Seattle Washington Building Expert Directory

Hovnanian Increases Construction Defect Reserves for 2012

January 06, 2012 — CDJ STAFF

In their fourth quarter earnings call, executives of Hovnanian Enterprises made some projections for investors, covering the company’s plans for 2012. During the call, Ara K. Hovnanian, the firm’s CEO, discussed their reserves to meet construction defect claims. The firm does an annual actuarial study of their construction defect reserves.

Mr. Hovnanian noted that there have been no changes for the past several years, but this year they are increasing their reserves by about $6.3 million. Additionally, the firm has added $2.5 million to their legal reserves. Mr. Hovnanian stated “we do not anticipate that changes of this magnitude will be recurring as we look forward to 2012.”

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Construction Defect Lawsuits Hinted for Dublin, California

February 07, 2013 — CDJ STAFF
Without naming the community, the blog Around Dublin says that a condo community in Dublin, California may be prepping for a construction defect lawsuit. According to the article, the problems include a façade peeling away from the building, cracks in walls and granite countertops, and issues with both the HVAC systems and the plumbing. The homeowners association is said to have insufficient reserve funds to address the problems. Read the court decision
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25 Days After Explosion, Another Utility Shuts Off Gas in Boston Area

October 30, 2018 — Johanna Knapschaefer - Engineering News-Record
Three hundred thirty-nine homes in Woburn, Mass., were without power on Oct. 8 after National Grid shut off gas meters following the inadvertent over-pressurization of the natural gas line on Oct. 8, according to the Woburn Fire Dept. Read the court decision
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ENR may be contacted at ENR.com@bnpmedia.com

Small Airport to Grow with Tower

October 25, 2013 — CDJ STAFF
The city Hammond, Louisiana is finding that their airport just keeps getting busier. Mayson Foster, the mayor of Hammond noted that the city now has “various types of aircraft ranging from blimps, regional jets, smaller private planes, helicopters and other aircraft using the airport.” Spartan Construction Company has made a successful $1.6 million bid to build the tower. Funding will come from the sale of 17 acres of land near the airport. Air traffic at the Northshore Regional Airport is expected to increase after the tower becomes operational. Read the court decision
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Lakewood First City in Colorado to Pass Ordinance Limiting State Construction Defect Law

October 15, 2014 — Beverley BevenFlorez-CDJ STAFF
The Denver Post reported that the Lakewood City Council passed an ordinance “designed to soften the effects of Colorado's controversial construction-defects law.” Specifically, the ordinance “gives developers and builders a ‘right to repair’ defects before facing litigation and would require condominium association boards to get consent from a majority of homeowners — rather than just the majority of the board — before filing suit.” Not all residents are in favor of the ordinance. "It protects builders and big business at the expense of homeowners," Chad Otto, former president of the Grant Ranch homeowners association, told the crowd, as quoted by the Denver Post. "Does Lakewood want to be known as the mecca of poorly built condos?" Proponents of the measure, including Lakewood Mayor Bob Murphy, claim that “Colorado's defects law…has forced up insurance premiums on new condo projects to the point where they are no longer feasible to build.” Furthermore, according to the Denver Post, “Condos represented only 4.6 percent of total new home starts in metro Denver in the second quarter of 2014, versus more than 26 percent in 2008, according to Metrostudy.” Read the court decision
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Fifth Circuit Confirms: Insurer Must Defend Despite Your Work/Your Product Exclusion

February 14, 2022 — Nathan A. Cazier & Scott S. Thomas - Payne & Fears
The United States Court of Appeals for the Fifth Circuit recently confirmed that liability insurers have a duty to defend their insureds in construction defect cases when the underlying complaint alleges damage to property beyond the product and work of the insured – even if the complaint merely implies that the insured seeks such damage, without explicitly alleging so. Siplast, Incorporated v. Employers Mutual Casualty Company, No. 20-11076, 2022 WL 99303 (5th Cir. Jan. 11, 2022). The Archdiocese of New York replaced the roof over Cardinal Spellman High School in the Bronx, using a roofing membrane manufactured by Siplast, Inc. (“Siplast”). After a rainstorm a few years later, school officials reported water damage to the ceiling tiles throughout the school, and repair attempts only made the leaking worse. Siplast disputed that the leaks were its fault and refused to replace the roof, so the Archdiocese sued. Reprinted courtesy of Nathan A. Cazier, Payne & Fears and Scott S. Thomas, Payne & Fears Mr. Cazier may be contacted at nac@paynefears.com Mr. Thomas may be contacted at sst@paynefears.com Read the court decision
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2015-2016 California Labor & Employment Laws Affecting Construction Industry

October 28, 2015 — Steven M. Cvitanovic, David A. Harris, & Kristen Lee Price – Haight Brown & Bonesteel LLP
Earlier this month, California Governor Jerry Brown signed dozens of bills that affect employers. Many of these bills have special significance to the construction industry. Here is a brief review: Assembly Bill 219 – Prevailing Wages for Concrete Delivery on Public Projects AB 219 continues California’s aggressive expansion of prevailing wages. This bill expands the definition of “public works” for purposes of state prevailing wage law to include the hauling or delivery of ready-mixed concrete for a public works project. Previously, delivery drivers hired by a material supplier were exempted from the prevailing wage. Before AB 219, labor law made a distinction between “suppliers” and “contractors.” Thus, ready-mixed concrete was held to be a finished product, and treated differently from a product that was assembled on site. The new law eliminates this distinction. Reprinted courtesy of Haight Brown & Bonesteel attorneys Steven M. Cvitanovic, David A. Harris and Kristen Lee Price Mr. Cvitanovic may be contacted at scvitanovic@hbblaw.com Mr. Harris may be contacted at dharris@hbblaw.com Ms. Price may be contacted at kprice@hbblaw.com Read the court decision
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Housing Affordability Down

November 20, 2013 — CDJ STAFF
In what Rick Judson, the chairman of the National Association of Home Builders, describes as a “‘perfect storm’ scenario,” home prices and interest rates are up “at the same time that the cost of building homes is rising due to tightened supplies of building materials, developable lots and labor.” Residential housing is becoming less affordable. David Crowe, the Chief Economist for the NAHB, attributes this to “higher mortgage rates and the more than year-long steady increase in home prices,” but he notes that “a family earning a median income can afford 65% of homes recently sold.” For the last four quarters, the San Francisco-San Mateo-Redwood City area in California holds the dubious distinction of being the nation’s least affordable area. There, a family earning the area’s median income of $101,200 (nearly double the national median) could only afford 16% of the homes sold in the area. Read the court decision
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