How Finns Cut Construction Lead Times in Half
December 17, 2024 —
Aarni Heiskanen - AEC BusinessRakennustieto organized a Q&A on December 5, 2024, titled “Halving Construction Lead Times—Responsible or Irresponsible?” The discussion focused on speeding up residential construction and renovations.
The experts answering questions were representatives from two Finnish contractors (COfLOW and Fira), a client organization (HOAS), a building materials retailer (STARK), and a research institute.
Can you halve construction lead time without sacrificing quality?
Jaana Matilainen of Rakennustieto asked the panelists whether halving construction time is a realistic goal today, whether they can provide any examples, and if the speed-up has increased or decreased quality.
Read the full story...Reprinted courtesy of
Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi
Challenging a Termination for Default
September 23, 2024 —
David Adelstein - Florida Construction Legal UpdatesNo contractor wants to be terminated for default. It is the harshest contractual recourse. It is a recourse that has implications, particularly in the public sector. However, a party needs to be in a position to support the basis of the termination for default, and the terminated party, in most instances, should not be in a position to imply accept the basis of the default. This applies regardless of the project.
In the federal context: “When a contractor challenges a default termination, the government bears the burden of establishing the validity of the termination.” Sergent’s Mechanical Systems, Inc. v. U.S., 2024 WL 4048175, *7 (Fed.Cl. 2024) (internal quotation and citation omitted). Once the government establishes the default, “the contractor bears the burden of establishing that the default was excused by fault of the government.” Id. at *8 (internal quotation and citation omitted).
Relevant considerations as to whether the contractor is in default include the contractor’s failure to meet contract specifications or the required schedule. Sergent’s Mechanical Systems, supra, at *8. “[T]here is ‘a requirement that the contractor give reasonable assurances of performance in response to a validly issued cure notice.” Id. (internal quotation and citation omitted).
Read the full story...Reprinted courtesy of
David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
A Win for Policyholders: Court Finds Flood Exclusion Inapplicable to Plumbing Leaks Caused by Hurricane Rainfall
October 21, 2024 —
Kelly A. Johnson & Damian S. Barquin - Saxe Doernberger & Vita, P.C. A recent decision by a federal court helps clear the path to coverage for property owners this hurricane season. The Court deemed one property policy’s flood exclusion inapplicable to bar coverage for water damage from backed-up drainage and overflow caused by excessive rainfall. The case, styled G.E.M.S. Partners LLC v. AmGUARD Ins. Co., — F.Supp. 3d —, No. CV 22-1664, 2024 WL 3568932 (D.N.J. July 29, 2024)), involved a familiar dispute between the insured and insurer following damage to covered property after a named storm’s heavy rainfall.
Here, G.E.M.S. Partners LLC (“Insured”) obtained a commercial property policy from AmGUARD Insurance Company (“AmGUARD”) to cover three neighboring buildings in Union, New Jersey. In September 2021, intense rainfall from Hurricane Ida overwhelmed the local infrastructure and sewer system, leading to water leakage from plumbing fixtures at the insured property. To secure coverage under its AmGUARD policy, the Insured wisely relied on its “Water Back-Up and Sump Overflow Endorsement” (“Back-Up/Overflow Endorsement”). Under this endorsement, AmGUARD promised to “pay for ... damage ... caused by ... water ... which backs up through or overflows or is otherwise discharged from a sewer.”1 Indeed, a plumber that inspected the buildings following Hurricane Ida described the root cause of the water damage as a “back up” of “sewer ... water.”2
Reprinted courtesy of
Kelly A. Johnson, Saxe Doernberger & Vita, P.C. and
Damian S. Barquin, Saxe Doernberger & Vita, P.C.
Ms. Johnson may be contacted at KJohnson@sdvlaw.com
Mr. Barquin may be contacted at DBarquin@sdvlaw.com
Read the full story...
Slow Down?
December 03, 2024 —
Daniel Lund III - LexologyAbsolutely not, said the Louisiana Fifth Circuit Court of Appeal to a masonry subcontractor being sued for allegedly improperly refusing to honor a subcontract bid.
A general contractor preparing its overall bid for a public project in Jefferson Parish relied in the process on the defendant masonry subcontractor’s bid. After a public bid process and receiving the award of the project, the general contractor was informed by the subcontractor that it believed that the unit price form that had been supplied to the sub “contained inaccuracies.” Notwithstanding offers by the GC to endeavor to address the purported “inaccuracies” during the project, most likely by a change order, the subcontractor refused to execute its subcontract. The general contractor then awarded the masonry work to another subcontractor for $368,222 more than the original sub’s bid.
The GC filed suit – for recovery of $368,222 – against the defendant subcontractor during the course of the public project. The defendant sub objected, arguing to the court that the lawsuit was “premature.” At the heart of the prematurity argument: the sub urging that the general contractor filed suit before its right to recover damages had accrued.
Read the full story...Reprinted courtesy of
Daniel Lund III, PhelpsMr. Lund may be contacted at
daniel.lund@phelps.com
Los Angeles Recovery Crews Begin to Mobilize as Wildfires Continue to Burn
January 21, 2025 —
Scott Blair, Aileen Cho, & C.J. Schexnayder - Engineering News-RecordMore than a week since wildfires broke out in the Los Angeles area stoked by hurricane-force Santa Ana winds, officials are hoping that a change in the weather will soon allow the long process of recovery to begin.
Reprinted courtesy of
Scott Blair, ENR,
Aileen Cho, ENR and
C.J. Schexnayder, ENR
Mr. Blair may be contacted at blairs@enr.com
Ms. Cho may be contacted at choa@enr.com
Mr. Schexnayder may be contacted at schexnayderc@enr.com
Read the full story...
Spain Risks €10.6 Billion Flood Damage Bill, Sanchez Says
November 25, 2024 —
Rodrigo Orihuela, Macarena Munoz Montijano & Jorge Zuloaga - BloombergSpanish Prime Minister Pedro Sanchez announced the first financial package for victims of the storms that killed more than 200 people in the country’s eastern region of Valencia.
Spain will earmark as much as €10.6 billion ($11.5 billion) for its first relief package and more will be announced in the future, Sanchez said in a press conference Tuesday in Madrid. The package includes direct aid for households, self-employed workers and firms; state-backed credit guarantees for companies and residents; and funds for city governments to pay for repairs and reconstruction.
Reprinted courtesy of
Rodrigo Orihuela, Bloomberg,
Macarena Munoz Montijano, Bloomberg and
Jorge Zuloaga, Bloomberg Read the full story...
Takeaways From Schedule-Based Dispute Between General Contractor and Subcontractor
September 09, 2024 —
David Adelstein - Florida Construction Legal UpdatesA recent opinion out of the Southern District of Florida, Berkley Insurance Co. v. Suffolk Construction Co., Case 1:19-cv-23059-KMW (S.D.Fla. July 22, 2024), provides valuable takeaways on schedule-based disputes between a general contractor and subcontractor on a high-rise project.
In a nutshell, the general contractor’s original project schedule was abandoned due to project delays and the project wasn’t being built by any updated project schedule. The subcontractor claimed the general contractor was mismanaging the schedule putting unreasonable manpower and supervision constraints on it, i.e., it was working inefficiently. A bench trial was conducted and the Court found in favor of the subcontractor’s arguments. The Court found the general contractor had unrelated delays and that work activities were no longer methodical but, simply, piecemeal demands. The Court also rejected any inadequate manpower arguments finding the subcontract did not place any manpower requirements on the subcontractor.
Read the full story...Reprinted courtesy of
David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Nine ACS Lawyers Recognized by Best Lawyers®
September 02, 2024 —
Ahlers Cressman & Sleight PLLCDeparting from our blog’s typical coverage of construction related issues, Ahlers Cressman & Sleight PLLC is proud to announce that nine members of our firm have been recognized by Best Lawyers® in 2025 in America.
Recognition by Best Lawyers® is based entirely on peer review and is designed to reflect the consensus opinion of leading lawyers about the professional abilities of their colleagues. Lawyers can be nominated by clients and other lawyers. After nomination, ballots are generated and distributed to lawyers. Voters are asked how likely they would be to refer a case to the nominee and to give a rating and additional comments. Ballots are designed based on the voter’s practice area and geographic region. After feedback is analyzed, Best Lawyers® research staff ensures nominees are in good standing with the ethics committee of their state bar and selects lawyers for recognition.
Read the full story...Reprinted courtesy of
Ahlers Cressman & Sleight PLLC