Labor Shortage is Slowing Down Construction

by Kent Holland | Apr 3, 2018 | Newsletter Article

As of the fourth quarter of 2017, approximately 600,000 apartment units were under construction across the U.S., but only 220,000 units were delivered nationally. According to a new Yardi Matrix report, the difference between the number in construction and the number...

Builders Risk Policy Faulty Workmanship Exclusion applied to Wall Collapse

by Kent Holland | Apr 3, 2018 | Newsletter Article

When a wall collapsed during renovation of a row house, the developer sought to recover repair costs under its Builders Risk Insurance policy. The carrier denied coverage based on an exclusion in the policy for defects in construction or workmanship. It also asserted...

Spearin Doctrine Applies to Design-Build Contracts allowing Trade Subcontractor to Rely on Designs Provided by Engineer/Subcontractor

by Kent Holland | Feb 26, 2018 | Newsletter Article

On a design-build project involving MCAS Camp Pendleton, a subcontractor filed suit against Balfour Beatty Construction (“BBC”), the design-build contractor. This was under the Miller Act and alleged breach of contract and breach of implied warranty of specifications...

Contractor’s CGL Policy Professional Liability Exclusion Precludes Coverage for Damages from Subcontracted Land Surveyor’s Error

by Kent Holland | Feb 26, 2018 | Newsletter Article, professional liability exclusion

General Contractor (GC) constructed two condominium buildings too close to the adjoining property. This was due to an error made by the land surveyor who was working under subcontract to the GC. An occupancy permit would not be issued by the County unless the problem...

Contractor Cannot Sue Project Engineer as Owner’s Agent on Implied-in-Fact Contract. Signing Check that contained the words “Final Payment” Constituted Accord and Satisfaction

by Kent Holland | Feb 20, 2018 | Newsletter Article

Contractor for a wastewater treatment plant sued the municipal owner and its project engineer for breach of contract for interfering with its work by failing to obtain easements in time for the contractor’s construction work to proceed. Although the contract was, on...

Arbitration Provision of Prime Contract Incorporated by Reference into Subcontract, Requiring Subcontractor to Arbitrate its Claims

by Kent Holland | Feb 20, 2018 | Newsletter Article

A subcontractor sued the general contractor (GC) and project owner to enforce liens it put on the property for non-payment. The defendants filed a motion to compel arbitration. Court held that the arbitration provisions of the prime agreement were incorporated by...