My Top 5 Innovations for Greater Efficiency, Sustainability & Quality
October 25, 2020 —
Cristina Savian - AEC BusinessAs a construction professional and British citizen, I genuinely could not have been any prouder and humbled to have opened UK Construction Week Virtual last week.
2020 is the year of disruptions, and we are all looking for this “New Normal”, and while this newfound regularity may have opened new opportunities, as we are now broadcasting to a much wider audience than previous in-person events, and indeed we have to thank technology for that. For us construction professionals, this pandemic has put our industry further under pressure, however, it has also taught us something extremely important. The pandemic has shown the world how vital the construction industry is. The world cannot function without it. This new extraordinary experience has given us the prospect to turn our industry around and transform it into one of the most productive industries in our society.
How are we going to do it? I think you can guess what I am about to say, of course by leveraging technology! The panel discussion with leading construction experts across the UK with representatives from Skanska UK, Bryden Wood, and Innovate UK, focused on our top 5 innovations for greater efficiency, sustainability and quality in construction. Here are my top 5.
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Cristina Savian, AEC Business
NJ Court Reaffirms Rule Against Coverage for Faulty Workmanship Claims and Finds Fraud Claims Inherently Intentional
September 20, 2021 —
Anthony L. Miscioscia & Frank J. Perch, III - White and Williams LLPAwarding summary judgment to an insurer under both liability and directors & officers (D&O) coverage parts, a New Jersey trial court reaffirmed the principle that claims of defective workmanship without resulting “property damage” are not covered under a general liability policy, and further dismissed claims for fraud and breach of fiduciary duty, finding that such claims were inherently intentional and do not state a covered “occurrence.”
In Velez v. AR Management Company, et al., 2021 N.J. Super. Unpub. LEXIS 1675 (Law Div. Bergen Co. Aug. 10, 2021), owners of a condominium unit rebuilt after a fire sued the condominium association, several association board members, the association’s property management company and the general contractor for the reconstruction work. The owners’ suit alleged faulty workmanship and incomplete repairs. In addition, the owners asserted fraud and breach of fiduciary duty claims against the management company, alleging conflicts of interest and self-dealing between the management company and the general contractor, which had common ownership.
In a third-party complaint, the management company sought coverage from the condo association’s liability and D&O insurer. The court dismissed the D&O coverage claim, noting that the management company was not a director or officer or otherwise entitled to insured status for the D&O coverage part.
Reprinted courtesy of
Anthony L. Miscioscia, White and Williams LLP and
Frank J. Perch, III, White and Williams LLP
Mr. Miscioscia may be contacted at misciosciaa@whiteandwilliams.com
Mr. Perch may be contacted at perchf@whiteandwilliams.com
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Insured's Commercial Property Policy Deemed Excess Over Unobtained Flood Policy
June 10, 2019 —
Tred R. Eyerly - Insurance Law HawaiiThe court granted the insurer's motion for summary judgment, deciding that there was no breach of the policy for failure to pay for flood damage when the insured failed to obtain a policy under the National Flood Insurance Program (NFIP). 570 Smith St. Realty Corp. v. Seneca Ins. Co. Inc., 2019 N.Y. Misc. LEXIS 1773 (N.Y. Sup. Ct. April 4, 2019).
The insured's property in Brooklyn was insured by Seneca. Included in the policy was flood coverage in the amount of $1 million with a $25,000 deductible. While the policy was in effect, Hurricane Sandy hit, damaging the property. Plaintiffs timely filed a claim seeking reimbursement of up to policy limits. Seneca paid only $35,883 and later made an additional payment of $33,015.
The insured sued for, among other things, breach of the policy for failure to properly indemnify for the losses. Seneca moved for partial summary judgment dismissing the breach of policy claims. Seneca pointed out that the "Other Insurance" provision in the Flood Coverage Endorsement of the policy stated that if the loss was eligible to be covered under a NFIP policy, but there was no such policy in effect, the insurer would only pay for the amount of loss in excess of the maximum limit payable for flood damage under the policy. The maximum NFIP coverage was $500,000. The insured's loss caused by flood was less than $500,000.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Can Your Small Business Afford to Risk the Imminent Threat of a Cyber Incident?
November 28, 2018 —
Jeffrey M. Dennis & Heather H. Whitehead – Newmeyer & Dillion LLPCybersecurity incidents are occurring on a daily basis and at an increasingly growing rate. Yet, many small businesses still have not obtained adequate (or any) cyber insurance to address these risks and the costly impacts to the business that will result. In a recent study completed by the Insurance Information Institute1, only about a third of all small businesses polled responded that they have cyber insurance in place, with 70% of respondents replying that they have no plans to purchase a cyber insurance policy in the next 12 months. Most of the businesses indicated that they do not believe they have any need for cyber insurance, yet almost half of those same companies stated they are unprepared to handle cyber threats. A main reason for not purchasing cyber insurance was a lack of understanding about this type of insurance and coverages available.
The Risks for Small Businesses
These statistics are alarming considering that the average cost of a cyber-related loss for a small business has increased 250% in the past two years, and now totals $188,400. In determining whether insurance coverage should be purchased, companies typically assess the perceived risks to the company, the likelihood of such risks occurring, as well as any costs or expenses that may result. For example, most companies regularly obtain a property policy to cover a fire or other casualty that may damage its business location even though such an event is unlikely or unexpected. Yet, cyber incidents are just as likely, if not more likely to occur, and the impacts to a company in the event of an incident are far worse. Many incidents result in a complete suspension of the daily operations of the company for several days or longer.
In addition to financial loss, companies may face the following as a result of a cyber incident:
- Theft, breach or loss of information and data;
- Damage to the company's reputation, brand or image; and
- Regulatory, governance and legal issues.
- How Cyber Insurance can Help
Cyber insurance policies can be obtained to address the losses related to a data breach and may include costs for investigating a breach, notifying people affected by a breach of personally identifiable information, managing the potential damage to reputation and other crisis-management expenses, recovering lost or corrupted data, and related legal expenses. More importantly, well-drafted policies can afford coverage for business interruption losses; i.e. those expenses and lost revenue resulting from a breached system and a company's inability to continue its usual operations. Coverage may also be obtained for "cyber extortion", which covers costs resulting from an extortion event such as ransomware or fraudulent wire transfers.
It is important to keep in mind that cyber insurance is only one component to consider when developing and implementing an overall risk management strategy to prevent cyber incidents. However, taking into account the exposure to a company if and when a cyber incident occurs, it is highly advisable to have this coverage in place.
1Insurance Information Institute, "Small business, big risk: Lack of cyber insurance is a serious threat," October 2018.
Jeff Dennis is the head of the firm's Privacy & Data Security practice. Jeff works with the firm's clients on cyber-related issues, including contractual and insurance opportunities to lessen their risk. For more information on how Jeff can help, contact him at jeff.dennis@ndlf.com.
Heather Whitehead is a Partner in the firm's Privacy & Data Security practice. Heather also practices insurance coverage matters for commercial, retail, industrial, mixed-use, multi-family and residential projects. For more information on how Heather can help, contact her at heather.whitehead@ndlf.com.
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What Does “Mold Resistant” Really Mean?
December 21, 2016 —
Duane Craig – Construction InformerMold resistant building products offer to reduce the long term risks builders and architects face, but it’s important to know how companies verify their products are truly mold resistant. Here’s the deep story.
It may come as a surprise to many but we live in a world that is infested with mold. Some sources put the number of species of mold, or fungi, at three hundred thousand or more. Most of these fungi spend their time doing useful things like breaking down complex substances into simpler compounds. For example the single-celled forms of fungi, called yeast, make bread, beer, and wine possible. Even most of the multi-celled, or hyphae molds, serve the planet by decomposing organic matter so it can be recycled and reused by other life forms on earth.
Outdoor Mold Dominates
The built environment definitely has its share of mold. But new research has found that most of the mold occurring inside is actually of the outdoor variety. In “The Diversity and Distribution of Fungi on Residential Surfaces” study, Rachel I. Adams and researchers “sampled fungi from three surface types likely to support growth and therefore possible contributors of fungi to indoor air: drains in kitchens and bathrooms, sills beneath condensation-prone windows, and skin of human inhabitants. ” They took the samples at a university housing complex that didn’t have any mold problems.
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Duane Craig, Construction InformerMr. Craig may be contacted at
dtcraig@constructioninformer.com
Illinois Couple Files Suit Against Home Builder
January 15, 2014 —
Melissa Zaya-CDJ STAFFLast December, Norman and Valerie Adkins, a couple in Edwardsville, Illinois, filed suit against their home builder, Customary Construction, and contractor Kevin M. Kahrig, alleging that the defendants did not build their deck according to code, Kelly Holleran of the Madison Record reported.
According to the complaint as stated by the Madison Record, the Adkins purchased the home from the defendants in October of 2010. The couple notified Kahrig (the Customary Construction owner) regarding cracks along the perimeter of their deck that had not been caulked. Kahrig sent a crew to fix the cracks, but the Adkins were unhappy with the work, the complaint states. The Adkins hired a masonry contractor to fix the deck, and the contractor found “structural issues with the arches and brick columns supporting the deck at the back of their home,” reported the Madison Record.
The Adkins then hired an engineer who “inspected the deck and reported that it had been improperly constructed and needed to be removed and replaced,” according to the complaint. The engineer continued, “The current condition of the deck is a safety hazard, as there is a risk of collapse and loose bricks or other masonry materials falling and striking a person within the proximity of the deck.” The Adkins are seeking “a judgment of more than $150,000, plus costs and attorney’s fees,” the Madison Record claims.
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Haight has been named by Best Law Firms® as a Tier 1, 2 and 3 National Firm in Three Practice Areas in 2024
November 27, 2023 —
Haight Brown & Bonesteel LLPHaight Brown & Bonesteel LLP is listed in the
Best Law Firms® (2024 Edition) with metro rankings in the following areas:
Los Angeles
- Metropolitan Tier 1
- Product Liability Litigation – Defendants
- Metropolitan Tier 3
- Workers’ Compensation Law – Claimants
Orange County
- Metropolitan Tier 1
- Product Liability Litigation – Defendants
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Powering Goal Congruence in Construction Through Smart Contracts
February 22, 2021 —
Michael Matthews - Construction ExecutiveThe $814 billion U.S. commercial construction market requires a unique assembly of designers, contractors, subcontractors and suppliers to work together in a highly orchestrated manner to make sure that the right labor, material, equipment, tools and information all comes together at the right place and time. Alignment and coordination between companies is critical for a project to be successful; completed safely, on time, on budget and resulting in an asset that performs as designed.
Yet the industry is slowed by an operating model bogged down by transactional and informational barriers that destroys value across the construction supply chain. Companies are connected through contracts and purchase orders that are undercut by mistrust that yields adversarial relationships and conflicting priorities that result in restricted transparency, elongated payment cycles and an abundance of resource-sucking reconciliations, audits and disputes.
With margins already razor thin, company protectionism cascades down from owners, developers and operators to contractors, subcontractors and suppliers with each player focused on optimizing their piece at the expense of the whole. Perhaps this is part of the reason 98% of megaprojects experience cost overruns or delays, 95% of projects are unable to meet even one business objective; and 70% of all construction projects are not completed within 10% of the proposed budget.
Reprinted courtesy of
Michael Matthews, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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