Subcontractor Indemnification to Prime for Arbitration Award to Homeowner is Barred because Award did not explain basis for decision and would violate anti-indemnity statute if Prime was negligent

by Kent Holland | May 13, 2018 | Newsletter Article

An arbitration award to a homeowner against a homebuilder/contractor only determined damages and did not provide any explanation for the basis of the award – such as who was at fault or even what elements of the complaint formed the basis for the award. A court...

Contract Language Made Code Compliance a separate Duty from the Standard of Care Duty

by Kent Holland | May 13, 2018 | Newsletter Article

Architect is subject to potential liability for failure of design to comply with fire code requirements regardless of whether the generally accepted standard of care was satisfied. This is because it agreed to contract language stating it would comply with the...

Why a Project Owner Isn’t Made an Additional Insured Under a Design Professional Policy

by Kent Holland | May 13, 2018 | Newsletter Article

Design professionals do not name project owners or contractors as additional insureds under their professional liability policies. This paper from the library of articles and papers hosted on the ConstructionRisk.com website explains why. Read it here. About the...

Construction Manager Owes Independent Duty of Care to Contractor – Economic Loss Affords no Protection

by Kent Holland | Apr 3, 2018 | Newsletter Article

A construction contractor under contract to a school district sued the project owner’s construction management firm, Jacobs Project Management Company/CSRS Consortium (“Jacobs”) alleging breach of duty to conduct constructability reviews and oversee and administer the...

Implied Contract Allows Subcontractor to make claim directly against project Owner for Unjust Enrichment and Get Around Pay-if-Paid Clause

by Kent Holland | Apr 3, 2018 | Newsletter Article

Pay-if-paid clauses are held by this decision to be enforceable in the state of Kentucky.   This, however, did not prevent a subcontractor from recovering its costs for performing extra work. The pay-if-paid clause of a subcontract prevented the subcontractor from...

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...