Modular Homes Test Energy Efficiency Standards
August 06, 2014 —
Beverley BevenFlorez-CDJ STAFFThe Systems Building Research Alliance (SBRA) will be putting three different energy standards to the test, according to Big Builder. Clayton Homes has been selected to build three modular homes, which will be used in a 15-month energy performance test conducted by Southern Energy Homes (SEHomes).
Each home will comply with a different standard: “one complies with the U.S. Department of Housing and Urban Development’s (HUD) thermal standards, one is an Energy Star-qualified home and one meets the DOE requirements for the Challenge Home Program, also known as a DOE Zero Energy Ready Home.”
Testing is expected to be completed July 2015.
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Mediation in the Zero Sum World of Construction
October 02, 2015 —
Christopher G. Hill – Construction Law MusingsConstruction is a zero sum game. What do I mean by that? I mean that even where you, a construction professional with a great construction lawyer, have reviewed and edited a subcontract presented to you or provided a well drafted contract to the other party that contains an attorney fees provision, every dollar that you spend on litigation is a dollar less of profit.
Couple the fact that no construction company can or should bid or negotiate work with an eye toward litigation (aside from having a well written contract that will be enforced to the letter here in Virginia). Particularly on “low bid” type projects, contractors and subcontractors cannot “pad” their bids to take into account the possibility of attorney fees, arbitration, or litigation. Furthermore, the loss of productivity when your “back office” personnel are tied up dealing with discovery, phone calls, and other incidents of litigation that do nothing but rehash a bad project and increase the expense saps money from the bottom line. While the possibility of a judgment including attorney fees may soften this blow, you are still out the cash.
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Christopher G. Hill, Law Office of Christopher G. Hill, PCMr. Hill may be contacted at
chrisghill@constructionlawva.com
Why You May Not Want a Mandatory Mediation Clause in Your Construction Contract
October 26, 2017 —
Christopher G. Hill - Construction Law MusingsI know, you are likely surprised by the title of this post. You’ve read Construction Law Musings for a while now and know that as a Virginia Supreme Court certified mediator, I have advocated mediation as a great way to resolve your construction disputes short of the expensive and time consuming litigation process. Knowing all of this, you as a reader of this blog (thanks by the way) probably wonder why I think that a mandatory mediation clause may not be the best thing for your construction contracts. I can understand your possible confusion (particularly
in light of this post from @sethsmiley).
Please don’t take the headline as my suddenly taking a new view of mediation. Short of simply resolving the dispute between the parties to the construction contract, mediation still remains number one on my list of construction dispute resolution mechanisms. I still believe that it is useful even when a resolution is not met after a good faith attempt by both sides to come to a business agreement. However, I also believe that mediation works best when entered into voluntarily by the parties.
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Christopher G. Hill, The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
You Cannot Arbitrate Claims Not Covered By The Arbitration Agreement
March 16, 2020 —
David Adelstein - Florida Construction Legal UpdatesRegardless of the type of contract you are dealing with, “[a]rbitration provisions are contractual in nature, and therefore, construction of such provisions and the contracts in which they appear is a matter of contract interpretation.” Wiener v. Taylor Morrison Services, Inc., 44 Fla. L. Weekly D3012f (Fla. 1st DCA 2019). This means if you want to preserve your right to arbitrate claims you want to make sure your contract unambiguously expresses this right. Taking this one step further, if you want to make sure an arbitrator, and not the court, determines whether the claim is arbitrable if a dispute arises, you want to make sure that right is expressly contained in the arbitration provision.
For example, in Wiener, a homeowner sued a home-builder for violation of the building code – a fairly common claim in a construction defect action. The homeowner’s claim dealt with a violation of building code as to exterior stucco deficiencies. The home-builder moved to compel the lawsuit to arbitration based on a structural warranty it provided to the homeowner that contained an arbitration provision. The structural warranty, however, was limited and did not apply to non-load-bearing elements which, per the warranty, were not deemed to have the potential for a major structural defect (e.g., a structural defect to load-bearing elements that would cause the home to be unsafe or inhabitable). The trial court compelled the dispute to arbitration pursuant to the arbitration provision in the structural warranty.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Ensuring Arbitration in Construction Defect Claims
February 04, 2013 —
CDJ STAFFJared E. Berg and John W. Mill of Sherman & Howard note that developers and general contractors would prefer that construction defect claims against them go to arbitration, instead of ending up in front of a jury. They say “there is a way to do this.” For the developer and general contractor, arbitration is “typically less costly and time consuming than litigation.”
On the other side, home owner associations “tend to prefer litigation because the up-front costs of arbitration are greater and they would rather have their cases tried to a jury than a panel of arbitrators in the belief juries offer greater potential for high damage awards. In order to avoid arbitration, “HOAs have taken advantage of their statutory rights to amend declarations by instructing their members to approve amendments removing arbitration clauses.
However, in a recent Colorado case, the developer had taken a precaution of including in the arbitration clauses that “they could not be removed from the declarations by amendment with the developer’s and general contractor’s consent.” The homeowners association had voted to remove these clauses, but the judge found that they could not do so.
Berg and Mill give the advice to “include in the declaration’s arbitration clause a provision making your consent required to amend or nullify the arbitration provision,” adding that “courts will enforce this kind of consent provision.”
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Tips for Drafting Construction Contracts
May 04, 2020 —
Stuart Rosen - Construction ExecutiveWhen negotiating a construction contract, a contractor and its advisers must first determine the areas of greatest concern.
For example, if the contractor believes that the drawings that were prepared by the architect and other design professionals are deficient, the contractor may want to reference those deficiencies in the contract. The contractor should emphasize that it is not responsible for the drawings and to the extent the project schedule is extended to allow the parties to address such issues with the drawings, the contractor would be entitled to additional compensation.
This article provides contractors with additional tips, with a broad focus on project delays, for their protection when negotiating and drafting construction contracts, and helps contractors understand the rationale for such tips to better prepare contractors in such negotiations.
Contractor’s liability to the owner for delay damages
It is imperative that the contract include a waiver of claims for consequential damages. AIA Document A201TM – 2017 includes such a waiver, which provides, in pertinent part, “The Contractor and Owner waive Claims against each other for consequential damages arising out of or relating to this Contract … This mutual waiver is applicable, without limitation, to all consequential damages due to either party’s termination in accordance with Article 14.”
Reprinted courtesy of
Stuart Rosen, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Mr. Rosen may be contacted at
srosen@proskauer.com
Private Mediations Do Not Toll The Five-Year Prosecution Statute
April 28, 2016 —
Zachary P. Marks – Chapman Glucksman Dean Roeb & Barger In FocusIf you thought private mediation could toll the five-year period for case prosecution – think again. In a recent decision handed down by the Second District Court of Appeal, the court unequivocally held that voluntary, private mediations do not toll the five-year period before dismissal for failure to bring an action to trial.
California Code of Civil Procedure section 583.310 sets forth the applicable rule: “[a]n action shall be brought to trial within five years after the action is commenced against the defendant.” Section 1775.7(b) clarifies this rule, stating that the five-year period can be tolled if it is “submitted to mediation” within the final six months of the five-year period. However, the Code is silent with respect to the effect of tolling on public versus private mediations.
The Court of Appeal addressed this issue in its recent decision entitled Castillo v. DHL Express (USA) (2015) 243 Cal.App.4th 1186. Castillo was an employment class action brought by truck drivers against their employers. Plaintiffs argued that the case was “submitted to mediation” within the meaning of Section 1775.7(b) because the court’s Case Management Order reflected the fact that the parties agreed to pursue mediation. Conversely, defendants argued that the Case Management Statement clearly stated that the parties voluntarily agreed to a private mediation, not a court-ordered mediation.
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Zachary P. Marks, Chapman Glucksman Dean Roeb & Barger In FocusMr. Marks may be contacted at
zmarks@cgdrblaw.com
U.S. Homeownership Rate Rises for First Time in Two Years
October 28, 2015 —
Prashant Gopal – BloombergThe homeownership rate in the U.S. rose for the first time in two years as sustained job growth and low borrowing costs fueled demand for housing.
The share of Americans who own their homes was 63.7 percent in the third quarter, up from 63.4 percent in the previous three months, the Census Bureau reported Tuesday. It was the first quarterly increase since the third quarter of 2013.
The pool of eligible buyers is expanding as U.S. employment improves and families who lost properties during the recession repair their credit and seek another chance at owning. Sales of existing homes rebounded in September to the second-highest level since February 2007.
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Prashant Gopal, Bloomberg