How To Lock Disputes Out Of Your Project In Construction
July 22, 2019 —
Anastasios Koutsogiannis – LetsBuildDisputes are seen as one of the main threats for the successful completion of a project in construction. There is a plethora of factors which could lead to a construction dispute (e.g. contracts, behavior, environment) but, strangely enough, the industry seems to invest more attention on the resolution of a conflict instead of its prevention.
Thanks to the progress that digital technologies have witnessed during the last few years, there is a good chance that things in construction will change for the better soon. The ability to exchange crucial updates in real time, while keeping a detailed record of everything that happens on the field adds an extra level of protection to your project and ensures that all agents are on the same page.
In an effort to shed some light on the issue of construction disputes, we present below four tips that could help your team to lock conflicts out of your project:
1. Standardize your processes
Before you kickstart your project, it is of paramount importance that you standardize all your systems and processes. In that way, you will be able to add extra clarity to your workflow and eliminate misunderstandings.
Once you have achieved that, you can replicate the same process to your future projects. The more you manage to repeat the same project structure the better your team will become in completing their tasks without ending up in any kind of conflict.
In that sense, standardization could be a long-term investment for your organization.
2. Go digital
As soon as your processes are defined, it is time for the digital journey to begin. Finding the right tool for your project will result in a streamlined construction process where all the members of the team are on the same page without any room for costly mistakes or disagreements.
Furthermore, with the help of digital solutions it becomes easier for project managers to measure the performance on site and monitor the completion of the set benchmarks. Like that, all payments will be on time and the program of the project will reflect reality.
3. Be extra careful with the contracts
A poorly-written contract can have a big impact on the effort to lock disputes out of your construction project. While putting together a new contract, you should always make sure that you have taken into account all the different scenarios for your project.
Either that is a delay due to weather conditions or an accident on site everything should be described in detail in the contracts and be well understood by those in charge.
In any other case, things can get a bit risky and a costly dispute might wait to happen.
4. Hold regular meetings with all stakeholders
Last but certainly not least, meet regularly with all project stakeholders. The frequent contact with the different members of your team will allow you to discuss and resolve any problematic situations before they grow out of proportion.
What is more, regular meetings will help both your field teams and the people in the office to remain aligned and will eliminate the possibility of having people working on outdated versions of the program.
Of course, these meetings don’t need to be time-consuming or even in person. With the help of technology, you can keep these meetings short and to the point. In that manner, everybody involved will be able to get the most out of them.
Final word
All in all, it becomes clear that locking disputes out of your project in construction requires continuous work and a carefully-elaborated plan. Thankfully, the emergence and progress of digital solutions have made this process much easier contributing significantly to the development of the industry far from disputes and project misunderstandings.
About the author: Anastasios Koutsogiannis is Content Marketing Manager at LetsBuild.
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Anastasios Koutsogiannis, LetsBuild
Sick Leave, Paid Time Off, and the Families First Coronavirus Response Act
April 20, 2020 —
Garret Murai - California Construction Law BlogUnemployment claims hit a historic high this past week as 3.3 million Americans filed for unemployment benefits. To give you some context, this is not only the highest number of unemployment claims ever filed, it is five times higher than the previous record of 695,000 unemployment claims in 1982.
Restaurants, hotels, airlines and other businesses have begun to layoff or furlough workers. According to a survey conducted by the Associated General Contractors of America this past week, 39% of respondents reported that project owners have halted or cancelled construction projects due to deteriorating economic conditions, 45% reported project delays or disruptions, and 23% reported supply chain disruptions.
While the construction industry likely won’t be impacted nearly to the same degree as the retail sector has, some involved in the construction industry may nevertheless be faced with the prospect of having to lay off or furlough workers as “shelter in place” orders are extended. If you’re faced with that situation here are a few things to remember:
Paid Sick Leave
Under California law, nearly all employers are required to provide paid sick leave to employees who work for 30 or more days in a given year. Paid sick leave can be used by an employee for illnesses, including COVID-19, the diagnosis, care, or treatment of existing health conditions, and preventative care for the employee or employee’s family member. The important thing to remember here is that use of paid sick leave is an employee’s choice. While an employer, concerned that an employee may have contracted COVID-19, may require that an employee not come to the office, the employer cannot force such an employee to use his or her paid sick leave. For more information, the California Labor Commissioner has created a webpage specific to COVID 19.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
OSHA Again Pushes Back Record-Keeping Rule Deadline
November 30, 2017 —
Tom Ichniowski - Engineering News-RecordThe federal Occupational Safety and Health Administration is extending again—this time, by two weeks—the compliance date for its rule requiring companies to file annual electronic reports of workplace injuries and illnesses.
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Tom Ichniowski, ENRMr. Ichniowski may be contacted at
ichniowskit@enr.com
Ensuring Arbitration in Construction Defect Claims
February 04, 2013 —
CDJ STAFFJared E. Berg and John W. Mill of Sherman & Howard note that developers and general contractors would prefer that construction defect claims against them go to arbitration, instead of ending up in front of a jury. They say “there is a way to do this.” For the developer and general contractor, arbitration is “typically less costly and time consuming than litigation.”
On the other side, home owner associations “tend to prefer litigation because the up-front costs of arbitration are greater and they would rather have their cases tried to a jury than a panel of arbitrators in the belief juries offer greater potential for high damage awards. In order to avoid arbitration, “HOAs have taken advantage of their statutory rights to amend declarations by instructing their members to approve amendments removing arbitration clauses.
However, in a recent Colorado case, the developer had taken a precaution of including in the arbitration clauses that “they could not be removed from the declarations by amendment with the developer’s and general contractor’s consent.” The homeowners association had voted to remove these clauses, but the judge found that they could not do so.
Berg and Mill give the advice to “include in the declaration’s arbitration clause a provision making your consent required to amend or nullify the arbitration provision,” adding that “courts will enforce this kind of consent provision.”
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Construction Defect Claim not Barred by Prior Arbitration
October 28, 2015 —
Beverley BevenFlorez-CDJ STAFFAccording to Stan Martin of Commonsense Construction Law LLC, the Appellate Court of Connecticut ruled in favor of the owner of a twenty-two building development in a construction defect suit despite the contractor’s objection “that the lawsuit was barred by doctrines of res judicata or collateral estoppel.”
When issues of “construction and alleged defects” arose in 1996, the “contractor eventually filed for arbitration, seeking the contract balance.” The contractor was awarded $82,812.81. During the arbitration, “no claims for defective construction were advanced.”
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Senior Housing Surplus Seen as Boomers Spur Building Boom
May 19, 2014 —
Brian Louis – BloombergReal estate developers are betting big on U.S. housing for the elderly, preparing for a surge in demand as the population of senior citizens almost doubles in the next 35 years. They may be building too fast.
A jump in supply is forecast to cut growth in senior-housing net operating income to 1.8 percent in 2015 and 1.4 percent in 2016 from 3.3 percent this year, according to Green Street Advisors Inc. The increase may hurt health-care real estate investment trusts and companies including Brookdale Senior Living Inc. (BKD), which is buying competitor Emeritus Corp. (ESC) for about $1.4 billion to become the biggest owner of senior properties, the research firm said.
“Increased supply is always worrisome in any type of commercial real estate,” said Jim Sullivan, a managing director at Newport Beach, California-based Green Street. “In senior housing, new construction has ramped up considerably over the last two years.”
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Brian Louis, BloombergMr. Louis may be contacted at
blouis1@bloomberg.net
Illinois Court Addresses Rip-And-Tear Coverage And Existence Of An “Occurrence” In Defective Product Suit
September 04, 2018 —
Brian Bassett - TLSS Insurance Law BlogIn Lexington Ins. Co. v. Chi. Flameproof & Wood Specialties Corp., 2018 U.S. Dist. LEXIS 135871, 2018 WL 3819109 (N.D. Ill. Aug. 10, 2018), the U.S. District Court for the Northern District of Illinois found that rip-and-tear costs could qualify as covered “property damage,” but the court rejected coverage for claims that the insured intentionally sold a noncompliant product as the suit did not allege an “occurrence.”
Lexington Insurance Company (“Lexington”) issued a CGL policy to Chicago Flameproof & Wood Specialties Corp. (“Flameproof”). During the policy period, a third party ordered fire-retardant-treated lumber from Flameproof for construction in Minnesota. Flameproof instead sent materials that were not tested, certified, or labeled as compliant. The third party installed the materials, discovered the non-compliance, and then removed the materials. Removing the materials allegedly damaged other portions of the building on the project. The third party then sued Flameproof, alleging costs associated with replacing the lumber as well as property damage to the other materials from the removal of the lumber. Flameproof tendered the claim to Lexington seeking a defense. Lexington filed a declaratory action in the Northern District of Illinois.
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Brian Bassett, Traub Lieberman Strauss & Shrewsberry LLPMr. Bassett may be contacted at
bbassett@tlsslaw.com
California’s Housing Costs Endanger Growth, Analyst Says
March 19, 2015 —
John Gittelsohn – Bloomberg(Bloomberg) -- California’s high housing costs threaten the state’s economy as workers increasingly struggle to afford a roof over their heads, the state Legislative Analyst’s Office said in a report released Tuesday.
“The state’s high housing costs make California a less attractive place to call home, making it more difficult for companies to hire and retain qualified employees, likely preventing the state’s economy from meeting its full potential,” Chas Alamo and Brian Uhler, senior fiscal and policy analysts with the office, said in the study.
California was home to four of the five most expensive U.S. metropolitan markets for single-family home sales in the fourth quarter of last year, led by a median home price of $855,000 in the San Jose, Sunnyvale and Santa Clara area, according to the National Association of Realtors. San Francisco ranked second, with Honolulu and the California cities of Anaheim and San Diego rounding out the top five. The suburbs north of New York City and greater Los Angeles followed.
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John Gittelsohn, BloombergMr. Gittelsohn may be contacted at
johngitt@bloomberg.net
