UK Court Rules Against Bechtel in High-Speed Rail Contract Dispute
March 29, 2021 —
Peter Reina - Engineering News-RecordThe U.K. subsidiary of Bechtel Inc. has lost its legal challenge against the owner of the U.K. London-Birmingham high-speed railroad project, HS2, over its failed bid for a roughly $140-million Construction Partner (CP) contract in early 2019.
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Peter Reina, Engineering News-Record
Mr. Reina may be contacted at reina@btinternet.com
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New Joint Venture to Develop a New Community in Orange County, California
April 08, 2014 —
Beverley BevenFlorez-CDJ STAFFTaylor Morrison Home Corporation and two of its largest shareholders have created a joint venture “to acquire and develop the 195.5 acres of San Clemente coast known as Marblehead,” according to GlobeSt.com. The Scottsdale, Arizona-based developer is expected to begin construction on the 300 luxury home site in 2015.
“Marblehead is a truly unique site and one of the last undeveloped tracts of coastal land in California,” said Sheryl Palmer, president and CEO of Taylor Morrison, as quoted by GlobeSt.com. “It presents a tremendous opportunity that will deepen our land inventory of exceptional sites and further our standard of building high-quality homes in premier locations across North America.”
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Design Professional Needs a License to be Sued for Professional Negligence
January 13, 2017 —
David Adelstein - Florida Construction Legal Updates“With regard to claims for professional negligence, the Florida Supreme Court has explained that ‘where the negligent party is a professional, the law imposes a duty to perform the requested services in accordance with the standard of care used by similar professionals in the community under similar circumstances.’” Sunset Beach Investments, LLC v. Kimley-Horn and Associates, 42 Fla. L. Weekly D130a (Fla. 4th DCA 2017) quoting Moransais v. Heathman, 744 So.2d 973, 975-76 (Fla. 1999).
When it comes to professional negligence, two things are important:
1) the person being sued is a professional under the law (person has special education, training, experience, and skill) and
2) the standard of care for that professional (e.g, licensed, professional engineer).
In a recent case, an engineering intern—not, a licensed, professional engineer–was sued for professional negligence. The Fourth District Court of Appeal held that an engineering intern is not a person that can be sued for professional negligence, unlike a licensed, professional engineer. Sunset Beach Investments, supra.
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David Adelstein, Florida Construction Legal UpdatesMr. Adelstein may be contacted at
dadelstein@gmail.com
Faulty Workmanship Causing Damage to Other Property Covered as Construction Defect
September 30, 2011 —
Tred R. Eyerly - Insurance Law HawaiiIn yet another recent construction defect case, the Illinois Court of Appeal found for coverage. See Milwaukee Mut. Ins. Co. v. J.P. Larsen, Inc., 2011 Ill. App. Ct. LEXIS 872 (Ill. Ct. App. Aug. 15, 2011).
Weather-Tite, Inc. hired Larson as a subcontractor to apply sealant to windows installed by Weather-Tite in a condominium building. The windows subsequently leaked and caused water damage. The homeowner’s association sued Weather-Tite for breach of express and implied warranties. Weather-Tite filed a third-party complaint against Larsen alleging that, if it was liable to the association for breach of warranty, Larsen was liable for contribution as a joint tortfeasor. Weather-Tite and Larsen both tendered defenses to Milwaukee Insurance. The tenders were denied and Milwaukee Insurance filed suit to determine rights under the policy.
Cross-motions for summary judgment were filed by all parties. The trial court granted Milwaukee Insurance’s summary judgment motion as to Weather-Tite, but granted Larsen’s cross-motion against Milwaukee Insurance.
On appeal, the appellate court considered whether the underlying pleadings alleged facts demonstrating "property damage" resulting from an "occurrence" within the terms of the policy.
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii. Mr. Eyerly can be contacted at te@hawaiilawyer.com
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California Supreme Court Holds that Prevailing Wages are Not Required for Mobilization Work, for Now
October 18, 2021 —
Garret Murai - California Construction Law BlogIn the midst of the Great Depression the federal government enacted the Davis-Bacon Act (40 U.S.C. section 32141 et seq.) to help workers on federal construction projects. Under the Davis-Bacon Act, minimum wages must be paid to workers on federal public works projects based on local “prevailing” wages. At the time, the goal of the law was to help curb the displacement of families by employers who were recruiting lower-wage workers from outside local areas. A darker history suggests that it was also intended to discourage minority workers from competing with unionized white workers.
Fast forward to today. Many states, including California, adopted “Little Davis-Bacon” laws applying similar requirements on state and local public works projects. California’s prevailing wage law (Labor Code section 1720 et seq.) requires contractors on state and local public works projects pay their workers the general prevailing rate of per diem wages based on the classification or type of work performed by the employee in the locality where the project is located.
Over the years, labor unions have sought to expand the definition of what constitutes a “public works project” from private residential developments receiving public funding (generally, prevailing wages required) to off-site fabrication of materials at permanent facility for a public works project (no prevailing wages required) to enforcement mechanisms such as making a general contractor liable for prevailing wage violations of its subcontractors (yes, indeedy, see Labor Code section 1775).
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Preserving your Rights to Secure Payment on Construction Projects (with Examples)
March 22, 2017 —
David Adelstein – Florida Construction Legal UpdatesAll participants across the construction industry should understand what efforts they should take to maximize and collateralize payment. No one wants to work for free and, certainly, no one in the construction industry wants to work without ensuring there is some mechanism to recover payment in the event they remain unpaid. Being proactive and knowledgeable can go a long way when it comes to recovering your money.
Your Contract – It starts with the contract. You should understand those risks that are allocated to you and those that are allocated to another party. And, you should understand the contractual mechanism to resolve claims and disputes and whether your contract has a prevailing party attorney’s fees provision. In addition to contractual rights, there are tools for you to maximize your collection efforts.
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David Adelstein, Florida Construction Legal UpdatesMr. Adelstein may be contacted at
dadelstein@gmail.com
What to do about California’s Defect-Ridden Board of Equalization Building
October 01, 2014 —
Beverley BevenFlorez-CDJ STAFFJerry Brown recently signed into law a bill requiring the state of California “to assess its properties in the Sacramento area and develop long-term plans for renovating, replacing or selling the most troublesome buildings,” according to SF Gate. Some say the Board of Equalization building, which was built for $80 million and then repaired for $60 million has construction defects, is “jeopardizing the health and safety of public employees.”
Current problems include “[f]looding, mold, falling windows and free-falling elevators,” reported SF Gate. Furthermore, recently, “three employees filed a $75 million lawsuit against the state, alleging toxic mold in the building is causing extreme fatigue, skin rashes, persistent flu-like symptoms, respiratory illnesses, frequent headaches, memory lapses and fears of cancer.”
“This is a disaster,” Assemblyman Roger Dickinson, D-Sacramento, who authored the bill regarding assessing state capitol buildings, told SF Gate. “It endangers the health and safety of employees and the public alike. And it is costing state taxpayers tens of millions of dollars.”
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Building Materials Price Increase Clause for Contractors and Subcontractors – Three Options
June 21, 2021 —
William L. Porter - Porter Law GroupWith the arrival of inflation come concerns regarding increases in the price of building materials within the construction industry. Contractors, subcontractors and others who contract to perform construction work can suffer significant losses when the prices they must pay for materials rises significantly between the time they sign the contract and actually purchase the materials. The general rule is that, unless there exists a contract clause allowing contractors or subcontractors to pass significant price increases for materials on to others, contractors and subcontractors are stuck with the price stated in the contract or subcontract. When prices rise, the contractor or subcontractor eats the difference. Rising prices can thus turn a profitable project into a catastrophic failure. How are contractors and subcontractors to protect themselves?
Once a contract is executed, there is usually little that can be done to change the document to address rising prices. Effort must therefore turn to future protection. The best technique for dealing with increasing future prices for building materials is by adding a price escalation clause to contracts and subcontracts. While this will not help for past contracts or subcontracts, it can certainly offer significant protection going forward.
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William L. Porter, Porter Law GroupMr. Porter may be contacted at
bporter@porterlaw.com