Fairfield Connecticut Building Expert Directory

The Enforceability of “Pay-If-Paid” Provisions Affirmed in New Jersey

January 04, 2023 — Levi W. Barrett, Michael S. Zicherman & Brian Glicos - Peckar & Abramson, P.C.
On December 7, 2022, the Appellate Division affirmed the New Jersey Superior Court decision in Jersey Precast v. Tricon Enterprises, Inc. et al., finding that the “pay-if-paid” clause in a material supplier’s purchase order with a general contractor was binding and enforceable. While clauses conditioning a general contractor’s obligation to pay its subcontractors on the general contractor’s receipt of payment from the project owner are not unique – this is the first time that a court in New Jersey has affirmed this practice in a published opinion. [1] Background The general contractor, Tricon, sent Jersey Precast its standard form purchase order for the supply of prestressed box beams to fulfill a public improvement contract with Union County. The reverse side of the form purchase order contained standard terms and conditions, and included a pay-if-paid clause drafted by Michael Zicherman, a partner of Peckar & Abramson, P.C. While Jersey Precast provided some draft revisions to the terms and conditions, Tricon never signed the purchase order and the proposed revisions were never accepted. Significantly, Jersey Precast did not attempt to modify the pay-if-paid provision. It later developed that the construction of the project became impossible, and the beams fabricated by Jersey Precast were not used. Tricon invoiced Union County for the cost of the beams, but the County failed to make payment and refused to accept delivery of the beams. Reprinted courtesy of Levi W. Barrett, Peckar & Abramson, P.C., Michael S. Zicherman, Peckar & Abramson, P.C. and Brian Glicos, Peckar & Abramson, P.C. Mr. Barrett may be contacted at lbarrett@pecklaw.com Mr. Zicherman may be contacted at mzicherman@pecklaw.com Mr. Glicos may be contacted at bglicos@pecklaw.com Read the court decision
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Are Contracting Parties Treated the Same When it Comes to Notice Obligations?

June 25, 2019 — G. Scott Walters - Smith Currie
Overview Experienced project delivery team members know too well the importance of timely and proper notice during a construction project. Ideally, contractual notice provisions, and any penalties for non-compliance, should apply equally to all of the contracting parties. For example, failure to comply with a notice provision concerning contract changes could bar a party from pursuing claims. And, untimely or improper notice can, likewise, prevent certain defenses to claims. Nowhere is notice more scrutinized than in the federal government contracting arena. Recently, the United States Court of Federal Claims issued two separate decisions involving the same construction project and the same parties and dealing with two specific aspects of notice in the federal government contracting process. The court’s decisions on the notice issues may, at first, appear to contradict each other or to favor one party over the other. A closer look at these two decisions reveals that notice requirements, in the context of federal government construction contracts, can come in multiple forms and notice is not a “one size fits all” proposition. Read the court decision
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Reprinted courtesy of G. Scott Walters, Smith Currie
Mr. Walters may be contacted at gswalters@smithcurrie.com

Lessons Learned from Implementing Infrastructure BIM in Helsinki

February 07, 2018 — Aarni Heiskanen – AEC Business Blog
Finland’s capital is currently experiencing a construction boom. Old industrial citadels are turning into residential areas with new commercial centers. Consequently, Helsinki needs to build new infrastructure. To improve the efficiency and quality of infrastructure construction, the city has started using BIM, and is now learning how to get the most value from it. Ville Alajoki, Team Leader in Helsinki’s Urban Development Division, is a keen proponent of BIM. “Infrastructure construction is still in its early stages when it comes to using BIM. For the most part, BIM implementation has not been systematic in our city yet. We tend to use it in our own structural design and often in building construction. However, in infrastructure project management, its active individuals who have set the pace,” Ville admits. He believes that the city’s strategy for 2017–2021 will spur the use of new technologies, including BIM. “Helsinki aims to be the city in the world that makes the best use of digitalization,” Mayor Jan Vapaavuori has declared. A good start, but there’s room for improvement. Read the court decision
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Reprinted courtesy of Aarni Heiskanen, AEC Business Blog
Mr. Heiskanen may be contacted at info@aepartners.fi

Broker for Homeowners Policy Has No Duty to Advise Insureds on Excess Flood Coverage

November 02, 2017 — Tred R. Eyerly - Insurance Law Hawaii
A broker who assisted the insureds in procuring a homeowners policy had no duty to advise the insureds to secure additional flood coverage. Ring v. Meeker Sharkey Assocs., LLC, 2017 N.J. Super. Unpub. LEXIS 3458 (N.J. Super Ct. App. Div. Sept.26, 2017). The insureds owned two beachfront properties that were located in a designated flood zone. They secured homeowners and flood insurance through Meeker's predecessor. Subsequently, Meeker became the insureds' homeowners insurance broker while Willis, N.A. was their flood insurance broker. Read the court decision
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Reprinted courtesy of Tred R. Eyerly - Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

If Passed, New Bill AB 2320 Will Mandate Cyber Insurance For State Government Contractors

September 07, 2020 — Makenna Miller & Jeffrey Dennis - Newmeyer Dillion
Earlier this year, Assemblyman Edwin Chau (D-Monterey Park) introduced Assembly Bill 2320. AB 2320, if passed, would require any business that contracts with the state and has access to records containing personal information protected under the state’s Information Practices Act (IPA) to maintain cyber insurance coverage. Information covered under the IPA includes names, social security numbers, physical descriptions, home addresses, home telephone numbers, education, financial matters, and medical or employment history. Requiring contractors to maintain cyber insurance will likely both shift the costs of cyberattacks from taxpayers to the private sector, while also encouraging robust cyber security practices among businesses of all sizes. While the bill has not yet passed, businesses will be best served by implementing and improving cybersecurity practices now in order to attain lowest premium rates in the future. Incentivizing Best Practices With the adoption of AB 2320, businesses will be incentivized to increase their security posture in order to receive lower premiums from insurers. Simultaneously, insurers will be incentivized to mandate best practices from their insureds in order to mitigate their risk of having to pay out on cyber insurance policies. Thus, cyber insurance will work as a vehicle to increase best practices in businesses and subsequently decrease vulnerabilities to cyberattacks. Reprinted courtesy of Makenna Miller, Newmeyer Dillion and Jeffrey Dennis, Newmeyer Dillion Ms. Miller may be contacted at makenna.miller@ndlf.com Mr. Dennis may be contacted at jeff.dennis@ndlf.com Read the court decision
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Godfather Charged with Insurance Fraud

July 01, 2011 — CDJ STAFF

Texas-based Godfather Construction is a recipient of a fraud suit from the Cook County state attorney’s office. The firm incorporated in Illinois in April 2010, moving there to do business after storms damaged homes in the Chicago suburbs, according to a report in the Chicago Tribune. The state attorney alleges that Godfather brought unlicensed out-of-state workers and the work they performed was “incomplete or shoddy.” Godfather is claimed to have received about $60,000 from Illinois homeowners. The prosecutors are seeking restitution for Godfather’s clients and seek to forbid the firm from doing business in Illinois.

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DC Metro Extension’s Precast Supplier Banned from Federal Contracts

November 16, 2020 — Jim Parsons - Engineering News-Record
Stowe, Pa.-based Universal Concrete Products, which supplied hundreds of defective precast panels for the $2.7 billion Silver Line light rail extension in northern Virginia, has received a three-year ban on participating in federally financed transportation projects. Imposed by the Federal Transit Administration, the ban makes Universal ineligible for contracts, grants, loans or other financial assistance from agency of the federal government until the end of 2023. Reprinted courtesy of Jim Parsons, Engineering News-Record ENR may be contacted at ENR.com@bnpmedia.com Read the full story... Read the court decision
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Expect the Unexpected (Your Design Contracts in a Post-COVID World)

April 18, 2023 — Melissa Dewey Brumback - Construction Law in North Carolina
Have you adapted your post-COVID practice to better plan for the “unexpected” ? In particular, have you looked at–and revised– your professional services contracts to give yourself a little more breathing room for unaccounted issues that may arise? If not, no time like the present. Don’t like that saying? How about ” a stitch in time saves nine?” No? Still nothing? What about a picture of something so completely unexpected it shocks you– say, a fireman commuting home, in fire-fighting regalia, on a tricycle? Okay, here you go… Now that I have your attention– you should make it a practice to regularly review and update your professional services agreements, and you should consider issues such as:

Does your agreement provide for extra compensation if you have to spend more time or a longer period providing construction administration services for material delays or labor shortages? If not, it should.
Does your agreement have a well-written “act of God” provision– one that includes pandemic/epidemics as part of the “act of God” conditions in which a term may become void? If not, add it now!

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Reprinted courtesy of Melissa Dewey Brumback, Ragsdale Liggett
Ms. Brumback may be contacted at mbrumback@rl-law.com

FAIRFIELD CONNECTICUT BUILDING EXPERT DIRECTORY AND CAPABILITIES