Fairfield Connecticut Building Expert Directory

Sweat the Small Stuff – Don’t Overlook These Three (3) Clauses When Negotiating Your Construction Contract

April 08, 2024 — Bill Shaughnessy - ConsensusDocs
Reviewing and understanding the terms of your construction contract before signing on the dotted line (ideally with counsel involved) is an obvious best practice – whether you are owner, general contractor, design-professional or down-tier subcontractor or supplier. Typically, during this review process, parties pay closest attention to terms relating to price, scope, schedule, insurance, indemnification, and damages. And rightfully so, as these are just some of the most fundamental and important clauses of any construction contract. But during this review and understanding process, parties often overlook and fail to fully review and understand several notably important contract provisions (other than the examples above) which can have just as significant an impact on the project and even unintended consequences once construction starts. This article discusses three (3) of these often-overlooked provisions which should also be carefully reviewed to ensure the project runs smoothly and to avoid unintended consequences or even disputes (and litigation) during construction:

Incorporation by reference clause;
Order of precedence or higher standard clause; and
Choice of law clause.

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Reprinted courtesy of Bill Shaughnessy, Jones Walker LLP (ConsensusDocs)
Mr. Shaughnessy may be contacted at bshaughnessy@joneswalker.com

The Advantages of Virtual Reality in Construction

August 20, 2019 — Spivey Lipsey - Construction Executive
Virtual realty provides an unparalleled spatial sense for visualization at a lower cost than full-scale replicas. Today, VR is being used heavily in preconstruction to align owner expectations and educate design team stakeholders. For those already employing BIM solutions, coordination can be made much more effective by leveraging existing design models with very little added cost. As anyone who has tried a VR headset before can attest, the ability to accurately perceive spatial relationships in design cannot be replicated through traditional 2D media such as screens or paper. VR solutions also have the ability to iterate rapidly. These technologies are linked to BIM, providing real-time feedback as the design changes. This is in stark contrast to traditional full-scale mockups and offline renders, which are cumbersome and time-consuming to update with design changes. Substantial benefits without a hefty price tag Budget limitations and ROI are always a concern with emerging technology. Fortunately, VR comes cheaply with BIM production. These solutions are significantly less expensive than full-scale mockups and far more efficient when compared to longhand sequencing explanations and esoteric detailing of complex designs. Even the most elaborate VR setups are a fraction of overall construction cost, ranging from a few hundred to a few thousand dollars depending on the level of adoption. Reprinted courtesy of Spivey Lipsey, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Port Authority Approves Subsidies for 2 World Trade Project

December 10, 2015 — David M. Levitt – Bloomberg
The Port Authority of New York and New Jersey approved subsidies to help expedite the construction of lower Manhattan’s 2 World Trade Center, where Rupert Murdoch’s 21st Century Fox Inc. and News Corp. companies have a tentative deal to move their headquarters from midtown. Developer Silverstein Properties Inc., which leases the sites for 2 World Trade Center and two other towers from the Port Authority, would receive a rent break that amounts to $9 million over the life of the lease, Authority Director Patrick Foye said, just before the agency board unanimously approved the proposal. Read the court decision
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Reprinted courtesy of David M. Levitt, Bloomberg

Turkey Digs Out From a Catastrophe

April 18, 2023 — Pam McFarland - Engineering News-Record
In what’s left of Antakya, a once-thriving and cosmopolitan tourist destination in the southeastern edge of Turkey, the streets seem weirdly quiet. Buildings stand askew at odd angles or are completely toppled, and the rubble from the homes of people who lived inside of them is neatly collected into piles and mounds. Reprinted courtesy of Pam McFarland, Engineering News-Record Ms. McFarland may be contacted at mcfarlandp@enr.com Read the full story... Read the court decision
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Banks Rejected by U.S. High Court on Mortgage Securities Suits

January 12, 2015 — Greg Stohr – Bloomberg
The U.S. Supreme Court dealt a blow to Royal Bank of Scotland Group Plc and Nomura Holdings Inc. (8604), refusing to derail federal government lawsuits that seek billions of dollars over the sale of risky mortgage-backed securities. The justices today turned away an appeal by four banks, including units of RBS and Nomura, in a case stemming from the collapse of two credit unions that owned more than $1.7 billion in those securities. Read the court decision
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Reprinted courtesy of Greg Stohr, Bloomberg
Mr. Stohr may be contacted at gstohr@bloomberg.net

Dust Infiltration Due to Construction Defect Excluded from Policy

September 09, 2011 — CDJ STAFF

A summary judgment was affirmed in the case of Brown v. Farmers Group, by the California Court of Appeals. The Browns bought a new home in Oakley, California. At the time, they signed disclosure statement “acknowledging that the area around their home experienced gusty winds and would be in development for years to come, which might result in dust and airborne mold.”

The Browns found an unusual amount of dust in their home, which became worse when they ran their heating and air conditioning system. Shelia Brown was later diagnosed with chronic valley fever, which was attributed to airborne mold. The Browns contacted Farmers which investigated the house. Although the adjustor from Farmers said the Browns would be covered, Farmers denied the claim.

After the Browns moved out of the house, an inspector found that the HVAC line in the attic was disconnected, sending dust into the home. The Browns brought action against Mid-Century Insurance, which managed the policy, and Farmers. The identified the HVAC defect, window problems, and valley fever as causes, suing for breach of contact, breach of implied covenant of good faith and fair dealing, and the intentional infliction of emotional distress.

The court rejected all these claims. The policy with Farmers excluded losses due to defective construction. This ruled out the faulty HVAC system and any problems there might have been from the windows. The policy also specifically excluded losses from contamination, fungi, pathogens, and noxious substances. The court further found that the adjustor’s opinion was irrelevant to the question of what the policy actually covered. Finally, the court found no evidence of intentional infliction of emotional stress.

On review, the appeals court upheld the trial court’s conclusions and affirmed the summary judgment.

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You Can Take This Job and Shove It!

June 10, 2015 — Garret Murai – California Construction Law Blog
That’s it. You’ve had it. They can take their job and shove it! But can you really tell an owner on a construction project to proverbially shove it where the sun don’t shine? Well, far be it for me to tread on your First Amendment Rights or stick my nose into the subsequently brought public disturbance charges against you. But can you legally tell an owner to shove it, and that you’re no longer going to perform work on their [insert expletive] project? Well, indeed you can, in limited circumstances, and it’s called a “Stop Work Notice.” Note: A stop work notice is different from a stop payment notice. What is a stop work notice? A stop work notice is a notice given by a direct contractor to a project owner that the contractor will stop work if an amount owed to the contract is not paid within 10 days after notice is given. Read the court decision
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Reprinted courtesy of Garret Murai, Wendel Rosen Black & Dean LLP
Mr. Murai may be contacted at gmurai@wendel.com

Environmental Justice Legislation Update

May 17, 2021 — Anthony B. Cavender - Gravel2Gavel
Environmental Justice, as an urgent priority of the Federal Government, dates back to 1994, and President Clinton’s issuance of Executive Order 12898. This order directed federal agencies to identify and address, as appropriate, the disproportionately high and adverse human health and environment effects of its many programs, policies and procedures on minority populations and low-income populations. The primary legal basis for this order was Title VI of the Civil Rights Act of 1964, in particular, Sections 601 and 602, which prohibit discrimination in programs and activities receiving federal financial aid and assistance. Over the years, the Supreme Court has reviewed the scope and importance of Title VI. In Alexander v. Sandoval, decided in 2001, the Court concluded that while private parties could sue to enforce Section 601 or its implementing regulations, as written, Section 601 only prohibits intentional discrimination. Noting that disproportionate impact is not the sole touchstone of invidious racial discrimination. Moreover, the Court also ruled in Sandoval that private parties cannot sue to enforce regulations implementing Section 602. Perhaps as an acknowledgement of these shortcomings, the Environmental Protection Agency (EPA) has established an administrative system to process environmental justice complaints at 40 CFR Part 7. Without strengthening the statutory base of environmental justice, the program may continue to be the subject of countless symposiums and seminars. However, this may change soon. Read the court decision
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Reprinted courtesy of Anthony B. Cavender, Pillsbury
Mr. Cavender may be contacted at anthony.cavender@pillsburylaw.com

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