Colorado Construction Defect Action Reform: HB 17-1279 Approved by Colorado Legislature; Governor’s Approval Imminent
June 05, 2017 —
Erik G. Nielsen - Snell & Wilmer Legal AlertColorado developers frequently cite Colorado’s Construction Defect Action Reform Act (CDARA) as an obstacle to building new condominiums in the state. Developers contend that the law makes it too easy for condo boards to sue developers for workmanship issues, however trivial. As a result, Colorado has seen significant growth in the development of rental apartments, while development of new, for-sale, multi-unit housing, has declined in the state. In 10 years, new condo development in Colorado dropped from 20 percent to just 3 percent of total new-housing starts. Recognizing this issue, Governor Hickenlooper and the Colorado Legislature have taken an interest in reforming CDARA by, among other things, making it more difficult for condo boards and associations to sue construction professionals. Well on its way to becoming law, HB 17-1279 does exactly that.
After the enactment of HB 17-1279, the executive boards of homeowners’ associations (HOA) in common interest communities will have to satisfy three broad elements before bringing suit against a construction professional on behalf of the community’s individual unit owners.
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Erik G. Nielsen, Snell & WilmerMr. Nielsen may be contacted at
egnielsen@swlaw.com
Second Circuit Certifies Question Impacting "Bellefonte Rule"
December 15, 2016 —
Ellen Burrows – White and Williams LLPCalling into question the continued validity of the so-called “Bellefonte Rule,” on December 8, 2016, the United States Court of Appeals for the Second Circuit certified to the New York Court of Appeals the question whether a facultative reinsurance contract limit is presumptively all-inclusive and “caps” the reinsurer’s total exposure even where the reinsured policy pays defense costs in addition to the limit. Global Reinsurance Corporation v. Century Indemnity Company Docket No. 15-2164-cv (December 8, 2016).[1]
In Bellefonte Reinsurance Company v. Aetna 903 F.2d 910 (2d Cir. 1990), the court ruled that a reinsurer was not liable to pay defense costs above the stated reinsurance contract limit. Although litigants argued that this ruling was dependent on the fact that the reinsured policy limits were defense cost-inclusive, a later panel of the Second Circuit applied the “cap” ruling in Bellefonte to a situation where the reinsured policy limit was not cost-inclusive and where the insurer was obligated to pay defense costs in addition to the policy limit. Unigard Security Insurance Company v. North River Insurance Company 4 F.3d 1049 (2d Cir. 1993).
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Ellen Burrows, White and Williams LLPMs. Burrows may be contacted at
burrowse@whiteandwilliams.com
Reminder: Your MLA Notice Must Have Your License Number
November 26, 2014 —
Christopher G. Hill – Construction Law MusingsRemember a couple of years ago when the Virginia mechanic’s lien rules changed to require inclusion of a claimant’s contractor’s license number (where a license is required)? If not, then this is a reminder of that particular wrinkle in the strictly interpreted mechanic’s lien statute. This requirement applies to all mechanic’s lien memoranda and, like all parts of this crazy statute, will invalidate a lien if not met. Well, another change to the statute happened with a bit less fanfare.
The change back in 2013 that came along with the license number requirement for a lien memorandum is a change in the mechanic’s lien agent notice requirement that applies to residential construction. The basic requirement, namely that those performing residential construction must notify any mechanic’s lien agent (“MLA”) listed on a building permit within 30 days of starting work that they are on the job and could file a lien, has not changed. What the amendments to the lien statutes in 2013 added was a requirement that the notice, like a lien memorandum, must include the contractor’s or subcontractor’s license number.
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Christopher G. Hill, Law Office of Christopher G. Hill, PCMr. Hill may be contacted at
chrisghill@constructionlawva.com
Quick Note: Expert Testimony – Back to the Frye Test in Florida
December 19, 2018 —
David Adelstein - Florida Construction Legal UpdatesExpert testimony (opinions) – very important testimony in construction disputes. Whether it is a delay claim, an inefficiency claim, a defect claim, etc., expert testimony plays an invaluable role in construction disputes. Construction attorneys work closely with expert witnesses to ensure that an expert helps render an opinion to support their client’s burden of proof (including damages) or an affirmative defense.
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David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
California Assembly Passes Expedited Dam Safety for Silicon Valley Act
June 22, 2020 —
Tim Newcomb - Engineering News-RecordIn an effort to move forward a $576 million Anderson Dam Seismic Retrofit Project, the California State Assembly passed AB 3005 on June 8, the Expedited Dam Safety for Silicon Valley Act, facilitating the construction of the project.
Tim Newcomb, Engineering News-Record
ENR may be contacted at ENR.com@bnpmedia.com
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Health Care Construction Requires Compassion, Attention to Detail and Flexibility
July 01, 2019 —
Coker Barton - Construction ExecutiveWhen it comes to renovating and expanding hospitals, there is one principle that everyone can agree on: patients, family and hospital staff must be placed at the forefront of every stage of the job, ultimately dictating the project’s timeline. For a health care project to be a success, a general contractor needs to have industry-specific experience, must emphasize communication and scheduling and—most importantly—have a passion for the industry.
Capably and safely work in a health care environment
Health care requires a level of detail and understanding of the industry that is not found in other construction sectors. Builders must focus on infection control and interim life safety measures to protect patients, visitors and staff. There is accountability involved that goes beyond completing a project right on schedule.
For example, the expansion of The Studer Family Children’s Hospital at Sacred Heart in Pensacola, Fla., included a new 175,000-square-foot tower in addition to building out space above the Neonatal Intensive Care Unit. Anytime the contractor is building next to or over patients, especially those who are most vulnerable, it is on alert. It sets up containment areas, which help maintain the negative pressure in the construction area by pulling air in versus blowing dirty air out, as well as keep dust and other contaminants inside the construction area. There is no room for mistakes, which is why these techniques require more training and experience to properly execute.
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Coker Barton, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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A Classic Blunder: Practical Advice for Avoiding Two-Front Wars
August 23, 2021 —
William Underwood - ConsensusDocs“Ha ha! You fool! You fell victim to one of the classic blunders – the most famous of which is ‘never get involved in a land war in Asia’ – but only slightly less well-known is this: ‘Never go in against a Sicilian when death is on the line.’”[1]
Vizzini forgot to include “never fight a two-front war with your owner and a subcontractor” on his list of classic blunders, but it certainly belongs there. This article examines practical tips and tricks for general contractors to avoid the classic blunder of a two-front war, including recommended contract provisions and sound project documentation practices.
Admittedly, general contractors face a wide array of obligations on a project. And perhaps one of the most delicate balancing acts is managing relationships with the owner and your subcontractors. But far too often general contractors find themselves in the difficult position of fighting a two-front war against one (or more) of their subcontractors and the project owner.
But this does not always have to be the case—there are ways for general contractors to reduce the risk of finding themselves in a two-front war. And every project does not have to devolve in a circular firing squad with you in the middle. That said, this article comes with the caveat that a general contractor cannot avoid a two-front war in every instance, nor does this article examine every imaginable way to reduce the risk of a two-front war (see e.g. https://www.consensusdocs.org/pass-through-subcontractor-claims-liquidating-agreements-and-avoiding-a-two-front-war/). But this article will provide an overview of several key tools that can be used to minimize the risk of falling into a classic blunder.
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William Underwood, Jones Walker LLPMr. Underwood may be contacted at
wunderwood@joneswalker.com
High-Rise Condominium Construction Design Defects, A Maryland Construction Lawyer’s Perspective
July 15, 2015 —
Nicholas D. Cowie – Maryland Condo Construction Defect Law BlogThe increased migration from suburbs to metropolitan areas has accompanied an increase in high-rise construction, including the development of high-rise condominium buildings. The resulting metamorphosis of urban skylines, such as seen from Maryland’s Baltimore harbor, has also brought with it many complex construction law and construction litigation issues. Our law firm’s Maryland condominium construction law practice is increasingly called upon to resolve disputes involving high-rise condominium construction design defects between condominium associations, developers, contractors, builders, and design professionals arising out of the construction of high-rise buildings.
A condominium building is typically considered to be a high-rise when it is approximately seven or more stories above grade according to the National Fire Protection Association Life Safety Code, which defines a high-rise as being 75 feet (23 meters) measured from the lowest level accessible to fire department vehicles up to the floor level of the highest occupiable story. High-rise buildings may be residential (e.g., condominiums or multifamily apartment buildings), commercial (e.g., commercial office or retail space), or mixed-use structures. A mixed-use high-rise development might contain retail space, office space, a parking garage, apartments, and condominiums, each owned or maintained by separate entities and each sharing common expenses for the building.
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Nicholas D. Cowie, Cowie & Mott, P.A.Mr. Cowie may be contacted at
ndc@cowiemott.com