Seattle Washington Building Expert Directory

Construction Contract Terms Matter. Be Careful When You Draft Them.

February 01, 2022 — Christopher G. Hill - Construction Law Musings
In a prior post, I discussed the case of Fluor Fed. Sols., LLC v. Bae Sys. Ordinance Sys in the context of the interplay between fraud, contract, and statutes of limitation. Some cases just keep on giving. This time the case illustrates the need for careful drafting of those pesky, and highly important, clauses in your construction documents. In the current iteration of this ongoing saga, the Court considered the contractual aspects of the matter. As a reminder, the facts are as follows: In May 2011, the United States Army (“Army) awarded BAE Systems Ordnance Systems, Inc. (“BAE”) a contract to design and construct a natural gas-fired combined heating and power plant for the Radford Army Ammunition Plant (“RAAP”). On October 7, 2015, BAE issued a request for a proposal from Fluor Federal Solutions, LLC (“Fluor”) to design and build a temporary boiler facility at a specific location on the RAAP property. On October 13, 2015, the Army modified the prime contract to change the location of the boiler facility. On December 10, 2015, the Army modified the prime contract to require BAE to design and construct a permanent boiler facility. On December 30, 2015, Fluor and BAE executed a fixed-price subcontract for Fluor to design and construct the temporary boiler. Throughout 2016, BAE issued several modifications to Fluor’s subcontract to reflect the modifications BAE received from the Army on the prime contract. On March 23, 2016, BAE directed Fluor to build a permanent – rather than temporary – boiler facility. On March 28, 2016, Fluor began construction of the permanent facility and began negotiations with BAE about the cost of the permanent facility. On September 1, 2016, the parties reached an agreement on the cost for the design of the permanent facility, but not on the cost to construct the permanent facility. On November 29, 2016, the parties executed a modification to the subcontract, officially replacing the requirement to construct a temporary facility with a requirement to construct a permanent facility and agreeing to “negotiate and definitize the price to construct by December 15, 2016.” The parties were unable to reach an agreement on the construction price. Read the court decision
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Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

N.J. Appellate Court Applies Continuous Trigger Theory in Property Damage Case and Determines “Last Pull” for Coverage

November 15, 2017 — K. Alexandra Byrd – Saxe Doernberger & Vita, P.C.
The New Jersey Superior Court, Appellate Division, published an important decision addressing several fundamental issues regarding how a commercial general liability (CGL) policy applies to long-term property damage. The court held that: (1) a continuous trigger theory of coverage may be applied to third-party liability claims involving progressive property damage caused by an insured’s allegedly defective work; (2) the “last pull” (i.e., the cutoff point) of the continuous trigger is when the “essential nature and scope” of the property damage first becomes known or could reasonably be known; and (3) the “last pull” is not when the property damage is “attributed” to the insured’s faulty work. The underlying action in Air Master & Cooling Inc. v. Selective Ins. Co., et al. 1 concerned property damage arising out of the construction of a seven-story, 101-unit condominium building in Montclair, New Jersey. The project’s construction manager hired Air Master & Cooling, Inc. (Air Master) to perform HVAC work on the project, including installing individual HVAC equipment in each resident’s unit from 2005 to 2008. In early 2008, unit owners began complaining about water infiltration and damage to their windows, ceilings, and other portions of their units. The general contractor and developer began assessing the damage and making repairs. Eventually, in April 2010, an expert consultant performed a moisture survey of the roof and discovered 111 areas that were damaged by water infiltration. The expert report indicated that “it [was] impossible to determine when [the] moisture infiltration occurred.” Read the court decision
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Reprinted courtesy of K. Alexandra Byrd, Saxe Doernberger & Vita, P.C.
Ms. Byrd may be contacted at kab@sdvlaw.com

Two-Part Series on Condominium Construction Defect Issues

May 19, 2014 — Beverley BevenFlorez-CDJ STAFF
Gregory L. Shelton, construction law attorney at Horack, Talley, Pharr & Lowndes, P.A., wrote a two-part series in the Charlotte Observer about condominium construction defect issues. The first part described “common defects and their consequences,” while the second part explained “how legal time limits can prevent the association or its owners from suing the parties responsible for defective construction.” If interested in purchasing a condo unit, Shelton recommended hiring a building inspector, though he cautioned that “the inspector should be truly independent. His client should be you and not ‘the sale.’” In the second part, Shelton discussed the complexities of statutes of limitations and statutes of repose. Read the full story, Part 1... Read the full story, Part 2... Read the court decision
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We Knew Concrete Could Absorb Carbon—New Study Tells How Much

December 08, 2016 — Thomas F. Armistead – Engineering News-Record
Concrete’s large carbon footprint—that is, the amount of carbon dioxide emitted during the cement manufacturing process—is estimated to be 5% of industrial CO2 emissions, a source of concern in the battle against human-caused climate change. But last month, an international research team reported that substantial quantities of CO2 are reabsorbed, or sequestered, by cement-based products over their life cycle. Read the court decision
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Reprinted courtesy of Thomas F. Armistead, Engineering News-Record
ENR may be contacted at enr.com@bnpmedia.com

My Employees Could Have COVID-19. What Now?

March 23, 2020 — Amy R. Patton, Leila S. Narvid, Matthew C. Lewis, Robert Tadashi Matsuishi & Sarah J. Odia - Payne & Fears
Updated Guidance as of March 19, 2020. You are concerned about potentially sick employees in the workplace. One employee is off work sick for a couple of days, and then wants to return to work. Another plans to return to work after a week of travel. Another appears to be sick at work. They are coughing, sneezing, and appear to be short of breath. You are concerned they may have COVID-19. What can you do? You're not the only one concerned -- your other employees are, too. Your public-facing employees want to wear masks to protect themselves. One employee tells you he doesn’t want to touch anything that others in the office have touched. What are your obligations to these employees? Below, we address questions relating to keeping employees safe from COVID-19 in the workplace without violating the Americans with Disabilities Act (ADA) or employee privacy laws. Can I require an employee returning from days away from work due to illness to report the symptoms the employee was experiencing that kept him/her out of work? Short answer: yes, so long as the questions are limited to whether the employee has had flu-like symptoms. Though the ADA prohibits asking employees questions related to an employee disability, COVID-19 (like the seasonal flu) likely does not rise to the level of a disability, so asking an employee about flu-like (or COVID-19-like) symptoms is unlikely to elicit information related to a disability. The Equal Employment Opportunity Commission (EEOC) has taken the position that an employer may ask if an employee is experiencing flu-like symptoms if the employee reports being ill during a pandemic. Reprinted courtesy of Payne & Fears attorneys Amy R. Patton, Leila S. Narvid, Matthew C. Lewis, Robert Tadashi Matsuishi and Sarah J. Odia Ms. Patton may be contacted at arp@paynefears.com Ms. Narvid may be contacted at ln@paynefears.com Mr. Matthew may be contacted at mcl@paynefears.com Mr. Robert may be contacted at rtm@paynefears.com Ms. Odia may be contacted at sjo@paynefears.com Read the court decision
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New Jersey Supreme Court Hears Insurers’ Bid to Overturn a $400M Decision

January 25, 2021 — Lawrence J. Bracken II, Michael S. Levine & Daniel Hentschel - Hunton Andrews Kurth
New Jersey’s highest court heard arguments Monday in the appeal of a ruling that the New Jersey Transit Corp.’s (“NJ Transit”) insurers are required to insure $400 million of water damage loss caused by Hurricane Sandy. The matter stems from an insurance claim NJ Transit made after the super storm rocked the East Coast in 2012. NJ Transit claimed over $400 million in losses as a result of damage to its tracks, bridges, tunnels and power stations. In response, its tower of property insurers took the position that a $100 million flood sublimit applied to limit NJ Transit’s recovery under its insurance tower, not the policy’s $400 million overall limits.NJ Transit filed a coverage action in state court. The trial court granted summary judgment to NJ Transit, holding that NJ Transit was entitled to full coverage of $400 million under the tower’s named windstorm coverage. The insurers appealed, again arguing that the flood sublimit applied to the claim. Reprinted courtesy of Lawrence J. Bracken II, Hunton Andrews Kurth, Michael S. Levine, Hunton Andrews Kurth and Daniel Hentschel, Hunton Andrews Kurth Mr. Bracken may be contacted at lbracken@HuntonAK.com Mr. Levine may be contacted at mlevine@HuntonAK.com Mr. Hentschel may be contacted at dhentschel@HuntonAK.com Read the court decision
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Business Risk Exclusions Bar Coverage for Construction Defect Claims

June 28, 2013 — Tred Eyerly
The federal district court assumed there was "property damage" caused by an "occurrence," but found the business risk exclusions barred coverage for construction defect claims. Hubbell v. Carney Bros. Constr., 2013 U.S. Dist. LEXIS 68331 (D. Colo. May 13, 2013). The plaintiffs entered a construction contract with the insured general contractor to build a home. After the project was one-third completed, plaintiffs terminated the contract. Experts hired by plaintiffs found a failure to properly site the residence, as the house was constructed 48 feet from the intended location; violations of county height restrictions; failure to follow building plans, which were themselves deficient; and an improperly poured foundation. The experts estimated that the costs of repairing the property to be between $1.3 and $1.5 million, and that the cost of demolishing the structure and rebuilding it would be between $1.1 and $1.3 million. After plaintiff filed suit, a stipulated judgment of $1.952 million was entered. Read the court decision
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Reprinted courtesy of Tred Eyerly
Tred Eyerly can be contacted at te@hawaiilawyer.com

Mental Health and Wellbeing in Construction: Impacts to Jobsite Safety

August 16, 2021 — NAHB - NWFA and Hardwood Floors Magazine
This article originally appeared in the National Wood Flooring Association's Hardwood Floors Magazine. In the construction industry, workplace safety efforts have often focused on eliminating the most-common causes of on-the-job accidents, such as falls, being struck by or caught in-between objects, electrocutions, or being exposed to hazardous chemicals and substances. For more than two decades, the National Association of Home Builders (NAHB) has been at the forefront of enhancing physical safety and health in residential construction. NAHB takes proactive steps to keep members and affiliated state and local associations informed and educated about safety and health issues and trends affecting the building industry, including developing safety and health resources to help builders and contractors operate safe jobsites and lower workers’ compensation costs. However, we recently have learned that construction workers are particularly susceptible to mental health issues and suicide – which is a silent killer in construction, and we know that the home building industry is not immune to the issues in the construction industry at large. We also know that industry associations have a role to play in promoting the importance of worker health and well-being to their member organizations. Helping to create sustainable workplaces and healthy, thriving professionals strengthens the industry and deepens the volunteer leadership bench. In addition to the benefits to the association, workplace well-being is good for employee health and retention, may reduce the cost of insurance, sick time, and employee turnover, and increase productivity. This can be accomplished by addressing mental well-being as part of overall safety – both physical and psychological. How big is this problem of mental health and suicides in construction? According to the Centers for Disease Prevention and Control (CDC), the construction industry has one of the highest rates of death by suicide compared to other industries. In 2017, the suicide rate for construction workers was 53.3 per 100,000 workers, which is nearly five times greater than the rate for all fatal work-related injuries in construction (9.5 per 100,000 workers) from the physical hazards companies focus on eliminating. Read the court decision
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Reprinted courtesy of NAHB

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