FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

The Contractor’s Contingency: What Contractors and Construction Managers Need to Know and Be Wary Of

December 04, 2023 — Skyler L. Santomartino - Peckar & Abramson, P.C.
Contractors and construction managers who enter into cost reimbursable contracts subject to a guaranteed maximum price (GMP) are responsible for all project costs exceeding the GMP. For this reason, it is imperative that contractors negotiate and incorporate into the GMP a financial buffer that accounts for the unanticipated project costs that are not reimbursable as change orders or costs of the work. This is where the contractor’s contingency comes into play.[1] The contractor’s contingency is a vehicle that allows contractors to mitigate some of the risks inherent in GMP contracts. When drafted properly, a contingency clause allows the contractor and only the contractor to access funds set aside by the owner to address unpredictable or unknown project costs. Read the court decision
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Reprinted courtesy of Skyler L. Santomartino, Peckar & Abramson, P.C.
Mr. Santomartino may be contacted at ssantomartino@pecklaw.com

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Ensuing Loss Provision Does Not Salvage Coverage

December 09, 2011 — Tred R. Eyerly - Insurance Law Hawaii

Water intrusion caused by a construction defect was not covered under the all risk policy’s ensuing loss provision. See Friedberg v. Chubb & Son, Inc., 2011 U.S. Dist. LEXIS 123582 (D. Minn. Oct. 25, 2011).

Extensive water damage was discovered in the insureds’ home when a small hole in the exterior wall was being repaired. Chubb’s adjuster and an expert found water intrusion causing rot, mold, and damage to the home’s wood framing and insulation. Chubb denied coverage because water intruded through the roof and wall, resulting in gradual deterioration. The insureds filed suit.

The policy excluded coverage for construction defects, but insured "ensuing covered loss unless another exclusion applies."

The court agreed there was a prima facie case for coverage because the home suffered a physical loss.

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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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Hollywood Legend Betty Grable’s Former Home for Sale

June 30, 2014 — Catherine Sherman – Bloomberg
When it comes to Old Hollywood stars, Betty Grable was “the girl with the million-dollar legs.” She also lived in a million-dollar home just four blocks from the Hotel Bel-Air. Located at 1280 Stone Canyon Rd, the house is currently on the market for $13.295 million. “It’s a classic, Hollywood estate,” said listing agent Bjorn Farrugia of Hilton & Hyland. “It’s very picturesque — set back on one of the best streets in Bel-Air.” Grable moved in after the home was built in 1937, the same year she married actor Jackie Coogan (aka “Uncle Fester” in the 1960s sitcom The Addams Family). Soon after, in 1939, the couple appeared in “Million Dollar Legs,” a movie giving rise to the actress’ nickname. Read the court decision
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Reprinted courtesy of Catherine Sherman – Bloomberg

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Residential Construction Surges in Durham

October 30, 2013 — CDJ STAFF
Third quarter residential construction permits in Durham, North Carolina were up 72% over the third quarter of last year, for a total of 1,770 new residential units. There was a large increase in the value of the construction contracts as well, with construction contracts reaching $151.3 million, more than $42 million over the same period in 2012. Ted Conner of the Greater Durham Chamber of Commerce said that he didn’t “think we’re going to continue to see that frenetic, high level of activity, but it’s still very active.” One reason for increased residential construction is a lack of available apartment spaces, which is also sending rents up in the area. Although much of the new construction will be middle- to upper-end, the greater availability should help all renters. Read the court decision
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A Word to the Wise about Construction Defects

October 10, 2013 — CDJ STAFF
A post on The Buckner Blog suggests that “construction defects” are the scariest words for architects, engineers, and contractors. With the possible outcomes of a damaged reputation and astronomical costs, it’s not a surprise. Further, builders are using techniques that “have yet to be tested in real application over time.” As a result, “whoever has the deepest pockets or the most to lose becomes the primary target.” While a commercial general liability policy might pay for damage caused by a construction defect, the post notes that “it does not, however, cover the costs to remedy your work.” That cost could be “greater than the actual property damages incurred.” The post recommends a combination of transferring risk and risk control In transferring risk, the builder uses “indemnification and hold harmless agreements as well as inditional insured requirements in their construction contracts.” They advise to “request coverage as an additional insured on a primary basis.” And then there’s risk control. “Work only with architects, engineers and contactors who have good reputations and a track record of performance. Don’t cut corners.” By some careful planning, builders might “sleep better at night.” Read the court decision
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Wildfire Smoke Threatens to Wipe Out Decades of Air Pollution Progress

August 28, 2023 — Linda Poon & Immanual John Milton - Bloomberg
The US is on track to experience its worst year for smoke exposure in decades, after wildfires in Canada sent toxic plumes drifting across the border to the Midwest and the East Coast earlier this summer. In June and July, New York and Chicago saw more “very unhealthy” and “hazardous” air quality days for fine particle pollution (PM2.5) than in the same months every year since the Environmental Protection Agency began tracking PM2.5 nationally in 2000, a Bloomberg CityLab analysis of federal data found. In Washington, DC, the number of “very unhealthy” days reached the highest in over a decade. On the EPA’s air quality index scale, these days correspond with the highest levels of public health concern. Extensive exposure to PM2.5 particles, the main pollutant found in smoke, can increase the risk of a variety of problems, including heart and respiratory disease, as well as premature death. Reprinted courtesy of Linda Poon, Bloomberg and Immanual John Milton, Bloomberg Read the court decision
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Best Practices After Receiving Notice of a Construction Claim

July 18, 2022 — Lauren Meadows - Construction Executive
Being served with a lawsuit is typically not a welcomed experience. However, a construction professional that has been proactive in an early investigation of the claim will be better equipped to defend the case. The following best practices should be used by construction professionals as soon as a potential claim becomes evident. Notify Immediately after the receipt of a claim or notice of an incident, efforts should be made to notify all essential parties. This includes any potential insurers that may provide coverage for the claim as well as any parties to whom notice may be required or warranted under the project contract and/or scope of work. Some construction contracts contain an insurance clause that requires one party to provide additional insured coverage under its liability policy to another party. Notice should be given to any insurer that potentially provides additional insured coverage as soon as possible. The failure to provide an insurance company with prompt notice of a potential claim could result in the denial of the claim. Reprinted courtesy of Lauren Meadows, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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2017 Legislative Changes Affecting the Construction Industry

July 13, 2017 — Melinda S. Gentile – Peckar & Abramson, P.C.
The 2017 Florida Legislative Session recently concluded, and a number of important construction-related House Bills (HB) and Senate Bills (SB) were presented during the Session, most notably SB 204/HB 377. These Bills may impact General Contractors and Construction Managers in a number of ways, not the least of which is the period of time that a cause of action may be initiated for the design, planning or construction of an improvement. The following construction-related Bills passed in both the House and Senate and will become law if approved by the Governor. Senate Bill (SB) 204/House Bill (HB) 377: Relating to the Statute of Repose for causes of action based on design, planning or construction of an improvement to real property. This bill passed both the House and the Senate and was approved by the Governor on June 14, 2017. This bill becomes effective on July 1, 2017. Read the court decision
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Reprinted courtesy of Melinda S. Gentile, Peckar & Abramson, P.C.
Ms. Gentile may be contacted at mgentile@pecklaw.com

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