Hanover, Germany Apple Store Delayed by Construction Defects
July 23, 2014 —
Beverley BevenFlorez-CDJ STAFFA new Apple store in Hanover, Germany is scheduled to finally open in September after construction problems created delays, according to AppAdvice. Rumor has it that the store may open on September 19th, the same day of the iPhone 6 is expected to go on sale globally.
Construction issues included “physical defects, mold, and ventilation issues,” according to AppAdvice. “Black barricades appeared around the Hanover store location in April 2013.”
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Ensuring Efficient Arbitration of Construction Disputes Involving Mechanic’s Liens
February 18, 2020 —
Robert G. Campbell & Trevor B. Potter - Construction ExecutiveThere may be tension between the enforcement of statutory mechanic’s lien claims when a contractual dispute resolution provision calls for arbitration. Once the parties are in arbitration, it may not be clear whether the arbitrator has authority to make factual determinations regarding amount and validity of mechanic’s liens, and whether courts are bound by these determinations. This uncertainty stems from the fact that in most states a mechanic’s lien can only be enforced by a court of competent jurisdiction. Indeed, many mechanic’s liens statutes define foreclosure as a “judicial process,” and courts generally have exclusive jurisdiction to issue orders foreclosing on real property1.
The risk for contractors and owners is that they will spend time and money re-litigating factual issues related to proving elements of a mechanic’s lien claim, including the proper lien amount, timeliness and other prerequisites. Without a clear understanding of what issues and elements are arbitrable, the parties run the risk that an arbitrator will rule on certain elements only to find out during post-arbitration lien foreclosure proceedings that the arbitrator lacked authority to make determinations on those elements. Questions therefore arise whether a court will enforce the arbitrator’s determinations and whether the parties must relitigate mechanic’s lien issues creating a further risk of inconsistent rulings.
These risks can be minimized through arbitration provisions which address these issues, express requests in arbitration demands and by ensuring that arbitration awards contain explicit determinations of mechanic’s liens issues.
Reprinted courtesy of
Robert G. Campbell & Trevor B. Potter, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Mr. Potter may be contacted at tpotter@coxcastle.com
Mr. Campbell may be contacted at rcampbell@coxcastle.com
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New York Shuts Down Majority of Construction
March 30, 2020 —
Laura Bourgeois LoBue & Matthew D. Stockwell - Gravel2Gavel Construction & Real Estate Law BlogDue to pressure from construction workers, officials, and some construction workers having tested positive for COVID-19, the Empire State Development Corp. (acting on behalf of Governor Cuomo) has frozen all construction in New York today, with the exception of work on hospitals and health care facilities, transit facilities, roads and bridges, affordable housing and homeless shelters.
As a result, commercial construction and condominium projects are on hold, with the exception of work that must be completed to prevent unsafe conditions. Until now, construction has been considered “essential” in New York.
Reprinted courtesy of
Laura Bourgeois LoBue, Pillsbury and
Matthew D. Stockwell, Pillsbury
Ms. LoBue may be contacted at laura.lobue@pillsburylaw.com
Mr. Stockwell may be contacted at matthew.stockwell@pillsburylaw.com
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The Ghosts of Projects Past
December 17, 2015 —
Craig Martin – Construction Contractor AdvisorSean Minahan, one of my partners, and I were discussing a construction dispute the other day and we commented again and again about the significant organization required to get a construction project to completion. From the contracts, to the schedule, to the funding—everything has to be in lock step or there will be problems that could bring the project to a halt, or worse yet litigation.
The same is true of construction claims. To present a claim effectively, it has to be simple. But, to make it simple will require substantial documentation and organization of all aspects of a claim.
This point was driven home this week when I received Long International’s Construction Claims Analysis Checklist Long International. The Checklist is 11 pages long and identifies various aspects of a claim, from the simple to the complicated.
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Craig Martin, Lamson, Dugan and Murray, LLPMr. Martin may be contacted at
cmartin@ldmlaw.com
Harmon Towers Demolition Still Uncertain
January 23, 2013 —
CDJ STAFFIt would be a "gift" to MGM Resorts if they were able to tear down the Harmon Tower, according to an article in the New York Times, as analysts are cited that a hotel would "struggle during this economic downturn." Further, William Robinson, a professor of economics at the University of Nevada, Las Vegas, noted that "MGM has tried to cut back on the whole project," adding that "if you are a conspiracy theorist, you thin they are just looking for a way to get out of it." Professor Robinson thinks they would be unlikely to rebuild if allowed to tear down the building.
MGM Resorts has a different take on the matter. Alan M. Feldman, MGM's senior vice president for public affairs, told the New York Times that MGM "had a contract with Perini that we would pay them to give us a certain kind of building type — in this case a luxury hotel." Mr. Feldman contends that Perini had not "kept up their part of the bargain." Perini has stated that the fault was due to the designers and did not comment to the Times.
The claims of design and construction defects have left the building unfinished, with only twenty-six of the planned forty-nine floors constructed. Perini contends the building can still be repaired. MGM that its remediation plan is "to take the building down."
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Forethought Is Key to Overcoming Construction Calamities
February 10, 2020 —
Mitch Cohen - Construction ExecutiveWithout warning, an under-construction structure in the southern United States suffered a catastrophic collapse. The tragedy resulted in the death of several people. As a result, engineering and construction post-collapse forensics experts engaged in an 18-month investigation.
Those involved in the design and build project included the general contractor hired by the owner, a prime engineer, a consulting peer-review engineer and a prime structural design firm supported by a sub-consulting structural engineer. Although significant cracking was noticed several weeks before the failure, no one sounded the alarm or deemed the cracking worthy of corrective action.
In their findings, forensic experts found the collapse resulted from the combined failure of the general contractor, engineers and even the owner, who all failed to shut down the work once the cracking reached unacceptable levels and/or take the appropriate actions needed to secure the public safety and mitigate the risk. This was even after the general contractor requested that the engineer-of-record and design manager assess the structure’s extreme cracking. Consequently, the choice to not seriously investigate the crack or seek an independent peer review to design a rectification plan contributed directly to the tragedy. This is typically referred to within the industry as a “negligent professional design error.”
Reprinted courtesy of
Mitch Cohen, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Mr. Cohen may be contacted at
mitch.cohen@rtspecialty.com
New Jersey Legislation Would Bar Anti-Concurrent Causation Clause in Homeowners' Policies
June 08, 2020 —
Tred R. Eyerly - Insurance Law HawaiiA bill prohibiting the use of anti-concurrent causation clauses in homeowners' insurance policies has been introduced before the New Jersey legislature. The bill is
here.
Under an anti-concurrent causation clause, the policy bars coverage if two perils (i.e., wind and water damage) contribute to a loss and one peril is excluded from coverage. For example, wind damage alone may be covered, while water damage is excluded. If both wind and water contribute to the loss, regardless of the degree to which each peril contributes, the anti-concurrent causation clause would bar coverage.
New Jersey S 217 states,
An insurer authorized to transact the business of homeowners insurance in this state shall not exclude coverage in a homeowners insurance policy for loss or damage caused by a peril insured against under the terms of the policy on the grounds that the loss or damage occurred concurrently or in any sequence with a peril not insured against under the terms of the policy. Any such provision to exclude coverage shall be void and unenforceable.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Dispute Review Boards for Real-Time Dispute Avoidance and Resolution
August 20, 2019 —
Neal J. Sweeney, Esq. - ConsensusDocsThe use of dispute tribunals generally referred to as Dispute Review Boards or DRBs on major projects has matured. Use of a DRB cannot guarantee elimination of post-project litigation, but when used properly, a DRB can be an enormously effective tool to avoid and resolve disputes rapidly and during construction.
The modest out-of-pocket costs of a DRB can pay big dividends. DRBs offer the opportunity to shorten the life cycle of a dispute by requiring the principals to confront and address the merits of their dispute, rather than simply hunkering down and focusing on posturing and preparing for arbitration or litigation. Even when a DRB cannot immediately resolve a dispute, the process can still facilitate subsequent settlement and cost-effectively prepare both parties for formal adjudication. DRBs can also enhance communications and help the parties avoid and resolve problems before they spiral into disputes.
DRBs were first and are most widely used on big civil and infrastructure projects, but the benefits of a DRB extend equally to major building projects, particularly hospitals, and industrial projects and should be used in those sectors.
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Neal J. Sweeney, Esq., Jones Walker LLPMr. Sweeney may be contacted at
nsweeney@joneswalker.com