Fairfield Connecticut Building Expert Directory

Should a Subcontractor provide bonds to a GC who is not himself bonded? (Bonding Agent Perspective)

May 03, 2017 — Christopher G. Hill - Construction Law Musings
Guest Post Friday is back, and for this week, Construction Law Musings welcomes Steve Moore. Steve has been the Construction & Surety Manager for Towne Insurance Agency-Invincia, in Chesterfield, VA since 2010. Steve’s experience in the Virginia surety bonding marketplace started in 1985 with USF&G. His underwriting travels took him from USF&G to starting National Grange Mutual’s mid-Atlantic bond department over Virginia, Maryland, Delaware, North & South Carolina, to being Reliance Surety’s “Firemark” bond manager in Virginia. Reliance was purchased by Travelers, where Steve continued to grow the surety book of business and build expertise and relationships. Experience with Travelers and Zurich had Steve handling surety bonds for some of Virginia’s largest and best-of-class contractors. Recently, he was contracted by the Commonwealth’s Attorney’s office to serve as a contract surety expert witness on behalf of the state. He is a 1985 graduate of Virginia Tech with double-major B.S. degrees in Finance and Marketing. Today, Steve has business and relationships with Travelers, The Hartford, Westfield, CNA, CBIC, Selective, Liberty Mutual, Ohio Casualty, Cincinnati, and many other companies. Steve’s strong foundation of insurance knowledge and in bonding principles and practices allow him to serve as a great resource for his clients. An old Aesop fable comes to mind when I am asked whether a Sub should bond to an unbonded GC:

"A woodsman entered the forest and asked the trees to give him a handle made of the best wood. After giving the woodsman a stave of hickory, the forest watched the woodsman fashion an axe onto the handle. In a flash, the woodsman began to chop down the various oaks and maples in the forest. The oak then said to a pine, “It serves us right, since we gave our adversary the very thing that contributes to our doom…"

When a subcontractor client of mine asks about bonding to an un-bonded general contractor, a number of questions immediately come to mind. Why isn’t the GC bonded? What is the existing relationship between the GC and Sub? How well is the job financed? While wanting to help my subcontractor procure work, and surely enjoying the commissions from writing a bond, I also want to help my sub client manage unforeseen risk. What are the risks to a sub, when posting a bond to an unbonded GC? Read the court decision
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Reprinted courtesy of Christopher G. Hill, The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

How Algorithmic Design Improves Collaboration in Building Design

June 18, 2019 — Aarni Heiskanen - AEC Business
Design, like everything else in a construction project, is a collaborative effort. Even with digital tools, collaboration across design disciplines is not yet optimal. An experimental project thus set out to test whether algorithmic design could help streamline the interaction between architects and structural engineers. Design data originating from an architect is used in several engineering tools for visualization, analysis, and calculation. Ideally, changes in the architect’s design would propagate automatically across all the software. Unfortunately, the process is in fact mostly manual. Hence, the design data is seldom, if ever, in perfect sync on all systems. Read the court decision
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Reprinted courtesy of Aarni Heiskanen, AEC Business
Mr. Heiskanen may be contacted at aec-business@aepartners.fi

School Blown Down by Wind Still Set to Open on Schedule

November 06, 2013 — CDJ STAFF
The framing was going up for a new elementary school in Pasco, Ohio, when winds of about 60 miles per hour ripped the area. The winds brought down part of the structure. School district officials met with the contractor, Fowler Construction. John Morgan, the assistant director of operations for the Pasco School District, said that they did not “anticipate any delay in the opening of the new school.” Groundbreaking at the school happened in June and the school is scheduled to be open in the fall. The damage had not yet been determined. Read the court decision
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Excess Carrier's Declaratory Judgment Action Stayed While Underlying Case Still Pending

June 11, 2014 — Tred R. Eyerly – Insurance Law Hawaii
The federal district court determined the excess carrier's declaratory judgment action to establish it had no coverage obligations should be stayed while the underlying case was still pending. Scottsdale Ins. Co. v. Ortiz & Assocs., 2014 U.S. Dist. LEXIS 64286 (D. Ore. May 9, 2014). The subcontractor's employee was killed on the job site when struck by a dump truck owned by the general contractor, Inland Asphalt Co. Island was sued for wrongful death. Island was an additional insured under the subcontractor's primary policy and excess policy with Scottsdale. Inland put Scottsdale on notice of the underlying wrongful death lawsuit, but did not tender its defense to Scottsdale. 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

A Relatively Small Exception to Fraud and Contract Don’t Mix

April 01, 2015 — Christopher G. Hill – Construction Law Musings
Remember all of my posts about how fraud and contract claims don’t usually play well in litigation? Well, as always with the law, there are exceptions. For instance, a well plead Virginia Consumer Protection Act claim will survive a dismissal challenge. A recent opinion out of the Alexandria division of the U. S. District Court for the Eastern District of Virginia sets out another exception, namely so called fraudulent inducement. In XL Specialty Ins. Co. v. Truland et al, the Court considered the question of whether both a tort and contract claim can coexist in the same lawsuit when the tort claim is based upon the information provided to the plaintiff when that information proves false. As the courts of Virginia have held for years, only certain information and statements made pre-contract can be the basis for a fraud claim in the face of a contractual duty to perform. One type of statement that is not properly the subject of a fraud in the inducement type claim is sales talk or opinion. Such sales talk (for example claiming that your company is the best for the job) is not the subject of a fraud claim because it is not meant to be relied upon and that such talk is an opinion about future performance, not a false statement of present fact or intent. Read the court decision
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Reprinted courtesy of Christopher G. Hill, Law Office of Christopher G. Hill, PC
Mr. Hill may be contacted at chrisghill@constructionlawva.com

Bid Protests: The Good, the Bad and the Ugly (Redeux)

September 17, 2014 — Garret Murai – California Construction Law Blog
This past week I gave a presentation on a panel entitled “Bid Protests: The Good, the Bad and the Ugly” before my local bar association. Thanks to those who attended, my co-presenters and the bar association for sponsoring. Rather than letting my notes gather dust I thought I would share some of the highlights. What is a bid protest? A bid protest is the procedure by which a bidder protests the rejection of its bid or award of a public works contract to another bidder. A bid protest may occur in one of two situations: (1) A public entity rejects the bid of an apparent low bidder and the apparent low bidder protests the rejection; or (2) A public entity awards the contract to the apparent low bidder and another bidder protests the award. Read the court decision
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Reprinted courtesy of Garret Murai, Kronick Moskovitz Tiedemann & Girard
Mr. Murai may be contacted at gmurai@kmtg.com

High-Rise Condominium Construction Design Defects, A Maryland Construction Lawyer’s Perspective

July 15, 2015 — Nicholas D. Cowie – Maryland Condo Construction Defect Law Blog
The increased migration from suburbs to metropolitan areas has accompanied an increase in high-rise construction, including the development of high-rise condominium buildings. The resulting metamorphosis of urban skylines, such as seen from Maryland’s Baltimore harbor, has also brought with it many complex construction law and construction litigation issues. Our law firm’s Maryland condominium construction law practice is increasingly called upon to resolve disputes involving high-rise condominium construction design defects between condominium associations, developers, contractors, builders, and design professionals arising out of the construction of high-rise buildings. A condominium building is typically considered to be a high-rise when it is approximately seven or more stories above grade according to the National Fire Protection Association Life Safety Code, which defines a high-rise as being 75 feet (23 meters) measured from the lowest level accessible to fire department vehicles up to the floor level of the highest occupiable story. High-rise buildings may be residential (e.g., condominiums or multifamily apartment buildings), commercial (e.g., commercial office or retail space), or mixed-use structures. A mixed-use high-rise development might contain retail space, office space, a parking garage, apartments, and condominiums, each owned or maintained by separate entities and each sharing common expenses for the building. Read the court decision
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Reprinted courtesy of Nicholas D. Cowie, Cowie & Mott, P.A.
Mr. Cowie may be contacted at ndc@cowiemott.com

Labor Shortages In Construction

December 04, 2023 — Jason Feld & Chris Bates - Kahana Feld
Similar to other industries, the ongoing labor shortage crisis in the United States is detrimentally impacting construction activities in both the residential and commercial sector. According to the Bureau of Labor Statistics, the turnover rate for the construction industry since 2021 has risen to 56%. And while the national unemployment rate ranges between 0.4% to 7.5%, the unemployment rate for construction is roughly four times the national average (See, Associated Builders and Contractors, Markenstein Advisors Report dated July 28, 2023). 73% of workers preferred to stay in a remote work environment, and another 40% of the global workforce has elected to voluntarily remove themselves from the workplace. (See, 2021 Microsoft Work Index). In particular with the construction industry, employment rates have returned to pre-pandemic levels hovering around 12% unemployment in 2020 to 6% in 2022. (See, Joint Center for Housing Studies at Harvard University, Carlos Martin). So where did all the workers go? During the height of the 2020 Covid-19 Pandemic and for the next few years, the county experienced what most people are calling “The Great Resignation”. May people took jobs with better pay and better alignment with their values. Approximately 40% stated a new business. Many elected to become stay-at-home parents forgoing a paycheck to raise their families while the other spouse works, especially due to the rising costs of childcare. About 1 in every 4 baby-boomers retired. Others took part-time employment, entered military service or left the workforce due to disability or injury. (See, Bloomberg Businessweek). Reprinted courtesy of Jason Feld, Kahana Feld and Chris Bates, Kahana Feld Mr. Feld may be contacted at jfeld@kahanafeld.com Mr. Bates may be contacted at cbates@kahanafeld.com Read the court decision
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