Seattle Washington Building Expert Directory

Terminating A Subcontractor Or Sub-Tier Contractor—Not So Fast—Read Your Contract!

May 24, 2018 — John P. Ahlers - Ahlers Cressman & Sleight PLLC Blog
Every few months I receive a call from a general contractor or subcontractor who has just terminated a subcontractor or sub-tier contractor for non-performance and is “checking in with me to see if there are any liability issues.” After the termination has taken place, if the termination is wrongful, there are serious legal consequences. Calling your lawyer after the fact will not cure missteps in the termination process. Termination for non-performance is a common term in most contract documents. As courts interpret contracts, however, the right to earn revenue from a contract is a substantial interest, and courts generally “abhor” forfeitures (termination) of that right. In other words, the courts will strictly determine whether the terminating party to a contract has complied with the termination process to the letter. A recent example from Connecticut is instructive in this regard. [1] The general contractor on a large hospital project in Connecticut terminated its electrical subcontractor, hired others to finish the electrical subcontractor’s work, and then sued the electrical subcontractor for $26 million. The electrical subcontractor countersued the general contractor for $3.6 million of work that it had completed at the time of the termination which had not been paid for. The subcontractor claimed that due to the many changes that had occurred on the project, it stopped work because the changes altered the contract to the point that it was no longer the same contract. The subcontractor walked off the project and the general contractor then terminated the subcontractor and re-procured the work from other subcontractors. Read the court decision
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Reprinted courtesy of John P. Ahlers, Ahlers Cressman & Sleight PLLC
Mr. Ahlers may be contacted at john.ahlers@acslawyers.com

Point Taken: The UK Supreme Court Finally Confirms the General Law of Liquidated Damages (LDs)

April 04, 2022 — Vincent C. Zabielski & Julia Kalinina Belcher - Gravel2Gavel Construction & Real Estate Law Blog
In a long-awaited decision which overturned the Court of Appeal’s ruling in the Triple Point Technology vs PTT Public Company case, the UK Supreme Court confirmed the general law of LDs, which is that—absent clear words to the contrary—they accrue up to the date of termination of a contract regardless of whether the contractor completes the work; after that, general damages are recoverable. This approach was held to reflect “commercial reality and the accepted function of liquidated damages.” Although the contract in question was not a construction contract, the decision is equally relevant in the construction sphere. By way of reminder, Triple Point failed to complete the works under Phase 1 of a contract for the design, installation, maintenance and licencing of software. Despite agreeing a revised project plan, PTT gave notice to terminate. Reprinted courtesy of Vincent C. Zabielski, Pillsbury and Julia Kalinina Belcher, Pillsbury Mr. Zabielski may be contacted at vincent.zabielski@pillsburylaw.com Ms. Belcher may be contacted at julia.belcher@pillsburylaw.com Read the court decision
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BP Is Not an Additional Insured Under Transocean's Policy

April 01, 2015 — Tred R. Eyerly – Insurance Law Hawaii
Responding to a certified question from the Fifth Circuit, the Texas Supreme Court determined that BP was not an additional insured under Transocean's liability policy and had no coverage under the policy for the deaths caused by the explosion of the Deepwater Horizon. In re Horizon, 2015 Tex. LEXIS 141 (Tex. Feb. 13, 2015). We have previously posted on this case in the federal courts here and here. Transocean owned the Deepwater Horizon, a mobile offshore drilling unit operating in the Gulf of Mexico pursuant to a contract with BP. After an explosion in April 2010, the rig caught fire, killing eleven crew members. Both Transocean and BP sought coverage under Transocean's primary and excess policies. Although they did not dispute that BP was an additional insured, Transocean and its insurers argued that BP was not entitled to coverage for pollution-related liabilities arising from subsurface oil releases in connection with the Deepwater Horizon accident. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Colombia's $15 Billion Road Plan Bounces Back From Bribe Scandal

June 03, 2019 — Oscar Medina - Bloomberg
Colombia’s $15 billion highway program has come roaring back to life as laws to protect investors help confidence recover from a massive kickback scandal that had paralyzed the sector. Public works expanded 8.5% in the first quarter from a year earlier, a rare bright spot in an economy that has struggled to grow since oil prices crashed nearly five years ago. Colombia ranks 102 out of 140 nations in road infrastructure quality, behind Bolivia and Sierra Leone, according to World Economic Forum’s Global Competitiveness report. Fixing that problem, which has bedeviled Colombian industry and agriculture for centuries, can boost growth for a generation, the government believes. Read the court decision
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Reprinted courtesy of Oscar Medina, Bloomberg

Environmental Law Violations: When you Should Hire a Lawyer

October 09, 2018 — Bremer Whyte Brown & O’Meara
Environmental law violations can have an enormous impact on your ongoing profitability. Environmental law is complicated and multifaceted, with laws at the local, state, and federal level often overlapping. In this article, we’ll discuss environmental law violations in the context of defending against an environmental law claim. In doing so, we’ll take a brief look at what environmental law is, and explore some environmental law violations cases. This should shed some light on the complex nature of environmental law litigation, and highlight the importance of securing legal representation with the scope and breadth of practice to wade into an environmental law violation case. What is Environmental Law? Before diving into specific environmental law violation cases, it is helpful to first provide a basic outline of what environmental law is and what different levels of environmental law exist in the United States. The most well-known environmental law exists at the federal level and is enforced by the Environmental Protection Agency (EPA). The EPA is responsible for enforcing directives that have been set forth by Congress over time. These include a variety of Acts, including the Clean Air Act and Clean Water Act. Read the court decision
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Reprinted courtesy of Bremer Whyte Brown & O’Meara

eRent: Construction Efficiency Using Principles of the Sharing Economy

November 06, 2018 — Aarni Heiskanen - AEC Business
eRent has developed a digital equipment management portal for construction equipment. At the very heart of the concept lies the resource efficiency that can be achieved using principles of the sharing economy. Olli Aaltonen, CEO of eRent Solutions, is confident about the platform his company has created: “Besides offering a digital solution to a rather inefficient workflow in the construction business, we are also introducing a way to track and manage your construction equipment, whether it is owned, rented, or leased. The cost savings are obvious we believe our tracking feature brings our customers even more value.” Read the court decision
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Reprinted courtesy of Aarni Heiskanen, AEC Business
Mr. Heiskanen may be contacted at aec-business@aepartners.fi

East Coast Evaluates Damage After Fast-Moving 'Bomb Cyclone'

March 06, 2022 — Scott Van Voorhis - Engineering News-Record
Coastal areas in the northeast US are assessing damage from a fast-moving “bomb cyclone” that caused temperatures to plummet, triggered heavy flooding and high winds, and dumped 2 ft of snow in some New England areas. 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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Righting Past Wrongs Through Equitable Development

January 17, 2022 — Bruce Buckley & Pam Radtke Russell - Engineering News-Record
Standing on a dead-end street in Spartanburg, S.C., Harold Mitchell can plainly see the history of injustice in his community. On one side lies the remains of his childhood home. On the other, a shuttered fertilizer plant that was operational when Mitchell was growing up. He distinctly recalls smells of ammonia and sulfur emanating through the neighborhood that “were so pervasive, you didn’t even think about it.” He remembers his father regularly cleaning white dust off their cars, and workers emerging from the plant gates “looking like the Pillsbury Doughboy” covered in fertilizer dust from head to toe. Sometimes, he’d walk with the plant’s night watchman, strolling alongside neon green sewage lagoons located not far from his bedroom window. Reprinted courtesy of Bruce Buckley, Engineering News-Record and Pam Radtke Russell, Engineering News-Record ENR may be contacted at enr@enr.com Read the full story... Read the court decision
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