No Bad Faith in Insurer's Denial of Collapse Claim
July 15, 2024 —
Tred R. Eyerly - Insurance Law HawaiiThe Tenth Circuit affirmed the district court's grant of summary judgment to the insurer on the insured's claims for collapse and bad faith. Christopher M. Wolpert Saddletree Holding, LLC v. Evanston Ins. Co., 2024 U.S. App. LEXIS 10377 (10th Cir. April 30, 2024).
On May 7, 2019, Saddletree filed a claim with Evanston for damages sustained to its building which was used as a community events center. After a winter of heavy snowfall, Saddletree discovered that the building's steel support columns had buckled two or more inches and the roof had deflected downward approximately six inches.
Evanston retained an engineer to inspect the building. The engineer determined that the damage was the result of the building's inadequate "design and/or construction." Evanston disclaimed coverage under the policy's exclusion for damage caused by "hidden or latent defects" or "any quality in property that causes it to damage or destroy itself."
Read the full story...Reprinted courtesy of
Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
'You're Talking About Lives': The New Nissan Stadium
August 26, 2024 —
Grace Austin - Construction ExecutiveThe new Tennessee Titans sports complex rising up on the banks of the Cumberland River in Nashville is a big project no matter how you look at it. Nissan Stadium will have 60,000 seats, cover 1.85 million square feet and cost an estimated $2.1 billion. Four contractors are involved, operating under a joint venture called the Tennessee Builders Alliance: Turner Construction Co., AECOM Hunt, Polk & Associates Construction and I.C.F. Builders & Consultants. And nearly 20,000 workers will play a role over the project’s three-year timeline.
The sheer size and scope of the job led Tyler White, TBA’s environmental health and safety director, to think that the project needed to approach safety on a similar scale. The result is a first-of-its-kind public-private partnership between the Tennessee Occupational Safety and Health Administration and TBA.
“I thought it would be a good idea,” White says. “I know they’re stretched thin, but [we’re] very appreciate of advocating and allocating their resources.”
Reprinted courtesy of
Grace Austin, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Corrective Action Protest Grounds for GSA Schedule Federal Construction Contractors
September 09, 2024 —
Marissa L. Downs - The Dispute ResolverA contract awarded, protested, terminated, appealed, then reinstated. It’s no secret that federal construction procurements are plagued with uncertainty. From delays, constructive suspensions, compromised supply chains, the litigation-laden critical path method, and the mandate for all construction materials used in federally funded projects for infrastructure to be produced in the United States under the Build America, Buy America Act (BABAA) (to name just a few traditional and emerging favorites), just one of these issues could fill the rest of anyone’s month with substantive research. To add one more, which is entirely unique to bid protests, federal contractors–including construction contractors–listed in a General Service Administration (GSA) Schedule may have new grounds to have a contract award reinstated that was terminated by a federal agency pending a GAO decision.
GAO Protest
An initial GAO protest filed by Deloitte & Touche LLP (Deloitte) argued that the National Geo-Spatial Intelligence Agency (Agency) wrongfully made an award to Kearney & Company, P.C. (Kearney) when the Agency: (1) improperly evaluated quotes; and (2) failed to conduct a proper best-value tradeoff analysis. At issue was a competed task order with Kearney under a GSA FSS multiple-award contract. Before the GAO issued an opinion, however, it held an unrecorded predictive-outcome conference with Deloitte and Kearney where the only mutual consensus was the likely ineligibility of all offerors for the relevant award. The Agency subsequently elected to take corrective action, terminating Kearney’s contract award for convenience, amending the solicitation to avoid issues (including undisputed issues) addressed in the GAO protest. After the Agency adopted their corrective action, the GAO protest was dismissed as academic and moot.
Read the full story...Reprinted courtesy of
Marissa L. Downs, Laurie & Brennan, LLPMs. Downs may be contacted at
mdowns@lauriebrennan.com
ASCE Statement on Hurricane Milton and Environmental Threats
October 15, 2024 —
Feniosky Peña-Mora, P.E., President - American Society of Civil EngineersWASHINGTON, DC. – On the heels of the tragic damage caused by Hurricane Helene throughout the Southeast, Floridians were struck by another major hurricane, Milton, less than two weeks later. Our hearts go out to those impacted again by this storm through property damage, lack of water access, power outages, or worse, loss of life, all before getting a chance to recover from Helene. Civil engineers are dedicated to protecting the public with projects that can lessen the impacts of these storms, and we are eager to help communities rebuild as quickly as possible following events like Milton and Helene.
Although we do not yet know the full scope of destruction caused by Hurricane Milton, severe weather, including compound flooding events, are increasing regularly and pose a great risk to our safety and economic vitality. While so many eyes are fixated on hurricanes impacting the Southeast, wildfires are burning across several western states, including the Elk Fire in Wyoming, the largest wildfire the Bighorn National Forest has experienced in more than a century, now spanning over 75,000 acres as the region is experiencing unusually hot and dry weather and strong winds that are helping this fire to spread rapidly. The climate impacts we are accustomed to – wildfires in the West and hurricanes in the Southeast – are getting stronger, and now environmental challenges are occurring in areas we wouldn't suspect, such as Hurricane Helene striking mountain communities in Western North Carolina that have been labeled as "climate safe-havens," and Texas dealing with annual winter storms.
ASCE is a leader in codes and standards development and has created an
easy-to-understand toolkit for legislators and the public to learn the benefits of these up-to-date standards and determine when and how to adopt them, making our built environment more resilient to natural catastrophes. ASCE's flagship standard,
ASCE/SEI 7-22, recently underwent the most significant update to its
flooding chapter to ensure structures following this standard are prepared for 500-year flood events.
FEMA Fire Management Assistance Granted for the French Fire
July 08, 2024 —
The Federal Emergency Management AgencyOAKLAND, Calif. – The Federal Emergency Management Agency's (FEMA) Region 9 Administrator authorized the use of federal funds on July 4 at 11:37 p.m. PDT / 2:37 a.m. EDT to assist the state of California to combat the French Fire burning in Mariposa County.
On July 4, the state of California submitted a request for a Fire Management Assistance Grant (FMAG). At the time of the request, the fire threatened approximately 1,019 homes in and around Mariposa, CA, population 1,300. 95% of the threatened homes are primary residences and 5% are secondary residences.
The fire started on July 4, 2024 and had burned more than 790 acres of State and private land. The fire was 0% contained. There are five large fires burning uncontrolled within the State.
FMAGs provide federal funding for up to 75 percent of eligible firefighting costs. The Disaster Relief Fund provides allowances for FMAGs through FEMA to assist in fighting fires that threaten to become a greater incident.
Eligible costs covered by FMAGs can include expenses for field camps, equipment use, materials, supplies and mobilization, and demobilization activities attributed to fighting the fire.
For more information on FMAGs, visit https://www.fema.gov/assistance/public/fire-management-assistance.
Snooze You Lose? Enforcement of Notice and Timing Provisions
November 11, 2024 —
Cornelius F. "Lee" Banta, Jr. - ConsensusDocsDeadlines are an inescapable part of the construction industry. Bid deadlines. Submittal deadlines. Material delivery deadlines. Substantial completion. Final completion. And so, inevitably, fighting about deadlines becomes a necessary byproduct. Was the deadline really a deadline? Was the schedule slippage on the critical path? Should there be an equitable extension to the date of substantial completion? Given the amount of attention and concern conferred on deadlines, those drafting construction contracts naturally seek to clarify which deadlines really matter with the inclusion of notice and timing provisions.
A contract’s change order and claims procedures are often a key friction point for those drafting and administering the contract. Should there be a requirement for prior written notice of a claim for cost/time relief? How much advance notice? Who should the request be sent to? Is a specific form of notice required? What are the consequences of failing to provide timely notice? A practitioner should pay careful attention to negotiating these terms on the front end, because rest assured, these contract provisions will garner scrutiny when a change order dispute boils over.
Read the full story...Reprinted courtesy of
Cornelius F. "Lee" Banta, Jr., Peckar & Abramson, P.C.Mr. Banta may be contacted at
lbanta@pecklaw.com
Navigating Construction Contracts in the Energy Sector – Insights from Sheppard Mullin’s Webinar Series
October 01, 2024 —
Cesar Pereira - Sheppard MullinConstruction contracts in the energy sector involve unique challenges and risks, particularly with respect to bonds and mechanic’s liens.
Understanding how to navigate these challenges is key to protecting your projects from disputes with general contractors, subcontractors and suppliers.
In our recent webinar, “
Construction Contracts: Bond and Mechanic’s Lien Primer for Energy Projects,” I was joined by my Sheppard Mullin colleagues Chris Kolosov and Emily Anderson to discuss navigating common contract pitfalls and negotiation strategies to protect your interests.
Here are our key takeaways.
- Know Local Mechanic’s Lien Laws: Mechanic’s liens are statutory and vary significantly from state to state. It is critical to understand the local laws and regulations at play in your project’s jurisdiction.
Read the full story...Reprinted courtesy of
Cesar Pereira, Sheppard MullinMr. Pereira may be contacted at
cpereira@sheppardmullin.com
Five Issues to Consider in Government Contracting (Or Any Contracting!)
September 02, 2024 —
David Adelstein - Florida Construction Legal UpdatesThe appeal of Appeals of – Konecranes Nuclear Equipment & Services, LLC, ASBCA 62797, 2024 WL 2
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