Seattle Washington Building Expert Directory

What Every Project Participant Needs to Know About Delay Claims

August 05, 2024 — Andrew G. Vicknair - The Dispute Resolver
A “delay” on a construction project is defined as the stretching out of the time for completion of certain key milestone scopes of work which can impact the completion date of an entire project, due to some circumstances or events that were not reasonably anticipated when the project began. 2 Construction Law ¶ 6.01 (Matthew Bender, 2024). While delays can be caused by any number of events, the most common are defective plans and specifications; design changes; severe weather and other, similar unforeseeable events; unforeseen or differing site conditions; unavailability of materials or labor; labor inefficiencies or stoppages; contractor negligence; and owner influences, including construction changes or outright interference by the owner or its agents. If the project schedule is not recovered following a delay, then the project schedule will likely be extended, resulting in an increase in the contractor’s costs of performance. A contractor that has experienced a delay on a project can take certain actions to pursue recovery of any damages the contractor may have incurred. However, to do so it is important to understand the different types of delays and the methods for establishing the delays. I. Types of Delays Delays may be categorized as (1) critical versus non-critical delays, (2) excusable versus non-excusable delays, and (3) compensable versus non-compensable delays. A critical delay is a delay that affects the project completion date and delays the entire project. In essence, a critical delay is one that will extend the critical path of a project. A non-critical delay is a delay that has no effect on the project’s critical path. Courts have recognized that delays to work not on the critical path will generally not delay the completion of a project. G.M. Shupe, Inc. v U.S., 5 Cl. Ct. 662, 728 (1984). Such a non-critical delay may affect the completion of certain activities, but does not affect the completion date of the entire project. In order for a delay to provide the basis for a claim for additional time or money, the delay must impact critical path activities on the project schedule. Read the court decision
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Reprinted courtesy of Andrew G. Vicknair, D'Arcy Vicknair, LLC
Mr. Vicknair may be contacted at agv@darcyvicknair.com

Classify Workers Properly to Avoid Expensive Penalties

April 25, 2022 — Martin C. McCarthy - Construction Executive
Business owners must carefully consider how the people working for them are classified. There is a fine line between being identified as a contractor or employee on the job. Owners must know the difference to avoid being penalized. Worker classification determines if an employer must withhold income taxes and pay Social Security, Medicare taxes and unemployment tax on wages paid to an employee. Businesses do not have to withhold or pay any taxes on payments to independent contractors. The earnings of a person working as an independent contractor are subject to self-employment tax. There are federal and state rules for determining if a person is an employee or contractor. Employers must follow both sets of guidelines when classifying workers. Reprinted courtesy of Martin C. McCarthy, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Mr. McCarthy may be contacted at marty.mccarthy@mcc-cpas.com Read the court decision
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Los Angeles Delays ‘Mansion Tax’ Spending Amid Legal Fight

April 25, 2023 — Laura Curtis - Bloomberg
Los Angeles plans to hold off spending most of the money collected from a voter-approved “mansion tax” until legal challenges against the initiative are resolved. Mayor Karen Bass revealed in her 2023-24 budget plans that the city intends to allocate just $150 million of the funds raised by Proposition ULA, a ballot initiative that took effect this month to fund the construction of more affordable housing. The decision will prevent the city from taking a loss if a lawsuit succeeds in reversing the tax, according to budget documents released this week. The city anticipates it would qualify for $150 million in federal reimbursements to make up the amount. Read the court decision
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Reprinted courtesy of Laura Curtis, Bloomberg

Traub Lieberman Partner Colleen Hastie and Associate Jeffrey George Successfully Oppose Plaintiff’s Motion to Vacate Dismissal

September 11, 2023 — Colleen E. Hastie & Jeffrey George - Traub Lieberman
Traub Lieberman Partner Colleen Hastie and Associate Jeffrey George successfully opposed Plaintiff’s motion to vacate a prior dismissal of plaintiff’s medical malpractice action brought before the Supreme Court of the State of New York, Bronx County. The lawsuit, commenced by Plaintiff in 2015, alleged medical malpractice stemming from treatment Plaintiff received at a New York medical facility after falling out of a window at a rental property owned by Traub Lieberman’s client (“Property Owner”). Property Owner moved to dismiss Plaintiff’s complaint or preclude Plaintiff from offering evidence in support of its claims, or in the alternative, compel plaintiff to produce all outstanding discovery. The Medical Facility cross-moved for the same relief. Defendants agreed to adjourn the motion until after plaintiff’s deposition, but plaintiff made no effort to secure an adjournment with the court and plaintiff filed no opposition to the motion, allowing the motion to be granted on default. Plaintiff waited nearly a year to file a motion to vacate the default judgment, despite receiving notification of the default from defense counsel. Property Owner, in opposing plaintiff’s motion, pointed to plaintiff’s long history of dilatory conduct and failure to comply with discovery orders in support of its position that plaintiff failed to show any good cause for its default on the motion to dismiss. Reprinted courtesy of Colleen E. Hastie, Traub Lieberman and Jeffrey George, Traub Lieberman Ms. Hastie may be contacted at chastie@tlsslaw.com Mr. George may be contacted at jgeorge@tlsslaw.com Read the court decision
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Balfour Taps Qinetiq’s Quinn as new CEO to Revamp Builder

October 15, 2014 — Benjamin Katz and Simon Thiel – Bloomberg
Balfour Beatty Plc (BBY) named Leo Quinn as new chief executive officer to revamp Britain’s biggest builder which has suffered from mismanaged projects and a lack of demand. Quinn will start on Jan. 1 after five years as CEO of defense specialist Qinetiq Group Plc, Balfour Beatty said today. The executive began his career at Balfour Beatty in 1979 as a civil engineer and later worked as president of Honeywell Building Controls and CEO of banknote printer De La Rue Plc. The stock gained 5.3 percent in London trading today. Balfour Beatty, which rejected a merger proposal from British rival Carillion Plc in August, has struggled since the global recession slashed orders and prices. Its stock had fallen 48 percent this year before today, reducing the company’s value to 1 billion pounds ($1.6 billion). In September, Balfour Beatty cut its U.K. construction-services unit’s profit forecast and said Chairman Steve Marshall plans to leave. Mr. Thiel may be contacted at sthiel1@bloomberg.net; Mr. Katz may be contacted at bkatz38@bloomberg.net Read the court decision
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Reprinted courtesy of Benjamin Katz and Simon Thiel, Bloomberg

No Concrete Answers on Whether Construction Defects Are Occurrences

February 14, 2013 — CDJ STAFF
Aaron Mandel and Stevi Raab of Sedgwick Law write Construction Defect Coverage Quarterly addressing the question of “whether defective construction constitutes an ‘occurrence’ (and therefore may be covered) under liability insurance policies.” They note that some courts have held that construction defects are not an occurrence but instead are the “natural consequence of performing substandard work.” Other courts conclude that while construction defects are not occurrences, “the resulting damage may be covered because it was fortuitous and unintended.” And, finally, other courts have concluded that “defective construction work itself is accidental and the inured rarely expects construction defects.” Mandel and Raab put forth that “these decisions essentially provide insured with huge, unintended and unfair windfalls – performance bonds for basically no premium.” Legislatures have also looked at this issue, passing laws that mandate that construction defects are occurrences. These are all fairly recent and the courts have yet to address these laws, and Mandel and Raab note that “it is unclear what their ultimate effect on the ‘occurrence’ issue will be.” They do not expect the laws to end litigation over whether construction defects are occurrences. Finally, they discuss what the ultimate results of these court decisions and laws will be. Insurers might write more policy exclusions, or increase premiums, or even cease insuring construction. Read the court decision
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You Don’t Have To Be a Consumer to Assert a FDUTPA Claim

February 22, 2018 — David Adelstein – Florida Construction Legal Updates
A few years ago, the Fourth District Court of Florida rendered an opinion in Caribbean Cruise Line, Inc. v. Better Business Bureau of Palm Beach County, Inc., 169 So.3d 164 (Fla. 4th DCA 2015) regarding Florida’s Deceptive and Unfair Trade Practices Act (referred as to “FDUTPA”) (Florida Statute s. 501.201et seq.). This case held that a party can assert a FDUTPA claim even though the party is NOT a consumer. The party still has to prove there was an injury to consumers in filing such claim, but again, the party can bring the claim even though it is NOT a consumer. Caribbean Cruise Line, 169 So.3d at 169 (“[W]hile the claimant would have to prove that there was an injury or detriment to consumers in order to satisfy all of the elements of a FDUTPA claim, the claimant does not have to be a consumer to bring the claim.”).See also Cemex Construction Materials Florida, LLC v. Armstrong World Industries, Inc., 2018 WL 905752, *15 (M.D.Fla 2018) (relying on Caribbean Cruise Line to find that even though the plaintiff does not need to be a consumer, the plaintiff still must prove an injury to consumers to satisfy elements of a FDUTPA claim). Read the court decision
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Reprinted courtesy of David Adelstein, Florida Construction Legal Updates
Mr. Adelstein may be contacted at dadelstein@gmail.com

Earth Movement Exclusion Precludes Coverage

July 20, 2020 — Tred R. Eyerly - Insurance Law Hawaii
The Federal District Court, District of Hawaii, found the earth movement exclusion barred coverage for the contractor when a landslide damaged the property. North River Ins. Co. v. H.K. Constr. Corp., 2020 U.S. Dist. LEXIS 90110 (D. Haw. May 22, 2020). Bruce and Yulin Bingle sued HK for damage caused to the Bingle property. HK was hired as the contractor for the construction of a new residence and improvements on their property in Kaneohe. HK excavated near the boundary of the neighbors' and the Bingle's property in order to cut the existing slope to build a retaining wall. Due to the excavation work, the slope on the Bingle property failed and soil eroded away. At the time, the Bingles were selling their property. Due to the landslide, the buyer decided not to buy the property. The Department of Planning and Permitting issued a Notice of Violation for failure to obtain a grading permit. HK notified its carrier, North River. North River agreed to defend under a reservation of rights, but then filed suit against HK for a declaratory judgment. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

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