Fairfield Connecticut Building Expert Directory

Recent Bribery and Anti-Corruption Enforcement Trends in Global Construction Industry

August 26, 2019 — Ralph A. Finizio & Anthony Finizio - ConsensusDocs
Bribery and corruption have long plagued the construction industry, particularly in the developing world and emerging markets. Large contracts often trickle down through layers of subcontractors, presenting opportunities for corruption at each level. The risk is enhanced in certain foreign jurisdictions, where large corporations may be wholly or partially state-owned enterprises and public officials may expect payment in exchange for state-issued licenses or government contracts. Recent enforcement trends indicate that both the U.S. Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) are increasingly targeting the construction industry for anti-bribery and corruption actions under the Foreign Corrupt Practices Act (FCPA). Several former DOJ officials also recently commented that the construction industry has become a focus of anti-corruption enforcement efforts. The FCPA is a formidable tool for regulators, making it unlawful to influence a foreign government official with any type of payment or personal reward. While certain safe harbors apply — including de minimis payments made to expedite routine governmental action or the payment being lawful in the foreign jurisdiction — these exceptions are construed narrowly and can be difficult to apply in practice. Reprinted courtesy of Ralph A. Finizio, Pepper Hamilton LLP and Anthony Finizio, Pepper Hamilton LLP Mr. Finizio may be contacted at finizior@pepperlaw.com Mr. Finizio may be contacted at finizioa@pepperlaw.com Read the court decision
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The Moving Finish Line: Statutes of Limitation and Repose Are Not Always What They Seem

June 01, 2020 — Kenneth E. Rubinstein & Nathan Fennessy - Construction Executive
Having an end date for risk is important to construction professionals who need to know when they can close their books and destroy files relating to old projects. While professionals typically look to the statute of limitations and repose, these deadlines can sometimes be harder to determine than one might think. State Laws Prohibiting Alteration of Statutes of Limitation Many contractors seek to control the extent of their risk by negotiating the length of their liability period. In some instances, contractors may seek to shorten the statute of limitations to protect against stale claims. While in other instances, owners periodically negotiate for longer periods to ensure that they will not be time barred from pursuing valid claims. While the majority of states enforce such contractual provision, a number of states hold such clauses unenforceable. In these instances, the state’s original statute of limitations will apply regardless of what the contract says. Reprinted courtesy of Kenneth E. Rubinstein & Nathan Fennessy, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Mr. Rubenstein may be contacted at krubinstein@preti.com Mr. Fennessy may be contacted at nfennessy@Preti.com Read the court decision
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Pollution Exclusion Does Not Apply To Concrete Settling Dust

November 28, 2018 — Tred R. Eyerly - Insurance Law Hawaii
Applying Virginia law, the federal district court determined that the pollution exclusion did not bar coverage. Allied Prop. & Cas. Ins. Co. v. Zenith Aviation, Inc., 2018 U.S. Dist. LEXIS 14727 (E.D. Va. Aug. 29, 2018). Zenith Aviation, Inc. hired Abby Construction Company to install an elevator at its warehouse. A wet saw was used to cut away concrete, but Abby did not use any water with the wet saw. This created a significant amount of concrete dust to leave the warehouse. Surrounding businesses contacted the fire department because they thought the dust was smoke from a fire. The concrete dust settled inside Zenith's building, damaging airplane parts stored in the warehouse. 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

Fourth Circuit Clarifies What Qualifies As “Labor” Under The Miller Act

May 08, 2023 — Jeffrey Hummel - The Construction Seyt
Under the Miller Act, 40 U.S.C. §§ 3131 et seq., contractors hired to work on federal construction projects are required to furnish payment bonds in order to ensure payment to certain persons that provide labor for the project. The United States Court of Appeals for the Fourth Circuit recently issued a published decision clarifying the type of work that qualifies as “labor” under the Miller Act. Elliot Dickson v. Fidelity and Deposit Company (issued April 26, 2023). In that case, the U.S. Department of Defense hired Forney Enterprises (Forney) as the prime contractor on a renovation project at the Pentagon. Forney retained Fidelity and Deposit Company of Maryland (Fidelity) to provide the required Miller Act payment bond. Forney then entered into a subcontract with Elliott Dickson (Dickson), a professional engineer, to work as a project manager on the contract. Dickson primarily supervised labor on the site, but also performed other tasks, including logistical and clerical duties, taking various field measurements, cleaning the worksite, moving tools and materials, and sometimes even watering the concrete himself. Dickson’s work required him to be onsite on a daily basis. Read the court decision
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Reprinted courtesy of Jeffrey Hummel, Seyfarth
Mr. Hummel may be contacted at jhummel@seyfarth.com

Hospital Settles Lawsuit over Construction Problems

December 04, 2013 — CDJ STAFF
The Medical Arts Hospital in Lamesa, Texas has settled a lawsuit against its general contractor, roofing contractor, and two insurance companies for $3.7 million, over alleged construction problems. Ray Stephens, president of the hospital’s board said, “we got enough to fix the major problems and that was our goal in the beginning.” With the settlement, the lawsuit has been dismissed by the court. Read the court decision
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Puerto Rico Grid Restoration Plagued by Historic Problems, New Challenges

November 08, 2017 — Pam Radtke Russell - Engineering News-Record
While the federal government is helping to restore power to Puerto Rico as fast as it can, that work is being made more difficult due to the dilapidated, pre-Hurricane Maria state of the grid and because long-term, post-disaster power restoration is typically not the federal government's mission. Read the court decision
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Reprinted courtesy of Pam Radtke Russell, ENR
Ms. Russell may be contacted at Russellp@bnpmedia.com

Surfside Condo Collapse Investigators Have Nearly Finished Technical Work

March 11, 2024 — James Leggate - Engineering News-Record
Newly analyzed evidence in the investigation into the June 2021 partial collapse of Champlain Towers South that killed 98 people in Surfside, Fla., shows that the pool deck collapsed more than four minutes before the tower itself. But investigators are still working to determine the initiating event, and aim to finish their technical work this summer. Reprinted courtesy of James Leggate, Engineering News-Record Mr. Leggate may be contacted at leggatej@enr.com Read the full story... Read the court decision
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The Creation of San Fransokyo

June 17, 2015 — Garret Murai – California Construction Law Blog
Some of the most awe inspiring buildings and urban environments started off on paper and, these days, on computer screens. Think Babylon or even Pierre Charles L’Enfant’s Washington, D.C.. Most of those structures and cityscapes were designed for human habitation, but not all. Some were designed purely for our imaginations, like Minecraft, which those of you with young ones might be familiar with. Another more recent example though is Big Hero 6, about a science-whiz named Hiro (pronounced “hero,” get it) who journeys from boyhood to manhood and saves the world along the way with his robot pal Baymax. The movie is set in foreign-yet-familiar “San Fransokyo.” Read the court decision
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Reprinted courtesy of Garret Murai, Wendel Rosen Black & Dean LLP
Mr. Murai may be contacted at gmurai@wendel.com

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