Seattle Washington Building Expert Directory

Recent Statutory Changes Cap Retainage on Applicable Construction Projects

March 11, 2024 — Patrick McKnight - The Dispute Resolver
Recent reforms to certain state retainage laws have reduced the lawful amount of withholding permitted on construction projects. In theory, retainage allows an owner to mitigate the risk of incomplete or defective work by withholding a certain portion of payment until the construction project is substantially complete. Recent statutory developments in Washington, New York, and Georgia represent significant changes in how much an owner may retain on applicable construction projects in those jurisdictions. The details of each state’s retainage laws vary in many important respects. Most states set caps at 5% or 10%, with important variations depending on the type of project and the amount of progress completed. Some states require retainage to be held in an escrow account, but most do not. Many federal construction projects allow up to 10% retainage, while other federal agencies do not require any retention. See 48 CFR § 52.232-5(e) - Payments Under Fixed-Price Construction Contracts. The ongoing motivation for retainage reform is typically framed in terms of reducing delays in getting payment to subcontractors who complete their scope of work on time and free from defects. Read the court decision
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Reprinted courtesy of Patrick McKnight, Fox Rothschild LLP
Mr. McKnight may be contacted at pmcknight@foxrothschild.com

Quick Note: Can a Party Disclaim Liability in their Contract to Fraud?

April 11, 2022 — David Adelstein - Florida Construction Legal Updates
It is possible for a party to contractually disclaim or otherwise foreclose liability to a fraud claim. However, let’s be honest. It can be done, but rarely is and would require very specific language to EXPLICITLY disclaim or foreclose such liability to a fraud claim. A recent case, discussed here, exemplifies this point where as-is language in a purchase-and-sale agreement was NOT specific to contractually foreclose or disclaim liability to a fraud claim. For a party to contractually waive a fraud claim, there needs to be an express waiver of liability for fraud that might have been made and that any fraudulent misrepresentation, if such fraud was committed, was disclaimed and would not destroy the validity of the parties’ contract. Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

Speeding up Infrastructure Projects with the Cloud

July 28, 2018 — Aarni Heiskanen - AEC Business
Infrakit, a cloud service developed by a Finnish startup company, is accelerating infrastructure projects both in Finland and, increasingly, abroad. Automatic transfer of information among parties involved in a project saves time, reduces paperwork, and facilitates the work of land surveyors. In addition to excavators, rock drills can now also be viewed on the map. The CEO and founder of DSC Finland, the supplier of Infrakit, is Teemu Kivimäki. He states that despite the name of the company changing over the years, its principles have stayed the same. Kivimäki describes the functions of the service: “The digital site plans are added to Infrakit, and they can then be viewed on a map and in a 3D view with a browser. When the working machines are also linked to the service, the user can see if the work has been executed according to plan.” 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

ASCE Statement on EPA Lead Pipe and Paint Action Plan

December 27, 2021 — Tom Smith, Executive Director - American Society of Civil Engineers (ASCE)
WASHINGTON, DC. – The American Society of Civil Engineers applauds the Lead Pipe and Paint Action Plan released yesterday by the Environmental Protection Agency to help communities across the country remove lead pipes out of their drinking water systems. Access to clean and safe drinking water is critical to public health and economic prosperity, and ASCE's 2021 Report Card for America's Infrastructure. gave a grade of C- for the drinking water category. It is estimated that as many as 10 million American households still have lead water pipes in use, which can put at risk the health and safety of families, particularly children. For utilities, moving forward with completing an inventory of lead service lines as part of the Lead and Copper Rule is a critical step, so we can get a better national picture of the scope of the problem. This plan will allocate nearly $3 billion from the recently passed Infrastructure Investment and Jobs Act (IIJA) to states for lead service line replacements in FY 2022 and will prioritize communities with the highest lead levels. While additional investment will be needed, it is a significant down-payment on a national shared priority of clean drinking water for all Americans. It will allow utilities of all sizes to accelerate their rate of lead pipe replacement and offer technical assistance to those communities just embarking on these types of projects. For more information about the American Society of Civil Engineers, visit www.asce.org or www.infrastructurereportcard.org and follow us on Twitter, @ASCETweets and @ASCEGovRel. Read the court decision
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Harmon Tower Construction Defects Update: Who’s To Blame?

August 17, 2011 — CDJ STAFF

Reporting on the site VegasInc.com, Liz Benton notes that “nobody wants to take the fall for what happened at Harmon.” Work on the Harmon hotel building in Las Vegas’s CityCenter stopped in 2008 after 26 of the planned 49 stories were completed. Lorence Slutzky, a construction law professor at John Marshall Law School and a partner with the Chicago firm Robbins Schwartz Nicholas Lifton & Taylor told Benton that while inspectors and others are complicit, “the real responsibility rests with Perini, which has an obligation to comply with the plan specifications.” Perini’s claim is that they were given faulty design drawings. MGM disputes this.

Perini has offered to repair the building defects, however MGM has released a statement that they have “zero confidence or trust that Perini can and will properly fix a building it has so badly constructed thus far.” One MGM spokesperson likened these requests from Perini to “the director of ‘Ishar’ demanding a sequel.” “Ishtar,’ cost Columbia Pictures $55 million dollars and earned only $4.2 million in its initial run. Perini claims that MGM halted work because of the economy.

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Why Construction Law- An Update

May 07, 2015 — Christopher G. Hill – Construction Law Musings
Back in 2009, only a year or so after my first post here at Musings, I posted on why I’m in the field of construction law. Well, a lot has happened in the over 5 years since then, not the least of which is my move to solo practice in July of 2010 and the later certification as a mediator. As I sit here, I look back at the passage of time and the events between my last thoughts on this subject and now and wonder if my thoughts have changed? Frankly, not much has changed as far as my attitude toward the practice of construction law. Despite my kids occasionally rolling their eyes when I talk about a case of interest to me and their sometimes moniker for me as a “dirt lawyer,” I continue to find the representation of the construction professionals that I call clients and friends to be fulfilling and worthwhile. Even in the face of criticisms that we lawyers cause more problems that we solve, I firmly believe that I and other good construction lawyers can and do help avoid and anticipate more problems than I cause. As one of the few solo construction attorneys here in the Richmond area, if anything, I am more involved in the construction community. Between my continued and even increased involvement with the AGC of Virginia and my more recent appointment to the board of the Virginia State Bar‘s Construction Law and Public Contracts Section, I have gained even more insight into the workings of the legal and business landscapes of construction. With each new piece of information gained by such involvement, I see another side to the business of construction that I may not have thought of. Read the court decision
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Reprinted courtesy of Christopher G. Hill, Construction Law Musings
Mr. Hill may be contacted at chrisghill@constructionlawva.com

Texas Federal District Court Dismisses COVID-19 Claim

October 25, 2020 — Tred R. Eyerly - Insurance Law Hawaii
Judge Ezra, formerly on the bench in Hawaii, dismissed a COVID-19 claim pursued by a Texas policy holder. Diesel Barbershop, LLC v. State Farm Lloyds, 2020 U.S. Dist. LEXIS 147276 (W.D. Texas Aug. 13, 2020). Local and state officials in Texas issued shutdown orders in March 2020 due to the spread of the cornavirus. All non-essential businesses, including the insureds' barbershop businesses, were ordered closed from April 2, 2020 until April 30, 2020. The insureds submitted a claim for business interruption and civil authority coverage to their carrier, State Farm. The claim was denied based on the policy's exclusion for loss caused by enforcement of ordinance or law, virus, and consequential losses. For Civil Authority coverage, State Farm contended the policy required that there by physical damage within one mile of the described property and that the damage be the result of a Covered Cause of Loss, which, State Farm asserted, a virus was not. The insureds sued and State Farm moved to dismiss. The court noted cases in which courts had found physical loss even without tangible destruction to the covered property. Yet, the court found that the line of cases requiring tangible injury to property were more persuasive. Therefore, the court found that the insureds failed to plead a direct physical loss. 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

Florida Enacts Property Insurance Overhaul for Benefit of Policyholders

July 05, 2023 — Laura Farrant & Bradley S. Fischer - Lewis Brisbois
Fort Lauderdale, Fla. (June 13, 2023) – On June 1, 2023, Governor Ron DeSantis signed into law CS/SB 7052 (the Act), increasing consumer protection and insurer accountability in Florida. The newly enacted and amended statutes under CS/SB 7052 bolster policyholder protections and impose greater insurer oversight, including heightened penalties for insurer misdeeds in the state under a new law that will take effect on July 1, 2023 (this legal alert does not address all of the statutory revisions associated with the Act). As House Speaker Paul Renner noted, “The insurance legislation signed by Governor DeSantis today . . . not only empowers homeowners, but also cultivates market-driven competition, ultimately leading to lower costs.” Statutory Revisions Regarding Insurance Coverage The Act prohibits authorized insurers from cancelling or nonrenewing a property insurance policy for a residential property or dwelling that was damaged by any covered peril until the earlier of: (a) when the property has been repaired; or (b) one year after the insurer issues the final claim payment. The Act also expands current law prohibiting authorized insurers from cancelling or nonrenewing a residential property insurance policy until 90 days after repairs are completed for damages resulting from a hurricane or wind loss that is the subject of a state of emergency declared by the Governor and for which the Office of Insurance Regulation (OIR) has issued an emergency order. See Fla. Stat. §627.4133(2)(d)(1)(a) and (b) (Notice of cancellation, nonrenewal, or renewal premium). Reprinted courtesy of Laura Farrant, Lewis Brisbois and Bradley S. Fischer, Lewis Brisbois Ms. Farrant may be contacted at Laura.Farrant@lewisbrisbois.com Mr. Fischer may be contacted at Bradley.Fischer@lewisbrisbois.com Read the court decision
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