Four Common Construction Contracts
August 26, 2015 —
Garret Murai – California Construction Law BlogLike Baskin Robins, construction contracts come in a variety of different flavors although, thankfully, significantly fewer than 31. Here are four of the more common types of construction contracts between project owners and contractors:
Fixed Price
Fixed price construction contracts, also commonly referred to as “lump sum” or “stipulated sum” contracts, are the most common types of construction contracts. As its name suggests, under a fixed price contract a contractor agrees to construct a project for a “fixed” or agreed upon price.
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Benefits: Fixed price construction contracts provide price predictability for project owners because absent changes in the scope of work, unforeseen conditions, or other circumstances which might cause the “fixed” price of the contract to go up or down, the contractor is required to complete the work for the agreed upon price.
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Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
Manhattan Homebuyers Pay Up as Sales Top Listing Price
October 01, 2014 —
Oshrat Carmiel – BloombergManhattan apartment prices rose 4.2 percent in the third quarter, bolstered by buyers who increasingly agreed to pay what sellers were asking or more.
The median sale price of condominiums and co-ops was $908,242, up from $872,000 a year earlier, according to a report today from appraiser Miller Samuel Inc. and brokerage Douglas Elliman Real Estate. The average price per square foot increased 12 percent to $1,270, the third-highest in records dating to 1989, the firms said.
Prices in Manhattan have climbed for four consecutive quarters, encouraging more owners to list properties after an inventory shortage last year. With the number of apartments on the market up 28 percent from the third quarter of 2013, buyers focused on those that were not-too-ambitiously priced, said Jonathan Miller, president of New York-based Miller Samuel.
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Oshrat Carmiel, BloombergMr. Carmiel may be contacted at
ocarmiel1@bloomberg.net
CA Supreme Court Permits Insurers to Bring Direct Actions Seeking Reimbursement of Excessive Fees Against Cumis Counsel Under Limited Circumstances
August 19, 2015 —
David W. Evans & Valerie A. Moore – Haight Brown & Bonesteel LLPThe California Supreme Court held in Hartford Casualty Insurance Company v. J.R. Marketing, L.L.C. (Squire Sanders) (8/10/2015 - #S211645) that if Cumis counsel, operating under a court order which such counsel drafted and which expressly provided that the insurer would be able to recover excessive fees, sought and received fee payments from the insurer that were fraudulent or otherwise manifestly and objectively useless and wasteful when incurred, Cumis counsel have been unjustly enriched at the insurer’s expense and the insurer will be permitted under such limited circumstances to seek reimbursement directly from Cumis counsel.
Certain Hartford insureds who had been issued commercial general liability policies were sued in multiple proceedings for a variety of claims, including unfair competition, defamation and intentional misrepresentation. Hartford disclaimed a duty to defend or to indemnify the defendants on the grounds that the acts complained of occurred prior to Hartford’s policy, and that some of the defendants were not Hartford insureds. A coverage action was filed by some of the insureds against Hartford; they were represented by the Squire Sanders law firm. Although Hartford subsequently agreed to defend several of the defendants subject to a reservation of rights, it declined to pay defense expenses incurred prior to the date of such agreement. Some months later, the trial court entered a summary adjudication order, finding that Hartford had a duty to have defended the liability action on the date it was originally tendered; the order required Hartford to fund the insured’s defense with independent counsel (i.e., so-called “Cumis” counsel; see San Diego Federal Credit Union v. Cumis Insurance Society, Inc. (1984) 162 Cal.App.3d 358). The insureds retained Squire Sanders as their Cumis counsel.
Reprinted courtesy of
David W. Evans, Haight Brown & Bonesteel LLP and
Valerie A. Moore, Haight Brown & Bonesteel LLP
Mr. Evans may be contacted at devans@hbblaw.com
Ms. Moore may be contacted at vmoore@hbblaw.com
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Ten Years After Colorado’s Adverse Possession Amendment: a brief look backwards and forwards
September 25, 2018 —
Luke Mecklenburg - Snell & Wilmer Real Estate Litigation BlogIn response to national outrage over an infamous adverse possession case in Boulder, Colorado, in which a lawyer and a judge intentionally took their neighbors’ undeveloped land through adverse possession, the Colorado legislature amended the state’s adverse possession statute (C.R.S. § 38-41-101) to make the claim significantly harder to prove. It did this because it believed “there were insufficient ‘obstacles’ to establishing a claim for adverse possession under the existing law.”[1] Effective July 1, 2008, the amendment created a heightened burden of proof, additional element requirements, and the possibility of a losing defendant recovering money from successful plaintiffs for the value of the land they took and the taxes the defendant had paid on that land.
The Boulder case eventually settled, but the resulting statutory amendments have drastically changed the landscape of Colorado’s adverse possession law. Ten years later, this blog post takes a brief look at the amended statute, the impact it has had, and questions that have yet to be resolved.
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Luke Mecklenburg, Snell & WilmerMr. Mecklenburg may be contacted at
lmecklenburg@swlaw.com
Boston’s Tunnel Project Plagued by Water
August 11, 2011 —
CDJ STAFFBoston’s Tip O’Neil Tunnel, part of the “Big Dig” project, is suffering from water leaks which has lead to millions of dollars of damage, according to an article in the Boston Globe. The report quotes Frank DePaola, the highway administrator, as likening the water leaks to “three garden hoses.” The project’s chief engineer notes that those “three garden hoses” add up to 17 million gallons a year.
Further, the chief engineer reports notes that the leaks could compromise both safety and structural integrity. Problems have included a 110-pound light fixture that fell in February, ventilation ducts clogged with ice during the winter, and mold in utility rooms and ventilation buildings.
Read the full story…
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Competent, Substantial Evidence Carries Day in Bench Trial
February 26, 2024 —
David Adelstein - Florida Construction Legal UpdatesA number of construction disputes, if tried, are tried through a bench trial meaning the judge is serving in the role of the jury in the construction trial. In a bench trial, two points are important. First, “the factual findings of the judge are entitled to the weight of a jury verdict.” Q.G.S. Development, Inc. v. National Lining Systems, Inc., 2024 WL 357984 (Fla. 3d DCA 2024) (internal quotation and citation omitted). Second, “[t]he appellate court is only authorized to reverse if such findings are not supported by competent, substantial evidence.” Id. These two points need to be appreciated when participating in any construction dispute that will be resolved through a bench trial.
A recent construction dispute highlights these two points. In Q.G.S. Development, a contractor was hired to refurbish a golf course which included constructing a lake. The contractor was going to construct the lake, prepare the subgrade, perform dewatering, and it hired a subcontractor to install a reservoir liner at the bottom of the lake.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Breaking the Impasse by Understanding Blame
January 13, 2020 —
Christopher G. Hill - Construction Law MusingsFor this week’s Guest Post Friday (on a Thursday) here at Construction Law Musings, Victoria Pynchon (@vickiepynchon) joins us for the 4th time. Victoria is an attorney-mediator with ADR Services, Inc. in Century City; an arbitrator with the American Arbitration Association in Los Angeles, California; and, a negotiation consultant and trainer world-wide. Victoria co-founded She Negotiates Training and Consulting in 2010 and writes for ForbesWoman at its She Negotiates blog. She is the author of one of my favorite books on conflict resolution, A is for A*@!#, the Grownups’ ABC’s of Conflict Resolution reviewed at Musings here.
First Let’s Talk About Anger
Please raise your hand if your clients — corporate clients — are angry about the burdens of litigation. Irritated with the document “demands” and interrogatories. Frustrated about the e-discovery. Ticked off at the way opposing counsel asks them questions as if they’re lying. Hot under the collar about the mounting attorneys’ fees and the distance between the day suit was filed and the probable day on which a trial might eventually be scheduled. Simmering about the time the litigation consumes, time they’d prefer to be spending doing their actual jobs — planning for and implementing business strategies for a profitable future instead of fighting about the unprofitable past.
And we’re not even talking about your clients’ anger at the defendant who has stolen their intellectual property or stopped worked at the construction site or refused to release the remaining funds in the construction loan account. And if you believe that powerful people in highly successful and profitable businesses do not fear that litigation might hurt their careers, think again.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Why Should Businesses Seek Legal Help Early On?
December 03, 2024 —
Scott L. Baker - Los Angeles Litigation BlogMost business owners are natural problem solvers. They assess the issue that lies before them and develop a strategy to overcome it. It’s a critical mindset to have, but do all business owners have the skillset to solve every issue?
While it is understandable that business owners may want to attempt to resolve issues on their own, it is invariably beneficial to obtain guidance for legal issues earlier rather than later.
3 Reasons to Consult an Attorney Sooner than Later
Many people might consider working with an attorney to be a last resort. Typically, this is not the case; rather, getting knowledgeable legal counsel sooner than later can help business owners because:
- It’s Cheaper: Early legal intervention can often prevent disputes from leading to litigation, which can be expensive. Working with an attorney to resolve a conflict before it escalates into a larger issue is often a good business decision and wise investment.
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Scott L. Baker, Baker & AssociatesMr. Baker may be contacted at
slb@bakerslaw.com