Cambridge Massachusetts Building Expert Directory

Five Construction Payment Issues—and Solutions

October 03, 2022 — Michael Bignold - Construction Executive
Sales are important for construction companies that want to succeed. However, while companies certainly need to spend time on sales and marketing, having a full order book is only part of the equation. They still need to do the work and, even more importantly, they need to be able to collect payment from customers. Here are common payment issues in the construction industry and what leaders can do to prevent or mitigate them. 1. Change Order Disputes If a project goes exactly as planned and quoted, billing the customer is a fairly simple matter. However, it’s very rare that any job goes exactly according to the quote in the construction business. Change orders, omissions and additions are typical on jobs of any size across the industry. If contractors are not handling those changes properly by getting everything in writing, they could be in trouble when the time comes to send invoices. Reprinted courtesy of Michael Bignold, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Nomos LLP Partners Recognized in Super Lawyers and Rising Stars Lists

August 16, 2021 — Garret Murai - California Construction Law Blog
Nomos LLP partners Garret Murai and Jennifer Tang have been recognized in Thompson Reuter’s 2021 Northern California Super Lawyers and 2021 Northern California Rising Start lists in the area of Construction Litigation. This is the eighth consecutive year for Garret on the Super Lawyers list and the fifth consecutive year for Jennifer on the Rising Star list. The Super Lawyers list recognizes no more than 5 percent of attorneys in each state. The Rising Stars list recognizes no more than 2.5 percent of attorneys in each state. To be eligible for inclusion in Rising Stars, a candidate must be either 40 years old or younger, or in practice for 10 years or less. Read the court decision
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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

Drafting a Contractual Arbitration Provision

February 11, 2019 — David Adelstein - Florida Construction Legal Updates
A recent Florida case discussing a contractual arbitration provision in a homebuilder’s contract discussed the difference between a narrow arbitration provision and a broad arbitration provision. See Vancore Construction, Inc. v. Osborn, 43 Fla.L.Weekly D2769b (Fla. 5th DCA 2018). Understanding the distinction between the two types of arbitration provisions is important, particularly if you are drafting and/or negotiating a contractual arbitration provision. A narrow contractual arbitration provision includes the verbiage “arises out of” the contract such that disputes arising out of the contract are subject to arbitration. Arbitration is required for those claims the have a direct relationship with the contract. Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris
Mr. Adelstein may be contacted at dma@kirwinnorris.com

Harmon Towers Case to Last into 2014

December 20, 2012 — CDJ STAFF
Don’t expect a fast resolution to the Harmon Tower case in Las Vegas. The latest schedule sets trial for the construction defect claims in January 2014. Previously, these claims were going to be heard during the trial set to start in June 2013. Now the June trial will be over payment issues only. Don’t expect the building to come down soon either. While CityCenter claims the building could come down in an earthquake, Judge Elizabeth Gonzalez had determined that as the structural testing was not random; its results cannot be extrapolated through the entire structure. As a result, CityCenter has elected to do more testing, holding off on demolishing the building. They are appealing Gonzalez’s order to the Nevada Supreme Court. Read the court decision
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Florida County Suspends Impact Fees to Spur Development

November 18, 2011 — CDJ STAFF

Hernando County, just north of Tampa on Florida’s west coast, has suspended impact fees for a year, hoping to spur development. Hernando Today reports that the move drew applause from the audience at the county commissioners meeting. Many of those in attendance were builders or members of the Greater Hernando Chamber of Commerce.

Not all were convinced. Frankie Burnett, the mayor of Brooksville, told the commissioners that his city council were not convinced that this would spur development. “Development should pay its fair share, even in slow economic times.” Burnett’s letter to the board warned that “if lowering impact fees succeeded in stimulating more residential overbuilding, it would only further depress the current real estate market.”

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A New Hope - You Now May Have Coverage for Punitive Damages in Connecticut

February 15, 2018 — Stella Szantova Giordano – SDV Blog

On December 19, 2017, the Connecticut Supreme Court released its decision in Nationwide Mutual Ins. Co. v. Pasiak. The decision is significant for two reasons: 1) it clarifies the amount of proof an insurer needs to determine whether an exclusion to coverage applies; and 2) it found that where an insurance policy expressly provides coverage for an intentional act such as false imprisonment, common-law punitive damages are also covered.

Underlying action

The underlying action proves that real life is often stranger than fiction. Ms. S worked as an office help for a construction company owned by Mr. P, which operated out of his home. Ms. S was working alone in the home office, when an armed, masked intruder entered the office, tied her hands, gagged and blindfolded her and, pointing a gun to her head, threatened to kill her family if she did not give him the combination to a safe in the home. As this was happening, Mr. P entered the office, unmasked the intruder, and discovered it was his lifelong friend. After Ms. S was untied, she asked to leave, but Mr. P told her to stay. She was not allowed to leave for several hours as Mr. P made her accompany him to an errand. Ms. S sued Mr. P for false imprisonment, among other things. The trial court awarded her compensatory and punitive damages. Insurance coverage for the underlying judgment is at the heart of the Pasiak case.

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Reprinted courtesy of Stella Szantova Giordano, Saxe Doernberger & Vita, P.C.
Ms. Szantova Giordano may be contacted at ssg@sdvlaw.com

Claim for Collapse After Demolition of Building Fails

January 09, 2023 — Tred R. Eyerly - Insurance Law Hawaii
After several city citations and the eventual demolition of the insureds' apartment building, their claim for coverage based on collapse was unsuccessful. Barker v. AmGuard Ins. Co., 2022 U.S. Dist. LEXIS 202069 (W.D. Mo. Nov. 7, 2022). The plaintiffs purchased a three-story multi-family apartment building on March 9, 2009. Prior to the purchase, steel beams were installed in the basement along the east and south walls. By 2013, the south and east walls were leaning. On March 13, 2017, the city building inspector observed "the foundation failing in several areas and deflection in the south wall." The building inspector issued a citation for a pubic nuisance in violation of the City Code. This was followed by several more citations against plaintiffs. The plaintiffs' inspector reported the basement walls were experiencing "extensive lateral deflections primarily due to the inadequate design of the basement walls." Plaintiffs understood the issues to be "cosmetic.'" They had no work done on the property besides aesthetic upgrades. After additional citations were entered, the building was ordered demolished. 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

Suit Against Broker for Securing Inadequate Coverage Dismissed on Statute of Limitations Grounds

April 11, 2018 — Tred R. Eyerly - Insurance Law Hawaii
The insured's suit against his broker for securing a policy with insufficient policy limits was dismissed when filed more than two years after the alleged professional negligence occurred. Pritchard v. Andy Houghton Ins. Agency, 2018 Cal. App. Unpub. LEXIS 1160 (Cal. Ct. App. Feb. 20, 2018). Pritchard requested coverage for replacement of his property in the event of a total loss by fire. He obtained a policy from Houghton. 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

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