FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

School District Settles Construction Lawsuit

November 07, 2012 — CDJ STAFF
The Franklin County, Pennsylvania Public Opinion reports that an area school is coming to an end with its construction lawsuit. The school district was sued by its contractors for a combined $1.4 million, which the school district withheld when the project was not completed on schedule. Lobar Inc. claimed that the district additionally owed interest and should pay attorney fees. The school claimed that only $1.15 million was due under the contract. Under the settlement, they will be paying $1.136 million. Read the court decision
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City Sues over Leaking Sewer System

October 25, 2013 — CDJ STAFF
The city of Storm Lake, Iowa completed a $3.6 million sewer project only year ago, but the system is leaking untreated water into residents properties. The Pilot-Tribune reports that “not all the sewage lines broke,” but the city still needed to check the entire system for damage. The Southwest Shoreline Sanitary District has filed a lawsuit against Lessard Contracting, the firm that built the system. Bob Bergendoff, one of the sanitary district trustees said that “the main thing right now is whether the lines are properly installed.” Steve Anderson, another trustee, said that discussions with Lessard are getting “next to nowhere.” Read the court decision
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Don’t Get Caught Holding the Bag: Hold the State Liable When General Contractor Fails to Pay on a Public Project

June 21, 2017 — Sean Minahan - Construction Contractor Advisor
According to a quick Google search the term “holding the bag” comes from the mid eighteenth century and means be left with the onus of what was originally another’s responsibility. Nobody wants to be left holding the bag. But that is the situation our client (subcontractor) found themselves in when upon completion of a public project the general contractor went out of business before paying the remaining amount due and owing to our client. Under Nebraska law, liens are not allowed against public projects. Instead the subcontractor is to make a claim on the payment and performance bond secured by the general contractor at the start of the project. In our case, the general contractor never secured a bond on which to make a claim; consequently leaving our client holding the bag. Fortunately, we were able to hand the bag back to the State and obtain full payment for the services and materials provided. Read the court decision
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Reprinted courtesy of Sean Minahan, Lamson, Dugan and Murray, LLP
Mr. Minahan may be contacted at sminahan@ldmlaw.com

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A Downside of Associational Standing - HOA's Claims Against Subcontractors Barred by Statute of Limitations

March 28, 2012 — Bret Cogdill, Colorado Construction Litigation

In multi-family construction defect litigation in Colorado, homeowners associations rely on associational standing to pursue claims affecting more than two units and to bring claims covering an entire development. This practice broadens an association’s case beyond what individual, aggrieved owners would otherwise bring on their own against a developer or builder-vendor. However, reliance on associational standing to combine homeowners’ defect claims into a single lawsuit has its drawbacks to homeowners.



A recent order in the case Villa Mirage Condominium Owners’ Association, Inc., v. Stetson 162, LLC, et al., in El Paso County District Court, presents an example. There, the HOA unsuccessfully sought a determination from the court that its claims against subcontractors were not barred by the statute of limitations. To do so, the HOAs attempted to apply the Colorado Common Interest Ownership Act (“CCIOA”), which governs the creation and operation of HOAs, and a statute intended to apply to persons under a legal disability.



Under CCIOA, during the period of “declarant control” the developer may appoint members to the association’s executive board until sufficient homeowners have moved into the development and taken seats on the board.

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Reprinted courtesy of Bret Cogdill of Higgins, Hopkins, McClain & Roswell, LLC. Mr. Cogdill can be contacted at cogdill@hhmrlaw.com.

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Termination for Convenience Clauses: Maybe More Than Just Convenience

June 06, 2022 — Robert C. Shaia - ConsensusDocs
A contractor begins work on a project and everything is going well, until one day the owner informs the contractor that it is being terminated for convenience. Possibly, there is no discussion about alleged defects, reasons for the termination, or any damages the owner might seek against the contractor. In that moment, the contractor may be unaware of any perceived wrongdoing or problems with its work. The industry has typically accepted that, in this scenario, the owner implicitly waives the right to any remedies against the contractor, except those expressly set forth in the contract. Reasonable minds might assume that, if the owner believed it needed to seek further remedies, it would terminate the contractor for cause instead of convenience. And often overlooked during contract negotiations are the benefits of including an express “waiver of remedies” in the termination for convenience section. Read the court decision
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Reprinted courtesy of Robert C. Shaia, Watt, Tieder, Hoffar, & Fitzgerald, LLP (ConsensusDocs)
Mr. Shaia may be contacted at rshaia@watttieder.com

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How Artificial Intelligence Can Transform Construction

February 22, 2021 — Jeff Rubenstone - Engineering News-Record
Artificial intelligence and machine-learning algorithms have struggled to make sense of chaotic construction jobsites, but recent years have seen industry firms build the vast data lakes and analytics systems necessary for these machines to provide useful advice on how to plan, schedule and execute projects. In some cases, these AI advisors have become a standard part of some firms’ project delivery methods. But it’s still a challenge to convince construction professionals to listen to these AI advisors, and there are emerging questions of how risk will be allocated once algorithm-driven decisions start to steer projects. Reprinted courtesy of Jeff Rubenstone, Engineering News-Record Mr. Rubenstone may be contacted at rubenstonej@enr.com Read the full story... Read the court decision
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New Mexico Holds One-Sided Dispute Resolution Provisions Are Unenforceable

November 05, 2024 — Bill Wilson - Construction Law Zone
Dispute resolution provisions that grant one party the unilateral right to choose either litigation or arbitration to resolve disputes are common in the construction industry. The main difference between the two forums is that courts are more likely to strictly enforce contract terms as written as well as the applicable law, while arbitrators make decisions on more equitable considerations, untethered to the contract terms and—to some degree—the law. The party with the sole discretion to select the dispute resolution procedure can select the process most beneficial to its interests based on the nature of the dispute, regardless of who brings the claims. In Atlas Electrical Construction, Inc. v. Flintco, LLC, 550 P.3d 881 (N.M. Ct. App. 2024), the Court of Appeals of New Mexico recently held that an arbitration provision in a subcontract, under which the contractor retained the exclusive right to choose whether disputes arising under the subcontract were litigated in court or arbitrated was unreasonably one-sided, substantively unconscionable, and unenforceable. The Atlas Electrical case involved two sophisticated entities with equal bargaining strength to negotiate the terms of a subcontract. The parties agreed to a subcontract provision which provided in the relevant part:

In the event [contractor] and [subcontractor] cannot resolve the dispute through direct discussions or mediation … then the dispute shall, at the sole discretion of [contractor], be decided either by submission to (a) arbitration … or (b) litigation …

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Reprinted courtesy of Bill Wilson, Robinson & Cole LLP
Mr. Wilson may be contacted at wwilson@rc.com

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Pre-Covid Construction Contracts Unworkable as Costs Surge, Webuild Says

October 17, 2022 — Angus Whitley - Bloomberg
Infrastructure construction contracts signed before the pandemic have become widely unworkable because of the surging cost of labor and materials, supply-chain blockages and difficulties in securing manpower, according to builder Webuild SpA. Milan-based Webuild is wrestling with a 2019 agreement with the Australian government to construct the country’s largest hydroelectric power station for A$5.1 billion ($3.2 billion). It’s meant to be completed by 2026. The Snowy 2.0 project, in the Snowy mountains about six hours’ drive south of Sydney, has come to highlight the challenges of completing large-scale projects on terms that were struck before Covid-19, and before Russia invaded Ukraine. Webuild’s Asia-Pacific director, Marco Assorati, said the value of the Snowy contract, as well as certain other parameters, need to be changed to reflect the current market. He declined to comment specifically on media reports that the consortium has asked the Australian government for an extra A$2.2 billion to complete the work and that the project is 18 months behind schedule. “It is challenging,” Assorati said. “I think clients understand this conversation must happen and there must be a way to cope with unforeseen increases in cost,” Assorati said. “It’s not needed only on the Snowy project. It’s affecting projects everywhere globally.” Read the court decision
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Reprinted courtesy of Angus Whitley, Bloomberg

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