Cambridge Massachusetts Building Expert Directory

Construction Contract Provisions that Should Pique Your Interest

September 30, 2019 — Christopher G. Hill - Construction Law Musings
Construction contracts are a big part of my legal practice and the drumbeat here at Construction Law Musings. Why? Because not only does your construction contract set the expectations and “rules of the game” for a construction project, it will be read strictly and literally by the Virginia courts should there be a dispute. For these reasons, construction professionals need to be alert for the language in certain key clauses in a construction contract to assure that these clauses are as balanced as possible and also well understood. Here are my “Top Five”:

“Pay if Paid”- These clauses are almost always in the subcontracts between a general contractor and a subcontractor and are enforceable in Virginia if drafted correctly and under the proper circumstances.
Change Orders- Whether work is subject to a change order and the required payment for any changed work are often a key source of contention (read legal fees). A properly drafted and followed change order provision can help avoid much of this contention.
Indemnity- Much has been made in recent years about indemnity provisions and their enforceability. All parties in the construction payment chain can and should be aware of how to best draft their indemnity provisions to make them enforceable. Failure to do so can be catastrophic.

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Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

Meet the Forum's In-House Counsel: ERIN CANNON-WELLS

June 26, 2023 — Jessica Knox - The Dispute Resolver
Company: Keller North America, Inc. Email: ecannon@keller-na.com Website: https://www.keller-na.com/ Under Grad: University of Delaware (Bachelor of Civil Engineering 2000) Grad School: The University of Texas (Master of Civil Engineering 2002) Law School: Howard University (JD 2008) States Where Company Operates/Does Business: Throughout the US and Canada Q: Describe your background and the path you took to becoming in-house counsel. A: I studied civil engineering in undergrad and finally found my "calling" when I took a construction course, prompting me to pursue a master's in construction engineering. I started my career at Turner, holding various engineering positions, the last of which introduced me to the "contracting" side of construction. I was inspired to go to law school (in hopes of becoming an in-house lawyer there). After law school, I joined BigLaw, but maintained my desire to practice construction law. I then jumped to a small construction practice group at a mid-size firm, and the mentoring and experience there was everything I could hope for (but for the looming business development and billable hour requirements). From there, I became the sole in-house counsel for a large cement manufacturer and was a true construction generalist. Now I am part of a great legal team for a leading geotechnical specialty contractor. My moves were strategic, and I'm pleased to say that this is the very career I went to law school to have. Read the court decision
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Reprinted courtesy of Jessica Knox, Stinson LLP
Ms. Knox may be contacted at jessica.knox@stinson.com

Is an Initial Decision Maker, Project Neutral, or Dispute Resolution Board Right for You?

July 14, 2016 — David Adelstein – Florida Construction Legal Updates
Recently, I participated in a roundtable hosted by JAMS with experienced South Florida construction lawyers and retired circuit court judges to discuss the pros and cons of utilizing an initial decision maker (“IDM” and also referred to as a project neutral) or a dispute resolution board (“DRB”) to resolve disputes on construction projects. The IDM and DRB are designed to resolve disputes, specifically claims (whether for time, money, or both), during construction to keep the project progressing forward without being bogged down by the inevitable claim. There are numerous avenues to resolve disputes without resorting to filing a lawsuit or a demand for arbitration. The thought is that dispute resolution will be facilitated by techniques designed to assist the parties with the resolution of claims during construction. While direct discussions between the parties, meetings with the executives for business decision purposes, mediations, etc., are certainly helpful, sometimes these avenues are simply not enough to truly resolve a complex claim on a construction project that occurs during construction. Read the court decision
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Reprinted courtesy of David M. Adelstein, Kirwin Norris
Mr. Adelstein may be contacted at dma@kirwinnorris.com

These Are the 13 Cities Where Millennials Can't Afford a Home

June 10, 2015 — Victoria Stilwell and Wei Lu – Bloomberg
There's no place like home — except when you can't afford one. Millennials have been priced out of some of the biggest U.S. cities, with residential real estate prices rising even as wage growth remains elusive. Bloomberg used data from the U.S. Census Bureau, Zillow Group Inc. and Bankrate.com to quantify how much more money millennials would need to earn each year to afford a home in the largest U.S. cities. The good news is that out of 50 metropolitan areas, 37 are actually affordable for the typical 18-34 year-old (scroll down to the end of the story to see the full results). The bad news is that the areas that often most appeal to young adults are also the ones where homeownership is the most out of reach. Reprinted courtesy of Victoria Stilwell, Bloomberg and Wei Lu, Bloomberg Read the court decision
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Illinois Court of Appeals Addresses Waiver and Estoppel in Context of Suit Limitation Provision in Property Policy

February 05, 2024 — James M. Eastham - Traub Lieberman
In Naperville Hotel Partners, LLC v. Liberty Mut. Fire Ins. Co., 2023 IL App (3d) 220440-U the Illinois Third District Court of Appeals addressed whether failure to include reference to a limitations provision in reservation of rights correspondence to an insured can be deemed a waiver of the provision or otherwise estop the insurer from relying on the provision. The claim involved water damage sustained at the Insured’s motel as a result of numerous rain events that occurred between 2015 and 2020. Liberty Mutual issued an insurance policy that covered several buildings including the subject hotel. The policy required that any legal action based on the coverage had to be brought "within two (2) years after the date on which the physical damage occurred, extended by the number of days between the date you submitted the statement of loss to us and the date we deny the claim in whole or in part." Plaintiffs filed their claim with Liberty Mutual in May 2019. In June of 2019 Liberty Mutual sent a reservation of rights letter to the Insured which requested more information and listed the "immediate written notice of loss" provision as a potential basis for excluding coverage but did not list the two-year time-limitation on legal action. Liberty Mutual also did not mention the provision in subsequent communications with the Insured. Read the court decision
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Reprinted courtesy of James M. Eastham, Traub Lieberman
Mr. Eastham may be contacted at jeastham@tlsslaw.com

Construction Defects Claims Can Be Limited by Contract Says Washington Court

February 11, 2013 — CDJ STAFF
The firm Lane Powell has issued a construction law update on the recent Washington Supreme Court decision in Washington State Major League Baseball Public Facility District v. The Baseball Club of Seattle, LP. In the underlying construction defect claim, the Public Facility District found defects in the structural steel at Seattle’s Safeco Field. The contractor, Huber, Hunt & Nichols-Kiewit Construction Company claimed that construction claims could not be made, as it was barred by the statue of repose. Washington State has a six-year limitation on its statute of repose, however, the court noted that the contract contained a clause that, as noted by Lane Powell, “any alleged causes of action automatically accrue at substantial contemplation,” instead of within six years of substantial completion. The court concluded that the statue of repose could be rendered inoperative by contract. Further, the court found that these contract clauses pertained to subcontractors as well. Nevertheless, as PFD is a subdivision of the state, the court found that no statue of limitations could be appled. Read the court decision
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Residential Construction Rise Expected to Continue

May 10, 2013 — CDJ STAFF
Housingwire reports that Fannie Mae has predicted strong increases in housing starts over the last few years, with an expected return to normal by 2016. If this holds true, residential construction will include 2.5 million jobs. Read the court decision
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Can an Owner Preemptively Avoid a Mechanics Lien?

May 25, 2020 — William L. Porter - Porter Law Group
Various sections of the California Civil Code, beginning with section 8000, protect the right of contractors, subcontractors and suppliers in the construction industry to obtain payment for work performed and materials supplied to construction projects. Under these statutes, unpaid claimants are entitled to use mechanics liens, stop payment notices and other methods to protect their right to payment. Mechanics liens allow unpaid claimants to sell the property where the work was performed in order to obtain payment. Stop payment notices force the owner or the bank to set money aside to pay unpaid claimants. Article XIV of our California Constitution even elevates the mechanics lien remedy to a “constitutional right”. The system generally works well, and claimants are paid. As someone who practices and teaches construction law, I have noticed a seldom used statutory tool that seems to provide a mechanism for property owners under certain circumstances to prevent subcontractors and suppliers from imposing enforceable mechanics lien on property where work was performed. Under California Civil Code section 8520, it appears that all that an owner of property need do to avoid a mechanics lien on its property is to give a proper notice (per Civil Code section 8100 et seq.) to a person who has a mechanics lien right (a subcontractor or supplier) that the owner is invoking Civil Code section 8520 and that if the claimant is unpaid for work performed or materials supplied to the owner’s property that the claimant must either provide the owner with a stop payment notice or forfeit the right to a mechanics lien on the owner’s property. This would allow an owner to avoid a mechanics lien on its property if the claimant failed to send a stop payment notice to the owner. Providing the “notice” under Civil Code section 8100 appears to be easy. It can be sent by “registered or certified mail or by express mail or by overnight delivery by an express service carrier”. It can even be by “hand delivery”. As far as the notice itself, it would seem that it can be very simple and easily performed under the process described below, which can be implemented within the office of any owner or developer. Read the court decision
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Reprinted courtesy of William L. Porter, Porter Law Group
Mr. Porter may be contacted at bporter@porterlaw.com

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