Residential Contractors, Be Sure to Have these Clauses in Your Contracts
December 23, 2023 —
Christopher G. Hill - Construction Law MusingsI have often “mused” on the need to have a good solid construction contract at the beginning of a project. While this is always true, it is particularly true in residential contracting where a homeowner may or may not know the construction process or have experience with large scale construction. Often you, as a construction general contractor, are providing the first large scale construction that the homeowner has experienced. For this reason, through meetings and the construction contract, setting expectations early and often is key.
As a side note to this need to set expectations, the Virginia Department of Professional and Occupational Regulation (DPOR) and the Virginia General Assembly require certain clauses to be in every residential construction contract. DPOR strictly enforces these contractual items and failure to put them in your contracts can lead to fines, penalties and possibly even revocation of a contractor’s license.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Restoring the USS Alabama: Surety Lessons From an 80-Year-Old Battleship
November 13, 2023 —
Richard Sghiatti - Construction ExecutiveIt’s not every day that a construction company gets to renovate an 80-year-old battleship. Yet that’s exactly where Youngblood-Barrett Construction & Engineering workers found themselves when they began restoring the main deck of the USS Alabama, a storied World War II battleship.
The USS Alabama has a remarkable past. One of four South Dakota–class battleships, the “Mighty A” was commissioned in 1942. It deployed first to the Atlantic and then to the Pacific, where it earned nine battle stars for meritorious service. At 680 feet long and 108 feet wide, the “Heroine of the Pacific” had a wartime crew of 2,500 men.
By 1962, though, the Navy was ready to scrap it. That’s when the state of Alabama decided to acquire the ship and preserve it as a museum. The USS Alabama was moved to Mobile and opened to the public in January 1965.
Reprinted courtesy of
Richard Sghiatti, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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'Taylor Swift Is an Economic Phenomenon': CE's Q1 2024 Economic Update and Forecast
April 29, 2024 —
Grace Calengor - Construction ExecutiveOn March 27, Construction Executive presented its "2024 Q1 Economic Update and Forecast," hosted by ABC Chief Economist Anirban Basu. If you've attended previous versions of this webinar, you're familiar with Basu’s pragmatic approach to the economics of the construction industry and his penchant for predicting recession. But this quarter, he opted for an almost-optimistic approach and hinted at walking back his thoughts on recession. Read the most quotable moments, new poll results and top takeaways from the presentation below.
POLL RESULTS: Q1 2024 vs. Q4 2023 Poll 1: Which of these is the leading challenge for your company today?
Supply chain and/or materials issues
Skills/worker shortage
Insufficient demand for construction services
Availability of financing for projects/project work
None of the above
December 2023 | March 2024 |
10% |
7% |
57% |
60% |
11% |
11% |
19% |
17% |
3% |
6% |
Reprinted courtesy of Grace Calengor, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Exploring the Future of Robotic Construction with Dr. Thomas Bock
November 06, 2023 —
Aarni Heiskanen - AEC BusinessIn
this episode of the AEC Business podcast, host Aarni Heiskanen interviews Dr. Thomas Bock, a renowned expert in construction robotics. With 45 years of experience in the field and multiple books on the topic, Thomas shares his insights and expertise.
Tune in to learn more about his professional journey and the advancements in construction robotics.
An unconventional professional journey
Thomas’s journey in construction robotics began when he built his own house as a student. The labor-intensive process led him to explore the potential of robotics in construction. He studied civil engineering and architecture simultaneously, gaining a multidisciplinary understanding of the field. His interest in robotics grew when he saw the first welding robot at a Daimler-Benz factory in Stuttgart. This encounter sparked his curiosity and led him to question why robots couldn’t be used for assembling walls and buildings.
The Illinois Institute of Technology (IIT) in Chicago was one of Thomas’s destinations during his journey. There he studied under professors who had worked on iconic architectural projects. He also learned about Japanese companies like Toyota and Sekisui, which were producing houses using innovative methods. Intrigued by these advancements, Thomas secured a scholarship to study in Japan, where he discovered that the country was ahead of what he had known in the United States.
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi
Competitive Bidding Statute: When it Applies and When it Does Not
April 15, 2024 —
Mason Fletcher - Ahlers Cressman & Sleight PLLCThe University of Washington (UW), a public university, aimed to secure a real estate developer for a new building on its campus. The proposal involved an 80-year ground lease (the “Lease”), and developers submitted bids. The selected developer would demolish an existing building, construct a new one, own it during the Lease at its own cost, and UW would lease back a portion, with ownership reverting to UW at the Lease’s end. Alexandria Real Equities, Inc. (ARE) was a finalist but ultimately was not selected, and the Lease was awarded to Wexford Science and Technology, LLC (Wexford). As a result, ARE filed suit against UW asserting three claims: 1) UW lacked authority to execute the Lease, 2) UW didn’t follow required competitive bidding procedures, and 3) UW’s developer selection process was arbitrary and capricious. None of these claims were successful and ARE appealed.
Division II of the Washington Court of Appeals affirmed in Alexandria Real Estate Equities Inc. v. Univ. of Wash., __ Wn. App. __, 539 P.3d 54 (2023), a published decision. The Court concluded, based on the facts in that case, that because construction was not publicly funded, UW did not have to follow competitive bidding requirements that were laid out in a statute relevant to state universities. Still, the Court applied the “bright-line cutoff point” that prohibits disappointed bidders from challenging an award once a contract has been executed. See Dick Enterprises, Inc. v. Metro. King County, 83 Wn. App. 566, 572, 922 P.2d 184 (1996).
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Mason Fletcher, Ahlers Cressman & Sleight PLLCMr. Fletcher may be contacted at
mason.fletcher@acslawyers.com
Your Construction Contract
April 08, 2024 —
David Adelstein - Florida Construction Legal UpdatesYour construction contract is an important topic. What’s even more important is YOUR process for reviewing and negotiating construction contracts.
Are you simply acting as a riverboat gambler willing to assume undue risk because you don’t value the investment in understanding what you are signing? If so, it becomes hard to complain about what you agreed to and signed when you chose NOT to invest in the process. Investing in the process means you are working with a construction attorney, you have an insurance broker that understands your industry, you have resources in place to ensure risk is negotiated and allocated, and you understand what risk you are assuming to make sure you are properly protecting and perfecting your rights, and transferring risk downstream.
When it comes to construction contracts, there are really three approaches:
1. Riverboat Gambler. This is the “I’ll sign whatever you give me because I don’t want to lose the contract / revenue.” Under this approach, you are not worried about undue risk because you don’t value the investment in the next two approaches. Your thought process is that you’ll care about the risk when an issue pops up, i.e., the riverboat gambler. This is not an approach I’d recommend because it is contrary to the adage, “an ounce of prevention is worth a pound of cure.” This is simply a reactive approach to issues and risks. The other two approaches are more proactive and better suited to understand and manage risk.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Appraisal Can Go Forward Prior to Resolution of Coverage Dispute
April 08, 2024 —
Tred R. Eyerly - Insurance Law HawaiiThe Florida Supreme Court found that a trial court could compel an appraisal of the insured's loss prior to resolving coverage issues. Am. Coastal Ins. Co. v. San Marco Villas Condo. Ass'n, Inc., 2024 Fla. LEXIS 185 (Fla. Feb. 1, 2024).
Hurricane Irma damaged San Marco Condominium Association's buildings. American Coastal paid $192,629.75 for the loss. San Marco estimated the damage to be in excess of eight million dollars. San Marco demanded an appraisal under the policy. American Coastal refused to submit to appraisal because it was premature as its investigation was still ongoing.
San Marco sued American Coastal and asked the court to compel appraisal. American Coastal argued that San Marco had committed fraud or had made material misrepresentations regarding its claim. The trial court heard San Marco's appraisal motion and entered an order compelling appraisal. American Coastal appealed, bu the Second District Court affirmed.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
First Circuit Limits Insurers’ Right to Recoup Defense Costs or Settlement Payments
April 02, 2024 —
Eric Hermanson, Austin Moody & Victoria Ranieri - White and Williams LLPWeighing in on an issue that has divided courts nationwide, the U.S. Court of Appeals for the First Circuit has ruled that an insurer under Massachusetts law has no right to recoup defense costs, or amounts the insurer pays in settlement – even if the insurer reserves rights prior to payment and obtains a ruling, after the fact, that no defense or indemnity was owed. Berkley Natl. Ins. Co. v. Atlantic-Newport Realty LLC, No. 22-1959, 2024 U.S. App. LEXIS 4115 (1st Cir. Feb 22, 2024) (“Granite Telecomm"). However, the First Circuit rested its ruling on narrow procedural grounds, which may prolong the controversy rather than resolve it.
The insureds in Granite Telecomm owned a company cafeteria. They were sued by a food service worker who suffered a foot infection after being exposed to bacteria during a sewage backup. They sought coverage from their insurer, Berkley. Berkley argued that coverage was barred by a fungus and bacteria exclusion in the policy. The insureds disagreed. They threatened suit under M.G.L. ch. 93A, and demanded that Berkley defend the case.
Reprinted courtesy of
Eric Hermanson, White and Williams LLP,
Austin Moody, White and Williams LLP and
Victoria Ranieri, White and Williams LLP
Mr. Hermanson may be contacted at hermansone@whiteandwilliams.com
Mr. Moody may be contacted at moodya@whiteandwilliams.com
Ms. Ranieri may be contacted atranieriv@whiteandwilliams.com
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