As the Coronavirus spreads across the globe, its impact continues to disrupt many industries, including construction. Over the last twenty years, the construction industry in the United States has substantially increased its reliance on China as a supplier for all types of construction materials including electrical and lighting equipment, elevators and component parts, plumbing fittings … Continue Reading
It’s been said that as California goes, so goes the nation. If so, general contractors throughout the country may soon be taking on more responsibility for the unpaid wages of the workers on their construction projects than they might have expected. As of January 1, 2018, Assembly Bill 1701 makes general contractors liable for the … Continue Reading
For years, general contractors and trade contractors have faced very strict “no damages for delay” clauses on New York State construction projects. The tides are changing. If signed into law, S. R. 06686, Reg. Sess. 2017-2018 (NY 2017) will require public entities to allow contractors, subcontractors and suppliers to recover for costs associated with project … Continue Reading
In negotiating construction contracts, the parties may ignore or give little attention to the project’s insurance requirements. Insurance provisions are oftentimes left untouched on the standard industry forms. One typically misunderstood type of project insurance is builders’ risk, also sometimes referred to as an “all risk” policy, or BRI. Builders’ risk insurance is a property … Continue Reading
My last article examined strategies for construction managers facing an owner bankruptcy. Now, looking through the lens of the owner, let’s examine best practices when it is the contractor who has filed for bankruptcy. Throughout New England and the United States the construction industry continues to thrive with several new projects underway and on the … Continue Reading
After an insurer pays for a covered loss by an owner under a property policy the insurer generally has the right, whether under the common law, statute or the policy itself, to seek recovery of the payment from the responsible party. This is known as the right of subrogation, or if based on the common-law … Continue Reading
Industry leaders agree that the economy has turned the corner and private construction projects are on the uptick. Banks have eased lending requirements and there is more private equity money on the streets. Inexperienced developers are entering the arena and experienced developers are less guarded and taking on more risk. On the flip side, small … Continue Reading
A recently proposed bill to reduce the retainage amount for certain public work contracts to five percent and to allow a claimant to recover reasonable attorney’s fees and costs from a payment bond surety that fails to timely respond to a claim was unanimously approved by the General Assembly’s General Law Committee on March 11, … Continue Reading
Sureties writing public construction bonds under Chapter 149A in the Commonwealth of Massachusetts should pay close attention to Mass. Bill No. 3889, which seeks to create a Public Construction Surety Bond State Guarantee Fund. The Fund would guarantee payment to claimants who have obtained judgment on their claims in a court of competent jurisdiction where … Continue Reading
1. “No damages for delay” clauses: “No damages for delay” clauses allocate the risks of project delays and disruptions between the owner and contractor. Oftentimes, these clauses preclude a contractor from recovering increased costs resulting from extended project duration, including claims for increased overhead and supervision costs, loss of productivity, and acceleration, even when such … Continue Reading
This is the first in a 2-part series on the use of certificates of insurance as evidence of liability coverage for contractors on construction projects. The second part of the series will discuss the potential impact of recent Connecticut legislation governing certificates of insurance. It is common practice on construction projects for owners, general contractors … Continue Reading
In a recent decision, Elec. Contractors, Inc. v. Fid. & Deposit Co. of Maryland, No. 3:13-CV-00514 MPS, 2015 WL 1444481 (D. Conn. Mar. 30, 2015), the United States District Court for the District of Connecticut dismissed on summary judgment a subcontractor’s claims for delay damages against the general contractor on a construction project (“Project”) for … Continue Reading
There is legislation pending, Senate Bill 948, that would permit the Department of Administrative Services (the “DAS”) to waive the public bonding requirements for small, emerging and minority contractors. The Act would apply to projects less than $500,000 and would require participation by the contractor in a surety bond guarantee program – also created by … Continue Reading
The Connecticut Legislature recently introduced a bill that would subject the State to a ten year statute of repose for claims against design professionals for defective design and/or administration of construction projects. The proposed bill is in response to the Connecticut Supreme Court’s decision in the case of State of Connecticut v. Lombardo Brothers Mason … Continue Reading
Many construction professionals in Connecticut, and in particular those who do business with the State, are well aware of the Connecticut Supreme Court’s decision in State v. Lombardo Bros. Mason Contractors, Inc., 307 Conn. 412, 420-21, 54 A.3d 1005 (2012). The Court in Lombardo Bros. held that statutes precluding a private party from pursing a … Continue Reading
I will be presenting at RCA’s 25th Annual Conference that runs Friday, March 13 through Sunday, March 15 in Las Vegas. I’ll be kicking off the program on Saturday morning, presenting strategies for avoiding and addressing subcontractor defaults. We’ll review best practices for selecting subcontractors, essential subcontract terms, and the proper procedure for defaulting and terminating … Continue Reading
In a unanimous decision issued in the case of Electrical Contractor’s Inc. v. Insurance Company of the State of Pennsylvania, SC 19105 (2014), the Connecticut Supreme Court recently declared that a public works payment bond surety does not forfeit its substantive defenses to a bond claim by failing either to pay or deny a claim … Continue Reading
This is article explores the complex nature of allocating the risks associated with project delays. It was originally published in Schimenti Construction Company’s newsletter and is reprinted with permission. Retail construction is no stranger to the inherent costs associated with project delays. Retailers, like all owners, rely upon construction professionals to estimate the duration of … Continue Reading
