FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Five Issues to Consider in Government Contracting (Or Any Contracting!)

September 02, 2024 — David Adelstein - Florida Construction Legal Updates
The appeal of Appeals of – Konecranes Nuclear Equipment & Services, LLC, ASBCA 62797, 2024 WL 2698011 (May 7, 2024) raises interesting, but important, issues that should be considered. In this case, the government (in a supply contract) procured four portal cranes from the claimant. After an initial test of one of the cranes failed, the government refused to accept delivery even after the issue was addressed by the claimant. The government did not accept the manner in which the claimant addressed the issue and would only accept cranes if the claimant employed “an unnecessary alternative solution [that] caused further delay and increased [claimant’s] costs.” On appeal, it was determined the government’s decision to delay delivery based on its demand for the alternative solution was not justified, i.e., constituted a breach of contract. Below are five issues of consideration in government contracting, or, for that matter, any contracting. Issue #1- Patently Ambiguous Specifications The government argued that the specifications were patently ambiguous and because the claimant failed to inquire regarding the ambiguous specifications prior to performance, its interpretation of the ambiguous specifications should govern. The contractor countered that the specifications were unambiguous and it met the specifications. 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

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Wildfire Threats Make Utilities Uninsurable in US West

August 12, 2024 — Mark Chediak - Bloomberg
Trinity Public Utilities District’s power lines snake through the lower reaches of the Cascade Range, a rugged, remote and densely forested terrain in Northern California that has some of the highest wildfire risk in the country. But for several years, the company has been without insurance to protect it from such a threat. Trinity’s equipment was blamed for causing a 2017 wildfire that destroyed 72 homes and three years later its insurer, a California public agency called the Special District Risk Management Authority, told the utility that it would no longer cover it for fires started by its electrical lines. Trinity could find no other takers. The utility’s exposure comes as wildfires are already flaring up across the US West in what could be a dangerous and prolonged fire season. “If a fire were to start now that involved one of our power lines, it would likely bankrupt the utility,” said Paul Hauser, general manager of the local government-owned utility that serves about 13,000 rural customers in Trinity County, 200 miles (322 kilometers) north of Sacramento. That’s because without insurance, a lawsuit could put the utility on the hook to pay for damages to private homes and businesses, which could easily top the utility’s annual revenue of about $16 million. Read the court decision
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Reprinted courtesy of Mark Chediak, Bloomberg

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County Officials Refute Resident’s Statement that Defect Repairs Improper

August 27, 2014 — Beverley BevenFlorez-CDJ STAFF
Manatee County, Florida officials stated that “they are confident construction defects at the Willowbrook subdivision being fixed by the builder KB Home are being properly supervised and repaired,” according to the Bradenton Herald. However, a resident told the Bradenton Herald previously that “mold remediation isn’t being done properly and good wood was being installed over rotted wood.” John Barnott, director of the Manatee County Building & Development Services Department told the Bradenton Herald that the county building chief has been at the site “every week, three or four times a week.” Carroll Dupre, the county building chief, stated that the development “looks real good.” The commissioner, Vanessa Baugh, stated that she had not received any complaints from Willowbrook residents and that “she was ‘not pleased with the implications of the article.’” Read the court decision
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Denver Airport's Renovator Uncovers Potential Snag

March 04, 2019 — Nadine M. Post - Engineering News-Record
The renovation of the Great Hall of Denver International Airport’s iconic Jeppesen Terminal, roofed by a series of peaked tensile tents that echo the nearby mountains, has hit a bump. Routine but limited concrete testing of the nearly quarter-century-old terminal’s elevated floor slab, to determine whether the floor could support crane loads, shows the compressive strength of the concrete in certain sections is lower than was specified for the original project, more than 25 years ago. Read the court decision
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Reprinted courtesy of Nadine M. Post, ENR
Ms. Post may be contacted at postn@enr.com

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A Call to Washington: Online Permitting Saves Money and the Environment

October 28, 2011 — Douglas Reiser, Builders Council Blog

Here’s some good news for Oregon contractors:  Electronic Permitting is here. That’s right, no more standing in line with folders full of printed submittals and waiting all day for your permit. The click of a few buttons and you are in business. Great news, right? Unfortunately, Oregon isn’t sharing that celebration with Washington. So I say - why not?

Last week, the State of Oregon released its new ePermitting online interface. The website allows contractors, owners and even local building departments to create an account, submit building plans and procure permits. With your account, you can track the progress of submissions, print documents and get posting information.

The state ran a limited test version in the City of Florence since 2009, working out the kinks. Perhaps the most impressive result of the new system is that Oregon tackled the task of coagulating a local process into one central location.

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Reprinted courtesy of Douglas Reiser of Reiser Legal LLC. Mr. Reiser can be contacted at info@reiserlegal.com

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Contractor Allegedly Injured after Slipping on Black Ice Files Suit

January 22, 2014 — Beverley BevenFlorez-CDJ STAFF
Albert Jimenez, a contractor working in Philadelphia, Pennsylvania “has filed a civil action against the real estate group that owns the complex over claims that he became injured after slipping on black ice at the property” according to the Pennsylvania Record. The defendant, The Council of Fairmont, is accused “of negligence for failing to identify the dangerous defect in the parking lot, in this case, the patch of black ice, and failing to correct the hazardous condition,” the Pennsylvania Record reports. “Jimenez seeks an unspecified amount of compensatory damages, plus interest and litigation costs.” Read the court decision
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Can We Compel Insurers To Cover Construction Defect in General Liability Policies?

December 09, 2011 — Douglas Reiser, Builders Council Blog

Recently, I read an article on Engineering News-Record that outlines a remarkable movement by as many as four states, to mandate coverage of construction defects in contractor general liability insurance policies. Say what? Is this a reality? What will become of affordable insurance?

Commercial General Liability insurance, or CGL, is your basic liability insurance. Every contractor doing business in the State of Washington, and most likely those abroad, has this insurance. Contractors buy this insurance to protect them from unforeseen liabilities arising from their negligence - and right now it’s reasonably affordable.

Why is it so affordable in such a risk-heavy industry? Because CGL policies significantly limit the scope of their coverage. Coverage is generally afforded for damages resulting from negligence (The roofer put a hammer through the drywall contractor’s wall) or which resulted from your defective construction (the roof leaked and flooded the rest of the house). But, that coverage does not include replacement of your faulty construction (the contents of the home might be protected by your leaky roof - the leaky roof itself is not).

The debate over coverage typically stems from the definition of “occurrence,” a term used to describe the event from which coverage arises, “resulting loss,” a term used to describe the type of loss covered.

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Reprinted courtesy of Douglas Reiser of Reiser Legal LLC. Mr. Reiser can be contacted at info@reiserlegal.com

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Carrier Has Duty to Defend Claim for Active Malfunction of Product

October 19, 2020 — Tred R. Eyerly - Insurance Law Hawaii
Rejecting that the underlying claim was based solely on faulty workmanship, the Third Circuit held the insurer had a duty to defend allegations of a malfunctioning product. Nautilus Ins. Co. v. 200 Christina Street Partners LLC, 2020 U.S. App. LEXIS 22118 (3d Cir. July 16, 2020). The insureds were sued by homeowners in two separate suits alleging defects in the construction of their homes. Nautilus defended under a reservation of rights. Nautilus filed suit in District Court and moved for judgment on the pleadings. The District Court denied the motion, finding Nautilus had a duty to defend because the underlying claims sufficiently alleged product--related tort clams that could fall within the scope of coverage under the relevant policies. The Third Circuit affirmed. There was a distinction between a claim of faulty workmanship, for which the insurer did not have a duty to defend, and a claim of "active malfunction" of a product, for which an insurer did have such a duty. An active malfunction was sufficiently fortuitous as to constitute an "occurrence." Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

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