Seattle Washington Building Expert Directory

The Unwavering Un-waivable Implied Warranty of Workmanship and Habitability in Arizona

January 23, 2023 — Robert A. Henry & Emily R. Parker - Snell & Wilmer Real Estate Litigation Blog
The Arizona Supreme Court recently issued an opinion on the scope of the implied warranty of workmanship and habitability (the “implied warranty”) in contracts between homebuyers and builder/vendors that provides clear guidance of the law in this area, specifically on the issue of whether the implied warranty can be waived or disclaimed. It is also an interesting and helpful read for those who engage in new home residential sales and real estate transactions generally. The case: Zambrano v. M & RC, II LLC, 254 Ariz. 53 (2022). The takeaway holding: the implied warranty of workmanship and habitability cannot, under any circumstances, be disclaimed or waived. From a practice perspective, the foregoing is likely all one needs to ultimately know. However, the majority opinion (authored by Justice Timmer) and the dissent (authored by Justice King, and joined by Justice Bolick) are in these authors’ opinions worth a read for those who want a better understanding of the contours of how “public policy” plays into the analysis of the enforceability of contract terms, especially in the real estate context and even more particularly in connection with contracts for the sale of new homes. The careful analysis of both the majority opinion and the dissent provides an excellent history of the implied warranty, the public policy behind it, and its scope and application in the context of competing public policies, most notably the freedom to contract. Reprinted courtesy of Robert A. Henry, Snell & Wilmer and Emily R. Parker, Snell & Wilmer Mr. Henry may be contacted at bhenry@swlaw.com Ms. Parker may be contacted at eparker@swlaw.com Read the court decision
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Modern Tools Are Key to Future-Proofing the Construction Industry

September 19, 2022 — Guillaume Le Gouic - Construction Executive
The U.S. construction industry is facing a tech revolution that’s upending the roles of skilled workers. Many traditional contractors are struggling to embrace the new technologies customers increasingly demand, while the industry struggles to attract young professionals. According to the latest American Community Survey data, the median age of a construction worker is 41. This is particularly concerning given the confluence of two trends: the construction industry is facing a critical workforce shortage that’s only expected to intensify, and the workforce is aging—NCCER is predicting around 40% are expected to retire by 2031. Industry leaders must prioritize using the latest industry solutions and innovations to modernize construction work, transform the construction industry and appeal to the next generation of contractors. Throughout COVID-19, the construction sector experienced a higher number of workers quitting jobs as opposed to being laid off, indicating the older workforce likely took the opportunity to retire early, along with more than three million other Americans who did the same. Currently, industry leaders are not doing enough to communicate opportunities to help shift the career perception of electrical contractors from simply being “blue collar” and un-exciting. A 2019 National Association of Home Builders (NAHB) found only 3% of people ages 18 to 25 were interested in pursuing a construction career, with most respondents noting the desire for a less physically demanding job. Reprinted courtesy of Guillaume Le Gouic, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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What Should Be in Every Construction Agreement

November 04, 2019 — Patrick Barthet - Construction Executive
A detailed and coherent construction agreement in place on every job minimizes confusion, makes clear everyone’s respective responsibilities and reduces disputes. There are six things that should be addressed in every construction agreement. DEFINE THE SCOPE Define what the scope of work is that will be provided. Will it be only materials; will it be materials and labor; or will it be just labor? Be very clear and specific in how the scope of work is spelled out. Many contracts state that the contractor is responsible for all work that’s shown on the plans and specifications, as well as that which is reasonably inferable. While subjective—even if not actually on the plans or specifications, someone may believe that something should be part of the contractor’s work. This could expand what has to be done beyond what was understood or priced. LIST ALL THE EXCLUSIONS Do the parties each have the same understanding as to what is covered in the contract? How often are contractors faced with customers thinking something was included as part of the work? The contractor may have believed that task, or that material, or that specially fabricated item was excluded. But was it? Did the contractor articulate what was and was not in the scope and price? Specifically listing what is excluded can obviate this problem. Articulate what is not in the price or scope and reduce the chance of one party believing that something is to be done when it isn't. Reprinted courtesy of Patrick Barthet, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Mr. Barthet may be contacted at pbarthet@barthet.com

Your Contract is a Hodgepodge of Conflicting Proposals

January 06, 2016 — Craig Martin – Construction Contractor Advisor
Ouch. That’s what a court called a contract to remediate petroleum contamination at a number of gas stations in New York. Sometimes, it’s hard to believe the contracts that get signed. Environmental Risk hired Science Applications to remediate petroleum contamination at 47 gas stations. Environmental Risk had previously entered into a Professional Services Master Agreement with Science Applications, but also required Science Applications to sign three separate, but basically identical, subcontracts called the Project Specific Scopes of Work. So, right from the start, there were four contracts that could apply to Science Applications’ work. Read the court decision
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Reprinted courtesy of Craig Martin, Lamson, Dugan and Murray, LLP
Mr. Martin may be contacted at cmartin@ldmlaw.com

No Indemnity Coverage Where Insured Suffers No Loss

November 05, 2014 — Tred R. Eyerly - Insurance Law Hawaii
The insured subcontractor sought coverage under its Builder's Risk policy for loss despite already being paid under contract the amount sought under the policy. MKB Constr. v. Am Zurich Ins. Co., 2014 U.S. Dist. LEXIS 136096 (W.D. Wash. Sept. 24, 2014). MKB contracted with the Lower Yukon School District (LYSD) to place gravel fill for a new building pad upon which a school building would be placed in Emmonak, Alaska. The project site was built on tundra that melted in the summer, becoming marshy and pocketed by pools of standing water. LYSD provided the bidding contractors with information stating that settlements of 3 to 9 inches could be expected in areas with 30 inches of fill. The contract was awarded to MKB, who subsequently realized it had under bid the amount of gravel fill that would be required. The estimated difference in the amount bid and the amount that would be needed was 6,583 cubic yards. LYSD refused to increase the contract price. 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

Feds Outline Workforce Rules for $39B in Chip Plant Funding

April 10, 2023 — James Leggate - Engineering News-Record
Semiconductor chip producers must pay their construction workforce prevailing wages and will be “strongly encouraged” to use project labor agreements if they want a piece of the $39 billion available in federal funding to support fabrication plant construction, expansion or modernization projects, U.S. Commerce Secretary Gina Raimondo says. Reprinted courtesy of James Leggate, Engineering News-Record Mr. Leggate may be contacted at leggatej@enr.com Read the full story... Read the court decision
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Defining Constructive Acceleration

March 22, 2021 — David Adelstein - Florida Construction Legal Updates
When it comes to the definition of “constructive acceleration,” the case of Fraser Const. Co. v. U.S., 384 F.3d 1354 (Fed.Cir. 2004) is a cited case and contains an instructive definition, quoted below, for proving a constructive acceleration claim. In a nutshell, a constructive acceleration claim is when the contractor incurs added costs for trying to complete the contract on time when it should be provided extensions of time to perform based on excusable delay (i.e., delay not caused by the contractor). These added costs could be bringing in additional supervision to manage the work, adding manpower to perform the work, working overtime, working weekends, adding more shift work, stacking trades, etc. However, just because a contractor claims they have been constructively accelerated does not make it so. The contractor has to actually ask for an extension of time based on an excusable delay and the owner either denied the extension or unreasonably sat on the request for an extension of time; thus, the contractor incurred significant costs to accelerate in order to finish the project on time because it was deprived of a requested time extension for excusable delay. Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

Product Liability Alert: “Sophisticated User” Defense Not Available by Showing Existence of a “Sophisticated Intermediary”

November 26, 2014 — R. Bryan Martin & Kristian B. Moriarty - Haight Brown & Bonesteel LLP
In Gottschall v. Crane Co., (No. A136516, Filed 10/8/2014, published 10/22/2014), the Court of Appeal, First Appellate District, held a company that manufactured and sold asbestos-containing products could not prevail under the “sophisticated user” doctrine based on the contention that a “sophisticated intermediary” existed, in an action brought by the end user of the products. Decedent Robert Gottschall worked in a variety of shipyards for the U.S. Navy between 1957 and 1989. Defendant Crane Co. (“Crane”) manufactured and sold products containing asbestos to the Navy during that time. During his work at the various shipyards, decedent was exposed to asbestos and contracted mesothelioma. Reprinted courtesy of R. Bryan Martin, Haight Brown & Bonesteel LLP and Kristian B. Moriarty, Haight Brown & Bonesteel LLP Mr. Martin may be contacted at bmartin@hbblaw.com; Mr. Moriarty may be contacted at kmoriarty@hbblaw.com Read the court decision
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