Key Legal Considerations for Modular Construction Contracts
April 19, 2021 —
Frederick E. Hedberg - Construction ExecutiveModular construction is literally on the rise. It is rapidly displacing traditional stick-built construction for new commercial, industrial and residential buildings. Over the past decade, an increasing number of health care, education facilities and apartment buildings have been built using modular construction. As the need for housing, and especially affordable housing, has grown as a result of the COVID-19 pandemic, modular construction is becoming increasingly popular.
Recently, the Canadian government, through the Canadian Mortgage Housing Corporation, launched a “Rapid Housing Initiative,” a $1 billion program utilizing only modular construction to rapidly construct affordable housing for its citizens. Similarly, the city of Toronto (which last year approved a plan to build 250 modular homes in response to homelessness) plans to build 1,000 modular homes by 2030. The pandemic also has resulted in an urgent demand for modules for medical facilities and schools. Modular construction allows contractors to build “leaner” and “greener” buildings while increasing quality control and improving site safety and potentially saving valuable time and money.
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Frederick E. Hedberg, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Mr. Hedberg may be contacted at
fhedberg@rc.com
Construction Costs Must Be Reasonable
May 17, 2021 —
David Adelstein - Florida Construction Legal UpdatesWhen it comes to proving a construction cost, particularly a cost in dispute, the cost must be REASONABLE. Costs subject to claims must be reasonably incurred and the party incurring the costs must show the costs are reasonable.
An example of the burden falling on the contractor to prove the reasonableness of costs is found in government contracting.
“[T]here is no presumption that a [government] contractor is entitled to reimbursement ‘simply because it incurred…costs.’” Kellogg Brown & Root Services, Inc. v. Secretary of Army, 973 F.3d 1366, 1371 (Fed. Cir. 2020) (citation omitted). Stated differently, a federal contractor is not entitled to a presumption of reasonableness just because it incurs costs. Id.
In government contracting, the Federal Acquisition Regulations (known as “FAR”) puts the burden of reasonableness on the contractor that incurred the costs. Id.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
ABC Chapter President Comments on Miami Condo Collapse
July 11, 2021 —
Rachel O'Connell - Construction ExecutivePeter Dyga, ABC Florida East Coast Chapter president, has been one of the go-to experts in the aftermath of the shocking collapse of the Champlain Towers South condo building in Surfside, Florida.
As of publication, the death toll stands at 46 people and another 94 remain unaccounted for. On July 7, rescue officials announced the search would transition to a recovery operation at midnight on July 8, following the demolition of the remaining building over the July 4 weekend.
Dyga sat down with Construction Executive to discuss the critical nature of this tragedy and to review potential next steps.
Construction Executive: This incident has become national news. Why do you think the building collapse has garnered so much attention?
Peter Dyga: Because of the enormity of the tragedy and because it’s so uncommon for a building to collapse on its own.
Reprinted courtesy of
Rachel O'Connell, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Heat Exposure Safety and Risk Factors
July 04, 2023 —
The Hartford Staff - The Hartford InsightsSummer is here and being outside in the heat can take a toll on your body if you’re not properly prepared. It’s important to regulate your body temperature by both hydrating and gradually acclimating your body to withstand the increasingly hot conditions. Your body has “heat control mechanisms” which get overworked in hot, humid and poorly ventilated areas. When you’re exercising or doing physical labor, your muscles generate heat as a metabolic by-product.
Sweating can dissipate heat when the air is dry or a breeze is blowing. But when humidity rises and the air becomes denser, sweat doesn’t evaporate from the skin as readily. When this occurs, your core body temperature becomes too high and you can suffer from heat cramps, heat exhaustion or heat stroke. This heat stress can occur suddenly and be very dangerous, that’s why it’s important to be able to recognize the warning signals. This chart will help you identify your body’s heat stress signals and apply the appropriate action to prevent heat-related problems.
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The Hartford Staff, The Hartford Insights
Illinois Court of Appeals Addresses What It Means to “Reside” in Property for Purposes of Coverage
July 16, 2023 —
James M. Eastham - Traub LiebermanIn Dardar v. Farmers Auto. Ins. Ass'n, 2023 IL App ( 5th ) 220357-U, the Illinois Fifth District Court of Appeals addressed an insured’s suit against her property insurer after the carrier denied coverage for a fire loss. The property in question was inherited by the Plaintiff from her brother and was in the process of being renovated at the time of the fire loss. After the fire, the Plaintiff’s homeowners carrier denied the claim on the grounds that the Plaintiff was not occupying the property at the time of the fire and was therefore not covered under the terms of the policy. It was undisputed that the Plaintiffs never lived in or physically occupied the home. Correspondingly, the carrier denied the claim on the basis that the policy only covered the Plaintiff’s "residence premises," which was defined as: (1) the one-family dwelling where you reside; (2) the two, three, or four-family dwelling where you reside in at least one of the units; or (3) that part of any other building in which you reside. The carrier determined that the Plaintiff did not “reside” at the property and therefore were not covered under the policy terms.
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James M. Eastham, Traub LiebermanMr. Eastham may be contacted at
jeastham@tlsslaw.com
City of Birmingham Countersues Contractor for Incomplete Work
March 12, 2014 —
Beverley BevenFlorez-CDJ STAFFBack in December of 2013, WVTM News reported that Chris Woods, a contractor, filed a lawsuit against the City of Birmingham, Alabama, demanding $1.5 million for the West Police Precinct and two other projects he had been contracted on. However, “Birmingham claimed Woods was fired for not completing projects on time and other contract breaches.”
On March 7th, WVTM News reported that the City of Birmingham has filed a counterclaim against Woods, alleging that he “owes $1.2 million for incomplete work.” The city listed his “inability to meet specific construction deadlines and finish either project on time as factors for his termination.” Woods, however, blamed the city for delays, citing multiple design changes requested by Birmingham.
The city’s counterclaim also alleged that “Star Insurance Company, ‘identified major, numerous defects in the work that Woods had performed prior to the termination of the West Precinct Project.’”
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Maritime Law: An Albatross for Contractors Navigating Marine Construction
January 03, 2022 —
Cindy Matherne Muller - ConsensusDocs“Ah! Well a-day! When evil looks, Had I from old and young! Instead of the cross, the Albatross, About my neck was hung.” 1
Contractors and subcontractors performing construction over water may find themselves encountering maritime law for the first time. Like the ancient mariner’s encounter with an albatross in The Rime of the Ancient Mariner, a contractor may be able to use maritime law to safely guide it through rough seas, or, if not careful, a contractor may find itself with maritime law hung, like an albatross, around its neck. This article gives an overview of key maritime law issues to demystify this historical body of law and answers some basic questions.
What is admiralty jurisdiction?
The Constitution gives federal courts jurisdiction over all maritime cases. This jurisdiction gives litigants the opportunity to remove state court cases to federal court and to avoid a jury trial. The purpose of admiralty jurisdiction in federal court is to protect and ensure the uniform treatment of nationwide maritime commerce and extends to maritime contracts and accidents. Any contract which relates to the navigation, business, or commerce of the sea is a maritime contract. Even contracts with mixed obligations on land and sea can fall within admiralty jurisdiction – such as construction contracts with a waterborne component. Admiralty jurisdiction also extends to maritime accidents – those that occur on navigable waters and have a maritime nexus.
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Cindy Matherne Muller, Jones Walker LLPMs. Muller may be contacted at
cmuller@joneswalker.com
There’s Still No Amazon for Housing, But Fintech’s Working on It
February 14, 2022 —
Patrick Clark - BloombergIt’s hard to imagine a better scenario for real estate technology than the one that played out in 2021. Low interest rates and pent-up demand ignited the hottest housing market on record, while the pandemic gave buyers and sellers new reasons to conduct business virtually.
And yet the year will be better remembered for the way some of the biggest names in the industry struggled. The highest-profile flop was Zillow Group Inc., the online listings giant that pulled the plug on its nascent instant homebuying operation in the face of mounting losses. Compass Inc., the tech-driven real estate brokerage, saw its shares plummet 50% as part of a broader selloff in property-related technology stocks. Better, an online mortgage company, fired 9% of its staff.
The bumpy year underscored a problem that’s been holding back the adoption of technology in real estate for the past two decades. Each sale of a home involves hundreds of thousands if not millions of dollars, and no two properties are exactly alike. Silicon Valley-backed companies have gone a long way in making searching for homes and advertising them simpler and faster. But it’s a difficult process to move fully online and involves a lot of people such as agents, appraisers, brokers, and contractors, as well as entrenched interests. For example, Zillow’s house buying business—billed as a way for customers to get out of their homes quickly and speed the moving process—faltered in part because the company couldn’t find enough contractors to fix up those homes to resell them.
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Patrick Clark, Bloomberg