FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Illinois Supreme Court Holds That the Implied Warranty of Habitability Does Not Extend to Subcontractors

March 04, 2019 — Michael J. Ciamaichelo - The Subrogation Strategist
The implied warranty of habitability allows a homeowner to recover damages for latent defects that interfere with the intended use of a home. In Sienna Court Condo. Ass’n v. Champion Aluminum Corp., 2018 IL 122022, 2018 Ill. LEXIS 1244 (2018), the Supreme Court of Illinois held that buyers of new homes cannot assert claims for breach of the implied warranty of habitability against subcontractors involved in the construction of the homes because the subcontractors have no contractual relationship with the homeowners and the damages are purely economic. As the court explained, the implied warranty of habitability is a creature of contract (not tort) and, therefore, only exists when there is contractual privity between the defendants and the homeowners. In Sienna, a group of condominium unit owners alleged that their new homes contained latent construction defects and asserted claims against the various parties involved in the construction and sale of the homes, including claims against the defendant subcontractors for breach of the implied warranty of habitability. The plaintiffs contracted with the property developer to purchase the homes, but the plaintiffs had no contractual relationship with the subcontractors involved in the construction of the homes. The Sienna court, overturning the decisions of the trial court and the appellate court, granted the subcontractors’ joint motion to dismiss the plaintiff’s claims for the implied warranty of habitability because the plaintiffs had no contractual relationship with the subcontractors and the damages were purely economic. Read the court decision
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Reprinted courtesy of Michael J. Ciamaichelo, White and Williams LLP
Mr. Ciamaichelo may be contacted at ciamaichelom@whiteandwilliams.com

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Lack of Workers Holding Back Building

May 10, 2013 — CDJ STAFF
Builders are hiring again, or at least they’re trying to. According to an article in the Los Angeles Times, many of the workers who were laid off during the construction bust have gone on to work in other areas. John Nunan of Unger Construction told the Times that “we’re starting to see spot shortages of labor.” One problem is that despite the boom, wages haven’t risen. Rising costs for materials and land have put an additional squeeze on builders. One building supervisor noted that during the boom, he was making $26 an hour and entry level workers $17. Now he earns $16 an hour. From bust to recovery was about five years, and its labor pool could not just wait those years. Industry representatives told the Times that it has created a perception that construction is not a stable form of employment. Brian Turmail of the Associated General Contractors of America cited “pretty consistent news coverage about the fact that there are no jobs in construction.” Read the court decision
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City Development with Interactive 3D Models

October 23, 2018 — Aarni Heiskanen - AEC Business
The Finnish city of Hyvinkää has developed a unique internet service for collaborative 3D city planning. It gives real estate owners, investors, developers, designers, authorities, and citizens easy-to-use tools to publish their 3D plans and ideas for the built city environment. Participants can comment on the 3D plans directly in the city model. The 3D app is integrated with Facebook, which enables further conversation. Building the 3D City Model Päivi Tiihonen is the manager of the information services unit of the city’s technical and environmental sector. The city started building a browser-based 3D city model when Tiihonen assumed her position in 2014. 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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Presenting a “Total Time” Delay Claim Is Not Sufficient

September 12, 2022 — David Adelstein - Florida Construction Legal Updates
When presenting a delay-type of claim on a construction project, a claimant MUST be in a position to properly PROVE the claim. Trying to present a delay claim loosey-goosey is not a recipe for success. In fact, it can be a recipe for an easy loss. This is not what you want. To combat this, make sure you engage a delay expert that understands delay methodologies and how to calculate delay and do NOT present a total time claim. Presenting a delay claim using a total time approach, discussed below, makes it too easy to attack the flaws and credibility of the approach. Per the discussion of the case below, a total time claim with a contractor that used its project manager, versus a delay expert, to support its claim turned the contractor’s claim into a loss. In French Construction, LLC v. Department of Veteran Affairs, 2022 WL 3134507, CBCA 6490 (CBCA 2022), a contractor submitted a delay claim to the government for almost $400,000. The contractor was hired to construct a two-story corridor to connect hospital buildings. The contractor was required to be complete within 365 days. It was not. The contractor was seeking 419 days of delay from the government. The contractor’s “delay expert” was its project manager who compared the contractor’s as-planned schedule to an as-built schedule he prepared for the claim. 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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Hawaii Court of Appeals Finds Insured AOAO Not Liable for Securing Inadequate Insurance

March 04, 2024 — Tred R. Eyerly - Insurance Law Hawaii
The Hawaii Intermediate Court of Appeals (ICA) affirmed the trial court's finding that the insured Association of Apartment Owners (AOAO) was not liable for securing a policy with inadequate coverage. AOAO Queen Emma Gardens, et al v. Wa, 2023 Haw. App. LEXIS 400 (Haw. Ct. App. Dec. 19, 2023). In October 2002, the Was purchased a condominium located in the Queen Emma Gardens Condominium. The AOAO's bylaws provided that it would procure and maintain insurance "to insure the Board, the Association, and each apartment owner against claims for personal injury, death, and property damage arising out of the condition of the property or activities thereon . . ." The AOAO secured a CGL policy from Insurance Association, Inc., with coverage limits for bodily injury at $1,000,000 and an umbrella policy providing an additional $5,000,000 of coverage. Each of the policies "insured each individual insurance owner of the insured condominium, but only with respect to liability arising out of the ownership, maintenance or repair of that portion of the premises which is not reserved for that unit owner's exclusive use or occupancy." 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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Megaproject Savings Opportunities

April 15, 2014 — Beverley BevenFlorez-CDJ STAFF
Joel Levy in Construction Digital interviewed Christopher Dann, a Partner of Booz & Company’s Energy, Chemicals and Utilities practice, regarding how to be more efficient and save money when managing billion dollar construction megaprojects. According to Construction Digital, “Booz & Company, (recently rebranded as Strategy&), is celebrating its 100th anniversary this year, and over a century of working with huge clients in several sectors, has gathered the knowledge to identify what it terms a $40 trillion opportunity for savings in construction megaprojects over the next 20 years as clients combat a 30 percent average figure of overrun in schedule and cost.” Dann cited several reasons for inefficiencies in megaprojects, including “inefficient advance planning and analysis” and “lack of completion of detail design engineering prior to the start of construction,” reported Construction Digital. The inefficiencies can be countered, according to Dann, “when following a clear strategy.” Read the court decision
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How AI and Machine Learning Are Helping Construction Reduce Risk and Improve Margins

November 28, 2018 — Manu Venugopal - Construction Executive
The construction industry is often characterized as high risk and low margin. According to a McKinsey report, almost 98 percent of projects incur cost overruns or delays. Meanwhile, the construction productivity curve has remained flat when compared to other industries. In the last decade, with the advent of cloud and mobile technologies, industry leaders have been focused on digitizing construction workflows. This has resulted in improved efficiencies, but also has created an explosion of new data sources in the construction industry. Project teams are now capturing and documenting data on mobile devices, site progress is documented via drones and sensors are used to create a connected jobsite. Reprinted courtesy of Manu Venugopal, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Subcontractor Not Estopped from Enforcing Lien Not Listed In Bankruptcy Petition

March 01, 2017 — Chadd Reynolds – Autry, Hanrahan, Hall & Cook, LLP
In Stock Building Supply, Inc. v. Platte River Insurance Co.,[1] the Court of Appeals dealt with issues of judicial estoppel, bankruptcy, retroactive application of statutory lien amendments, and the full payment defense. The owner, Madison Retail-Suwanee, LLC (“Madison”) hired Cannon/Estapa General Contractors, Inc. (“Cannon”) to be the general contractor for the construction of a shopping center (“the Project”). Cannon subcontracted with Stock Building Supply (“Stock”) to supply labor, materials, and services for the Project. Cannon failed to complete the project and Madison had yet to pay Cannon the full contract price. In 2007, Stock timely filed a lien on the Project and obtained a judgment against Cannon for the amount due under the subcontract. Platte River Insurance Company (“Platte”), the surety, issued a bond to discharge Stock’s lien. Consequently, Stock pursued an action against Platte to collect the judgment in the amount of $93,865.27. Read the court decision
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Reprinted courtesy of Chadd Reynolds, Autry, Hanrahan, Hall & Cook, LLP
Mr. Reynolds may be contacted at reynolds@ahclaw.com

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