No Duty to Defend Faulty Workmanship Under Hawaii Law, but All is not Lost for Insured Contractor
June 06, 2022 —
Tred R. Eyerly - Insurance Law HawaiiThe federal district court found no duty to defend claims of faulty workmanship under certain policies issued to the insured contractor, but rejected arguments made by the Insurers regarding various provisions of the general liability and excess policies. St. Paul Fire & Marine Ins. Co. v. Bodell Consr. Co., 2022 U.S. Dist. LEXZIS 79379 (D. Haw. May 2, 2022). (Note- our office represents the insured contractor).
In 2003, Bodell was hired by developer Sunstone Realty Partners L LLC to be the general contractor for construction work on a condominium project, "Ali`i Cove." The project consisted of approximately 37 buildings and one recreation center that were constructed over the course of four years. On August 14, 2015, the AOAO of Ali`i Cove sued Sunstone, alleging that Sunstone developed, built, and sold condominium nits using embedded straps that did not meet building codes, instead of bolting house frames to their foundations. The AOAO filed a second amended complaint alleging numerous additional defects which were referenced in an expert report. These included additional alleged construction defects such as site conditions, structural issues, building envelope, roofing, general architecture, mechanical, plumbing and electrical. In all, the report purported to find approximately 281 instances of faulty workmanship.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
ASCE Statement On White House "Accelerating Infrastructure Summit"
October 17, 2022 —
Maria Lehman, President-elect - American Society of Civil Engineers (ASCE)WASHINGTON, D.C. –We thank the Administration for convening the Accelerating Infrastructure Summit, which highlighted the possibilities stemming from the bipartisan infrastructure law. Nearly one full year since it was passed into law, this transformative legislation is beginning to kickstart vital infrastructure projects nationwide that will improve the country's economic efficiency and prioritize public health and safety.
We know that together, builders, engineers, planners, and those entrusted with infrastructure projects must meet the moment and deliver projects on time, on task, and on budget for communities to make the most of these new resources. This generational investment in infrastructure is much needed - the 2021 Report Card for America's Infrastructure assigned the nation's infrastructure a cumulative grade of "C-" across 17 categories of infrastructure.
ASCE is ready to help optimize these investments for communities across the country and make sure all will benefit, whether it is providing contract templates to expedite the process or offering peer support to smaller and rural agencies.
ASCE is also focused on education in our industry to better equip civil engineers with the knowledge and expertise to execute alternative project delivery methods with a March 2023 Construction Institute Summit in St. Louis, which will provide a dedicated track to highlight innovations that help reduce the time for construction projects.
The bipartisan infrastructure law has provided us the opportunity to transform America and bring our infrastructure into the 21st century, and we will need diverse perspectives, innovative technologies and processes, and a robust workforce to make the most of this once-in-a-generation investment.
ABOUT THE AMERICAN SOCIETY OF CIVIL ENGINEERS
Founded in 1852, the American Society of Civil Engineers represents more than 150,000 civil engineers worldwide and is America's oldest national engineering society. ASCE works to raise awareness of the need to maintain and modernize the nation's infrastructure using sustainable and resilient practices, advocates for increasing and optimizing investment in infrastructure, and improve engineering knowledge and competency. For more information, visit www.asce.org or www.infrastructurereportcard.org and follow us on Twitter, @ASCETweets and @ASCEGovRel.
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Nebraska Joins the Ranks—No CGL Coverage for Faulty Work
September 17, 2014 —
Craig Martin – Construction Contractor AdvisorThe Nebraska Court of Appeals has ruled that a home builder that fails to adequately compact the soil does not have insurance coverage to repair damages to the home caused by the settling soil. In “insurance speak”, there was no occurrence to trigger coverage.
In this case, Cizek Homes, Inc. v Columbia National Insurance Company, a home builder contracted with a buyer to build a house. A lot was selected and the home was built. After the buyer moved in, the house started to settle, causing damage to the house. The buyer told the builder about these problems and the builder agreed to fix the problems. The builder also contacted its insurance company and requested coverage for the buyer’s claim. The insurer rejected the claim, determining that the buyer’s claim was not covered by the builder’s Commercial General Liability (CGL) insurance.
The insurer then filed suit asking the court to interpret the insurance policy and to determine whether the CGL insurance covered the claim. The court looked to the buyer’s allegations that the builder failed to construct the home in accordance with accepted construction and industry standards and that the builder was negligent in designing and constructing the home. The builder admitted that it was obligated to pay for the costs of repairs, but denied that it was negligent in constructing the home.
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Craig Martin, Lamson, Dugan and Murray, LLPMr. Martin may be contacted at
cmartin@ldmlaw.com
Contractors Prepare for a Strong 2021 Despite Unpredictability
April 05, 2021 —
Kenny Ingram - Construction ExecutiveA recent IFS study found many construction and engineering companies are reimagining their business models to ensure a secure future, using the pandemic-induced lull in business to prepare themselves to get back to operations on a strong footing.
The research shows 70% of businesses have increased or maintained digital transformation spend, despite the COVID-19 pandemic. In the infrastructure, engineering and construction sectors the figure is more than 75%.
There are many challenges the industry will face in the new year following the unpredictability of 2020, but there are also many opportunities. Despite the uncertainties that lay ahead, here are the few trends predicted to impact the sector 2021 and beyond.
Reprinted courtesy of
Kenny Ingram, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Patent or Latent: An Important Question in Construction Defects
October 25, 2013 —
CDJ STAFFPieter M. O’Leary, writing for the site AVVO offers the advice that whether a construction defect is patent or latent could influence whether or not it’s covered in a construction defect claim. He notes that a “patent defect” is “a construction defect that is ‘readily observable or evident,’” while a “latent defect” is “a construction defect that is present but not readily detectable even with reasonable care.” While this may sound like a simple distinction, he notes that “distinguishing between the two can often be difficult and sometimes highly contested by the various parties in a lawsuit.”
The first question is “whether the average consumer, during the course of a reasonable inspection, would discover the defect.” The question arises because “if a defect is hidden and not detectable (latent defect), a longer time period exists for the claimant to file a claim.”
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Approaches in the Absence of a Differing Site Conditions Clause
April 10, 2019 —
Parker A. Lewton - Smith CurrieA contractor who has encountered unforeseen conditions will typically rely on the contract’s differing site conditions clause as a means to recovery. Most construction contracts address those issues directly. In ConsensusDocs Standard Agreement and General Conditions between Owner and Constructor, the starting point is § 3.16.2. But what if the contract does not contain a differing site conditions clause? Or, what if the contract does contain such a clause, but the contractor failed to provide adequate notice or satisfy other conditions or requirements of the contract? When reliance on a differing site conditions clause is impractical, a contractor still may seek recovery in certain instances under one or more of the following legal theories: misrepresentation; fraud; duty to disclose; breach of implied warranty; and mutual mistake.
Misrepresentation
Misrepresentation occurs when an owner “misleads a contractor by a negligently untrue representation of fact[.]” John Massman Contracting Co. v. United States, 23 Cl. Ct. 24, 31 (1991) (citing Morrison–Knudsen Co. v. United States, 170 Ct. Cl. 712, 718–19, 345 F.2d 535, 539 (1965)). A contractor may be able to recover extra costs incurred, under a theory of misrepresentation, if it can show that (1) the owner made an erroneous representation, (2) the erroneous representation went to a material fact, (3) the contractor honestly and reasonably relied on that representation, and (4) the contractor’s reliance on the erroneous representation was to the contractor’s detriment. See T. Brown Constructors, Inc. v. Pena, 132 F.3d 724, 728–29 (Fed. Cir. 1997). These four requirements can be satisfied, for example, through the use of deposition testimony detailing the owner’s representations and the contractor’s reliance thereon. See, e.g., C & H Commercial Contractors, Inc. v. United States, 35 Fed. Cl. 246, 256–57 (1996).
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Parker A. Lewton, Smith CurrieMr. Parker may be contacted at
palewton@smithcurrie.com
Ruling Finds Builder and Owners at Fault in Construction Defect Case
December 30, 2013 —
CDJ STAFFA Minnesota home owners association has been found 30liable for some of the damage to their homes in a jury trial. The Interlachen Propertyowners Association made a claim of construction defects against Keupers Architects and Builders who had constructed the 24-unit town home complex. According to the association’s lawyer, the half-log siding was improperly installed, leading to water intrusion and rot.
The jury did find for the homeowners on the construction defect claim, but found on a claim of negligent repairs that the association was 30% at fault, due to insufficient maintenance of the building. “We don’t think any amount of maintenance would have saved these buildings,” said Jason Tarasek, the lawyer for the association. The association is likely to appeal.
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The First UK Hospital Being Built Using AI Technology
February 01, 2023 —
Aarni Heiskanen - AEC BusinessUniversity Hospitals Dorset (UHD) has announced that the
new Royal Bournemouth Hospital is the first hospital facility in the UK to be built using groundbreaking AI technology, which increases efficiency and decreases costs.
The technology,
Buildots, automatically analyses data captured at the site via helmet-mounted 360-degree cameras. The platform then generates true-to-life progress reports supported by visuals, providing managers and stakeholders with accurate, objective data and in-depth analysis, leading to improved efficiency.
Evidence-Based Real-Time Analysis
The Royal Bournemouth Hospital’s new BEACH building (Births, Emergency And Critical Care, Children’s Health) will include a new purpose-built maternity unit, purpose-built children’s unit, enhanced emergency department, and critical care unit.
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi