An Upward Trend in Commercial Construction?
March 28, 2012 —
Melissa Brumback, Construction Law in North CarolinaYear-end economic indicators demonstrate that private commercial construction may be increasing in 2012, primarily as demand grows for new projects built in the United States.
According to an article in Businessweek, the Architecture Billings Index held at 52 in December, indicating a modest expansion in the market. The American Institute of Architects said that the commercial and industrial component of the number climbed to 54.1 in December, the highest in 10 months.
The monthly survey of U.S.-based architecture firms is one of the main indicators of nonresidential construction, and these numbers suggest that modest improvement may be on the horizon.
The information is confirmed by data from the Census Bureau that shows that spending on lodging, office, commercial and manufacturing buildings grew 8.2 percent in November to $9.2 billion from a year ago. These types of commercial and industrial projects are historically canaries in the mine and are usually the first part of the industry to improve as the economy expands.
Read the full story…
Reprinted courtesy of Melissa Dewey Brumback of Ragsdale Liggett PLLC. Ms. Brumback can be contacted at mbrumback@rl-law.com.
Read the court decisionRead the full story...Reprinted courtesy of
Insurer Granted Summary Judgment on Denial of Construction Defect Claim
January 27, 2020 —
Tred R. Eyerly - Insurance Law HawaiiThe court granted the insurer's motion for summary judgment, confirming there was no duty to defend or indemnify a construction defect claim against the insured. Fontaine Bros. v. Acadia Ins. Co., 2019 U.S. Dist. LEXIS 148056 (D. Mass. Aug. 29, 2019).
The City of Worcester contracted with Fontaine Brothers, Inc. to install a new ice refrigeration system at the City's indoor ice rink. After construction, the condensers in two chiller units eroded and stopped operating.
The City sued Fontaine for the costs of leasing temporary chillers and installing new ones. The City alleged that Fontaine installed condensers with carbon steel tubes instead of contractually required stainless stell tubes.Further, Fontaine and its subcontractors did not adequately maintain the condensers, in breach of the contract.
Fontaine's insurer, Acadia Insurance Company, denied coverage. Fontaine sued Acadia. The court noted that the City's complaint plainly alleged faulty workmanship by Fontaine. However, the City's complaint did not allege that Fontaine intended the condensers to corrode and left open the possibility that Fontaine was unaware of any potential problem or did not foresee the corrosion likely to result from the use of carbon steel components or the maintenance work being done by its subcontractor. Therefore, the Cit's complaint did not foreclose the possibility that the corrosion resulting from Fontaine's alleged faulty workmanship and maintenance might be shown to be an unforeseen or unintended consequence of reckless or negligent conduct. Accordingly, it was possible that there was an occurrence under the policy language.
Read the court decisionRead the full story...Reprinted courtesy of
Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Wilke Fleury Attorneys Featured in 2021 Best Lawyers in America and Best Lawyers: Ones To Watch!
September 28, 2020 —
Wilke Fleury LLPWilke Fleury congratulates attorneys
David Frenznick,
Adriana Cervantes and
Dan Egan on their inclusion in the 2021 Edition of Best Lawyers in America!
Since it was first published in 1983, Best Lawyers® has become universally regarded as the definitive guide to legal excellence. Best Lawyers lists are compiled based on an exhaustive peer-review evaluation. Almost 108,000 industry leading lawyers are eligible to vote (from around the world), and they have received over 13 million evaluations on the legal abilities of other lawyers based on their specific practice areas around the world. For the 2021 Edition of The Best Lawyers in America©, 9.4 million votes were analyzed.
Read the court decisionRead the full story...Reprinted courtesy of
Wilke Fleury
California Court Holds No Coverage Under Pollution Policy for Structural Improvements
October 02, 2018 —
Brian Margolies - TLSS Insurance Law BlogIn its recent decision in Essex Walnut Owner L.P. v. Aspen Specialty Ins. Co., 2018 U.S. Dist. LEXIS 138276 (N.D. Cal. Aug. 15, 2018), the United States District Court for the Northern District of California had occasion to consider the issue of a pollution liability insurer’s obligation to pay for the redesign of a structural support system necessitated by the alleged presence of soil contamination.
Aspen’s insured, Essex, owned a parcel of property it was in the process of redeveloping for commercial and residential purposes. The project required excavation activities in order to construct an underground parking lot, and as part of this process, Essex designed a temporary shoring system comprising tied-in retaining walls in order to stabilize the area outside of the excavation. During the excavation work, construction debris was encountered requiring removal. Aspen agreed to pay for a portion of the costs to remove and dispose the debris under the pollution liability policy it issued to Essex.
Read the court decisionRead the full story...Reprinted courtesy of
Brian Margolies, Traub Lieberman Straus & Shrewsberry LLPMr. Margolies may be contacted at
bmargolies@tlsslaw.com
Look to West Africa for the Future of Green Architecture
May 16, 2022 —
Kriston Capps - BloombergIn 2014, a crowd of demonstrators stormed Burkina Faso’s National Assembly building, setting it ablaze and ending the nearly 30-year rule of President Blaise Compaoré.
A year later, Burkenabè architect Diébédo Francis Kéré was asked to imagine a new parliamentary building — one that would reflect a more democratic future for the West African nation. Kéré conceived a six-story stepped pyramid that slopes up gently from the ground, inviting citizens to gather, climb and take in views of the capital city, Ouagadougou. The ruins of the former parliament building next door would be transformed into a rainwater-collecting memorial park.
The project remains a ways off: Burkina Faso continues to struggle with political unrest, including a coup d’état in January 2022. But Kéré’s fast-growing prominence may improve the odds that his vision will eventually materialize. In March, he became the first African architect to win the Pritzker Architecture Prize, the design field’s top honor.
Read the court decisionRead the full story...Reprinted courtesy of
Kriston Capps, Bloomberg
Building Resiliency: Withstanding Wildfires and Other Natural Disasters
September 25, 2023 —
Bill Creedon - Construction ExecutiveAccording to the National Fire Protection Association, between 2016 and 2020 an estimated average of 4,300 fires per year plagued structures under construction, adding up to about $376 million in annual property damage. More recently, the National Centers for Environmental Information reported that wildfires accounted for more than $3.2 billion in damages across the United States. These figures alone point to the heightened awareness that all companies—particularly construction companies—should maintain surrounding the unique challenges and risks that wildfires can present and how they could potentially impact the integrity of projects and the associated safety of their workers.
As North America grapples with the increasing frequency and severity of wildfires, hurricanes and additional severe weather events, numerous industries have had to adapt and implement proactive measures to minimize their risks and associated exposures. The impact of these natural disasters on the construction industry is indisputable, necessitating proactive measures that construction companies should seriously consider adopting to effectively mitigate those risks, efficiently navigate insurance complexities and seamlessly integrate data-driven solutions alongside modern tools like AI and predictive modeling.
Reprinted courtesy of
Bill Creedon, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Read the court decisionRead the full story...Reprinted courtesy of
Mr. Creedon may be contacted at
bill.creedon@wtwco.com
WSDOT Seeks Retraction of Waiver Excluding Non-Minority Woman-Owned Businesses from Participation Goals
September 28, 2017 —
Lindsay K. Taft - Ahlers & Cressman PLLCIf you are a regular reader of our blog, you will likely recognize that our firm has been actively involved and concerned with the results of Washington State Department of Transportation’s (“WSDOT”) Disparity Study, which impacts both Disadvantaged Business Enterprises (“DBE”) and general contractors who bid on federally-funded projects with DBE goals. On June 1, 2017, WSDOT implemented a “waiver”, which excluded Caucasian women-owned firms (“WBEs”) from qualifying for Condition of Award DBE Goals on federally-funded projects. This drastic action was the result of WSDOT’s highly criticized 2012 Disparity Study conducted by BBC Research & Consulting of Denver, Colorado, which concluded non-minority women-owned firms do not face “substantial disparities” in the federally-funded transportation contracting market.
BBC’s study was criticized for a number of reasons, but most concerning was BBC’s flawed and unreliable statistical methodology that did not accurately represent true marketplace conditions. See Ahlers & Cressman letter of January 9, 2014 and Associated General Contractors of Washington article. For example, BBC’s results showed both decreasing WBE availability and availability vastly out of range with other states (e.g., the availability of women-owned construction firms in Washington was just 1.5% compared to 11.96% in Oregon). Nevertheless, based on this flawed BBC study and BBC’s assertion that women-owned firms did not face disparities, WSDOT sought and on June 1, 2017 was granted a waiver precluding general contractors from counting WBE firms towards their DBE goals on federally funded public works projects.
Read the court decisionRead the full story...Reprinted courtesy of
Lindsay Taft, Ahlers & Cressman PLLCMs. Taft may be contacted at
ltaft@ac-lawyers.com
Insurer Obligated to Cover Preventative Remediation of Construction Defects
November 06, 2013 —
CDJ STAFFA recent Texas construction defect case gets covered on a blog post on the web site of Manatt, Phelphs & Phillps, LLC. In the case, the home builder built homes using EIFS which later had problems with mold, mildew, and structural damage. The home builder remediated all of the homes in the project, not just those that had experienced problems with the EIFS.The home builder’s insurers refused to cooperate. Various insurers settled with the home builder, leaving only Markel America Insurance Company.
Markel refused coverage on the grounds that proactively replacing the EIFS to preclude damage meant that there was no damage for their policy to cover. The policy also read that “no insured, except at their own cost, [may] voluntary make any payment, assume any obligation, or incur any expense,” unless Markel agreed to it. But the Texas Supreme Court ruled that “Markel failed to prove that it was prejudiced in any way by the home builder’s settlements,” which was a necessary condition for the cited clause. The Texas Supreme Court ruled that Markel was obligated to indemnify the home builder.
The court also concluded that the damage occurred during the coverage period and that “all 465 houses at issue suffered property damage during the policy period.”
Read the court decisionRead the full story...Reprinted courtesy of