Cambridge Massachusetts Building Expert Directory

In Search of Cement Replacements

October 19, 2017 — Aarni Heiskanen - AEC Business
Could we replace cement as the vital element in concrete some day? We look at two alternative answers to this question. The Problems with Cement Portland cement dominates in the construction and road building industries. From an environmental point of view, cement is not the perfect solution. The cement industry accounts up to 7% of the world’s carbon dioxide emissions. For every 600 kg of cement, approximately 400 kg of CO2 is released into the atmosphere. It is possible to recycle concrete by crushing it and using the gravel e.g. in road construction. However, the demand for new concrete is huge and increasing. According to The Washington Post, China used more cement between 2011 and 2013 than the U.S. used in the entire 20th Century. The worldwide production of cement has increased from 3.3 billion tons in 2010 to 4.2 in 2016. Even that is not enough; shortage of cement is a real problem in some countries. Read the court decision
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Reprinted courtesy of Aarni Heiskanen, AEC Business
Mr. Heiskanen may be contacted at info@aepartners.fi

South Africa Wants Payment From Colluding World Cup Builders

July 23, 2014 — Kamlesh Bhuckory and Mike Cohen – Bloomberg
South Africa’s government is putting pressure on construction companies to make further payments as punishment for rigging contracts to build stadiums for the 2010 FIFA Soccer World Cup and other projects. Antitrust authorities fined 15 builders, including Murray & Roberts Holdings Ltd. (MUR) and Aveng Ltd., a total of 1.5 billion rand ($141 million) in June 2013, after a probe that spanned almost four years found they colluded to drive up prices. “The 1.5 billion rand in penalties is not the end of the story with the construction industry,” Economic Development Minister Ebrahim Patel told lawmakers in Cape Town today. “We are now in discussion with the construction industry on a restitution package for their collusion and price fixing.” Mr. Bhuckory may be contacted at kbhuckory@bloomberg.net; Mr. Cohen may be contacted at mcohen21@bloomberg.net Read the court decision
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Reprinted courtesy of Kamlesh Bhuckory and Mike Cohen, Bloomberg

Pennsylvania Supreme Court Rules that Insurance Salesman had No Fiduciary Duty to Policyholders

July 19, 2017 — Austin D. Moody - Saxe Doernberger & Vita, P.C.
On June 20, 2017, the Pennsylvania Supreme Court ruled that a life insurance salesman had no fiduciary duty to his customers where the customers retained decision-making authority regarding which policies to purchase. In Yenchi v. Ameriprise Fin., Inc., the Court returned a 4-2 verdict, overturning the lower court’s finding that it was possible that a fiduciary relationship existed between the parties. The suit arose from a series of transactions between Eugene and Ruth Yenchi and Bryan Holland, a financial advisor for IDS Life Insurance Corporation. The relationship began when Holland cold-called the Yenchis and asked to meet with them regarding their “financial stuff.” For a fee of $350, Holland met with the Yenchis on several occasions and counseled them regarding their insurance needs. On Holland’s advice, the Yenchis cashed out several existing polices and purchased a whole-life policy for Mr. Yenchi and a deferred variable annuity in Mrs. Yenchi’s name. Read the court decision
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Reprinted courtesy of Austin D. Moody, Saxe Doernberger & Vita, P.C.
Mr. Moody may be contacted at adm@sdvlaw.com

The Contractor’s Contingency: What Contractors and Construction Managers Need to Know and Be Wary Of

December 04, 2023 — Skyler L. Santomartino - Peckar & Abramson, P.C.
Contractors and construction managers who enter into cost reimbursable contracts subject to a guaranteed maximum price (GMP) are responsible for all project costs exceeding the GMP. For this reason, it is imperative that contractors negotiate and incorporate into the GMP a financial buffer that accounts for the unanticipated project costs that are not reimbursable as change orders or costs of the work. This is where the contractor’s contingency comes into play.[1] The contractor’s contingency is a vehicle that allows contractors to mitigate some of the risks inherent in GMP contracts. When drafted properly, a contingency clause allows the contractor and only the contractor to access funds set aside by the owner to address unpredictable or unknown project costs. Read the court decision
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Reprinted courtesy of Skyler L. Santomartino, Peckar & Abramson, P.C.
Mr. Santomartino may be contacted at ssantomartino@pecklaw.com

California Supreme Court Rejects Third Exception to Privette Doctrine

July 03, 2022 — Lewis Brisbois
Walnut Creek, Calif. (May 25, 2022) - In Gonzalez v. Mathis (August 19, 2021) 12 Cal. 5th 29, the California Supreme Court considered whether to create a third exception to the Privette Doctrine specific to known hazards on a worksite, when a contractor cannot remedy the hazard by taking reasonable safety precautions to protect against it. Privette Background Under the Privette Doctrine, the hirer of an independent contractor generally cannot be liable for injuries sustained by the independent contractor or its employees while on the job. This is due to the “strong presumption” that the hirer delegates all responsibility for workplace safety to the independent contractor. See Privette v. Superior Court (1993) 5 Cal. 4th 689. Since the Privette ruling in 1993, the California Supreme Court has identified two circumstances in which the presumption may be overcome. First, the hirer may be liable when it retains control over any part of the independent contractor’s work and negligently exercises that retained control in a manner that affirmatively contributes to the injury. Hooker v. Dept. of Transportation (2002) 27 Cal. 4th 198, 213. Second, a landowner who hires an independent contractor may be liable if the landowner knew, or should have known, of a concealed hazard to the property that the contractor did not know of and could not have reasonably discovered, and the landowner failed to warn the contractor of the hazard. Kinsman v. Unocal Corp. (2005) 37 Cal. 4th 659, 664. Here, in the Gonzalez case, the court considered whether a landowner could be liable for known hazards on the property. Read the court decision
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Reprinted courtesy of Lewis Brisbois

Aarow Equipment v. Travelers- An Update

January 16, 2024 — Christopher G. Hill - Construction Law Musings
Previously here at Musings, I discussed the application of pay if paid clauses and the Miller Act. The case that prompted the discussion was the Aarow Equipment & Services, Inc. v. Travelers Casualty and Surety Co. case in which the Eastern District of Virginia Federal Court determined that a “pay if paid” clause coupled with a proper termination could defeat a Miller Act bond claim. However, as I found out a couple of weeks ago at the VSB’s Construction Law and Public Contracts section meeting, the 4th Circuit Court of Appeals reversed and remanded this case in an unpublished opinion (Aarow Equipment & Services, Inc. v. Travelers Casualty and Surety Co.) In it’s opinion, the 4th Circuit looked at some of the more “interesting” aspects of this case. One of these circumstances was that Syska (the general contractor) directed Aarow to construct sedimentary ponds and other water management measures around the project (the “pond work”), which both agreed was outside of the scope of the work defined in their subcontract. Syska asked that the government agree to a modification of the prime contract and asked Aarow to wait to submit its invoice for the pond work until after the government issued a modification to the prime contract and Syska issued a change order to the subcontract. 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

Appellate Court Lacks Jurisdiction Over Order Compelling Appraisal

January 16, 2024 — Tred R. Eyerly - Insurance Law Hawaii
The Eleventh Circuit recently held that the district court's order compelling appraisal and staying the proceedings pending appraisal was an interlocutory order that was not immediately appealable under 28 U.S.C. 1292 (a) (1). Positano Place at Naples Condominium Association, Inc. v. Empire Indem. Ins. Co., 2023 U.S. App. LEXIS 27961 (11th Cir. Oct. 20, 2023). Postiano Condominium Association suffered damage from Hurricane Irma. Pastiano notified its insurer, Empire, seven months later. Empire investigated the claim and inspected the property. Positano sent a written request for appraisal. Empire did not respond and Pastiano filed suit, alleging that the parties' dispute was not a coverage dispute but a dispute over the amount of the loss. Postiano moved to compel appraisal and to stay the proceedings pending completion of the appraisal. 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

Manhattan Homebuyers Pay Up as Sales Top Listing Price

October 01, 2014 — Oshrat Carmiel – Bloomberg
Manhattan apartment prices rose 4.2 percent in the third quarter, bolstered by buyers who increasingly agreed to pay what sellers were asking or more. The median sale price of condominiums and co-ops was $908,242, up from $872,000 a year earlier, according to a report today from appraiser Miller Samuel Inc. and brokerage Douglas Elliman Real Estate. The average price per square foot increased 12 percent to $1,270, the third-highest in records dating to 1989, the firms said. Prices in Manhattan have climbed for four consecutive quarters, encouraging more owners to list properties after an inventory shortage last year. With the number of apartments on the market up 28 percent from the third quarter of 2013, buyers focused on those that were not-too-ambitiously priced, said Jonathan Miller, president of New York-based Miller Samuel. Read the court decision
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Reprinted courtesy of Oshrat Carmiel, Bloomberg
Mr. Carmiel may be contacted at ocarmiel1@bloomberg.net

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