A Classic Blunder: Practical Advice for Avoiding Two-Front Wars
August 23, 2021 —
William Underwood - ConsensusDocs“Ha ha! You fool! You fell victim to one of the classic blunders – the most famous of which is ‘never get involved in a land war in Asia’ – but only slightly less well-known is this: ‘Never go in against a Sicilian when death is on the line.’”[1]
Vizzini forgot to include “never fight a two-front war with your owner and a subcontractor” on his list of classic blunders, but it certainly belongs there. This article examines practical tips and tricks for general contractors to avoid the classic blunder of a two-front war, including recommended contract provisions and sound project documentation practices.
Admittedly, general contractors face a wide array of obligations on a project. And perhaps one of the most delicate balancing acts is managing relationships with the owner and your subcontractors. But far too often general contractors find themselves in the difficult position of fighting a two-front war against one (or more) of their subcontractors and the project owner.
But this does not always have to be the case—there are ways for general contractors to reduce the risk of finding themselves in a two-front war. And every project does not have to devolve in a circular firing squad with you in the middle. That said, this article comes with the caveat that a general contractor cannot avoid a two-front war in every instance, nor does this article examine every imaginable way to reduce the risk of a two-front war (see e.g. https://www.consensusdocs.org/pass-through-subcontractor-claims-liquidating-agreements-and-avoiding-a-two-front-war/). But this article will provide an overview of several key tools that can be used to minimize the risk of falling into a classic blunder.
Read the court decisionRead the full story...Reprinted courtesy of
William Underwood, Jones Walker LLPMr. Underwood may be contacted at
wunderwood@joneswalker.com
Acquisition, Development, and Construction Lending Conditions Ease
May 21, 2014 —
Beverley BevenFlorez-CDJ STAFFAccording to the National Association of Home Builders’ (NAHB) Eye on Housing, “[b]uilders and developers continue to report easing credit conditions for acquisition, development, and construction (AD&C) loans according to NAHB’s survey on AD&C financing.”
Eye on Housing stated that while “commercial banks remain the primary source of credit for AD&C by a wide margin, private individual investors have emerged as a viable alternative, especially for A&D loans.”
Read the court decisionRead the full story...Reprinted courtesy of
Morrison Bridge Allegedly Crumbling
February 05, 2015 —
Beverley BevenFlorez-CDJ STAFFThe Portland Mercury reported that the Portland, Oregon Morrison Bridge’s structure is breaking into pieces.
"The bridge is crumbling," Joel Mullin, attorney from Stoel Rives representing the county told a Multnomah County judge, according to the Portland Mercury. "The deterioration has accelerated more than anticipated."
Newly released documents seem to imply that the bridge “project was doomed well before it started, and county officials should have known it,” the Portland Mercury reported.
Read the court decisionRead the full story...Reprinted courtesy of
Prefabrication Contract Considerations
March 08, 2021 —
David Adelstein - Florida Construction Legal UpdatesPrefabrication (also referred to as modular construction in instances), is a form of offsite construction where certain construction activities occur at an offsite manufacturing facility or location. Construction components or units are preassembled (prefabricated) at this offsite location prior to being delivered to the project site and then integrated into the project.
When preparing a prefabrication contract (including a prefabrication subcontract), there are a number of complex considerations that need to be weighed, and these considerations are bullet-pointed below. The purpose of these bullet-points is to give you considerations to discuss and vet when preparing, negotiating, and agreeing to a prefabrication contract or subcontract.
Read the court decisionRead the full story...Reprinted courtesy of
David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Inside the Old Psych Hospital Reborn As a Home for Money Managers
October 28, 2015 —
Simone Foxman – BloombergIt’s the most exclusive club for financiers in Dallas.
With seven Jeffersonian-style buildings and manicured lawns, Old Parkland looks more like a college campus than a hive of private-equity firms, hedge funds, foundations and family offices. But the 9.5-acre site, where an abandoned hospital once stood, is now home to some of the city’s wealthiest investors.
Old Parkland is the pet project of Harlan Crow, 66, a son of swashbuckling real estate developer Trammell Crow, whose empire was in tatters when he gave up control in the late 1980s. It’s also a symbol of a decades-long effort to rebuild the family’s legacy. Step inside any of the buildings and you might think you’re in a museum, with Rodin sculptures in the hallways, a 17th century antique sofa in a lobby and a piece of curtain Abraham Lincoln is said to have grabbed after being shot on display.
Read the court decisionRead the full story...Reprinted courtesy of
Simone Foxman, Bloomberg
'Right to Repair' and Fixing Equipment in a Digital Age
August 30, 2021 —
Jeff Rubenstone - Engineering News-RecordWhen a piece of equipment breaks down on site, rental agreements, subcontractor contracts and other arrangements generally make it clear who gets to open the hood and start tinkering. But heavy equipment made in the last two decades increasingly relies on digital components for many basic functions. Embedded computer systems oversee electronically controlled hydraulics and regulate engine behavior and emissions-control systems. The tools to access these firmware and software systems are not always easy to come by, and in some cases repairs can’t be done without working directly with a manufacturer-approved dealer or technician. Some repairs may require a digital handshake to take effect.
Reprinted courtesy of
Jeff Rubenstone, Engineering News-Record
Mr. Rubenstone may be contacted at rubenstonej@enr.com
Read the full story... Read the court decisionRead the full story...Reprinted courtesy of
Federal Court Requires Auto Liability Carrier to Cover Suit Involving Independent Contractor Despite “Employee Exclusion”
August 30, 2017 —
H. Scott Williams & Brendan Holt - Saxe Doernberger & Vita, P.C.A recent federal court decision rendered in July of 2017 highlights the importance of worker classification in the transportation industry and the potential insurance implications. In Spirit Commercial Auto Risk Retention Grp., Inc. v. Kailey, 1 the court determined that an “employee exclusion” in a motor carrier’s automobile liability insurance policy did not exclude coverage for liability resulting from the bodily injury of an independent contractor operating the motor carrier’s tractor-trailer. In April of 2014, a team of two drivers hired by the motor carrier, Kailey Trucking Line (KTL), were involved in a collision while operating KTL’s truck. The passenger in the truck, who was not operating the vehicle at the time, was killed in the accident. Subsequently, the spouse of the decedent filed suit against KTL as well as the driver of the truck.
KTL sought coverage for the suit under its automobile liability insurance policy, issued by Spirit Commercial Auto Risk Retention Group, Incorporated (Spirit). However, Spirit took the position that it had no duty to defend or indemnify KTL, and ultimately filed a declaratory judgment action in United States District Court for the Eastern District of Missouri. The policy issued to KTL provided coverage for damages due to bodily injury or property damage caused by an accident resulting from the ownership, maintenance, or use of a covered auto. However, the policy excluded from coverage any bodily injury to an employee or fellow employee of the insured arising out of and in the course of employment of the insured. Accordingly, to the extent that the decedent qualified as an “employee” of KTL, Spirit had no duty to indemnify KTL in the litigation.
Reprinted courtesy of
H. Scott Williams, Saxe Doernberger & Vita, P.C. and
Brendan C. Colt, Saxe Doernberger & Vita, P.C.
Mr. Holt may be contacted at bch@sdvlaw.com
Mr. Williams may be contacted at hsw@sdvlaw.com
Read the court decisionRead the full story...Reprinted courtesy of
Estoppel Certificate? Estop and Check Your Lease
May 06, 2019 —
Lauren Podgorski - Snell & Wilmer Real Estate Litigation BlogIf you are leasing space in a building, there may come a time when you receive a request from your landlord to fill out and sign an estoppel certificate. Estoppel certificates are usually sent to tenants in connection with the sale or refinance of a building, and a third party may rely on the accuracy of the statements and information contained in the estoppel certificate in connection with that transaction. Estoppel certificates can range from a very simple, one-page document, to several pages.
I’ve received an estoppel certificate in the mail. What do I do now?
Consider the following:
Check your lease. Your lease may require you to deliver the signed estoppel certificate and may even give you a timeframe within which you are required to return it. A form of estoppel certificate may also be included in your lease as an exhibit. If you’ve previously agreed to a form of estoppel certificate in your lease, check to ensure the one you have received matches the form you previously agreed to and if it doesn’t make sure to review it carefully to make sure it is acceptable.
Review the estoppel certificate and confirm that all of the information is accurate. Be on the lookout for any terms or provisions that you did not agree to in your lease. If it seems like the landlord is trying to modify your lease, you likely do not need to consent to the change in this document. Cross off (or modify or delete, if you have an electronic copy) any information that is inaccurate. Fill in all blanks (if the blank is not applicable, write “N/A”), and if any exhibits are referenced in the body of the document, make sure they are actually attached.
Read the court decisionRead the full story...Reprinted courtesy of
Lauren Podgorski, Snell & WilmerMs. Podgorski may be contacted at
lpodgorski@swlaw.com