Fairfield Connecticut Building Expert Directory

Embracing Generative Risk Mitigation in Construction

February 12, 2024 — Georgia Stillwell - Construction Executive
Project delays have long plagued the construction industry, with risk often identified as the primary culprit. However, finding effective solutions to mitigate risk on complex projects has remained daunting. Traditional methods for simulating risk primarily focus on extending project timelines, overlooking the diverse range of opportunities available for risk mitigation. With the construction industry’s digital transformation, generative methodologies have emerged to handle complex decision-making in uncertain situations. This article aims to shed light on the limitations of existing risk modeling and introduce a novel approach known as generative risk mitigation to enhance decision-making under deep uncertainty. According to McKinsey, 98% of megaprojects experience cost overruns exceeding 30%. Project delays have become so pervasive that the industry has grown accustomed to them. For example, in 2022, the UK government issued ‘The Green Book,’ which requires contingency funds in projects, such as a 44% contingency budget for standard civil projects. This implies that for a $100 million project, you should allocate $144 million to manage expected risks. There is no denying significant academic literature on the root cause of these delays: it is ‘risk,’ and there is an entire industry based on it. Conversations with project directors and risk experts reveal the same issue, different project. And that issue is that we cannot easily forecast risk, qualify the impacts or fully understand the opportunities that exist to mitigate risks and make timely decisions. A method that will finally help us overcome this has emerged within the industry. Reprinted courtesy of Georgia Stillwell, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Contracts and Fraud Don’t Mix (Even for Lawyers!)

August 24, 2020 — Christopher G. Hill - Construction Law Musings
In prior posts here at Construction Law Musings, I have discussed how fraud and contracts are often like oil and water. While there are exceptions, these exceptions are few and far between here in Virginia. The reason for the lack of a mix between these two types of claims is the so-called “source of duty” rule. The gist of this rule is that where the reason money is owed from one party to another (the source of the “duty to pay”) is based in the contract, Virginia courts will not allow a fraud claim. The rule was created so that all breaches of contract, claims that are at base a failure to fulfill a prior promise and could, therefore, be considered to be based on a prior “lie,” would not be expanded to turn into tort claims. This rule has been extended to claims that most average people (read, non-lawyers) would consider fraud because there was no intent to fulfill the contract at the time it was signed. Just so you don’t think that lawyers are exempt from this legal analysis, I point you to a recent case where a law firm sued a construction client of theirs for failure to pay legal fees. In EvansStarrett PLC v. Goode & Preferred General Contracting, the Fairfax County Circuit Court considered a motion by the Plaintiff law firm seeking to add a count of fraud to its breach of contract lawsuit. The Court considered the following facts. Read the court decision
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Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

Condos Down in Denver Due to Construction Defect Litigation

November 06, 2013 — CDJ STAFF
A new report suggests that fears of construction defect litigation may be the cause of the slump in condo building in the Denver area. The Denver Business Journal reports that the Denver Regional Council of Governments commissioned the study by Economic & Planning Systems. The conclusion of the report was that the only type of condominium likely to be built is high-cost units with high profit margins. This is not good news for the DRCOG, which is seeking to create more affordable housing. The report found that builders assess the likeliness of being sued “is nearly 100 percent,” that costs of addressing construction defects are 12% higher than at apartment complexes, and that preparing for litigation adds about $15,000 to the cost of a condo unit. One possible remedy is to reform Colorado’s construction defect laws. Bob Muphy, the mayor of Lakewook and an advocate of construction defect litigation reform, said that he sees “this as a verification of what I’ve been talking about.” Read the court decision
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Bad Faith Claim For Independent Contractor's Reduced Loss Assessment Survives Motion to Dismiss

January 28, 2014 — Tred R. Eyerly – Insurance Law Hawaii
The insured's bad faith claim based upon the insurer's alleged use of an independent contractor to assess the amount of loss in order to lower the amount paid survived a motion to dismiss. Williamson v. Chubb Indem. Ins. Co., 2013 U.S. Dist. LEXIS 178022 (E.D. Pa. Dec. 19, 2013). The insureds' home was damaged. Chubb, their insurer, retained an independent contractor, Eastern Diversified Services (EDS) to assess the amount of loss. EDS estimated the loss to be $193,270.43, and Chubb paid this amount. Chubb's standard practice was to conduct damage estimates itself using an estimating program called Symbility. EDS used a different program with a data base creating lower payments for loss. When this was brought to Chubb's attention, Chubb refused to recalculate the plaintiff's estimate. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

The Buck Stops Over There: Have Indemnitors Become the Insurers of First and Last Resort?

September 17, 2015 — Garret Murai – California Construction Law Blog
Insurance and indemnity are the primary risk management strategies on construction projects. Insurance, such as commercial general liability insurance, insures against third party claims for bodily injury and property damage, and in the case of builder’s risk insurance, insures against first party claims during construction. Indemnity, on the other hand, shifts liability from one party to another and can be broader than the types of claims covered by insurance although anti-indemnity statutes can limit the breadth of those claims. Sometimes though insurance and indemnity work in ways you might never have expected, like in the next case, Valley Crest Landscape Development, Inc. v. Mission Pools of Escondido, Inc., Case No. G049060 (July 2, 2015), in which the California Court of Appeals for the Fourth District held a subcontractor liable in the face of both an indemnity claim brought by a general contractor as well as a subrogation claim brought by the general contractor’s insurance company. Read the court decision
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Reprinted courtesy of Garret Murai, Wendel Rosen Black & Dean LLP
Mr. Murai may be contacted at gmurai@wendel.com

Excess-Escape Other Insurance Provision Unenforceable to Avoid Defense Cost Contribution Despite Placement in Policy’s Coverage Grant

April 20, 2016 — Christopher Kendrick & Valerie A. Moore - Haight Brown & Bonesteel, LLP
In Certain Underwriters at Lloyds, London v. Arch Specialty Ins. Co. (No. C072500; filed 4/11/16), a California appeals court found an “other insurance” provision unenforceable to excuse defense contribution between successive primary insurers, regardless of the fact that the limiting language was contained in the policy’s coverage grant. Certain Underwriters and Arch each insured Framecon over successive policy periods. Framecon was sued by a developer in a series of construction defect actions, and tendered to both insurers. Underwriters agreed to defend under a reservation of rights but Arch declined, citing the wording of its insuring agreement, which stated: Reprinted courtesy of Christopher Kendrick, Haight Brown & Bonesteel LLP and Valerie A. Moore, Haight Brown & Bonesteel LLP Mr. Kendrick may be contacted at ckendrick@hbblaw.com Ms. Moore may be contacted at vmoore@hbblaw.com Read the court decision
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San Francisco Bucks U.S. Trend With Homeownership Gains

September 24, 2014 — Prashant Gopal – Bloomberg
Homeownership climbed in a small number of U.S. metropolitan areas last year including San Francisco; Nashville, Tennessee; and Austin, Texas, where strong job growth helped them buck the national trend. Of 100 metropolitan areas, 17 had an increase in the “true” ownership rate, which measures the number of owner-occupied households per 100 adult residents, according to an analysis by Trulia Inc. of Census Bureau data. Even in those areas, advances were small. San Francisco had the biggest gain in 2013, rising about 0.6 percentage points from a year earlier, the property-information company said today. The Gary, Indiana, region, made up mostly of suburbs, had a similar increase. The homeownership rate has been falling in much of the U.S. as incomes stagnate and rising prices make housing less affordable and more difficult to finance for entry-level buyers. The regions where the rate is up include strong job markets such as San Francisco and Austin, and areas with stable prices such as Albany, New York, that were spared the brunt of the nationwide foreclosure crisis, Trulia said. Read the court decision
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Reprinted courtesy of Prashant Gopal, Bloomberg
Mr. Gopal may be contacted at pgopal2@bloomberg.net

Where Do We Go From Here?

March 21, 2022 — Christopher G. Hill - Construction Law Musings
Green Builder CoalitionFor this week’s Guest Post Friday, I welcome an old friend and past Guest Post Friday contributor, Mike Collignon. Mike is the Co-Founder and Executive Director of the Green Builder® Coalition. He engages in national and state-level advocacy and publishes regular content for Green Builder® Media. Mike is also the Chair of the WERS Development Group and has served as the moderator or host for Green Builder® Media’s Impact Series webinars from 2012– present. This post originally appeared on Green Builder® Media’s Code Watcher. Do you ever have a line from a song just pop into your head? I get that… a lot. It’s probably due to my lifelong love of music. Anyway, while I was researching this column, the line that cites the title of “Where Do We Go From Here?” by Filter started playing between my ears. You’ll see why in a couple of minutes. In case you didn’t read about it here or elsewhere, the IECC development process has undergone an overhaul. It is now following a standards process, yet it retains the word “code” in the name. The residential committee (which is the scope of this column) is now a consensus committee and has been greatly expanded. Proposals are still submitted, reviewed and voted on by the committee. On the surface, it doesn’t sound like much has changed. As they say, the devil is always in the details. Read the court decision
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Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

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