Superintendent’s On-Site Supervision Compensable as Labor Under Miller Act
March 13, 2023 —
David Adelstein - Florida Construction Legal UpdatesA recent Miller Act payment bond decision out of the District of Columbia Circuit Court of Appeals, U.S. f/u/b/o Civil Construction, LLC v. Hirani Engineering & Land Surveying, PC, 58 F.4th 1250 (D.C. Circ. 2023), dealt with the issue of whether a subcontractor’s superintendent constitutes recoverable “labor” within the meaning of the Miller Act and compensable as a cost under the Miller Act that typically views labor as on-site physical labor.
The issue is that the Miller Act covers “[e]very person that has furnished labor or material in carrying out work provided for in a contract.” Civil Construction, supra, at 1253 quoting 40 U.S.C. s. 3133(b)(1). The Miller Act does not define labor. The subcontractor claimed labor includes actual superintending at the job site. The surety disagreed that a superintendent’s presence on a job site constitutes labor as the superintendent has to actually perform physical labor on the job site to constitute compensable labor under the Miller Act.
The subcontractor argued its subcontract and the government’s quality control standards required detailed daily reports that verified manpower, equipment, and work performed at the job site. It further claimed its superintendent had to continuously supervise and inspect construction activities on-site: “[the] superintendent had to be on-site to account for, among other things, hours worked by crew members, usage and standby hours for each piece of equipment, materials delivered, weather throughout the day, and all work performed. These on-site responsibilities reflected the government’s quality control standards, under which the superintendent as ‘the most senior site manager at the project, is responsible for the overall construction activities at the site…includ[ing] all quality, workmanship, and production of crews and equipment.” Civil Construction, supra, at 1253-54.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
How to Prevent Forest Fires by Building Cities With More Wood
December 16, 2023 —
Leslie Kaufman - BloombergDeep in Colville National Forest in eastern Washington state, Russ Vaagen is pointing to a delineation between woods that have been selectively thinned and those that haven’t. One side is light-filled and punctuated with meadows; the other is dense and dark and loaded with trees losing a Darwinian battle for water and life.
To Vaagen it’s proof that America’s sawmills and lumberjacks can help head off the forest conflagrations that are becoming
ever more common, and at the same time provide raw material for an
emerging industry, known as
mass timber, that makes sustainable wood building components.
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Leslie Kaufman, Bloomberg
Texas Supreme Court to Rehear Menchaca Bad Faith Case
January 10, 2018 —
Sean P. Mahoney – Complex Insurance Coverage ReporterOn December 15th, the Texas Supreme Court agreed to revisit its April 7, 2017 decision in
USAA Texas Lloyds Co. v. Menchaca, No. 14-0721, a “bad faith” case arising out of Hurricane Ike damage, in which the court held that a policyholder could potentially recover policy benefits for statutory bad faith under Texas law, even though a jury concluded that the insurer did not breach the terms of the policy, if the policyholder could show that she was nevertheless entitled to the benefit. The decision to rehear this matter comes at the urging of insurers and interested groups, including the Insurance Council of Texas and the U.S. Chamber of Commerce, who argued that the April 7, 2017 ruling substantially unsettled Texas insurance law.
Menchaca is a first-party property insurance coverage case. After Hurricane Ike struck in 2008, plaintiff Menchaca submitted a claim under her homeowners policy to USAA. A USAA adjuster later concluded that Menchaca’s property suffered only “minimal damage” that fell below the deductible. Menchaca sued claiming breach of contract and unfair claims settlement practices in violation of the Texas Insurance Code. As damages, she sought only the policy benefit, court costs, and attorneys’ fees.
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Sean P. Mahoney, White and Williams LLP Mr. Mahoney may be contacted at
mahoneys@whiteandwilliams.com
Candis Jones Named “On the Rise” by Daily Report's Georgia Law Awards
September 29, 2021 —
Candis Jones - Lewis Brisbois NewsroomAtlanta Partner Candis Jones was named a lawyer “On the Rise” by the Daily Report (part of Law.com). Ms. Jones is one of 20 attorneys from Georgia to receive this distinction as part of the publication's 2021 Georgia Law Awards.
The Daily Report’s “On the Rise” category recognizes outstanding attorneys under the age of 40 who have made an impression on their colleagues, their clients, and the larger legal community of Georgia. Winners are selected by the publication’s editorial staff.
Ms. Jones is a member of Lewis Brisbois' General Liability Practice and has extensive experience with insurance defense, premises liability, personal injury, and medical malpractice cases. Her clients include Fortune 500 companies, numerous insurance carriers, and a major metropolitan transit authority. Outside her legal practice, Ms. Jones is an active member of her legal community and was recently installed as President of the Gate City Bar Association, the oldest African-American bar association in the State of Georgia.
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Candis Jones, Lewis BrisboisMs. Jones may be contacted at
Candis.Jones@lewisbrisbois.com
Corps Issues Draft EIS for Controversial Alaskan Copper Mine
March 27, 2019 —
Pam Radtke Russell - Engineering News-RecordA proposed copper and gold mine in Alaska could impact up to 12,000 acres of wetlands as well as local fisheries but would help meet a worldwide demand for copper, according to the draft environmental impact statement on the Pebble Mine in the Bristol Bay area of Alaska.
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Pam Radtke Russell, ENRMs. Russell may be contacted at
Russellp@bnpmedia.com
Properly Trigger the Performance Bond
January 04, 2018 —
David Adelstein - Florida Construction Legal UpdatesOriginally Published by CDJ on January 5, 2017
A performance bond is a valuable tool designed to guarantee the performance of the principal of the contract made part of the bond. But, it is only a valuable tool if the obligee (entity the bond is designed to benefit) understands that it needs to properly trigger the performance bond if it is looking to the bond (surety) to remedy and pay for a contractual default. If the performance bond is not properly triggered and a suit is brought upon the bond then the obligee could be the one materially breaching the terms of the bond. This means the obligee has no recourse under the performance bond. This is a huge downside when the obligee wanted the security of the performance bond, and reimbursed the bond principal for the premium of the bond, in order to address and remediate a default under the underlying contract.
A recent example of this downside can be found in the Southern District of Florida’s decision in Arch Ins. Co. v. John Moriarty & Associates of Florida, Inc., 2016 WL 7324144 (S.D.Fla. 2016). Here, a general contractor sued a subcontractor’s performance bond surety for an approximate $1M cost overrun associated with the performance of the subcontractor’s subcontract (the contract made part of the subcontractor’s performance bond). The surety moved for summary judgment arguing that the general contractor failed to property trigger the performance bond and, therefore, materially breached the bond. The trial court granted the summary judgment in favor of the performance bond surety. Why?
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David Adelstein, Florida Construction Legal UpdatesMr. Adelstein may be contacted at
dadelstein@gmail.com
The Five-Step Protocol to Reopening a Business
August 03, 2020 —
Amy R. Patton & Rana Ayazi - Payne & FearsOver the past few months, guidance on how to create a safer, low-risk workplace has frequently changed. Fortunately, the state of California has finally reached a point where comprehensive and concrete advice is now available.
On June 24, 2020, the California Statewide Industry Guidance to Reduce Risk website was updated. In addition to providing industry-specific guidance and opening checklists for approximately 40 different industries, the website now unambiguously requires all businesses—regardless of which “phase” they reopen—to follow a five-step protocol (as described in greater detail throughout this article):
- Perform a detailed risk assessment and create a site-specific protection plan.
- Train employees on how to limit the spread of COVID-19. This includes how to screen themselves for symptoms and when to stay home.
- Set up individual control measures and screenings.
- Put disinfection protocols in place.
- Establish physical distancing guidelines
Reprinted courtesy of
Amy R. Patton, Payne & Fears and
Rana Ayazi, Payne & Fears
Ms. Patton may be contacted at arp@paynefears.com
Ms. Ayazi may be contacted at ra@paynefears.com
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Kiewit-Turner Stops Work on VA Project—Now What?
December 31, 2014 —
Craig Martin – Construction Contractor AdvisorThe Kiewit-Turner joint venture created to build the VA’s hospital near Denver stopped work on December 10 after the Civilian Board of Contract Appeals ruled that the VA breached the contract. Kiewit-Turner claims that the VA owes it over $100 million on the project. And, given the appeals board’s recent ruling entirely against the VA, the claim may get some traction.
This project has been plagued with problems from the beginning. One strange aspect of the project is the VA’s apparent unwillingness to incorporate value engineering or require the architects to redesign the project to fit within the budget. The latest budget was $582M, while the latest projections show that the project will cost more than $1 billion to complete.
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Craig Martin, Lamson, Dugan and Murray, LLPMr. Martin may be contacted at
cmartin@ldmlaw.com