Changes and Extra Work – Is There a Limit?
October 09, 2018 —
Joseph R. Young - Smith CurrieDesign and construction changes can be a challenge for everyone involved in a construction project. Designers and contractors endeavor to deliver a project that meets the owner’s needs, budget, and aesthetic considerations. As a project comes to fruition, the project frequently changes, and the parties must address and resolve the financial considerations of those changes and implement the changes at the project level. Often times the most critical aspect of a contractor’s financial success or failure of a construction project is its ability to manage changes. Contractors are sometimes faced with changes that are beyond the reasonable expectation of the original undertaking and have significant planning, scheduling, and cost implications that may not be considered or addressed in the contract’s changes clause. Changes of this magnitude may be considered “cardinal changes” and provide the contractor with recourse beyond restrictions imposed by the contract’s changes clause. But cardinal change is a risky basis for a contractor to refuse to perform additional or changed work. Even major changes can probably be more safely handled within the terms of the contract’s changes clause.
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Joseph R. Young, Smith CurrieMr. Young may be contacted at
jryoung@smithcurrie.com
Not a Waiver for All: Maryland Declines to Apply Subrogation Waiver to Subcontractors
September 23, 2024 —
Gus Sara - The Subrogation StrategistIn Lithko Contr., LLC v. XL Ins. Am. Inc., No. 31, Sept. Term, 2023, 2024 Md. LEXIS 256, the Supreme Court of Maryland considered whether a tenant who contracted for the construction of a large warehouse facility waived its insurer’s rights to subrogation against subcontractors when it agreed to waive subrogation against the general contractor. The court ultimately decided that the unambiguous language of the subrogation waiver in the development agreement between the parties did not extend to subcontractors. The court also held that the tenant’s requirement that subcontracts include a subrogation waiver did not, in this case, impose a project-wide waiver on all parties. The court, however, found that the requirement that the subcontracts include a similar, but not identical, waiver provision rendered the subcontract’s waiver clauses ambiguous and remanded the case to the lower court to determine if the parties to the development agreement – i.e., Duke Baltimore LLC (“Duke”) and Amazon.com.dedc, LLC (“Amazon”) – intended that the waiver clause in the subcontracts covered claims against subcontractors.
This case involved roof and structural damage to a warehouse in Baltimore, Maryland that Duke owned. In March 2014, Amazon entered into a development agreement with Duke for the construction of the warehouse. Amazon also agreed to subsequently lease the warehouse from Duke. Although Amazon essentially owned and/or developed the project, the development agreement identified Duke as “Landlord” and Amazon as “Tenant.”
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Gus Sara, White and WilliamsMr. Sara may be contacted at
sarag@whiteandwilliams.com
New Jersey Appellate Court Reinstates Asbestos Action
March 05, 2015 —
Beverley BevenFlorez-CDJ STAFFAccording to the New Jersey Law Journal, an asbestos case involving “a long-time ship worker who died of mesothelioma was reinstated by a New Jersey appellate court on March 3.” A lower court judge had “dismissed the claims against them based on his view that the evidence presented by the plaintiff was insufficient to show that the ships on which he worked contained asbestos and that he was exposed to it.” However, the appeals judges disagreed.
“Although the summary judgment motion was decided on a very narrow ground, we conclude that the record as a whole establishes a triable issue as to whether plaintiff was exposed to asbestos or asbestos-containing products on defendant’s dredges,” judges Susan Maven and Henry Carroll stated, according to the New Jersey Law Journal.
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New York Converting Unlikely Buildings into Condominiums
July 23, 2014 —
Beverley BevenFlorez-CDJ STAFFThe New York Times reported that New York has seen a boom of buildings such as power plants, churches, schools, parking garages, and theaters converted to apartment and condo spaces. Part of the reason for the surge was due to land scarcity—but the New York Times also stated that zoning on the “old-time structures are far bigger than what zoning would allow on their lots today.” Plus, “[a]daptive reuse can also be speedier.”
However, Toby Moskovits, president of Heritage Equity Partners, stated that the real reason might be curb appeal: “There’s a general movement now that goes beyond real estate, a reaction to a world that’s become increasingly electronic. People are more comfortable with something that feels authentic.” Heritage Equity Partners is currently converting a church-and-school complex into apartments in Williamsburg, Brooklyn.
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Contractual Indemnification Limitation on Florida Public Projects
July 28, 2016 —
David Adelstein – Florida Construction Legal UpdatesConstruction contract indemnification provisions are governed under Florida Statute s. 725.06. This is a very important statute to know if you are drafting indemnification provisions for any type of construction contract. (There is also Florida Statute s. 725.08 that discusses indemnification provisions applicable to design professionals that is also worth knowing.)
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David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
NY Estimating Consultant Settles $3.1M Government Project Fraud Case
November 23, 2020 —
Eva Fedderly - Engineering News-RecordVJ Associates, a Hicksville, N.Y., estimating consultant, has agreed to pay $3.13 million in civil and criminal penalties to settle charges that the firm overbilled and falsified hours on multiple federal and state government-funded transportation and other contracts in New York and Massachusetts, the U.S. Attorney's office in Boston announced on Oct. 29.
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Eva Fedderly, Engineering News-Record
ENR may be contacted at ENR.com@bnpmedia.com
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Get Smarter About Electric Construction Equipment
October 24, 2022 —
CONEXPO-CON/AGGMILWAUKEE – Sustainability in the construction industry is being advanced by the public and private sectors. Governments are adopting more clean-air regulations at local and regional levels and companies are adopting sustainability policies and asking partners to help them meet their targets.
Consequently, many manufacturers have already developed – or are in the process of developing – electric-powered construction equipment to meet increasing emissions regulations, provide efficiency improvements, and lower operating costs. All electric, electric/hydraulic, and battery-operated versions rival their diesel and gas counterparts in performance, notes
Joel Honeyman, Vice President of Global Innovation at
Bobcat.
THE CHANGING INDUSTRY
“People say electric machines are not going to perform as well as a diesel machine,” Honeyman observes. “That is simply not true. In many cases they can outperform them.”
“Many people are so used to what they have and are afraid of new technology. Some companies have been running diesel- and gas-powered equipment for 40, 50 years. Hydraulics have been on equipment for 80 years. Adjusting to an electric-powered machine is quite a paradigm shift.”
About the Association of Equipment Manufacturers (AEM)
AEM is the North America-based international trade group representing off-road equipment manufacturers and suppliers with more than 1,000 companies and more than 200 product lines in the agriculture and construction-related industry sectors worldwide. The equipment manufacturing industry in the United States supports 2.8 million jobs and contributes roughly $288 billion to the economy every year.
About CONEXPO-CON/AGG
Held every three years, CONEXPO-CON/AGG is the must-attend event for construction industry professionals. The show features the latest equipment, products, services and technologies for the construction industry, as well as industry-leading education. The next CONEXPO-CON/AGG will be held March 14-18, 2023 in Las Vegas, Nevada. For more information on CONEXPO-CON/AGG, visit https://www.conexpoconagg.com. Learn more about
excavator tech here.
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You Say Tomato, I Say Tomahto. But When it Comes to the CalOSHA Appeals Board, They Can Say it Any Way They Please
January 08, 2024 —
Garret Murai - California Construction Law BlogWe lawyers do a fair amount of reading. Documents. Court decisions. Passive aggressive correspondence from opposing counsel. As well as statutes, regulations and administrative guidance. And you might be surprised how often words can be ascribed very different meanings depending on who is reading it. Such, I suppose, is the nature of language. When it comes to public agency interpretations of its own regulations, however, you would be well to heed that authors are often the best interpreters of their own works, or at least that’s how the courts tend to view it, as in the next case L & S Framing Inc. v. California Occupational Safety and Health Appeals Board, Case No. C096386 (July 24, 2023).
The L & S Framing Case
Martin Mariano, an employee of L & S Framing, Inc., suffered a brain injury when he fell from the “second floor” while working on a single family house. What, exactly, this “second floor” was, was a point of a contention in the legal case that followed.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com