Seattle Washington Building Expert Directory

Construction Contract’s Scope of Work Should Be Written With Clarity

March 06, 2023 — David Adelstein - Florida Construction Legal Updates
The scope of work section in your construction contract should never be overlooked. In numerous instances, it is overlooked which leads to a dispute as to the precise nature of the scope of work. This dispute could be the result of an ambiguity in the scope of work section. Or it could be the result of an omission. Or it could be the result of a lack of clarification. Or it could be the result of not properly reviewing and vetting the scope of work section. This is a section—whether included in the body of your contract or attached as an exhibit—you absolutely, positively want clarity. Otherwise, you are potentially setting yourself up for a future dispute that could include (i) an additional work / change order dispute, (ii) an incomplete work dispute, or (iii) a failure to properly perform your work dispute. These are all disputes you want to avoid, and many times can avoid, by going through and negotiating the scope of work section to bring clarity to this section. Remember, clarity is a positive. Ambiguity or uncertainty is a negative. An example of such an avoidable scope of work dispute can be found in All Year Cooling and Heating, Inc. v. Burkett Properties, Inc., 2023 WL 2000991 (Fla. 4th DCA 2023). Here, an air conditioning contractor was hired to install six new split air conditioning systems. The scope of work provided that there were currently “two split systems that are currently existing, working perfectly and are not to be replaced as part of this contract.” The property manager claimed the air conditioning contractor was required to bring these two existing split air conditioning systems up to code as the contract provided that notwithstanding anything to the contrary, the contractor “will certify and shall ensure that all split systems in the building, upon completion of all the work, will be fully compliant with all codes and regulations and shall be responsible for any costs relates to the implementation and/or remediation of same.” Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

Hail Drives Construction Spending in Amarillo

October 25, 2013 — CDJ STAFF
Amarillo had a hailstorm in May and it’s still having an effect on the construction industry there. Prior to the May 28 hailstorm, the city issued 223 permits for roofing projects, worth a total of $1.9 million. But in the four months after the hailstorm, the city issued 13,696 roofing permits worth about $151.4. During the same nine months of 2012, the total was only $6.9 million. The Amarillo Globe-News reports that there has been a slowing of residential roof work, but the commercial roofing is still going strong. Scott McDonald, an Amarillo building official told the paper that a commercial roof can exceed a million dollars. “The commercial aspect is much more complicated, and we’re just now getting started,” said Mr. McDonald. Read the court decision
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Avoiding Disaster Due to Improper Licensing

February 18, 2019 — Candace Matson - Construction & Infrastructure Law Blog
IT’S NOT ENOUGH FOR A CONTRACTOR TO BE LICENSED . . . it must be properly licensed. We are reminded of this by the recent case of JMS Air Conditioning and Appliance Service, Inc. v. Santa Monica Community College District, Bernards Bros., Inc., 30 Cal. App. 5th 945 (2018). In that case, JMS entered into an $8.2M subcontract with Bernards to install an HVAC system in a new facility being built for the District. JMS held a C-20 warm-air heating, ventilating and air-conditioning license. A year into the project, Bernards sought permission from the District to substitute another subcontractor for JMS (as required under Public Contract Code Section 4107 for listed subcontractors on public works of improvement). Among other things, Bernards contended that JMS was not properly licensed to perform that portion of the work which consisted of hydronic plumbing and hydronic boiler work. JMS countered that this work was an integral part of installing an HVAC system, and relied on Business & Profession Code Section 7059, which permits work that is “incidental and supplemental to the performance of the work for which the specialty contractor is licensed,” and a California State Licensing Board regulation which defines “incidental and supplemental” as meaning “essential to accomplish the work in which the contractor is classified.” (Cal. Code Regs., tit. 16, §831.) Read the court decision
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Reprinted courtesy of Candace Matson, Sheppard Mullin
Ms. Matson may be contacted at cmatson@sheppardmullin.com

Traub Lieberman Partner Eric D. Suben Obtains Federal Second Circuit Affirmance of Summary Judgment in Insurer’s Favor

April 10, 2023 — Eric D. Suben - Traub Lieberman
In the underlying action, a property owner hosting a motorcycle rally was sued after a motorcycle collided with an auto near the entrance to the premises, injuring the cyclists. The cyclists sued the property owner, among others, alleging failure to supervising traffic on the adjoining roadway. The property owner tendered the claim under its CGL policy, which was endorsed with an “absolute auto exclusion,” precluding coverage for claims “arising out of or resulting from the ownership, maintenance, use or entrustment to others of any…auto.” The CGL insurer disclaimed coverage based on the endorsement. In the ensuing coverage litigation, Traub Lieberman represented the insurer, and moved for summary judgment arguing that the “absolute auto exclusion” was dispositive of coverage on the facts alleged, citing case law from New York state courts enforcing similar exclusions to preclude coverage for multi-vehicle accidents. The insured argued in opposition that the outcome should be controlled by Essex Insurance Company v. Grande Stone Quarry, LLC, 82 A.D.3d 1326, 918 N.Y.S.2d 238 (3rd Dep’t 2011), in which the court declined to apply such exclusion in the case of a single-vehicle accident caused by a dangerous condition of the insured’s premises. The federal district judge disagreed with the insured’s argument in this regard, granting Traub Lieberman’s motion for summary judgment in favor of the insurer. Read the court decision
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Reprinted courtesy of Eric D. Suben, Traub Lieberman
Mr. Suben may be contacted at esuben@tlsslaw.com

Angelo Mozilo Speaks: No Regrets at Countrywide

September 03, 2014 — Max Abelson – Bloomberg
Six years after he lost control of the largest mortgage lender in the U.S., and days after news that the U.S. Attorney’s Office in Los Angeles plans to sue him, the Countrywide Financial Corp. founder is baffled by a new effort to punish him, proud of past triumphs and incensed by criticism. “You’ll have to ask those people, ‘What do you have against Mozilo, what did he do?’” he said in a 30-minute call with Bloomberg News before Labor Day, one of his few interviews since the firm’s downfall. “Countrywide didn’t change. I didn’t change. The world changed.” Interviews with Mozilo, 75, and three friends show what retirement looks like for a chief executive officer linked to the worst financial crisis since the Great Depression. Remaining out of public view like Lehman Brothers Holdings Inc.’s Richard Fuld or Jimmy Cayne of Bear Stearns Cos., Mozilo has submitted plans for Old West-style offices in California, taught students in Italy about finance, invested in a building in the Arizona desert that houses a Taco Bell and written about his life so that his grandchildren will “know the truth.” Read the court decision
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Reprinted courtesy of Max Abelson, Bloomberg
Mr. Abelson may be contacted at mabelson@bloomberg.net

Road to Record $199 Million Award Began With Hunch on Guardrails

June 17, 2015 — Patrick G. Lee – Bloomberg
It started with a hunch about malfunctioning highway guardrails. It led to the biggest known whistle-blower award in U.S. history. Joshua Harman, a Virginian with two small highway safety companies, made a discovery in late 2011 that perhaps only a guardrail maker could: A big competitor had changed the dimensions of its roadside safety device by as much as an inch here and there, he said, without telling federal regulators. As designed, Trinity Industries Inc.’s ET-Plus system was meant to turn the end of a guardrail into a de facto shock absorber. The altered units, as Harman saw it, were locking up when hit, spearing cars and their occupants. Read the court decision
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Reprinted courtesy of Patrick G. Lee, Bloomberg

Montana Court Finds Duty to Defend over Construction Defect Allegation

February 14, 2013 — CDJ STAFF
The U.S. District Court for Montana recently ruled on a case with underlying construction defect issues. Brian Margolies discussed Lukes v. Mid-Continent on the blog run by his firm, Traub Lieverman Straus & Shrewsberry LLP. In the construction defect case, the homeowner “alleged that the siding warped and pulled away from the house, which allowed for water intrusion and resulting exterior and interior damage.” Further, there were claims that “the insured or its subcontractor failed to install proper flashing, which also allowed for water intrusion.” The insured was Bernie Rubio, who had a general liability policy from Mid-Continent. Mid-Continent disclaimed coverage, citing sections of the business risk exclusions. The court did not find the clauses ambiguous, but concluded that they didn’t apply to the facts of the case. While the court concluded that Mid-Continent had a duty to defend, they did not determine if there was a duty to indemnify. Read the court decision
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The Value of Photographic Evidence in Construction Litigation

April 26, 2021 — Marie Mueller - Construction Executive
If a picture is worth a thousand words, can it be worth a thousand dollars? Ten thousand? Maybe, if it provides key evidence in a construction dispute. Litigating a construction case involves each side telling their story. Details and visual context make a story compelling. Evidence and corroboration make a story persuasive. Photographs can help on both of these fronts. The Value of Photographic Evidence in Construction Litigation Consider the following examples:

A dispute relates to the timeliness of particular work. An employee has a memory of a load of materials arriving to the site later than it should have, but the records are incomplete or ambiguous about when it actually occurred. If the employee also took a photo of the materials, on the day they arrived, they could match up the date of the photo to their memory and build a clear timeline.
A dispute relates to the presence or absence of obstructions in drilled shafts. There are no available photographs or videos of the work due to site restrictions. Presentation of this type of case may be severely limited by not being able to show photos depicting the size, shape and type of material removed from the shafts, and by the lack of video depicting the work.

Reprinted courtesy of Marie Mueller, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Ms. Mueller may be contacted at mmueller@verrill-law.com

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