Seattle Washington Building Expert Directory

Construction Contract Clauses Which Go Bump in the Night – Part 1

November 10, 2016 — Garret Murai – California Construction Law Blog
Scope, time and cost provisions may be the most important clauses in your construction contract but they’re not the only ones which can impact your bottom line. The first in a multi-part series, here are some other important construction contract clauses you may (or may not realize you should) be losing sleep over.

Provision: Incorporation and Flow-Down Provisions

Typical Provision: “The term ‘Contract Documents’ shall include, without limitation, the Prime Contract, drawings, specifications and other agreements between Contractor and Owner, insofar as they relate in any way, directly or indirectly, to Subcontractor’s Work under this Agreement, and are hereby incorporated by reference. Subcontractor agrees to be bound to Contractor in the same manner and to the same extent as Contractor is bound to Owner under the Contract Documents. Where, in the Contract Documents, reference is made to Contractor, and the work and specifications therein pertain to Subcontractor’s trade, craft, or type of work, such work or specifications shall be interpreted to apply to Subcontractor rather than Contractor.”
What it Means: An incorporation provision literally “incorporates” another document or documents into a contract by merely referring to them by title or description and it is not uncommon for a lower-tiered contractor to never see those documents. A flow-down provision requires a lower-tiered contractor to comply with all obligations which a higher-tiered contractor, typically a direct contractor, owes to a higher-tiered party, typically, the owner. The intent of the provision to ensure that a lower-tiered subcontractor has no greater rights against a direct contractor has against the owner.
What You Can Do: Lower-tiered contractors should obtain a copy of all documents to be incorporated into their contract and review them to ensure that they understand the obligations and any limitations to their rights. Lower-tiered contractors should also seek to include language requiring that a higher-tiered contractor assume toward the lower-tiered contractor all obligations and limitations on their rights that the owner assumes toward or is subject to with respect of the general contractor.

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Reprinted courtesy of Garret Murai, Wendel Rosen Black & Dean LLP
Mr. Murai may be contacted at gmurai@wendel.com

Avoid Drowning in Data: Keep Afloat with ESI in Construction Litigation

May 15, 2023 — Steve Swart - The Dispute Resolver
Maybe it is another lawyer on your team, a client, the Court. Maybe it is you. Almost every lawyer has heard (or thought, felt, or anguished over) the following: Wait — What? Discovery is going to cost how much? The concern is real. Per a 2019 Southern District of New York opinion:

The average case can involve collection, review and production of 100 gigabytes of data (or 6.5 million pages of Word documents).
At a typical rate of review of 40-60 documents per hour, assuming 100,000 documents are collected, that is about 2,000 hours of attorney review time.
Adding in fees for forensic collection, storage, and processing to maintain metadata can result in a bill totaling $500,000.

Brown v. Barnes & Noble, Inc., 474 F. Supp. 3d 637, 645 & n.3 (S.D.N.Y. 2019). What's counsel to do? The following four points can help counsel streamline and reduce costs in discovery: (1) know your case, (2) know your data — understand it and document collection, (3) cooperate with counsel, and (4) implement a protocol for electronically-stored information ("ESI"). Read the court decision
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Reprinted courtesy of Steve Swart, Williams Mullen
Mr. Swart may be contacted at sswart@williamsmullen.com

Milwaukee's 25-Story Ascent Stacks Up as Tall Timber Role Model

January 25, 2021 — Nadine M. Post - Engineering News-Record
In January 2019, Preston Cole left his post as Commissioner of the Milwaukee Dept. of Neighborhood Services and became Secretary of Wisconsin’s Dept. of Natural Resources. It was a step up for the 25-year veteran of public service—a forester by profession—who as the city’s top building official had reformed DNS by fostering a developer-friendly environment. Reprinted courtesy of Nadine M. Post, Engineering News-Record Ms. Post may be contacted at postn@enr.com Read the full story... Read the court decision
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Contractual Waiver of Consequential Damages

January 02, 2019 — David Adelstein - Florida Construction Legal Updates
Contractual waivers of consequential damages are important, whether they are mutual or one-sided. I believe in specificity in that the types of consequential damages that are waived should be detailed in the waiver of consequential damages provision. Standard form construction agreements provide a good template of the types of consequential damages that the parties are agreeing to waive. But, what if there is no specificity in the waiver of consequential damages provision? What if the provision just states that the parties mutually agree to waive consequential damages or that one party waives consequential-type damages against the other party? Let me tell you what would happen. The plaintiff will argue that the damages it seeks are general damages and are NOT waived by the waiver of consequential damages provision. The defendant, on the other hand, will argue that the damages are consequential in nature and, therefore, contractually waived. FOR THIS REASON, PARTIES NEED TO APPRECIATE WHAT DAMAGES ARE BEING WAIVED OR LIMITED, AND POTENTIALLY THOSE DAMAGES NOT BEING WAIVED OR LIMITED, WHEN AGREEING TO A WAIVER OF CONSEQUENTIAL DAMAGES PROVISION! Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris
Mr. Adelstein may be contacted at dma@kirwinnorris.com

US Supreme Court Orders All Mountain Valley Gas Line Work to Proceed

August 14, 2023 — Debra K. Rubin - Engineering News-Record
In a ruling without explanation in response to an emergency appeal by the project developer, the U.S. Supreme Court on July 27 said work to complete the Mountain Valley gas pipeline can proceed. The decision follows an order earlier this month by the Richmond, Va., appeals court to halt restart of work on the much-litigated and delayed $6.6-billion, 303-mile natural gas pipeline in Virginia and West Virginia, after new lawsuits filed by opponent groups. Reprinted courtesy of Debra K. Rubin, Engineering News-Record Ms. Rubin may be contacted at rubind@enr.com Read the full story... Read the court decision
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Bremer Whyte Congratulates Nicole Nuzzo on OCBA Professionalism and Ethics Committee Appointment

November 17, 2016 — Beverley BevenFlorez – CDJ Staff
Nicole Nuzzo of Bremer Whyte Brown & O’Meara LLP was selected as one of the fifteen members of the Orange County Bar Association’s (OCBA) Professionalism and Ethics Committee, announced the firm. Committee members “are committed to supporting and encouraging OCBA members to engage in the professional and ethical practice of law. Members of the Committee are appointed by the OCBA president.” Ms. Nuzzo practices Family Law at the firm’s Newport Beach, California office. Read the court decision
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Home Buyers will Pay More for Solar

February 05, 2015 — Beverley BevenFlorez-CDJ STAFF
The National Association of Home Builders’ (NAHB) Eye on Housing reported that a study’s results “found that homebuyers are willing to pay more for homes that have installed solar photovoltaic (PV) energy systems.” The team of researchers led by the U.S. Department of Energy’s Berkeley Laboratory “estimates a price premium of approximately $4 per watt of PV installed. For a typical PV system, the research team found that this translates into a price premium of $15,000.” Furthermore, according to the NAHB, the study “suggests that the presence of energy-efficient home features is among the most important concerns for prospective home buyers.” Read the court decision
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Delaware “occurrence” and exclusions j(5) and j(6)

June 10, 2011 — CDCoverage.com

In Goodville Mut. Cas. Co. v. Baldo, No. 09-338 (D. Del. June 2, 2011), claimants condominium association and unit owners sued project developer Rehoboth and general contractor Capano seeking damages because of moisture penetration property damage to common elements and individual units resulting from construction defects. Rehoboth and Capano filed a third party complaint against insured property manager Baldo alleging that, if Rehoboth and Capano were liable to claimants, Baldo was also liable because of Baldo’s failure to properly manage, maintain, and repair the property

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Reprinted courtesy of CDCoverage.com

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SEATTLE WASHINGTON BUILDING EXPERT DIRECTORY AND CAPABILITIES