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Owner’s Obligation Giving Notice to Cure to Contractor and Analyzing Repair Protocol

November 23, 2016 — David Adelstein – Florida Construction Legal Updates
Recently, I read an informative article from another attorney addressing considerations of an owner when it receives a repair protocol in response to a Florida Statutes Chapter 558 notice of defect letter. This is a well-written article and raises two important issues applicable to construction defect disputes: 1) how is an owner supposed to respond to a repair protocol submitted by a contractor in accordance with Florida’s 558 notice of construction defects procedure and 2) irrespective of Florida’s 558 procedure, how is an owner supposed to treat a contractual notice to cure / notice of defect requirement that requires the owner to give the contractor a notice to cure a defect. This article raises such pertinent points that I wanted to address the issues and topics raised in this article. 558 Procedure–Owner’s Receipt of Contractor’s Repair Protocol When a contractor submits a repair protocol to an owner in response to a notice of construction defects letter per Florida Statutes Chapter 558, the owner should seriously consider that protocol. The owner does this by discussing with counsel and any retained expert. The owner needs to know whether the protocol is a reasonable, cost-effective protocol to repair the asserted defects or, alternatively, whether the protocol is merely a band-aid approach and/or otherwise insufficiently addresses the claimed defects. Every scenario is different. Read the court decision
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Reprinted courtesy of David Adelstein, Katz, Barron, Squitero, Faust, Friedberg, English & Allen, P.A.
Mr. Adelstein may be contacted at dma@katzbarron.com

Terminating Notice of Commencement Without Contractor’s Final Payment Affidavit

October 23, 2018 — David Adelstein - Florida Construction Legal Updates
Prior to construction work being performed on your property, a Notice of Commencement should be recorded. Among other things, construction liens will relate back in time to an effective Notice of Commencement (meaning it has not expired). For this reason, lenders or others will want the Notice of Commencement to be terminated when the job is complete by recording in the official records a Notice of Termination of the Notice of Commencement. There is a statutory procedure to terminate a Notice of Commencement pursuant to Florida Statute 713.132. Frequently, a clerk will want the Notice of Termination of the Notice of Commencement to be accompanied with a Contractor’s Final Payment Affidavit because 713.132 says, in material part:

(2) An owner has the right to rely on a contractor’s affidavit given under s. 713.06(3)(d), except with respect to lienors who have already given notice, in connection with the execution, swearing to, and recording of a notice of termination. However, the notice of termination must be accompanied by the contractor’s affidavit.

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Reprinted courtesy of David Adelstein, Kirwin Norris
Mr. Adelstein may be contacted at dma@kirwinnorris.com

Kiewit Selected for Rebuild of Collapsed Baltimore Bridge

September 02, 2024 — Jim Parsons - Engineering News-Record
Kiewit Infrastructure Co. has been tapped to rebuild Baltimore’s I-695/Francis Scott Key Bridge under a progressive design-build procurement announced Aug. 29 by the Maryland Transportation Authority (MDTA). Work on the expected four-year reconstruction effort is scheduled to begin next year. Reprinted courtesy of Jim Parsons, Engineering News-Record ENR may be contacted at enr@enr.com Read the full story... Read the court decision
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Conflicting Exclusions Result in Duty to Defend

October 21, 2015 — Tred R. Eyerly – Insurance Law Hawaii
The Seventh Circuit affirmed the district court's finding that the insurer had a duty to defend in light of conflicting endorsements in the policy. Panfil v. Nautilus Ins. Co., 2015 U.S. App. LEXIS 14621 (7th Cir. Aug. 20, 2015). JRJ Ada, LLC was a contractor. JRJ's two members, Joe Panfil and Renee Michelon, had a CGL policy with Nautilus. The employee of JRJ's subcontractor, Astro Insulation, fell through a hole while performing insulation work, injuring himself. The employee sued JRJ, who sought a defense from Nautilus. Nautilus refused to defend because JRJ was not an insured under the policy. Further, Nautilus relied upon the policy's Contractor-Subcontrated Work Endorsement and Employee Exclusion to deny coverage. Panfil and Michelon sued Nautilus. Cross-motions for summary judgment were filed and the court granted plaitniffs' motion while denying Nautilus' motion. The district court first found that the policy should be reformed to inlcude JRJ as an insured. Nautilus did not appeal this determination. The court also found that Nautilus breached its duty to defend and was therefore estopped from asserting policy defenses to coverage. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

The Word “Estimate” in a Contract Matters as to a Completion Date

February 12, 2024 — David Adelstein - Florida Construction Legal Updates
Language in a contract matters. The word “estimates” or “estimated” matters particularly when it comes to a date certain such as a substantial completion or completion date. Remember this. Here is an example. In Parque Towers Developers, LLC v. Pilac Management, Ltd., 49 Fla.L.Weekly D190a (Fla. 3d DCA 2024), a trial court held that the developer did not complete the construction of five condominium units by the date in the purchase agreements. The developer appealed because “[t]he agreements contain no date certain for the completion of the units, but rather include a clause that ‘Seller estimates it will substantially complete construction of the Unit, in the manner specified in this Agreement, by December 31, 2017, subject to extensions resulting from ‘Force Majeure (the ‘Outside Date’).’” Parque Towers, supra. Another provision in the purchase agreements stated, “[w]henver this Agreement requires Seller to complete or substantially complete any item of construction, that item will be understood to be complete or substantially complete when so completed or substantially completed in Seller’s opinion. Id. 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

Protect Your Right To Payment By Following Nedd

August 03, 2022 — Denise Motta - Gordon & Rees Construction Law Blog
In order to preserve your right to payment, you must satisfy the contractual requirements supporting a change order for the increased costs or time due to the delay. The key to the successful presentation of change order claims is educating your team on the following: 1. NOTICE

Review the change order and notice provisions of your contracts. Make your contract searchable and insert the term “Noti” and look for the items listed below.
Who: Check the designated representative for notice.

It may not be the project manager.
Confirm who can authorize the change order.

Is owner approval required?
Ensure that the party approving the change order has authority to do so.

What: Check for specific information required by the contract.

Provide ALL information available.
If certain information is not yet available, state that the information will be provided when available.
Reserve all rights to amend and submit additional information.
Request both an increase to the Contract Sum and Contract Time.

Make the request even if you do not believe the delay or time necessary will cause a significant impact.

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Reprinted courtesy of Denise Motta, Gordon Rees Scully Mansukhani, LLP
Ms. Motta may be contacted at dmotta@grsm.com

No Duty to Defend Suit That Is Threatened Under Strict Liability Statute

July 09, 2014 — Tred R. Eyerly – Insurance Law Hawaii
The Washington Court of Appeals found there was no duty to defend the insured under a strict liability statute for alleged contamination when no action was threatened by the agency. Gull Indus., Inc. v. State Farm Fire and Cas. Co., 2014 Wash. App. LEXIS 1338 (Wa. Ct. App. June 2, 2014). Gull leased a gas station to the Johnsons from 1972 to 1980. In 2005, Gull notified the Department of Ecology (DOE) that there had be a release of petroleum product at the station. DOE sent a letter acknowledging Gull's notice of suspected contamination. In 2009, Gull tendered its defense to its insurer, Transamerica Insurance Group. Gull also tendered its claims as an additional insured to the Johnson's insurer, State Farm. Neither insurer accepted the tenders. Gull then sued the insurers, arguing they had a duty to defend. Gull contended that because the state statute imposed strict liability, the duty to defend arose whether or not an agency had sent any communications about the statute or cleanup obligations. The insurers moved for partial summary judgment. The trial court ruled in favor of the insurers. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Caution to GCs! An Exception to Privette Can Leave You Open to Liability

February 01, 2023 — Nicole Whyte - Bremer Whyte Brown & O'Meara LLP
In a recent important decision, Brown v. Beach House Design & Development the Court of Appeal addressed an issue that frequently arises under the Privette doctrine—the extent to which a general contractor can be held liable for injuries to a subcontractor’s employee. The injuries in Brown arose when a window casing subcontractor’s employee fell from a scaffold erected by a plastering subcontractor at a construction site. According to evidence offered by the plaintiff in opposition to a motion for summary judgment filed by the general contractor, the scaffold was not properly secured to the building where the work was being performed. As a result the scaffold was defective and failed, causing the injuries. Read the court decision
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Reprinted courtesy of Nicole Whyte, Bremer Whyte Brown & O'Meara LLP
Ms. Whyte may be contacted at nwhyte@bremerwhyte.com

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