Seattle Washington Building Expert Directory

Substantial Completion Explained: What Contractors & Owners Should Know

January 17, 2022 — Travis Colburn - Ahlers Cressman & Sleight
A project’s Substantial Completion date is a critical construction milestone for contractors and owners. Depending on the contract, the date of Substantial Completion has project-specific contractual and statutory consequences. Substantial Completion is an “event” – there is no universal definition of the term. It is generally understood to be (1) a point in time (2) when work performed by the contractor is sufficiently complete (3) where it can be used or occupied for the owner’s intended purpose. The date of Substantial Completion is generally established at the time of contract formation (either as a negotiated or a contract set date), and that date may be adjusted over the course of a project to account for excusable delays. As a construction professional, your attorney should review and tailor any written agreement to your project-specific needs and risk tolerances prior to execution. Savvy construction professionals often start with standard form agreements promulgated by the American Institute of Architects (“AIA”), the Design-Build Institute of America (“DBIA”), or the Engineers Joint Contract Document Committee (“EJCDC”) as the basis for their construction contracts. The AIA, DBIA, and EJCDC standard forms each contains contract provisions relating to when and what happens once Substantial Completion has occurred, subject to any agreed-to, project-specific deviations. Read the court decision
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Reprinted courtesy of Travis Colburn, Ahlers Cressman & Sleight
Mr. Colburn may be contacted at travis.colburn@acslawyers.com

When Licensing Lapses: How One Contractor Lost a $1 Million Dispute

October 28, 2024 — Matthew DeVries - Best Practices Construction Law
As a construction lawyer, contractor licensing is a very key aspect of my practice. This can include new contractor applications, increase or changes in monetary limits or license classifications, change in ownership or qualifying agent , and, of course, licensing violations. The recent decision in Incident365 Florida, LLC v. Ocean Pointe V Condominium Association serves as an important reminder for general contractors and subcontractors regarding the significance of proper licensing and thorough contract review in disaster recovery and construction services. Case Overview In this case, Incident365 Florida, LLC entered into disaster recovery agreements with several condominium associations (“Associations”) following Hurricane Irma. The agreements involved various tasks such as water damage mitigation, dehumidification, and the removal of unsalvageable materials. However, Incident365 lacked the appropriate contractor’s license when performing the work, which became a focal point in the dispute when the Associations refused to pay the remaining balance of $1 million, citing the absence of the required licensure. Read the court decision
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Reprinted courtesy of Matthew DeVries, Buchalter
Mr. DeVries may be contacted at mdevries@buchalter.com

Delays Caused When Government (Owner) Pushes Contractor’s Work Into Rainy / Adverse Weather Season

January 13, 2020 — David Adelstein - Florida Construction Legal Updates
There are a number of horizontal construction projects where a contractor’s sequence of work and schedule is predicated on avoiding the rainy season (or certain force majeure events). The reason is that the rainy season will result in delays due to the inability to work (and work efficiently) during the adverse weather (including flooding caused by the weather). If the work is pushed into the rainy season, is such delay compensable if the government (or owner) delayed the project that pushed work out into the rainy season? It very well can be. For example, in Meridian Engineering Co. v. U.S., 2019 WL 4594233 (Fed. Cl. 2019), a contractor was hired by the Army Corps of Engineers to construct a flood control project for a channel in Arizona. Due to delays, including those caused by the government, the project was pushed into the monsoon season, which caused additional delays largely due to flooding caused by the heavy rain. One issue was whether such delays were compensable to the contractor – the government raised the argument that the contractor assumed the risk of potential flooding from the rainy season. The Court found this argument unconvincing:

[The contractor’s] initial construction schedule planned for a completion of the channel invert work, a necessary step in protecting the site from flooding, to be completed by late June 2008…[M]any issues arose in the project’s early stages that led to cumulative substantial delay, including those caused by the government’s failure….The government cannot now claim that [the contractor] assumed the risk of flooding from monsoon season when the government was largely responsible for [the contractor’s] inability to complete the project prior to the beginning of the monsoon season. Simply put, the government cannot escape liability for flood damages when the government is responsible for causing the contractor to be working during the flood-prone season. Meridian Engineering, 2019 WL at *7 (internal citations omitted)

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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

Single-Family Home Starts Seen Catching Up to Surging U.S. Sales

May 07, 2015 — David Wilson – Bloomberg
New single-family houses are selling fast enough in the U.S. that homebuilders will have to pick up the pace of starting them, according to Neil Dutta, head of U.S. economics at Renaissance Macro Research LLC. The attached chart compares annual growth rates in sales and starts, as compiled by the Commerce Department, during the past 25 years. The top panel shows the rates, while the bottom panel tracks the percentage-point gap between then. Last month’s sales of one-family homes totaled 510,000 at an annual rate, according on the average estimate of economists in a Bloomberg survey. The projection amounts to a 26.6 percent increase from a year ago. Builders began working on 2.7 percent fewer homes in March, according to data released yesterday. The 29.3-point differential would be the widest since July 1995. Read the court decision
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Reprinted courtesy of David Wilson, Bloomberg
Mr. Wilson may be contacted at dwilson@bloomberg.net

OSHA Penalties—What Happened with International Nutrition

April 15, 2015 — Craig Martin – Construction Contractor Advisor
For those of you in and around Omaha, you recall the tragic collapse of International Nutrition’s plant in early 2014, killing two workers and injuring several others. OSHA swept onto the scene and issued citations. Surprisingly, the penalties totaled only $120,000. While a large sum, one would think two deaths and a score of injuries would generate a larger fine. International Nutrition appealed the penalties and they have now been reduced to $78,000, about a 1/3 reduction. Below, I’ll set forth what happened. The Original Penalties International Nutrition was originally fined $120,650.00 for citations ranging from willful, serious, to other-than-serious. 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

WSHB Ranked 4th Most Diverse Law Firm in U.S.

July 14, 2016 — Beverley BevenFlorez-CDJ STAFF
American Lawyer, in its annual Diversity Scoreboard Survey, ranked Wood Smith Henning & Berman LLP (WSHB) one of the four top law firms in the nation. Scores are based upon the firms’ combined percentage of minority lawyers as well as minority partners in U.S. offices. “Historically, law has not been among the most diverse of professions,” Partner Domingo Tan, Chair of WSHB’s Recruiting Committee, stated according to the firm’s media release. “This trend has recently begun to change and I am proud that our firm is one of the national leaders in recognizing and celebrating diversity as a core value.” WSHB Partner Jade Tran explained how the firm’s diversity benefits its clients: “At WSHB, we are a litigation powerhouse built upon the experiences drawn from our diverse attorney backgrounds. It’s this diversity that also makes our attorneys relatable to our clients who themselves stem from diverse backgrounds.” Read the court decision
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Finding Insurer's Declaratory Relief Action Raises Unsettled Questions of State Law, Case is Dismissed

November 05, 2024 — Tred R. Eyerly - Insurance Law Hawaii
The federal district court for the District of Hawaii dismissed the insurer's action for declaratory relief because it raised issues that were unsettled by Hawaii courts. Association of Apartment Owners of Lahaina Residential Condominium, et al., No. 1-24-cv-00075-JAO-BMK, Order Granting AOAO's Motion to Dismiss (D. Haw. Aug. 29, 2024). The case addressed whether a property damage exclusion barred coverage over an owner's claim that a condominium association and its property manager failed to obtain adequate insurance before the condominium's property was damaged by the Maui wildfire in August 2023. Great American filed suit seeking a declaration that it had no duty to defend or indemnify the Association and the property manage, Quam Properties Hawaiiana, Inc., in connection with a demand for mediation submitted to the Association and Quam on behalf of one of the owners. 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

Montrose III: Vertical Exhaustion Applies in Upper Layers of Excess Coverage

May 18, 2020 — Christopher Kendrick & Valerie A. Moore – Haight Brown & Bonesteel LLP
In Montrose Chemical Corp. of Cal. v. Superior Court (No. S244737, filed 4/6/20) (Montrose III), the California Supreme Court held that, as between excess insurers at differing levels of coverage, a rule of “vertical exhaustion” or “elective stacking” applies, whereby the insured may access any excess policy once it has exhausted other excess policies with lower attachment points in the same policy period. The Court limited the rule to excess insurance, stating that “[b]ecause the question is not presented here, we do not decide when or whether an insured may access excess policies before all primary insurance covering all relevant policy periods has been exhausted.” Montrose manufactured the insecticide DDT in Torrance from 1947 to 1982. In 1990, the state and federal governments sued Montrose for environmental contamination and Montrose entered into partial consent decrees agreeing to pay for cleanup. Montrose claimed to have expended in excess of $100 million doing so, and asserted that its future liability could exceed that amount. Reprinted courtesy of Christopher Kendrick, Haight Brown & Bonesteel LLP and Valerie A. Moore, Haight Brown & Bonesteel LLP Mr. Kendrick may be contacted at ckendrick@hbblaw.com Ms. Moore may be contacted at vmoore@hbblaw.com Read the court decision
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