Fairfield Connecticut Building Expert Directory

Depreciating Labor Costs May be Factor in Actual Cash Value

April 20, 2016 — Tred R. Eyerly – Insurance Law Hawaii
The Minnesota Supreme Court considered a certified question from the the U.S. District Court regarding consideration of depreciating labor costs in determining the actual cash value of a loss. Wilcox v. State Farm Fire & Cas. Co., 2016 Min. LEXIS 50 (Minn. Feb. 10, 2016). The insureds' home was damaged by hail. State Farm provided a written estimate that calculated the actual cash value of the loss. To estimate the actual cash value of the damaged property, State Farm first calculated the replacement costs of individual items, such as roof flashing, siding, fascia, gutters, and window screens. Next, State Farm subtracted the pre-loss depreciation of some, but not all, individual items. For example, State Farm depreciated the cost of removing and replacing certain materials, such as siding. State Farm did not depreciate the cost of the new siding separately from the cost of the labor required to install the new siding on the home. Instead, State Farm calculated the removal and replacement of the siding as a single cost, then depreciated the removal-and-replacement cost as a whole. The cost of labor to repair or replace the damaged property was referred to by the court as "embedded labor costs." 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

Back to Basics – Differing Site Conditions

December 19, 2018 — Tracey W. Pruiett - Smith Currie
Encountering an unexpected site condition is one of the more common risks on a construction project. A “differing site condition”, or it is sometimes called a “changed condition”, is generally understood to be a physical condition that is discovered while performing work and that was not visible or otherwise expected at the time of bidding. Often, the condition could not have been discovered by a reasonable site investigation. Examples of common differing site conditions include: soil with inadequate bearing capacity to support the building being constructed, soil that cannot be reused as structural fill, unanticipated groundwater, quicksand, mud, rock formations, or other artificial subsurface obstructions. Differing site conditions may also occur within the walls or ceilings of a renovation project such as the renovation of a hospital or historic building. Read the court decision
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Reprinted courtesy of Tracey W. Pruiett, Smith Currie
Ms. Pruiett may be contacted at twpruiett@smithcurrie.com

43% of U.S. Homes in High Natural Disaster Risk Areas

September 03, 2015 — Beverley BevenFlorez-CDJ STAFF
RealtyTrac released data that declared that “35.8 million U.S. single family homes and condos with a combined estimated market value of $6.6 trillion are in counties with high or very high natural hazard risk.” Each county was assigned one of five risk catagories for overall risk of natural disaster: Very High, High, Moderate, Low, and Very Low. States whose scores fell into the “Very High” category included California, Florida, New York, New Jersey, and North Carolina. “The weather is beautiful in SoCal, but we are statistically more susceptible to the risk of fire, floods and earthquakes than most areas. Our agents must be articulate in explaining the higher risks to buyers. People have to be able trust their agent to fully disclose the risks of natural disasters and homeownership to allow buyers to make the most informed decisions,” Mark Hughes, chief operating officer with First Team Real Estate, covering the Southern California market, told RealtyTrac. “A well-informed knowledgeable buyer is best prepared to take on the potential risks associated with SoCal homeownership.” Read the court decision
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4 Ways to Mitigate Construction Disputes

March 20, 2023 — Bill Shaughnessy - ConsensusDocs
Resolving construction disputes in litigation (court or arbitration) can be expensive and may drag on for years. Most disputes could have been avoided, or at least mitigated, had the parties (both owners and contractors) identified contract risks during negotiations and been more proactive in communicating the risks during execution of the work. This article highlights four practical risk management approaches that help all parties focus on their mutual interest in close coordination and clear communication at the beginning of the project as well as throughout performance:

Identifying and allocating risks;
Accurate scheduling;
Clear project documentation and communication; and
Real-time dispute resolution.

The intent of these techniques is not to shift legal obligations or risks. Rather, the intent is to keep project personnel and project management for all the participants focused on communicating and working together, including responsibly confronting real problems to avoid or mitigate their impact. Allocating risks, scheduling, project documentation and communication, and real-time dispute resolution are independently relevant on a bilateral basis between the owner, designer, and the various contractors. These approaches and their diligent execution by the parties during construction contribute far more to a successful project than anything lawyers and claims consultants can contribute in after-the-fact legal proceedings. Read the court decision
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Reprinted courtesy of Bill Shaughnessy, Jones Walker LLP (ConsensusDocs)
Mr. Shaughnessy may be contacted at bshaughnessy@joneswalker.com

West Coast Casualty’s Quarter Century of Service

May 03, 2018 — Beverley BevenFlorez-CDJ STAFF
West Coast Casualty's Construction Defect Seminar has been promoting charitable work for the past twenty-five years. Each year, they promote different charities, and provide multiple ways for individuals and companies to contribute. Whether it’s Buy a Banner, Tennis Shoe Thursday, or Flip Flop Friday, industry members are given opportunities to support worthwhile causes. This year, West Coast Casualty is supporting Hawaii’s Children’s Cancer Foundation , St. Jude Children’s Research Hospital, and Shriners Hospital for Children. WCC also supports charitable organizations through every award that they present each year. Donations are made in the winner’s name: For Jerrold S. Oliver Award of Excellence awardees, Habitat for Humanity as well as a local California and Nevada charity; For Legend of an Era Award, the designated charity of West Coast Casualty’s Construction Defect Seminar; and for The Larry Syhre Commitment to Service Award, a donation to The Larry Syhre Foundation. Read the court decision
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Unlicensed Contractor Shoots for the Stars . . . Sputters on Takeoff

September 20, 2017 — Garret Murai - California Construction Law Blog
Elon Musk . . . Eccentric engineer. Technology billionaire. And, now, litigation bad ass. Frequent readers of the California Construction Law Blog know that we’ve talked about the importance of being properly licensed when doing construction work and the risks to you if you don’t. One California contractor recently found this out the hard way. In Phoenix Mechanical Pipeline, Inc. v. Space Exploration Technologies Corp., California Court of Appeals for the Second District, Case No. B269186 (June 13, 2017), contractor Phoenix Mechanical Pipeline, Inc. (Phoenix) lost its boosters . . . err britches . . when it sued Elon Musk’s Space Exploration Technologies Corp. (Space X) due to its failure to have a California contractor’s license. Read the court decision
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Reprinted courtesy of Garret Murai, Wendel Rosen Black & Dean LLP
Mr. Murai may be contacted at gmurai@wendel.com

Appellate Court Lacks Jurisdiction Over Order Compelling Appraisal

January 16, 2024 — Tred R. Eyerly - Insurance Law Hawaii
The Eleventh Circuit recently held that the district court's order compelling appraisal and staying the proceedings pending appraisal was an interlocutory order that was not immediately appealable under 28 U.S.C. 1292 (a) (1). Positano Place at Naples Condominium Association, Inc. v. Empire Indem. Ins. Co., 2023 U.S. App. LEXIS 27961 (11th Cir. Oct. 20, 2023). Postiano Condominium Association suffered damage from Hurricane Irma. Pastiano notified its insurer, Empire, seven months later. Empire investigated the claim and inspected the property. Positano sent a written request for appraisal. Empire did not respond and Pastiano filed suit, alleging that the parties' dispute was not a coverage dispute but a dispute over the amount of the loss. Postiano moved to compel appraisal and to stay the proceedings pending completion of the appraisal. 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

Get Creative to Solve Your Construction Company's Staffing Challenges

February 25, 2024 — Kit Dickinson - Construction Executive
Construction projects are on the rise due to a generational investment in infrastructure spending. The Infrastructure Investment and Jobs Act passed by Congress in August 2021 includes around $550 billion in new federal investment in America’s roads and bridges, water infrastructure and more to be allocated over the next five years. Because of the influx of federal funds for infrastructure, construction firms that previously focused on local, private sector clients are incentivized to pursue public projects in other states and regions. There are a couple of bumps in the road, however. Payroll becomes more complex when you’re paying across multiple jurisdictions and at different pay rates, and reporting requirements for government work make managing projects and controlling costs trickier. Add to this the changes in the Davis-Bacon Act prevailing wage rules which went into effect on October 23, 2023. To capture this business and make it worthwhile, construction professionals need technology built specifically for the industry. Reprinted courtesy of Kit Dickinson, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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FAIRFIELD CONNECTICUT BUILDING EXPERT DIRECTORY AND CAPABILITIES