FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Don’t Kick the Claim Until the End of the Project: Timely Give Notice and Preserve Your Claims on Construction Projects

December 10, 2015 — Christopher G. Hill – Construction Law Musings
For this week’s Guest Post Friday, we welcome Tara L. Chadbourn. Tara is an attorney with ReavesColey PLLC in Chesapeake, VA, where she concentrates her practice on construction law, litigation and commercial litigation. Tara counsels owners, contractors, subcontractors and materials suppliers in various government and commercial construction matters. Tara can be reached at tara.chadbourn@reavescoley.com. You may have experienced and have certainly heard of the scenario in which a contractor waits to address a claim as part of project closeout, only to realize the applicable deadline has already passed. While there may have been discussions about claims during the course of the project, contractors cannot rely upon oral conversations about outstanding claims. Instead, contractors must be vigilant in satisfying notice requirements and preserving claims. While entitlement must still be proven, a contractor’s chances of recovery increase greatly if the contractor abides by notice requirements and consciously preserves claims in the following ways. Contractors Must Acquaint Themselves with Contractual Notice Provisions: Many prime and subcontract agreements contain stringent notice provisions that require the contractor to give notice within a certain time period or else the claim is expressly waived. The deadline for notice is often only a few days after the occurrence giving rise to the claim or the contractor becoming aware of the claim. To avoid waiver, contractors must carefully review their contracts for provisions requiring notice of a claims for adjustment for a variety of situations to include unforeseen site conditions, trade sequencing changes, project delay or scope of work changes. Read the court decision
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Reprinted courtesy of Christopher G. Hill, Law Office of Christopher G. Hill, PC
Mr. Hill may be contacted at chrisghill@constructionlawva.com

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Pay-if-Paid Clauses, Nasty, but Enforceable

March 12, 2015 — Craig Martin – Construction Contractor Advisor
I am preparing for a presentation this week on Troublesome Contract Clauses to the Construction Specifications Institute (“CSI”), Nebraska Chapter. One of the clauses we will be discussing is the dreaded Pay-if-Paid clause, a particularly nasty provision that places the risk of owner’s solvency squarely on the subcontractor’s shoulders. While pay-if-paid clauses can create tremendous problems for subcontractors, they are enforceable. Pay-if-Paid clauses eliminate the obligation to pay the subcontractor until the general contractor is paid by the owner. Pay-if-paid clauses usually contain something akin to the following phrases:

• payment to subcontractors are “expressly and unequivocally contingent upon receipt of payment from the Owner for the Subcontract Work.”
• the subcontractor “expressly acknowledges that it relies on payment under the Subcontract on the creditworthiness of Owner, not that of the General Contractor.”
• the owner’s acceptance of the work and payment to the General Contractor are “conditions precedent to any obligation of the General Contractor to pay the subcontractor.”

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Reprinted courtesy of Craig Martin, Lamson, Dugan and Murray, LLP
Mr. Martin may be contacted at cmartin@ldmlaw.com

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Leaky Wells Spur Call for Stricter Rules on Gas Drilling

September 17, 2014 — Jim Snyder, Jim Polson and Bradley Olson – Bloomberg
A study that found natural gas drilling polluted drinking water is fueling calls for stricter standards for well construction that could increase costs for energy companies. The analysis by academic researchers backed the oil and gas industry in one respect: the authors said “fracking” wasn’t to blame for harmful methane seeping into groundwater studied in Texas and Pennsylvania. Some environmentalists contend that by blasting underground rock with a mix of water, chemicals and sand, producers can force the gas into drinking water near the surface. The bigger concern, according to the analysis published yesterday by the peer-reviewed Proceedings of the National Academy of Sciences, are leaks in the steel-and-cement casings surrounding the well bore. They let gas escape before it gets to the surface, making water undrinkable and in some cases explosive. Reprinted courtesy of Bloomberg journalists Jim Snyder, Jim Polson and Bradley Olson Mr. Snyder may be contacted at jsnyder24@bloomberg.net; Mr. Polson may be contacted at jpolson@bloomberg.net; Mr. Olson may be contacted at bradleyolson@bloomberg.net Read the court decision
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Faulty Workmanship Causing Damage to Other Property Covered as Construction Defect

September 30, 2011 — Tred R. Eyerly - Insurance Law Hawaii

In yet another recent construction defect case, the Illinois Court of Appeal found for coverage. See Milwaukee Mut. Ins. Co. v. J.P. Larsen, Inc., 2011 Ill. App. Ct. LEXIS 872 (Ill. Ct. App. Aug. 15, 2011).

Weather-Tite, Inc. hired Larson as a subcontractor to apply sealant to windows installed by Weather-Tite in a condominium building. The windows subsequently leaked and caused water damage. The homeowner’s association sued Weather-Tite for breach of express and implied warranties. Weather-Tite filed a third-party complaint against Larsen alleging that, if it was liable to the association for breach of warranty, Larsen was liable for contribution as a joint tortfeasor. Weather-Tite and Larsen both tendered defenses to Milwaukee Insurance. The tenders were denied and Milwaukee Insurance filed suit to determine rights under the policy.

Cross-motions for summary judgment were filed by all parties. The trial court granted Milwaukee Insurance’s summary judgment motion as to Weather-Tite, but granted Larsen’s cross-motion against Milwaukee Insurance.

On appeal, the appellate court considered whether the underlying pleadings alleged facts demonstrating "property damage" resulting from an "occurrence" within the terms of the policy.

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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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Hail Drives Construction Spending in Amarillo

October 25, 2013 — CDJ STAFF
Amarillo had a hailstorm in May and it’s still having an effect on the construction industry there. Prior to the May 28 hailstorm, the city issued 223 permits for roofing projects, worth a total of $1.9 million. But in the four months after the hailstorm, the city issued 13,696 roofing permits worth about $151.4. During the same nine months of 2012, the total was only $6.9 million. The Amarillo Globe-News reports that there has been a slowing of residential roof work, but the commercial roofing is still going strong. Scott McDonald, an Amarillo building official told the paper that a commercial roof can exceed a million dollars. “The commercial aspect is much more complicated, and we’re just now getting started,” said Mr. McDonald. Read the court decision
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The Other Side of the North Dakota Oil Boom: Evictions

May 13, 2024 — Sarah Holder - Bloomberg
Williams County, North Dakota, is one of the biggest beneficiaries of the state’s fracking boom. In the past decade, millions of barrels of oil have been pumped from its land, and the population of its largest city, Williston, has doubled. But as the oil flowed and workers poured in to staff the rigs, housing options quickly ran dry. The region’s uneven expansion has led to an eviction crisis for the county’s 39,000 residents, according to a recent paper from a group of sociologists affiliated with Princeton University’s Eviction Lab. Williams County saw its eviction rate go from “nearly non-existent” in 2010 to over 7% a decade later, the study found. By 2019, at the height of its oil boom — when the state accounted for 11% of the country’s oil production — its eviction filing rate was comparable to that of large, renter-heavy cities like New York City or Philadelphia, according to Eviction Lab. Though oil production peaked in 2019, the problem hasn’t abated: From January through November 2023, more than 550 evictions were recorded by the Williams County Sheriff’s office, up around 30% from the previous full year. Read the court decision
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Reprinted courtesy of Sarah Holder, Bloomberg

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Storm Debby Is Deadly — Because It’s Slow

September 16, 2024 — Brian K Sullivan - Bloomberg
Tropical Storm Debby has killed at least five people as it churns across the US East, where it’s expected to inflict $1 billion or more in damage and losses. One reason for the storm’s destructive power: It’s moving very slowly. Although Debby came ashore with hurricane-strength winds, its rainfall — forecast to exceed two feet in some areas — is even more dangerous. The St. Marys River in northern Florida rose more than 10 feet in one day, while New York will likely see downpours from Debby later in the week. Homes, businesses and farms may be deluged, putting crops and infrastructure at risk. Read the court decision
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Reprinted courtesy of Brian K Sullivan, Bloomberg

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Burden of Proof Under All-Risk Property Insurance Policy

January 31, 2018 — David Adelstein - Florida Construction Legal Updates

A recent Florida case, Jones v. Federated National Ins. Co., 43 Fla. L. Weekly D164a (Fla. 4th DCA 2018) discusses the burden of proof of an insured in establishing coverage under an all-risk property insurance policy. Getting right to this critical point, the court explained the burden of proof as follows:

1. The insured has the initial burden of proof to establish that the damage at issue occurred during a period in which the damaged property had insurance coverage. If the insured fails to meet this burden, judgment shall be entered in favor of the insurer.

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2. If the insured’s initial burden is met, the burden of proof shifts to the insurer to establish that (a) there was a sole cause of the loss, or (b) in cases where there was more than one cause, there was an “efficient proximate cause” of the loss.

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Reprinted courtesy of David Adelstein, Florida Construction Legal Updates
Mr. Adelstein may be contacted at dadelstein@gmail.com

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