damaged by a rainstorm on March 9, 2021. Estimated losses exceeded $55 million. BRE filed a claim with its sixteen insurers. BRE sought $46 million in four categories: business interruption losses at the Grand Wailea ($29.6 million); damaged tiles at the Grand Wailea ($8.3 million); furniture, fixtures, and equipment at Turtel Bay ($6.2 million); and an assortment of ancillary issues at both properties ($1.9 million). The insurers investigated and took issued with BRE's estimates. The insurers contended that most of the tiles suffered from an independent defect and were not damaged by the storm, that the insurance policies did not cover the replacement of undamaged furniture, and that the claimed business interruption losses were too high. The insurers paid $4 million. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

From Singapore to Rio Green Buildings Keep Tropical Tenants Cool

June 07, 2021 — Andrew Janes & Shawna Kwan - Bloomberg
On a typically hot and humid afternoon in Singapore, a fresh breeze blows beneath the canopy of the South Beach development, keeping temperatures several degrees cooler than on the surrounding streets. The rippling 280-meter (919 feet) wave of steel-and-aluminum runs the length of the Norman Foster-designed complex, funneling prevailing winds over outdoor patrons of restaurants and bars and saving on air conditioning for the mixed-use complex. The canopy is covered with solar panels and catches rainwater to irrigate the gardens. Offices and apartment blocks designed to be green are springing up all over the world as architects reverse almost a century of trying to insulate workers from nature and instead try to adapt structures to their natural surroundings. The change is being driven by stricter building codes, a desire to cut energy costs and, in particular, demands from corporations and startups that need to show shareholders and customers they are meeting environmental standards. Reprinted courtesy of Andrew Janes, Bloomberg and Shawna Kwan, Bloomberg Read the court decision
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“Rip and Tear” Damage Remains Covered Under CGL Policy as “Accident”—for Now.

September 01, 2016 — Michael Lindsay & Luke Mecklenburg – Snell & Wilmer Real Estate Litigation Blog
The Colorado Supreme Court has approved a settlement between the parties to an appeal of the 2012 Colorado Pool Systems v. Scottsdale Insurance Company Court of Appeals case, leaving that ruling intact. The ruling parses a fine line between uncovered costs of repairing defective work and covered costs of damage caused to nondefective work while repairing defective work. This nuanced opinion, which is now established Colorado law, is worth a second look. In Colorado Pool Systems, Inc. v. Scottsdale Insurance Company, the Colorado Court of Appeals determined that so-called “rip and tear” damage caused by a construction professional to nondefective work while correcting defective work is covered as an “accident” under standard Commercial General Liability insurance language. 317 P.3d 1262 (Colo. App. 2012). A pool company excavated and built a rebar frame in order to construct a pool, but it hired a subcontractor to pour the concrete. An inspector later noticed that some of the rebar was too close to the surface, and the pool company agreed to demolish and replace the pool after an agent of its insurer represented that this loss would be covered. But the agent was wrong, the insurer denied coverage, and litigation ensued. Reprinted courtesy of Michael Lindsay, Snell & Wilmer and Luke Mecklenburg, Snell & Wilmer Mr. Lindsay may be contacted at mlindsay@swlaw.com Mr. Mecklenburg may be contacted at lmecklenburg@swlaw.com Read the court decision
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Alert: AAA Construction Industry Rules Update

June 07, 2021 — Christopher G. Hill - Construction Law Musings
The American Arbitration Association has made some needed updates to their Construction Industry Arbitration and Mediation Rules, effective July 1, 2015. Among the changes listed at their website are:

A mediation step for all cases with claims of $100,000 or more (subject to the ability of any party to opt out).
Consolidation and joinder time frames and filing requirements to streamline these increasingly involved issues in construction arbitrations.
New preliminary hearing rules to provide more structure and organization to get the arbitration process on the right track from the beginning.
Information exchange measures to give arbitrators a greater degree of control to limit the exchange of information, including electronic documents.
Availability of emergency measures of protection in contracts that have been entered into on or after July 1, 2015.
Enforcement power of the arbitrator to issue orders to parties that refuse to comply with the Rules or the arbitrator’s orders.
Permissibility of dispositive motions to dispose of all or part of a claim or to narrow the issue in a claim.

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Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

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