Forensic Team Finds Fault with Concrete Slabs in Oroville Dam Failure
September 14, 2017 —
Greg Aragon - Engineering News-RecordWeathered and weakened portions of concrete contributed to the Oroville Dam's spillway failing last February, causing panic and mass evacuations in Northern California. This was part of the findings by an Independent Forensic Team (IFT), appointed by the California Department of Water Resources (DWR).
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Greg Aragon, ENRENR may be contacted at
ENR.com@bnpmedia.com
President Trump Repeals Contractor “Blacklisting” Rule
March 29, 2017 —
Garret Murai – California Construction Law BlogFormer President Obama’s so-called “Blacklisting” rule was short-lived.
On Monday, President Trump signed a joint resolution eliminating the rule, which had required bidders on federal projects with a value in excess of $500K to report state and federal labor and safety violations within the past three years. The Blacklisting rule, also known as the Fair Pay and Safe Workplaces Executive Order 13673, only went into effect in October 2016.
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Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
Is the Sky Actually Falling (on Green Building)?
November 03, 2016 —
Christopher G. Hill – Construction Law MusingsI have spoken on many occasions here at Construction Law Musings and elsewhere about the risks and rewards for contractors found in sustainable construction. The rewards were fairly apparent. New markets, government incentives and the desires of owners to be “green” clearly point toward a need for contractors to get into the sustainable building game.
However, when I was first writing my Eeyore like thoughts most of the thoughts of all us construction attorneys were speculative. Whether because wholesale “green” construction was relatively new or because the court process was relatively slow, there were not many ways to test if our, shall we say “less optimistic,” predictions were going to come to pass.
For better or worse, several of the more dire predictions have come true. One major green construction debacle is the Destiny USA litigation. I cannot possibly set out all of the various issues as well as my friend and colleague Chris Cheatham does in his e-book about the project and its aftermath. I highly recommend this e-book and the posts found at Chris’ Green Building Law Update blog for those of you interested in how the IRS, the USGBC and the Green Bonds Program interact to cause many a pitfall for construction and design professionals.
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Christopher G. Hill, The Law Office of Christopher G. Hill, PCMr. Hill may be contacted at
chrisghill@constructionlawva.com
Nebraska Joins the Ranks—No CGL Coverage for Faulty Work
September 17, 2014 —
Craig Martin – Construction Contractor AdvisorThe Nebraska Court of Appeals has ruled that a home builder that fails to adequately compact the soil does not have insurance coverage to repair damages to the home caused by the settling soil. In “insurance speak”, there was no occurrence to trigger coverage.
In this case, Cizek Homes, Inc. v Columbia National Insurance Company, a home builder contracted with a buyer to build a house. A lot was selected and the home was built. After the buyer moved in, the house started to settle, causing damage to the house. The buyer told the builder about these problems and the builder agreed to fix the problems. The builder also contacted its insurance company and requested coverage for the buyer’s claim. The insurer rejected the claim, determining that the buyer’s claim was not covered by the builder’s Commercial General Liability (CGL) insurance.
The insurer then filed suit asking the court to interpret the insurance policy and to determine whether the CGL insurance covered the claim. The court looked to the buyer’s allegations that the builder failed to construct the home in accordance with accepted construction and industry standards and that the builder was negligent in designing and constructing the home. The builder admitted that it was obligated to pay for the costs of repairs, but denied that it was negligent in constructing the home.
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Craig Martin, Lamson, Dugan and Murray, LLPMr. Martin may be contacted at
cmartin@ldmlaw.com
What Contractors Can Do to Address Rising Material Costs
August 23, 2021 —
Garret Murai - California Construction Law BlogFrom lumber to used cars to pastrami sandwiches, prices are rising. This past month, at a town hall meeting in Cincinnati, Ohio, President Biden acknowledged that inflation was increasing, responding to a question from a restaurant owner about labor shortages, “I think your business and the tourist business is really going to be in a bind for a little while.”
Although construction companies typically don’t work in the same small margins that restaurants do, labor shortages and material price increases have nevertheless impacted the construction industry. According to a recent report by Cumming, the cost of construction materials from lumber to steel to gypsum have gone up over the last 12 months, in some cases nearly double:
For contractors entering into construction contracts and those performing work under existing contracts, the increasing cost of materials and shortage of labor creates challenges, some of which can be addressed through contractual provisions and the framework of those contracts.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Important Insurance Alert for Out-of-State Contractors Assisting in Florida Recovery Efforts!
November 01, 2022 —
Richard W. Brown & Stephanie A. Giagnorio - Saxe Doernberger & VitaSignificant portions of Florida suffered extensive damage from Hurricane Ian. Many out-of-state contractors have sent their workers to Florida to help with the cleanup and rebuilding process.
SDV is sending out this important notice for all out-of-state contractors to contact their workers’ compensation brokers and insurers to ensure their out-of-state workers’ compensation policy will cover workers in Florida. The state of Florida does not recognize the “All States Endorsement” on workers’ compensation policies, and in some instances could potentially result in out-of-state contractors being without coverage in the State of Florida.
As per the
Florida Division of Workers’ Compensation: “Out of State Employers must notify their insurance carrier that they are working in Florida. If there is no insurance, the out-of-state employer is required to obtain a Florida Workers’ Compensation Insurance policy with a
Florida approved insurance carrier which meets the requirements of Florida law and the Florida Insurance Code. This means that ‘Florida’ must be specifically listed in Section 3A of the policy (on the Information Page).”
Reprinted courtesy of
Richard W. Brown, Saxe Doernberger & Vita and
Stephanie A. Giagnorio, Saxe Doernberger & Vita
Mr. Brown may be contacted at RBrown@sdvlaw.com
Ms. Giagnorio may be contacted at SGiagnorio@sdvlaw.com
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Maximizing Contractual Indemnity Rights: Insuring the Indemnitor's Obligation
December 02, 2015 —
William Kennedy – White and Williams LLPContracting parties can circumvent the limitations of common law tort doctrines by drafting contracts with language that details the allocation or shifting of the risk of tort loss. Properly composed, “broad form” contractual indemnity provisions can permit an Indemnitee to shift the full range of tort exposure – damages and defense fees and costs – if they have the kind of specificity set forth in Part Two of this series, "Maximizing Contractual Indemnity Rights: Components of an Effective Provision." In most business transactions, however, both the Indemnitee and the Indemnitor want the indemnity obligation to be insured.
Part Three: Insuring the Indemnitor's Obligation
“Insured Contract Coverage”
Although CGL policies do not typically cover an Insured’s breaches of contract, per se, most insurance policies do cover a policyholder’s “incidental contracts” or “insured contracts” under which the policyholder has an obligation to indemnify an Indemnitee. The business contract (as opposed to the insurance policy) should require the Indemnitor to take all steps necessary to have the Indemnitee identified as either a Covered Person, Insured, or Additional Insured on the Indemnitor’s applicable insurance policies. There are subtle, but potentially significant legal rights and responsibilities that hinge on whether an entity is a Covered Person, Insured, Additional Insured, or some other classification. Purported Indemnitees may need to consult insurance coverage counsel to ensure that they are seeking the appropriate status from the Indemnitor’s CGL insurer.
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William Kennedy, White and Williams LLPMr. Kennedy may be contacted at
kennedyw@whiteandwilliams.com
Home Buyers Lose as U.S. Bond Rally Skips Mortgage Rates
September 03, 2014 —
Jody Shenn – BloombergPotential home buyers watching this year’s plunge in 10-year Treasury yields can be forgiven for wondering why their borrowing costs aren’t falling at the same pace.
The last time the benchmark Treasury rate fell as low as the 2.34 percent level reached last week, in June 2013, interest rates on typical mortgages were almost 0.2 percentage point less than they are now. There are a number of explanations: Yields on five-year Treasuries, which also help determine loan rates, have actually increased. And lenders that cut staff aren’t competing as aggressively by adjusting their pricing.
No matter the cause, the effect is that a potential catalyst to get the faltering U.S. housing recovery back on track is failing to materialize. With home-loan rates stagnating at about 4.1 percent during the past three months, a renewed boom in refinancing also sits just out of reach.
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Jody Shenn, BloombergMs. Shenn may be contacted at
jshenn@bloomberg.net