Fairfield Connecticut Building Expert Directory

Show Me the Money: The Good Faith Dispute Exception to Prompt Payment Penalties

March 13, 2023 — Garret Murai - California Construction Law Blog
California has a number of prompt payment penalty statutes on the books. Among them is Civil Code section 8800 which requires project owners on private works projects to pay progress payments to direct contractors within 30 days after demand for payment pursuant to contract or be subject to prompt payment penalties of two percent (2%) per month on the amount wrongfully withheld. Like California’s other prompt payment penalty statutes, however, there is an important carve out: If there is a good faith dispute between the project owner and the direct contractor the project owner may withhold up to 150% of the dispute amount and not be subject to prompt payment penalties. And that, my friends, is a higher-tiered party’s “get out of jail free” card. In a case of first impression, the 1st District Court of Appeals, in Vought Construction Inc. v. Stock (2022) 84 Cal.App.5th 622, examined whether a project owner’s claim for liquidated damages constitutes a good faith dispute under Civil Code section 8800. Read the court decision
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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

Key Economic & Geopolitical Themes To Monitor In 2024

January 16, 2024 — Global Insights Center Staff - The Hartford
Slowing US Economic Growth and Flattening Interest Rates Growth in the first half of 2023 averaged approximately 2.0%, driven mainly by private sector investments outside of the residential housing sector, government spending, and strong consumer demand. In 2024, The Hartford’s Global Insights Center is expecting investments and government spending to continue and may support growth in the year. However, consumer health may start to weaken due to elevated leverage, higher interest rates, and sticky inflation. Since the Federal Reserve began to increase interest rates, consumer activity and household finances have not been tremendously affected. However, as revolving interest rates (credit card loans) continue to reset that may change, especially since household savings rates fell below pre-pandemic levels and may affect consumer demand. Read the court decision
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Reprinted courtesy of Global Insights Center Staff, The Hartford

Construction Cybercrime Is On the Rise

May 26, 2019 — Tom Sawyer & Jeff Rubenstone - Engineering News-Record
At the end of April, just as St. Ambrose Roman Catholic Church in Brunswick, Ohio, neared the close of a five-month-long, $5.5-million renovation, Father Bob Stec, the parish pastor, was surprised to hear that the contractor, Marous Brothers Construction, Willoughby, Ohio, had not received a $1.7- million payment. Reprinted courtesy of Tom Sawyer, Engineering News-Record and Jeff Rubenstone, Engineering News-Record Mr. Sawyer may be contacted at sawyert@enr.com Mr. Rubenstone may be contacted at rubenstonej@enr.com Read the court decision
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Reprinted courtesy of

South Carolina “Your Work” Exclusion, “Get To” Costs

July 30, 2014 — Scott Patterson - CD Coverage
In Precision Walls, Inc. v. Liberty Mutual Fire Insurance Co., No. 2013-000787 (S.C. Ct. App. July 23, 2014), SYS was the general contractor for a project. SYS contracted with Precision for the supply and installation of exterior insulation board, to include the taping of all joints. After Precision completed its work, another subcontractor began construction of the brick veneer wall over the insulation board. During construction of the brick wall, some of the joint sealing tape installed by Precision began to come loose. To correct the problem, the existing portion of the brick veneer wall had to be torn down, all of the joint sealing tape removed and replaced, and the brick veneer wall rebuilt. SYS deducted the cost of tearing down and rebuilding the brick veneer wall from Precision’s contract. Precision sought reimbursement for this amount from its CGL policy issued by Liberty Mutual. Read the court decision
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Reprinted courtesy of Scott Patterson, CD Coverage

No Coverage Under Installation Policy When Read Together with Insurance Application

January 16, 2024 — David Adelstein - Florida Construction Legal Updates
A recent case out of the Eleventh Circuit denied an underground contractor’s claim under what appears to be a commercial property installation floater policy (inland marine coverage) that covers the contractor’s materials. Whereas a builder’s risk policy is more expansive, an installation floater is narrower and can provide protection to a contractor for materials and equipment in transit, stored, or being installed subject to the terms of the installation floater policy. It can provide coverage to a trade subcontractor for materials that aren’t covered by builder’s risk. In Travelers Property Casualty Company of America v. Talcon Group, LLC, 2023 WL 8798053 (11th Cir. 2023), an underground utility contractor that had a general contractor’s license had an installation policy that provided coverage “only for underground utility operations and the site development work tied to those operations.” Talcon Group, supra, at *1. The utility contractor was constructing two residential homes that was on land owned by an affiliated family entity. During construction of the residential homes, a wildfire destroyed the homes prior to the issuance of certificates of occupancy. The utility contractor submitted a notice of loss to its insurance carrier that provided the installation policy. The carrier denied the claim because the construction of the homes was NOT the same type of work as the installation of underground utilities which was covered. An insurance coverage lawsuit ensued. Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

Construction Trust Fund Statutes: Know What’s Required in the State Where Your Project Is Underway

June 22, 2020 — Christopher D. Cazenave - ConsensusDocs
Construction trust fund statutes have been around for decades. At least 15 states have passed similar statutes. Other states, but not all, do not have an express statute but have interpreted state law to hold that payments received by a general contractor and deposited in a business account establishes a “trust fund.” See e.g., Cal. Bus. & Prof. Code § 7108. The purpose of these laws is straightforward—protect contractors and suppliers against nonpayment for the labor and materials provided for the construction or repair of property. But while the purpose is straightforward, each state’s law differs by imposing different requirements, different privileges, and different remedies. This article provides an overview of how these statutes work as well as a sampling of important requirements and potential pitfalls that you should look out for when a construction trust fund statute applies to your project. Read the court decision
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Reprinted courtesy of Christopher D. Cazenave, Jones Walker LLP
Mr. Cazenave may be contacted at ccazenave@joneswalker.com

Home Building Mergers and Acquisitions 2014 Predictions

March 19, 2014 — Beverley BevenFlorez-CDJ STAFF
John McManus, writing for Big Builder, discusses the various predictions for mergers and acquisitions in the home building field for 2014. While predictions vary between individuals, it seems to hover between 15 and 30. McManus lists several home building seller motivations, such as a “[n]eed for cash infusion to buy and develop new lot pipeline” and “[s]uccession planning.” Finally, McManus points out that not every merger and acquisition discussion will lead to a deal: “We've recently seen a combination or three flounder on the issue of price. This occurs partly as the home builder buyer community becomes more discriminating as to what truly fits their program, and partly as smaller builders attain options as regional and national lenders awaken and look to reenter project financing in a bigger way.” Read the court decision
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Reprinted courtesy of

Here's Proof Homebuilders are Betting on a Pickup in the Housing Market

April 15, 2015 — Victoria Stilwell – Bloomberg
Homebuilders have caught spring fever. Confidence among U.S. builders, measured by the National Association of Home Builders/Wells Fargo sentiment gauge, increased in April for the first time in five months. The group's measure of the sales outlook for the next six months climbed to the highest level since December, while a gauge of prospective buyer traffic also rose. With the housing market posting only middling progress in recent months, the fact that construction companies are optimistic is a good sign, especially heading into the crucial spring-selling season. The period usually starts in mid-February, with deals picking up the following months as the weather warms. What's more encouraging, though, is that builders seem to be putting money where their mouths are. Read the court decision
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Reprinted courtesy of Victoria Stilwell, Bloomberg

FAIRFIELD CONNECTICUT BUILDING EXPERT DIRECTORY AND CAPABILITIES