Owners and developers building in California must be aware of a new statute, CA Civil Code § 8850, which takes effect for contracts entered into, on, and after January 1, 2026. The statute will likely apply to most private construction projects; however, a carve-out exists for residential projects that are not mixed use and are
Construction Industry
Fixed Price, Fluid Quantities: The Hidden Risks in Lump Sum Agreements with Variable Units
Lump sum construction agreements are the most basic of the different design-bid-build options: the contractor agrees to complete the entire scope of work for a fixed price, and assumes most of the quantity and cost risks. If the contractor’s actual costs exceed its estimates, the contractor absorbs the loss. Adding a clause into the construction…
The Importance of Indemnification Clauses in Managing Post-Completion Project Risk
Claims against design professionals often pose unique challenges when such claims are dually rooted in both tort and contract theories, and therefore subject to competing time limitations. To reconcile these differences, Massachusetts courts have historically looked to the “gist” of a given claim, rather than the label, to assess the appropriate limitations. A determination that…
Requirements For Professional Engineers Practicing in Connecticut
Many out-of-state professional engineering companies practice engineering in Connecticut and may not be aware of all the requirements to do so. Connecticut has certain requirements for corporations and limited liability companies (LLCs) engaging in the practice of engineering. The applicable law, General Statutes §§ 20-306a and 20-306b, requires that (1) the personnel who act as…
First Circuit Broadly Interprets Exclusion in Commercial General Liability Policy Under Current Massachusetts Law
In Admiral Insurance Co. v. Tocci Building Corp., 120 F.4th 933 (1st Cir. 2024), the federal Court of Appeals ruled that, under current Massachusetts law, a general contractor’s Commercial General Liability (CGL) policy does not cover damage to non-defective work resulting from defective work by subcontractors.
The defendant contractor was retained as a construction…
Artificial Intelligence’s Transformative Impact on the Construction Industry
Below is an excerpt of an article published in the Q4 2024 edition of the National Organization of Minority Architects Connecticut Chapter (NOMAct) newsletter, which offers insights from Robinson+Cole’s Construction Industry Roundtable.
The construction industry, long viewed as a traditional and labor-intensive sector, is poised to experience a transformational shift with the integration of…
Suit Limitation Provisions in New York
New York law generally enforces a contractual suit limitation that specifies a “reasonable” period of time (usually shorter than the applicable statute of limitations) within which an action must be commenced. The contractual suit limitation needs to be fair and reasonable, given the circumstances of each particular case. The New York Court of Appeals recently…
Massachusetts Appellate Court Confirms Construction Defects are Not Covered Under Commercial General Liability Policies
In a case of first impression in Massachusetts, Lessard v. R.C. Havens & Sons, Inc., 104 Mass. App. Ct. 572 (2024), the Appellate Court confirmed that construction defects, without more, do not constitute property damage within the meaning of a commercial general liability policy (CGL).
In Lessard, the homeowners filed suit against an insured…
OSHA Finalizes PPE Fitting Requirement for Construction Workers
This post was authored by Jonathan H. Schaefer who is a member of Robinson+Cole’s Environmental, Energy + Telecommunications Group.
On December 11, 2024, the Occupational Safety and Health Administration (OSHA) announced it finalized a revision to the personal protective equipment (PPE) standard for the construction industry. The final rule adds specific language to the…
USDOT’S DBE Program Blocked in Kentucky and Indiana
The end of the U.S. Department of Transportation’s (USDOT) Disadvantaged Business Enterprise (DBE) program is getting closer. The DBE program presumes women and minority-owned firms are disadvantaged and sets goals for them to be awarded at least 10% of the value in federal contracts. In a well-reasoned and compelling decision, the U.S. District Court for…