Following Mishaps, D.C. Metro Presses on With Repairs
February 23, 2017 —
Jim Parsons - Engineering News-RecordAn aggressive effort to overhaul the aging Metro system in Washington, D.C., is producing results as it nears the one-year mark, with more than 28,000 cross-ties and nearly two miles of grout pads now replaced.
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Jim Parsons, ENRENR may be contacted at
ENR.com@bnpmedia.com
Federal District Court Declines Invitation to Set Scope of Appraisal
January 18, 2021 —
James M. Eastham - Traub LiebermanIn Mt. Hawley Ins. Co. v. Harrods Eastbelt, Ltd., No. CV H-20-2405, 2020 WL 7632250 (S.D. Tex. Dec. 22, 2020), the United States District Court for the Southern District of Texas addressed a request to set the scope of an appraisal by requiring the appraisers to use a specific format for the appraisal. At issue was a claim for damages to three insured buildings allegedly damaged during Tropical Storm Imelda. The insurer had denied coverage based on the asserted lack of wind-created openings as required for coverage under the policy. Rather, the insurer took the position that the interior leaks were caused by a number of excluded causes including long-term weathering, wear and tear, age-related deterioration, ponding, and long-term leaks.
In response to the denial of coverage, the insured invoked the appraisal provision of the policy which provided, among other things, that the “appraisers will state separately the value of the property and amount of loss.” Despite the language of the appraisal provision, the Insurer sought an order requiring the appraisers to state the amount of loss separately for each portion of the property in dispute and for each major building component including separate amounts of loss for roofs, exterior walls, windows, and interior water damage.
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James M. Eastham, Traub LiebermanMr. Eastham may be contacted at
jeastham@tlsslaw.com
Are You Ready For 2015?
January 07, 2015 —
Craig Martin- Construction Contractor Advisor BlogLast month’s Engineering News Record Magazine contained an editorial noting the worst projects of the year. Are you prepared if you have a bad project?
As the editors aptly pointed out:
"By their nature, bad projects disappoint owners, incite hostility among team members, slip months and years past scheduled completions and drain finances."
ENR pointed noted a few projects from 2014 that did not go well.
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Craig Martin, Lamson, Dugan and Murray, LLPMr. Martin may be contacted at
cmartin@ldmlaw.com
Opoplan Introduces Generative AI Tools for Home-Building
February 06, 2023 —
Aarni Heiskanen - AEC BusinessOpoplan introduces its suite of generative AI architectural tools for builders and real estate brokers. The initiative intends to bridge the technological gap in custom home planning and building.
The tools introduced by the company also aim to reduce the overdependence on manual efforts and limited design options when it comes to lot analysis, design briefing, design planning, and many other pre-build tasks.
Through its AI-powered tools, Opoplan assists builders and home designers in saving time, money, and energy and more successfully close contracts, managing plans, and delivering single-family homes.
A series of tools for the home-building industry
Opoplan is headquartered in Dublin, Ireland, with a new US office in Raleigh, North Carolina, and was established in 2019. They provide pre-build house planning and design tools for custom builders, real estate brokers, and house designers.
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi
A Subcontractor’s Perspective On California’s Recent Changes to Indemnity Provisions
September 10, 2014 —
William M. Kaufman – Construction Lawyers BlogGreat news for California subcontractors and suppliers! “Type I” Indemnity provisions in California construction contracts entered into on or after January 1, 2013 are not enforceable. This change in the law prevents owners and general contractors from shifting enormous exposure and costs of litigation downstream to the little guy, namely subcontractors and suppliers. In October 2011, Governor Brown signed Senate Bill 474 into law, which represented a major legislative victory for subcontractors and suppliers. The new law also imposed exacting limitations on contractors that attempt to require their subcontractors and suppliers to cover their defense fees and costs in litigation.
New Law Prevents Indemnity or Cost of Defense for Active Negligence
Under a "Type I" indemnity provision, the downstream subcontractor agrees to indemnify the owner or contractor, even against liability caused by the upstream owner/contractor's own "active negligence." A “Type I” indemnity provision in general contractors’ subcontracts often require their subcontractors to defend and indemnify them from liability regardless of whether the general contractor is partially at fault. Subcontractors and suppliers historically have complained that they have little bargaining power when entering into these contracts and these types of provisions can result in ruinous liability for those in the construction industry that are most vulnerable-subcontractors and suppliers. Before this change, the law allowed a general contractor who is 99 percent at fault for an injury or damage to shift the entire risk to a subcontractor who is only one percent at-fault or a subcontractor who is not at fault at all, but tangentially involved in the claim. Subcontractors and suppliers joined forces and lobbied the legislature. The legislature and Governor Brown agreed. Under the new law, such "Type I" indemnity provisions will no longer be enforceable. SB 474 adds Civil Code section 2782.05 that precludes indemnity where the party to be indemnified is "actively negligent" and makes void and unenforceable these types of clauses.
Reprinted courtesy of
William M. Kaufman, Lockhart Park LP
Mr. Kaufman may be contacted at wkaufman@lockhartpark.com, and you may visit the firm's website at www.lockhartpark.com
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Residential Interior Decorator Was Entitled to Lien and Was Not Engaging in Unlicensed Contracting
August 04, 2021 —
David Adelstein - Florida Construction Legal UpdatesResidential construction disputes can sometimes take nasty turns. This is not attributed to one specific reason, but a variety of factors. Sometimes, there are not sophisticated contracts (or contracts at all). Sometimes, relationships and roles get blurred. Sometimes, parties try to skirt licensure requirements. Sometimes, a party is just unreasonable as to their expectations. And, sometimes, a party tries to leverage a construction lien to get what they want. In all disputes, a party would certainly be best suited to work with construction counsel that has experience navigating construction disputes.
An example of a construction dispute that took a nasty turn involving an interior decorator is SG 2901, LLC v. Complimenti, Inc., 2021 WL 2672295 (Fla. 3d DCA 2021). In this case, a condominium unit owner wanted to renovate his apartment. He hired an interior decorator to assist. As his renovation plans became more expansive, the interior decorator told him he would need to hire a licensed contractor and architect. The interior decorator arranged a meeting with those professionals and, at that meeting, they were hired by the owner and told to deal directly with the interior decorator, almost in an owner’s representative capacity since the owner traveled a lot. The interior decorator e-mailed the owner about status and requested certain authorizations, as one would expect an owner’s representative to do. At the completion of the renovation job, the owner did not pay the interior decorator because he was unhappy with certain renovations. The interior decorator recorded a construction lien and sued the owner which included a lien foreclosure claim. There was no discussion of the contracts in this case because, presumably, contracts were based on proposals, were bare-boned, or were oral.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Illinois Lawmakers Approve Carpenters Union's Legislation to Help Ensure Workers Are Paid What They're Owed
April 19, 2022 —
Mid-America Carpenters Regional CouncilCHICAGO — Workers around the state have new protections to help ensure they are paid what's owed to them under new legislation that passed the Illinois General Assembly last week.
HB5412 makes a primary contractor liable for the failure of a subcontractor to pay wages owed to its workers. The subcontractor would in turn be required to compensate the primary contractor for any wages, damages, interest, penalties or attorneys' fees as a result of the subcontractor's failure to pay wages.
"All of us in the Carpenters Union are thrilled to see the Legislature take action on this landmark legislation," said Gary Perinar, Executive Secretary-Treasurer of the Mid-America Carpenters Regional Council. "We have been leading the fight against worker exploitation in every state, and Illinois is showing that hardworking men and women are valued and protected here. When workers are getting ripped off and not paid what they are owed, that should outrage every single person on a job site. I thank Senate President Don Harmon, Speaker Emanuel "Chris" Welch, Leader Evans, and Senator Castro for their unwavering commitment throughout this process to support working families."
About the Mid-America Carpenters Regional Council
The Mid-America Carpenters Regional Council represents over 52,000 working men and women across 324 counties in Illinois, Missouri, Kansas and Eastern Iowa. The Mid-America Carpenters Regional Council provides the construction and maintenance industries with productive, competitive and certified professionals, encompassing a wide variety of crafts and skills.
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Florida “Property Damage” caused by an “Occurrence” and “Your Work” Exclusion
July 23, 2014 —
Scott Patterson - CD CoverageIn J.B.D. Construction, Inc. v. Mid-Continent Casualty Co., * Fed.Appx. *, 2014 WL 3377690 (11th Cir. 2014), claimant property owner Sun City contracted with insured general contractor J.B.D. for the construction of a fitness center. The fitness center was to be physically connected to an existing Sun City building. J.B.D. utilized subcontractors for some of the work. Shortly after completion, leaks developed in the fitness center’s roof, windows and doors which J.B.D. attempted to fix. After Sun City refused to make the final contract payment, J.B.D. sued Sun City for contract amounts owed. Sun City counterclaimed for the construction defects, alleged damage to the fitness center and other property. J.B.D. tendered defense of the counterclaim to its CGL insurer Mid-Continent. After Mid-Continent failed to agree to defend, J.B.D. settled with Sun City, paying Sun City $182K. Following several demands from J.B.D. for reimbursement of defense costs and the settlement amount, Mid-Continent tendered the defense costs minus a deductible. J.B.D. then sued Mid-Continent for breach of duties to defend and indemnify. On cross motions for summary judgment, the federal district trial court entered judgment for Mid-Continent, finding no duties to defend or indemnify. On appeal, the Eleventh Circuit reversed on the duty to defend while affirming on the duty to indemnify. Applying Florida law, the court first held that the defective work, including the defective installation of the fitness center’s windows, doors, and roof, did not constitute “property damage.” Thus, the costs to repair or replace the defective work did not constitute damages because of “property damage.” The court next held that, while damage to other portions of the fitness center would constitute “property damage” caused by an “occurrence,” all such “property damage” fell within the “your work” exclusion.
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Scott Patterson, CD Coverage
