Delays and Suspension of the Work Under Fixed Price Government Contract
July 22, 2024 —
David Adelstein - Florida Construction Legal UpdatesHere is an interesting fact pattern and case decided by the Civilian Board of Contract Appeals dealing with (1) force majeure type events and epidemics (Covid-19); (2) suspension of the work; and (3) delays. These are three topics important to all contractors including federal contractors.
In Lusk Mechanical Contractors, Inc. v General Services Administration, 2024 WL 1953697, CBCA 7759 (CBCA 2024), a contractor entered into a fixed price contract with the government to repair, replace, and modernize site and building systems at a federal building. The contractor commenced work right before Covid-19. When Covid-19 hit, the government issued the contractor a two-week suspension of work notice on March 27, 2020. The suspension of work allowed off-site administrative work to continue but suspended on-site physical work. The government extended the suspension of work three more times. The contractor could resume work on the exterior on June 1, 2020, but was not permitted to resume work on the interior until July 20, 2020. On the same date that the contractor was able to commence interior work, it submitted a modification for delay caused by the suspension – 64 days for the time period the entire site shutdown, and 51 days for the interior work shutdown.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Brown Act Modifications in Response to Coronavirus Outbreak
March 30, 2020 —
Gregory J. Rolen - Haight Brown & BonesteelGov. Gavin Newsom waived certain provisions of the Bagley-Keene Act and Ralph M. Brown Act to make state and local legislative bodies safer while allowing California public entities to conduct business.
In an effort to promote social distancing and slow the spread of the coronavirus pandemic Gov. Newsom issued Executive Order N-25-20. The Executive Order authorizes state and local legislative bodies, such as school district and county office of education governing boards, to more easily hold public meetings by way of teleconference. The order took further steps to make public meetings accessible to the public via electronic means, including telephone.
The Brown Act generally requires legislative body members, a clerk, or other personnel to be physically present in a meeting in order to participate or establish a quorum. Executive Order N-25-20 temporarily eliminates this requirement. Furthermore, standard Brown Act requirements such as publicly noticing the teleconference location for each meeting participant is also suspended. Clearly, this is an attempt to protect the public, as well as Board members and staff, by temporarily discouraging large group settings in the conduct of the public’s business.
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Gregory J. Rolen, Haight Brown & BonesteelMr. Rolen may be contacted at
grolen@hbblaw.com
Incorporation, Indemnity and Statutes of Limitations, Oh My!
January 19, 2017 —
Christopher G. Hill – Construction Law MusingsWe all know that the contract is king in Virginia. We also know that Virginia will allow for a so called “incorporation” clause that will allow for “flow down” of certain prime contract provisions in a way that will make those provisions applicable to subcontractors. We also know that a claim for breach of contract or other contractual claim does not last forever due to certain statutes of limitation found in the Code of Virginia. What happens when all of these elements crash together in one place leading to litigation? Well, a relatively recent case from the Virginia Supreme Court gives at least a partial answer.
In Hensel Phelps Construction Company v Thompson Masonry Contractor, Inc, the Virginia Supreme Court considered a claim that arose from construction at Virginia Tech by Hensel Phelps. The construction concluded in 1998 (remember that date). The Prime Contract included language concerning a one year “Guarantee of Work” as well as fairly typical Warranty of Workmanship” language. However the Prime Contract also stated that the one year guaranty term did nothing to affect any other limitations period for any other action pursuant to the Prime Contract (this is important as well because Virginia Tech was not subject to any statute of limitations due to its status as an agency of the Commonwealth of Virginia). Final payment was made to Hensel Phelps and subsequently to the subcontractors in 1999.
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Christopher G. Hill, The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Environmental Roundup – May 2019
July 09, 2019 —
Anthony B. Cavender - Gravel2GavelFederal Courts of Appeal
Dam Claims Collapse
On May 7, 2019, the U.S. Court of Appeals for the Eleventh Circuit decided the case of Navelski, et al. v. International Paper Company. After a major storm, a dam constructed by International Paper to serve the operations of its local paper mill, was breached, releasing millions of gallons of water into a nearby creek resulting in the flooding of many homes located downstream from the creek. IP was sued by the homeowners in a class action, alleging negligence and strict liability for conducting an abnormally dangerous activity. The trial court dismissed the strict liability claim, and the jury found IP was not negligent in the operation of the dam. On appeal, the court upheld the jury verdict, agreeing that the verdict was supported by the evidence heard by the jury. The appeals court also agreed that the strict liability claim was properly dismissed as a matter of law because the operation of this dam was not an abnormally dangerous activity under Florida law. The plaintiffs had also argued that the jury should not have been advised that the home county, Escambia County, has applied for a FEMA grant which apparently made the case that some of the downstream homes were naturally prone to flooding. A redacted version of the application was allowed to be shown to the jury, but the appeals court held that the plaintiffs had not demonstrated that the court ruling was prejudicial.
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Anthony B. Cavender, PillsburyMr. Cavender may be contacted at
anthony.cavender@pillsburylaw.com
Insurer Not Entitled to Summary Judgment on Construction Defect Claims
February 10, 2012 —
Tred R. Eyerly - Insurance Law HawaiiThe insurer unsuccessfully moved for summary judgment, contending it had no obligation to defend two related underlying construction defect cases. Amerisure Ins. Co. v. R.L.Lantana Boatyard, Ltd., 2012 U.S. Dist. LEXIS 2466 (S.D. Fla. Jan. 9, 2012).
An engineering report noted design construction defects and deficiencies in visible, physical improvements at The Moorings at Lantana Condominium. In two lawsuits, The Moorings sued the developer, R.L. Lantana Boatyard ("RLLB"), and the contractor, Current Builders of Florida.
Current Builders was insured by Amerisure. RLLB was named as an additional insured under the Amerisure policy.
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii. Mr. Eyerly can be contacted at te@hawaiilawyer.com
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Preventing Common Electrical Injuries on the Jobsite
February 03, 2020 —
Kelsey Rzepecki - Construction ExecutiveDespite the overall decrease in electrical workplace fatalities, construction workers remain the most at risk of death from electrical accidents. In 2016, 53% of all fatal electrical injuries were in the construction industry, according to the Bureau of Labor Statistics.
Employers can improve their bottom line by implementing prevention strategies to reduce chances of electrical injuries and create a safer, more efficient jobsite.
What Are the Most Common Electrical Injuries in Construction?
The three types of electrical injuries that occur the most often on construction jobsites are:
- electrocution (such as electric shock and burns) through unintentional contact with high-voltage lines or equipment;
- severe burns or death from explosive gases accidentally ignited by electrical equipment; and
- injuries from falls or from contact with moving equipment after worker experiences a low-voltage electrical shock and can no longer keep balance or physical control of the tools or equipment they have when shocked.
Reprinted courtesy of
Kelsey Rzepecki, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Ms. Rzepecki may be contacted at
krzepecki@graphicproducts.com
EO or Uh-Oh: Biden’s Executive Order Requiring Project Labor Agreements on Federal Construction Projects
March 14, 2022 —
Nicole Stone, Jones Walker LLP - ConsensusDocsOn February 4, 2022, President Biden issued Executive Order (“EO”) 14063[1]. The EO requires that a Project Labor Agreement (“PLA”) be in place for any federal “large-scale construction projects” estimated at $35 million or more. To compete for or perform projects subject to the PLA requirement contractors must agree to be subject to the applicable PLA. For federal projects under $35 million or projects receiving federal financial assistance are not required by the EO to have PLA, but federal agencies will have discretion to require PLAs. The EO will not go into effect until after implementing regulations are finalized, probably after the beginning of June 2022.
Requiring PLAs on federal construction projects is a substantial shift from even the Obama Administration’s policy in favor of PLAs. Biden’s PLA EO will have an impact on federal contractors and likely industry repercussions beyond federal procurement. Only time and experience will tell whether those impacts will all be positive as the Biden Administration insists or will drive up construction costs and give unions more leverage than they have in the market as the critics insist.
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Nicole Stone, Jones Walker LLP (ConsensusDocs)Ms. Stone may be contacted at
nstone@joneswalker.com
The Importance of Retrofitting Existing Construction to Meet Sustainability Standards
December 18, 2022 —
Chris Gray - Construction ExecutiveJust about every industry is looking for ways in which they can go “green,” with varying degrees of success. Historically, the real estate industry has underinvested in the infrastructure, even with government incentives and initiatives, buildings and construction continue to pollute our atmosphere and release excess amounts of carbon into the air.
As it stands, existing buildings are, and will continue to be, a main problem. Right now, the real estate sector is responsible for a whopping 40% of global carbon emissions, along with 70% of the world’s electricity, and while we must continue to prioritize new, sustainable buildings, that does not address the countless buildings that are already standing and producing mass amounts of carbon emissions detrimental to our earth’s environment.
It is predicted that 70% of the existing buildings across the world will still be standing by the year 2050, meaning these outdated, inefficient warehouses and office parks aren’t going anywhere. To address the real estate carbon footprint, the industry needs to use modern technological solutions to combat this massive issue and implement new technology that transforms dated buildings into high-value decarbonized assets.
Reprinted courtesy of
Chris Gray, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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