Can Businesses Resolve Construction Disputes Outside of Court?
August 19, 2024 —
Scott L. Baker - Los Angeles Litigation BlogTime is of the essence in any construction project. So, if a dispute arises at any point, business owners generally wish to avoid the chance of a time-consuming case going to court.
Can California construction businesses
manage these disputes effectively outside of court? It is possible in some cases. Business owners should carefully consider these three steps.
1. Go Back to the Contract
Even if the contract is at the center of the dispute, it is important to refer to any details regarding dispute resolution included within the document. It is common for contracts to have some form of a dispute resolution clause. In such a case, both parties should follow the steps outlined in that agreement.
Read the full story...Reprinted courtesy of
Scott L. Baker, Baker & AssociatesMr. Baker may be contacted at
slb@bakerslaw.com
Recovering Time and Costs from Hurricane Helene: Force Majeure Solutions for Contractors
November 18, 2024 —
Matthew DeVries - Best Practices Construction LawWhen Hurricane Helene struck North Carolina, it caused severe disruptions to construction projects across the state. Baxter International’s North Cove facility in Marion, N.C., was completely shut down after floodwaters damaged the site and bridges leading to it. Elsewhere, landslides and floods wiped out large sections of Interstate 40, making transportation of materials and equipment nearly impossible. Many contractors in western North Carolina found their projects halted, and their schedules thrown off by this force majeure event.
In situations like these, contractors and subcontractor need a plan to mitigate the impact of such natural disasters on their projects. Here are five practical tips to help you secure time extensions and/or compensation for delays:
1. Include a Robust Force Majeure Clause in Your Contract
When disaster strikes, your contract is your first line of defense. A well-drafted force majeure clause can make the difference between bearing the costs yourself and getting an extension or compensation. The clause should clearly list specific events such as hurricanes, floods, and road closures as qualifying force majeure events.
Read the full story...Reprinted courtesy of
Matthew DeVries, BuchalterMr. DeVries may be contacted at
mdevries@buchalter.com
A Game of Texas Hold’em: How Texas Stopped Wage Increases for Salaried Exempt Employees Nationwide
December 03, 2024 —
Matthew DeVries - Best Practices Construction LawConstruction contractors often have to deal with classification of employees, particularly those who work in the home office. Today’s guest post by
Alexandra Shulman and
Leah Lively addresses a recent court decision affecting the wage protection of employees under the the Fair Labor Standards Act (FLSA).
On November 15, 2024, a federal court in Texas vacated a U.S. Department of Labor (DOL) rule (the “2024 Rule”) that increased the minimum salary threshold for employees classified as exempt from overtime and minimum wage protections under the FLSA. The Texas court’s decision nullifies the 2024 Rule nationwide, effective immediately.
Read the full story...Reprinted courtesy of
Matthew DeVries, BuchalterMr. DeVries may be contacted at
mdevries@buchalter.com
BWB&O ranks as a 2025 Best Law Firm by Best Lawyers®
December 10, 2024 —
Dolores Montoya - Bremer Whyte Brown & O'Meara LLPBremer Whyte Brown & O’Meara, LLP is honored to announce the firm has been recognized for its fifth consecutive year in the 2025 edition of Best Law Firms® and is ranked by Best Lawyers® regionally in three practice areas. To read the publication, please click here.
Metropolitan Tier 1
Las Vegas: Litigation – Construction
Orange County: Litigation – Construction
Metropolitan Tier 2
Orange County: Family Law
San Diego: Litigation – Real Estate
Read the full story...Reprinted courtesy of
Dolores Montoya, Bremer Whyte Brown & O'Meara LLP
Incorrect Information Provided on Insurance Application Defeats Claim for Coverage
July 31, 2024 —
Tred R. Eyerly - Insurance Law HawaiiThe Eleventh Circuit affirmed the district court's finding of no duty to defend or indemnify because of an answer on the insured's application for insurance. Snell v. United Specialty Ins. Co., 2024 U.S. App. 12733 (11th Cir. May 28, 2024).
Snell was hired by a family, the Westons, to turn an above ground trampoline into a ground level trampoline. This involved various tasks like tree pruning and removal, installation of shrubs, trees, and sod, and setting up a sprinkler irrigation system. The trampoline aspect of the project involved site work to make a place for the trampoline and assembly and installation of the trampoline. The site work included excavation of a pit, installation of a drain and drainage sand, excavation of a trench to install a drainage pipe, installation of the drainage pipe and of a drain pump, construction of concrete block retainer walls and installation of a wood cap on the retainer walls. Then, Snell unboxed the trampoline, assembled it, and lowered it into the pit.
A few years later, a visitor to the Weston home sued the Westons for injuries to his daughter suffered on the trampoline. The complaint alleged the daughter was injured when she "fell off of the trampoline and struck her face on the wooden board" surrounding the tramline. The complaint was later amended to add Snell as a defendant.
Read the full story...Reprinted courtesy of
Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Is the Construction Industry Actually a Technology Hotbed?
August 19, 2024 —
Andrew Silver - Construction ExecutiveTechnology has always been a driving force behind progress, and the construction industry is no exception. Over the years, technological advancements have revolutionized the way companies design, plan and build structures, leading to increased efficiency, safety and sustainability. From virtual-reality simulations to drones and 3D printing, technology has transformed every aspect of the construction process. However, the construction trades still lag behind other sectors in adoption of digital technologies. With a lack of skilled labor continuing to be an impediment to growth and profitability in the construction industry, technological developments could have significant implications for successful adopters.
Already, the industry is seeing a huge difference in valuation between traditional engineering and construction firms and construction software companies. As labor shortages continue to hinder growth in the industry, consolidation is likely, as is the probability that companies with the greatest tech capabilities will be the most highly valued. There are several areas of technology that are of the greatest interest in the current marketplace.
BIM
Building information modeling with computer-aided design software now allows architects and engineers to create detailed and accurate 3D models of buildings and infrastructure projects, integrating data about every aspect of the building, from materials and costs to energy efficiency and maintenance schedules. These models not only help in visualizing the final product; they also enable better communication and collaboration among project stakeholders.
Reprinted courtesy of
Andrew Silver, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Read the full story...
Executive Insights 2024: Leaders in Construction Law
August 05, 2024 —
Construction ExecutiveThe key risks that should always be taken into account when a contract is signed are risks associated with uncompensated delays and cost increases. Provisions relating to the scope of work deserve significant attention to help minimize these risks. Defining the scope of work is often put on the backburner while parties focus on negotiating the rest of the terms and conditions of the contract. And when these scopes are inserted, they are often not closely reviewed by attorneys who tend to defer to project personnel on scope. These situations can lead to costly disputes.
Instead, make sure: (1) the correct plans and specifications have been referenced in the contract; (2) an attorney or his/her business counterpart is familiar with relevant specifications; (3) the exhibit containing the assumptions and clarifications is clearly written, has been coordinated with language in the body of the contract and can be clearly understood by attorneys and business people beyond the preconstruction personnel who drafted them; and (4) the contract addresses the order of precedence in the event of a conflict between or among contract provisions (including exhibits). With regard to specifications referenced above, an attorney review is advised because many specification sections, including submittal sections, change order sections, payment provisions and construction progress documentation sections, regularly vary from the negotiated sections of the actual contract. Contractors also unwittingly accept design risk through performance specifications, and the accompanying obligations and risks are underestimated by those tasked with the initial review of those documents. In sum, a clear scope is as important as clear terms and conditions.
Reprinted courtesy of
Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Read the full story...
Key Legal Issues to Consider Before and After Natural Disasters
November 25, 2024 —
Patrick Kelly - Construction ExecutiveWhile legal considerations are often the last thing on the minds of project owners and contractors during an emergency, construction industry stakeholders should bear in mind the impact of natural disasters on their legal rights, remedies and potential exposure to claims.
For all stakeholders, two of the most pressing considerations are: (1) what provisions in their contracts are impacted by a natural disaster and (2) do they have any potential exposure to price-gouging claims?
Reprinted courtesy of
Patrick Kelly, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Read the full story...Mr. Kelly may be contacted at
pkelly@grayreed.com