Legal Fallout Begins Over Delayed Edmonton Bridges
June 22, 2016 —
Scott Van Voorhis - Engineering News-RecordThe project teams for Edmonton’s two problem bridge-replacement projects have put most of their woes behind them—if trips to civil court and possible late-completion penalties are excluded.
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Scott Van Voorhis, Engineering News-RecordENR may be contacted with questions or comments at
ENR.com@bnpmedia.com
TV Kitchen Remodelers Sued for Shoddy Work
December 04, 2013 —
CDJ STAFFTheir remodels may dazzle on television, but someone who hired Bunelleschi Construction, the company owned by “Kitchen Cousins” stars John Colaneri and Anthony Carrino, wasn’t quite so dazzled. And now Robert and Peng Avery are suing the two men and their company for a kitchen remodel gone awry. They claim that the company left their Tenafly, New Jersey home uninhabitable.
According to the couple, the Brunelleschi’s work included “numerous gaps in sheetrock” and improper installation of ductwork, plumbing, and doors. They also claim that Brunelleschi Construction falsely claimed the work had passed final building and electrical inspections. When the company stopped work, the couple was unable to obtain a certificate of occupancy.
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Construction Defects Uncertain Role in Coverage in Pennsylvania
February 04, 2013 —
CDJ STAFFDouglas E. Cameron, Jay M. Levin, and Traci S. Rea look at the implications of a pair of Pennsylvania court decisions from 2012. The judge in both cases, Judge Wettick of the Allegheny County Court of Common Pleas held that comprehensive general liability policies do not cover any claims that arise from faulty workmanship.
The three conclude that "these holdings may preclude coverage for any tort claims asserted against your company if the allegations involve construction defects, even if you are sued for property damage or personal injury by a third party to your construction contract." They note that both decisions have been appealed to the Pennsylvania Superior Court.
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Oregon Condo Owners Make Construction Defect Claim
January 13, 2014 —
CDJ STAFFResidents of two condominiums in Florence, Oregon have filed suits alleging that construction defects have led to water intrusion and damage. The two condominium projects were built by separate developers. Each association has brought its own lawsuit, according to an article in the Register-Guard.
The Bridgeport Landing condominium owners have sued CJ Cable LLC for $2.5 million. Cindy Cable said of lawsuit, “I’ve done everything I could do to get this resolved, and I still get sued.” She said that “the only way to get it corrected is with a lawsuit.”
Meanwhile, residents of the Stillwater Condominiums have sued Thomas Hornback Construction for $2.1 million. Hornback is reported to have denied the allegations made by the Stillwater owners, but says that any problems would be due to subcontractors or failure of the owners to maintain the buildings.
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New FAR Rule Mandates the Use of PLAs on Large Construction Projects
October 10, 2022 —
Reggie Jones - ConsensusDocsThe Federal Acquisition Regulatory Council recently published a proposed ruled that, once implemented, will require the use of project labor agreements (PLAs) on federal construction projects with a contract value of $35 million or greater. The proposed rule revokes President Obama’s Executive Order 13502 and implements an Executive Order 14063 (E.O. 14063) issued on February 9, 2022. E.O. 14063 addresses the use of PLAs in the government contracts. Under the current Federal Acquisition Regulation (FAR), the use of PLAs on “large-scale construction projects” is discretionary. The new rule proposed by the Department of Defense (DOD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA) revises the FAR contract clauses making the use of PLAs mandatory.
Under the proposed rule, contractors performing “large-scale construction projects” will be required to “negotiate or become a party to a [PLA] with one or more appropriate labor organizations.” FAR 52.222-33. A PLA is in essence a collective bargaining agreement between a local trade union and contractor that governs employment terms, including wages and benefits, for union and non-union workers. Although the PLA mandate only applies to large-scale construction projects with the contract value of $35 million and more, under the proposed rule, agencies have the option to include the PLA requirement for construction projects that are under the $35 million threshold. The proposed rule also sets out a flow-down requirement, which means that subcontractors working on a large-scale project must likewise be familiar with and comply with terms of the PLA negotiated by a prime contractor.
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Reggie Jones, Fox Rothschild LLP (ConsensusDocs)Mr. Jones may be contacted at
rjones@foxrothschild.com
Manhattan Home Prices Jump to a Record as Buyers Compete
April 02, 2014 —
Oshrat Carmiel – BloombergManhattan apartment sales surged in the busiest start to a year since 2007, setting price records as buyers vied for a limited supply of homes for sale and deals were completed at new high-end developments.
Sales of co-ops and condominiums in the first quarter jumped 35 percent from a year earlier to 3,307, according to a report today from appraiser Miller Samuel Inc. and brokerage Douglas Elliman Real Estate. The median price climbed 19 percent to $972,428, while the the average price per square foot rose 24 percent to $1,363, the highest in 25 years of record-keeping.
Price gains are accelerating in a market where the inventory of homes for sale plummeted to record lows three times in the past year as buyer demand increased. Of the deals completed in the first quarter, 38 percent were at or above the asking price, up from 17 percent a year earlier, according to Jonathan Miller, president of New York-based Miller Samuel.
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Oshrat Carmiel, BloombergMs. Carmiel may be contacted at
ocarmiel1@bloomberg.net
Fire Consultants Cannot Base Opinions on Speculation
May 20, 2019 —
Christopher Konzelmann - The Subrogation StrategistLarsen v. 401 Main St. Inc., 302 Neb. 454 (2019), involved a fire originating in the basement of the Quart House Pub (Pub) in Plattsmouth, Nebraska that spread to and damaged Plattsmouth Chiropractic Center, Inc., a neighboring business. Fire investigators could not enter the building because the structure was unsafe and demolished. The chiropractic center nevertheless sued the Pub alleging that its failure to maintain and replace basement mechanical equipment caused ignition.
To prove its claim, the plaintiff retained a mechanical engineer who reviewed documents and concluded that the fire “originated from a failure of one of the items of mechanical equipment located in the area of the [basement] boiler.” Importantly, however, the consultant could not determine the root cause of the fire, could not eliminate the possibility that the fire originated in a compressor, and could not rule out the building’s electrical service as the ignition source because it was outside his area of expertise. The consultant nevertheless found that the fire most likely would not have occurred if the Pub had regularly serviced and replaced the equipment when needed.
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Christopher Konzelmann, White and Williams LLPMr. Konzelmann may be contacted at
konzelmannc@whiteandwilliams.com
SFAA and Coalition of Partners Encourage Lawmakers to Require Essential Surety Bonding Protections on All Federally-Financed Projects Receiving WIFIA Funds
February 21, 2022 —
The Surety & Fidelity Association of AmericaFebruary 17, 2022 (WASHINGTON, DC) – The Surety & Fidelity Association of America (SFAA) in collaboration with 15 trade associations, sent a letter strongly encouraging members of the Senate Environment and Public Works Committee, led by Chairman Tom Carper (D-DE) and Ranking Member Shelly Moore Capito (R-WV), to require payment and performance protections on federally-financed infrastructure projects receiving Water Infrastructure Finance and Innovation Act (WIFIA) loans, including public-private projects (P3s).
“As the Environment and Public Works Committee looks at legislation in the second session of the 117th Congress to continue the important work of addressing our nation’s water infrastructure, we urge the Committee to amend the Water Infrastructure Finance and Innovation Act (WIFIA) program to help protect taxpayer funds, workers, subcontractors and suppliers, including Small and Disadvantaged Business Enterprise (DBE) Program participants and subcontractors, who build water infrastructure especially in at-risk low income communities,” said Lee Covington, president and CEO, SFAA.
The coalition of partners includes:
American Property and Casualty Association
American Subcontractor Association
Business Coalition for Fair Competition
Council of Insurance Agents and Brokers
Finishing Contractors Association International
International Union of Operating Engineers
Mechanical Contractors Association of America
National Association of Electrical Contractor
National Association of Minority Contractors
National Association of Mutual Insurance Companies
National Association of Surety Bond Producers
Sheet Metal and Air Conditioning Contractors’ National Association
The Association of Union Constructors
The Construction Employers of America
Women Construction Owners and Executives
The Surety & Fidelity Association of America (SFAA) is a nonprofit, nonpartisan trade association representing all segments of the surety and fidelity industry. Based in Washington, D.C., SFAA works to promote the value of surety and fidelity bonding by proactively advocating on behalf of its members and stakeholders. The association’s more than 450 member companies write 98 percent of surety and fidelity bonds in the U.S. For more information visit www.surety.org.
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