CAMBRIDGE MASSACHUSETTS BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Named Insured’s Liability Found Irrelevant to Additional Insured’s Coverage Under a Landlords and Lessors Additional Insured Endorsement

November 16, 2020 — Christopher Kendrick & Valerie A. Moore – Haight Brown & Bonesteel LLP
In Truck Ins. Exchange v. AMCO Ins. Co. (No. B298798, filed 10/26/20), a California appeals court held that even though the named insured restaurant-lessee was found not liable for premises liability to injured restaurant patrons, the respective liability of the named and additional insured was irrelevant to the landlord-lessor’s coverage for injuries “arising out of” the lessee’s “use” of the premises under a landlords, managers or lessors of premises additional insured endorsement on the lessee’s general liability policy. In Truck v. AMCO, restaurant patrons were injured when a vehicle crashed into the restaurant while they were dining. The landlord was aware of a similar accident that happened several years before, but the current lessee operating the restaurant was not. The patrons sued the lessee, alleging negligence and premises liability for failing to take precautionary measures and safeguard the patrons. On learning of the prior incident, the patrons added the landlord, alleging that it should have protected the property from a recurrence by reinforcing the door and installing bollards by the street. Reprinted courtesy of Christopher Kendrick, Haight Brown & Bonesteel LLP and Valerie A. Moore, Haight Brown & Bonesteel LLP Mr. Kendrick may be contacted at ckendrick@hbblaw.com Ms. Moore may be contacted at vmoore@hbblaw.com Read the court decision
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Preparing the Next Generation of Skilled Construction Workers: AGC Workforce Development Plan

November 08, 2017 — David R. Cook Jr. - Autry, Hanrahan, Hall & Cook, LLP
In August, Associated General Contractors (AGC) and Autodesk released the results of their 2017 Construction Workforce Shortage Survey. Of the more than 1,600 survey respondents, 70 percent said they are having difficulty filling hourly craft positions. Craft worker shortages are the most severe in the West, where 75 percent of contractors are having a hard time filling those positions, followed by the Midwest where 72 percent are having a hard time finding craft workers, 70 percent in the South and 63 percent in the Northeast. Tight labor market conditions are prompting firms to change the way they operate, recruit and compensate workers. Most firms report they are making a special effort to recruit and retain veterans (79 percent); women (70 percent), and African Americans (64 percent). Meanwhile, half of construction firms report increasing base pay rates for craft workers because of the difficulty in filling positions. Twenty percent have improved employee benefits for craft workers and 24 percent report they are providing incentives and bonuses to attract workers. Read the court decision
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Reprinted courtesy of David R. Cook, Autry, Hanrahan, Hall & Cook, LLP
Mr. Cook may be contacted at cook@ahclaw.com

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One Word Makes All The Difference – The Distinction Between “Pay If Paid” and “Pay When Paid” Clauses

April 06, 2016 — David A. Harris – Haight Brown & Bonesteel LLP
Payment clauses in California construction contracts are often complex and multi-layered. This is especially true in contracts between general contractors and their subcontractors. The general does not want to pay the subs until it receives funding from the owners. The subs, of course, want their progress and final payments as soon as possible. Up until 1997, two different payment provisions were used in California contracts to manage payments by a general to its subcontractors. The first was called a “pay if paid” clause, and provided a contractor did not have to pay its subcontractors for work performed unless the subcontractor was first paid by the owner of the project. The second was the “pay when paid clause.” It required subcontractors to be paid for their work after the general was paid by the owner, or within “a reasonable time” after the subcontractors finished their work if the owner did not pay the general. Read the court decision
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Reprinted courtesy of David A. Harris, Haight Brown & Bonesteel LLP
Mr. Harris may be contacted at dharris@hbblaw.com

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Lenders and Post-Foreclosure Purchasers Have Standing to Make Construction Defect Claims for After-Discovered Conditions

October 10, 2013 — W. Berkeley Mann, Jr. — Higgins, Hopkins, McLain & Roswell, LLC
The Colorado Court of Appeals has decided a case which answers a question long in need of an answer: do banks/lenders have standing to assert construction defect claims when they receive title to a newly-constructed home following a foreclosure sale or deed-in-lieu of foreclosure? The decision was released on August 1, 2013, in the case of Mid Valley Real Estate Solutions V, LLC v. Hepworth-Pawlack Geotechnical, Inc., Steve Pawlak, Daniel Hadin, and S K Peightal Engineers, Ltd. (Colorado Court of Appeals No. 13CA0519). The background facts of the case are typical of a Colorado residential construction defect case generally. A developer contracted for an analytical soil engineering report from a geotechnical engineering firm (H-P) which made a foundation recommendation. The developer’s general contractor then retained an engineering firm (SPKE) to provide engineering services, including a foundation design. The general contractor built the foundation in accordance with the H-P and SPKE criteria and plans. The house was not sold by the developer and went into default on the construction loan. These events resulted in a deed-in-lieu of foreclosure to a bank-controlled entity which purchased the house for re-sale. Shortly after receiving the developer’s deed, the bank-related entity discovered defects in the foundation that resulted in a construction defect suit against the two design firms and related individuals. Read the court decision
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Reprinted courtesy of W. Berkeley Mann, Jr.
W. Berkeley Mann, Jr. can be contacted at mann@hhmrlaw.com

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Another Worker Dies in Boston's Latest Construction Accident

June 20, 2022 — Scott Van Voorhis - Engineering News-Record
Boston Police and the US Occupational Safety and Health Administration are investigating a June 9 early morning construction accident that killed a worker in Boston’s Seaport district— the latest in a spate of fatalities at worksites across the city's metro area during the past 18 months. Reprinted courtesy of Scott Van Voorhis, Engineering News-Record ENR may be contacted at enr@enr.com Read the full story... Read the court decision
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Caltrans Hiring of Inexperienced Chinese Builder for Bay Bridge Expansion Questioned

July 16, 2014 — Beverley BevenFlorez-CDJ STAFF
The construction of the new eastern span of San Francisco’s bay bridge has been criticized for the $6.5 billion cost, welding crack violations, and alleged cover ups by Caltrans. The Sacramento Bee reported that the company Shanghai Zhenhua Port Machinery Co. Ltd. (ZPMC) “had never built a bridge.” In fact, ZPMC “was a manufacturer of giant cranes for container ports.” How then did ZPMC manage to obtain the contract? The Sacramento Bee stated that the company “had established a reputation as fast and cost-effective, offering savings of about $250 million compared to the competing bidder.” The project was already “years behind schedule and billions of dollars over budget by political squabbles and construction delays” and there were some fears that the “old bridge might not survive a major quake.” Caltrans was told by an outside expert that ZPMC was a “high risk,” however, the company received a “contingent pass.” Sacramento Bee reported that an audit showed “ZPMC didn’t have enough qualified welders or inspectors…and routinely welded in the rain, a basic error that often causes defects.” Regardless, Caltrans signed off on the project. “In August 2007, Caltrans auditors approved ZPMC outright, although the firm still lacked adequate quality control, even for ‘fracture critical’ materials,” the Sacramento Bee reported. During the California Senate committee hearing in January, Doug Coe, a senior Caltrans engineer, said “’The race for time’ created overwhelming pressure to keep moving as planned….But there’s no excuse for building something defective like that because we are in a race for time.” Read the court decision
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California Contractor Spills Coffee on Himself by Failing to Stay Mechanics Lien Action While Pursuing Arbitration

August 14, 2018 — Garret Murai - California Construction Law Blog
It bugs the Mrs. that I have a habit of reading the directions. “Just plug the darn thing in!” said the Mrs. when we got a new coffee maker to replace our old one which we’ve had since I think before we were married (Life Lesson No. 347: Get a coffee maker you really, really like because they last forever). “But . . . the directions?,” I said. By the time I had finished reading the instruction manual I could smell the coffee brewing in the kitchen. Granted, the Mrs. is more practical than I am in many ways (e.g., “You know, you didn’t need to buy 10 cans of corn to get the 10 for $10 discount. I guess you’re going to be eating a lot of corn”). But still. What might have happened if there was a serious coffee mishap? And worrier as I may be mishaps can happen if you don’t read the directions. James Zenovic didn’t read the directions, and here’s his story . . . Von Becelaere Ventures, LLC v. Zenovic In Von Becelaere Ventures, LLC v. Zenovic, Case No. D072620 (June 6, 2018), James Zeonovic doing business as James Zeonovic Construction entered into a construction contract to build a single-family house for Von Becelaere Ventures, LLC in Laguna Beach, California. The construction contract included an arbitration provision that stated: If any dispute arises concerning this Contract or the interpretation thereof, of concerning construction of the Improvements, or the Limited Warranty, customer service, defects, damages, or obligations therewith (a “Construction Dispute”), such Construction Dispute will be settled by binding arbitration. Read the court decision
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Reprinted courtesy of Garret Murai, Wendel, Rosen, Black & Dean LLP
Mr. Murai may be contacted at gmurai@wendel.com

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Supreme Court of Washington State Upholds SFAA Position on Spearin Doctrine

September 13, 2021 — Peter Roth – The Surety & Fidelity Association of America
September 9, 2021 (WASHINGTON, DC) – The Surety & Fidelity Association of America (SFAA) commends the decision of The Supreme Court of The State of Washington to reverse the lower court ruling in the case of Lake Hills Investments, LLC vs. Rushforth Construction Co. As argued by SFAA, the Supreme Court found the contractor should not be responsible for damage caused by the defective design provided by the owner even where the contractor was responsible for certain defective work. In addition, the contractor is not completely barred from asserting this defense if the defects were caused by a combination of deficient performance by the contractor and deficient design, and proportional liability should be determined. The SFAA, along with the National Electrical Contractors Association Puget Sound Chapter (NECA), Mechanical Contractors Association of Western Washington (MCAWW) and SMACNA-Western Washington (SMACNA), issued an Amici Curiae in support of Petitioner AP Rushforth Construction Co., Inc. d/b/a AP Rushforth, and Adolfson & Peterson, Inc.’s (collectively “AP”) Petition for Discretionary Review. In the brief they argued the Court should grant the Petition because the decision by the lower court is contrary to precedent of limiting a contractor’s liability when the owner’s defective plans and specifications caused the defective work, and upsets settled expectations of allocation of risk and liability between contractors, owners and architects (among others) on construction projects. This allocation of risk and the principle of limiting the contractor’s liability for defective work based on defective plans and specifications is long settled doctrine in Washington State and throughout the country, a doctrine based on the US Supreme Court’s landmark decision in U.S. vs. Spearin more than 100 years ago. The Surety & Fidelity Association of America (SFAA) is a trade association of more than 425 insurance companies that write 98 percent of surety and fidelity bonds in the U.S. SFAA is licensed as a rating or advisory organization in all states and it has been designated by state insurance departments as a statistical agent for the reporting of fidelity and surety experience. www.surety.org Read the court decision
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Reprinted courtesy of Peter Roth, SFAA
Mr. Roth may be contacted at proth@surety.org

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