Seattle Washington Building Expert Directory

Construction Contract Provisions that Should Pique Your Interest

September 30, 2019 — Christopher G. Hill - Construction Law Musings
Construction contracts are a big part of my legal practice and the drumbeat here at Construction Law Musings. Why? Because not only does your construction contract set the expectations and “rules of the game” for a construction project, it will be read strictly and literally by the Virginia courts should there be a dispute. For these reasons, construction professionals need to be alert for the language in certain key clauses in a construction contract to assure that these clauses are as balanced as possible and also well understood. Here are my “Top Five”:

“Pay if Paid”- These clauses are almost always in the subcontracts between a general contractor and a subcontractor and are enforceable in Virginia if drafted correctly and under the proper circumstances.
Change Orders- Whether work is subject to a change order and the required payment for any changed work are often a key source of contention (read legal fees). A properly drafted and followed change order provision can help avoid much of this contention.
Indemnity- Much has been made in recent years about indemnity provisions and their enforceability. All parties in the construction payment chain can and should be aware of how to best draft their indemnity provisions to make them enforceable. Failure to do so can be catastrophic.

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Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

Private Statutory Cause of Action Under Florida’s Underground Facility Damage Prevention and Safety Act

July 11, 2021 — David Adelstein - Florida Construction Legal Updates
Florida’s Underground Facility Damage Prevention and Safety Act is set forth in Florida Statutes Chapter 556. Any owner or operator of underground infrastructure as well as contractors that perform underground excavation and demolition operations are familiar (or, need to be familiar) with this Act and the requirements it imposes on them. In a nutshell, this Act requires excavators to notify operators of underground facilities (e.g., pipelines, cables, sewers) through a notification system before excavating or demolishing an underground location. Then notification system gives the operator of the underground facility two days’ advance notice that an excavation will be taking place. After receiving this notice, the operator of the underground facility must mark the area where its infrastructure is located which could be affected by the underground excavation or demolition operations. The Act further imposes duties on excavators to use increased caution, supervise mechanized equipment, perform excavation and demolition operations in a careful an prudent manner, and to re-notify the notification system if the operator’s marking is no longer visible so the location of the operator’s underground facility can be re-marked. Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

No Prejudicial Error in Refusing to Give Jury Instruction on Predominant Cause

November 11, 2024 — Tred R. Eyerly - Insurance Law Hawaii
The California Court of Appeal affirmed the trial court's judgment after the jury determined there was no coverage for a leaking pipe. Mendoza v. Pacific Spec. Ins. Co., 2024 Cal. App. Unpub. EXIS 5477 (Cal. Ct. App. Aug. 20, 2024). The Mendoza's third amended complaint alleged their home was damaged "by overflow of water from the dwelling's plumbing system resulting from a broken pipe, which overflow undermined the structural integrity of the dwelling." The Mendozas insured their home under a policy issued by Pacific. The policy insured the property against "sudden and accidental direct physical loss" except where expressly excluded. The Mendozas submitted a claim Pacific paid approximately $1800 for the loss and closed the claim. The amount paid did not include payment for any structural damage to the home. The Mendozas alleged that Pacific's failure to conduct a full and fair investigation into the structural damage and its inadequate payment of benefits was a breach of the implied covenant of good faith and fair dealing. 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

Three Construction Workers Injured at Former GM Plant

March 26, 2014 — Beverley BevenFlorez-CDJ STAFF
In Linden, New Jersey, three construction workers were injured “when they were apparently struck by steel girders while working at the former General Motors site” police told NJ.com. Mayor Richard Gerbounka stated that the “[s]ix struts that would support the deck or ceiling of a warehouse collapsed.” He also mentioned that the city “has been trying to redevelop the former General Motors site for years, but has run into several obstacles, including lawsuits from nearby businesses opposed to retail construction.” Several construction vehicles were “nearly buried under” debris and “[a]t least one I-beam girder and several decking struts—all metal—remain across several heavy construction vehicles,” NJ.com reported. The owner of the vehicles stated “he was told that workers were standing around the vehicles preparing to start their day when high winds knocked down at least one I-beam and several metal decking struts.” In another article published late afternoon on March 26th, NJ.com reported that “high winds” were the cause of the accident. “The federal Occupational Safety and Health Administration is investigating the accident and all work at the site has been suspended pending the investigation,” according to the article. “Officials said OSHA inspectors had been at the scene once before, but declined to give details because of a continuing investigation.” Read the full story, NJ.com AM... Read the full story, NJ.com PM... Read the court decision
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BHA at The Basic Course in Texas Construction Law

October 21, 2015 — CDJ STAFF
Bert L. Howe & Associates, Inc., (BHA) is proud to be partnering with the State Bar of Texas, Construction Law Section, as a sponsor and exhibitor at The Basic Course in Texas Construction Law to be held November 12 & 13, 2015 at The Westin Austin at The Domain. With offices in San Antonio and Houston, Bert L. Howe & Associates, Inc., offers the experience of over 20 years of service to carriers, defense counsel, and insurance professionals as designated experts in over 5,500 cases. BHA’s staff encompasses a broad range of licensed and credentialed experts in the areas of general contracting and specialty trades, as well as architects, and both civil and structural engineers, and has provided services on behalf of developers, general contractors and subcontractors. BHA’s experience covers the full range of construction defect litigation, including single and multi-family residential (including high-rise), institutional (schools, hospitals and government buildings), commercial, and industrial claims. BHA also specializes in coverage, exposure, premises liability and delay claim analysis. As the dynamic litigation climate in Texas continues to change, and as the number of construction defect and other construction-related cases continues to rise and become more sophisticated, it is more important than ever for contractors and builders to be aggressive in preparing for claims before they are made, and in defending against those claims once they are filed. Since 1993, Bert L. Howe & Associates, Inc., has been an industry leader in providing construction consulting services, and has been a trusted partner with builders and insurance carriers, both large and small, in Texas and across the Western United States. Register for the Basic Course... Read the court decision
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Banks Rejected by U.S. High Court on Mortgage Securities Suits

January 12, 2015 — Greg Stohr – Bloomberg
The U.S. Supreme Court dealt a blow to Royal Bank of Scotland Group Plc and Nomura Holdings Inc. (8604), refusing to derail federal government lawsuits that seek billions of dollars over the sale of risky mortgage-backed securities. The justices today turned away an appeal by four banks, including units of RBS and Nomura, in a case stemming from the collapse of two credit unions that owned more than $1.7 billion in those securities. Read the court decision
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Reprinted courtesy of Greg Stohr, Bloomberg
Mr. Stohr may be contacted at gstohr@bloomberg.net

Residential Contractors, Be Sure to Have these Clauses in Your Contracts

December 23, 2023 — Christopher G. Hill - Construction Law Musings
I have often “mused” on the need to have a good solid construction contract at the beginning of a project. While this is always true, it is particularly true in residential contracting where a homeowner may or may not know the construction process or have experience with large scale construction. Often you, as a construction general contractor, are providing the first large scale construction that the homeowner has experienced. For this reason, through meetings and the construction contract, setting expectations early and often is key. As a side note to this need to set expectations, the Virginia Department of Professional and Occupational Regulation (DPOR) and the Virginia General Assembly require certain clauses to be in every residential construction contract. DPOR strictly enforces these contractual items and failure to put them in your contracts can lead to fines, penalties and possibly even revocation of a contractor’s license. Read the court decision
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Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

Unbilled Costs Remain in Tutor Perini's Finances

October 23, 2018 — Scott Van Voorhis – Engineering News-Record
Tutor Perini is struggling to shake off long-running concerns over the hundreds of millions in unbilled costs that have been on the contractor’s balance sheet for years. The Sylmar, Calif.-based construction giant reported more than $1 billion in unbilled costs or receivables at the end of the second quarter, up by more than $100 million from the start of the year, according to the company’s federal filings. That was $100 million higher than at the end of 2016, when the amount was $832 million. Read the court decision
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Reprinted courtesy of Scott Van Voorhis, ENR
ENR may be contacted at ENR.com@bnpmedia.com

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