Seattle Washington Building Expert Directory

Enforceability Of Subcontract “Pay-When-Paid” Provisions – An Important Update

June 15, 2020 — Patrick McNamara - Porter Law Group
A California Court of Appeals opinion published earlier this month brings a change to payment bond claims brought by unpaid subcontractors and suppliers. The decision (Crosno Construction, Inc. v. Travelers Casualty and Surety Company of America) places limitations on a payment bond surety’s ability to rely on subcontract “pay-when-paid” language, stating that a payment provision typically found in subcontracts is contrary to the “reasonable time” statutory requirement and will not be enforced. This represents a major shift in California construction payment bond claim rights. Plaintiff Crosno Construction, Inc. (“Crosno) was a subcontractor to general contractor Clark Brothers (“Clark”), who was principal on a public works payment bond issued by Travelers. The owner was a public agency district (“District.”) Crosno had completed most of its subcontract work when a dispute between District and Clark arose, causing the project to stop. Crosno then sought payment through a payment bond claim against Travelers. Travelers denied the claim, relying on the subcontract’s payment provisions and asserting the defense that it had no obligation to pay on the bond claim because the litigation between Clark and the District had not yet reached its conclusion. Subcontract. The subcontract between Clark and Crosno contained a “pay-when-paid” provision stating that Clark would pay Crosno within a reasonable time after receiving payment from the District. In defining “a reasonable time,” the subcontract language provided that the time for payment “in no event shall be less than the time [Clark] and [Crosno] require to pursue to conclusion their legal remedies against [District] or other responsible party to obtain payment.” Read the court decision
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Reprinted courtesy of Patrick McNamara, Porter Law Group
Mr. McNamara may be contacted at pmcnamara@porterlaw.com

Construction Delays for China’s Bahamas Resort Project

October 01, 2014 — Beverley BevenFlorez-CDJ STAFF
The Wall Street Journal reported that the $3.5 billion resort and casino China’s building in the Bahamas is being undermined by delays and labor crashes, which is “dulling the buzz surrounding the venture and threaten to undermine China's future business.” Once finished, the project “will include 2,200 new hotel rooms, luxury condominiums priced as high as $12 million, a 100,000-square-foot casino and an 18-hole golf course. Singer Lenny Kravitz is designing the nightclub.” Baha Mar, the developers, told the Wall Street Journal that they will not be meeting their December 2014 deadline, and instead are “focused on late spring 2015.” Read the court decision
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San Diego County Considering Updates to Green Building Code

August 06, 2014 — Beverley BevenFlorez-CDJ STAFF
The San Diego County Board of Supervisors is meeting today to discuss “proposed building code amendments designed to promote energy efficiency in new homes,” according to Times of San Diego. Possible recommendations include “install electrical panels large enough to accommodate future improvements; put in a conduit that could be used for future roof-mounted solar panels; reserve space on south-facing roofs where solar panels might be added later;” and others. If the recommendations are approved, the “staff would draft detailed building code amendments and return early next year to get them adopted.” Read the court decision
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Will Future Megacities Be a Marvel or a Mess? Look at New Delhi

November 14, 2018 — Jill Ward - Bloomberg
The effects of unbridled urbanization are inescapable in India’s capital city. Smog blankets landmarks like India Gate in winter, delaying flights at the airport due to poor visibility. Traffic jams are part of the daily routine and slums abut New Delhi’s luxury hotels and private mansions, testifying to a growing wealth divide and chronic housing shortage. And every day, the problem gets bigger. More than 27 million people live in and around Delhi with about 700,000 more joining them each year, according to research firm Demographia. The United Nations forecasts that by 2028 the population could outstrip Tokyo’s to make Delhi the world’s biggest megacity. Read the court decision
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Reprinted courtesy of Jill Ward, Bloomberg

U.S. District Court of Colorado Interprets Insurance Policy’s Faulty Workmanship Exclusion and Exception for Ensuing Damage

August 15, 2022 — Carin Ramirez - Colorado Construction Litigation
Recently, the United States District Court for the District of Colorado interpreted a faulty workmanship exclusion in a property insurance policy in The Lodge at Mountain Village Owner Association v. Eighteen Certain Underwriters of Lloyd’s of London, 22 U.S Dist. Ct LEXIS 48883*, decided on March 18, 2022. The Court held that the faulty workmanship exclusion at issue extended to preclude coverage for later ensuing damage that arose from the faulty workmanship, even though the damage was weather related, because faulty workmanship was the primary cause of the ensuing damage. The claims in The Lodge at Mountain Village arose from maintenance work performed on log siding at three multi-unit condominium buildings in Telluride. The maintenance work to the log siding included staining, finishing, and chinking repairs to joints between the logs. About a year after completion of the work, The Lodge at Mountain Village Owners Association (“The Lodge”) notified the maintenance contractor that logs were extremely weathered and that its work was defective. The Lodge retained an expert who prepared a report stating that the log finish and underlying wood was deteriorating because of the contractor’s work and that some areas were not properly protected from exposure to snow, rain, and brine from ice-melting salt. The Lodge pursued and settled its claims against the contractor. Read the court decision
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Reprinted courtesy of Carin Ramirez, Higgins, Hopkins, McLain & Roswell, LLC
Ms. Ramirez may be contacted at ramirez@hhmrlaw.com

Comparative Breach of Contract – The New Benefit of the Bargain in Construction?

October 26, 2020 — Steven Hoffman - Florida Construction Law News
Ask most Florida Construction Law practitioners, and you will likely hear that liability may not be apportioned in “pure” breach of contract cases via the Comparative Fault Act, section 768.81, Florida Statutes (the “Act”). If a material breach is a “substantial factor” in causing damages, the breaching party must answer for all damages that were reasonably contemplated by the parties when they formed the contract. Claimants argue that matters of contract should be governed strictly by the agreement, and risk can be controlled by negotiated terms, including waivers and limitations. Defendants complain that construction projects are collaborative, multi-party affairs, and strict application of contract principles leads to harsh results for relatively minor comparative fault for the same or overlapping damages. The notion of apportioning purely economic loss contract damages based on comparative fault is not new. Since April 2006, Florida has been a “pure” comparative fault jurisdiction with limited exceptions. Prior to the amendment, tort liability for non-economic damages was purely comparative, but liability for economic damages was typically a combination of joint and several liability with an additional exposure based on comparative fault. Read the court decision
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Reprinted courtesy of Steven Hoffman, Cole, Scott & Kissane
Mr. Hoffman may be contacted at Steven.Hoffman@csklegal.com

Nation’s Top Court Limits EPA's Authority in Clean Air Case

July 25, 2022 — Pam McFarland - Engineering News-Record
The U.S. Supreme Court has limited the ability of the U.S. Environmental Protection Agency to regulate power plant greenhouse gas emissions, but the ruling was more limited than some environmental advocates had feared. Reprinted courtesy of Pam McFarland, Engineering News-Record Ms. McFarland may be contacted at mcfarlandp@enr.com Read the full story... Read the court decision
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BIM Meets Reality on the Construction Site

September 25, 2018 — Aarni Heiskanen - AEC Business
BIM models are mostly used by foremen on construction sites. But what if they could be made available for workers at the press of a button? This question was what the Finnish government-funded KIRA pilot project set out to answer. As a by-product, the project also produced augmented reality (AR) solutions for construction sites. The research project was called ”Digitalization of a construction project based on role and location information” (RoPa). It was conducted by construction company Fira and engineering consultancy Sweco. Read the court decision
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Reprinted courtesy of Aarni Heiskanen, AEC Business
Mr. Heiskanen may be contacted at aec-business@aepartners.fi

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