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There Are Consequences to Executed Documents Such as the Accord and Satisfaction Defense

October 01, 2024 — David Adelstein - Florida Construction Legal Updates
A federal government contractor in Jackson Construction Co., Inc. v. U.S., 62 Fed.Cl. 84 (Fed.Cl. 2024) sought delay damages against the government. It lost. The reason for the loss is a crucial reminder that documents parties sign ALWAYS matter. ALWAYS!! In Jackson Construction Co., the contractor’s delay claim was premised on relocating a waterline. The contractor, however, received additional money for relocating the waterline, but no additional time, and this was memorialized in a modification to the contract (i.e., a change order). In executing the modification for the additional work, the contractor did NOT reserve rights for time or money. Indeed, the modification reflected that the monetary adjustment constitutes full compensation for the additional work including delay, namely:

The contract period of performance remains the same. It is further understood and agreed that this adjustment constitutes compensation in full on behalf of the contractor and his subcontractors and suppliers for all costs and markup directly or indirectly, including extended overhead, attributable to the change order, for all delays related thereto, and for performance of the change within the time frame stated.

Jackson Construction Co., supra, at 90.

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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

Another Reminder that Your Construction Contract is Only as Good as Those Signing It

December 17, 2024 — Christopher G. Hill - Construction Law Musings
Here at Construction Law Musings, we beat the constant drum that “the contract is king” and “draft a good and well-worded construction contract” consistently. As a Virginia construction attorney, I stand by these statements and fully endorse a well-written construction contract. Such a contract will set expectations and provide the rules for your deal (particularly in the commercial context). Without this solid foundation (yes, I see the potential construction pun), when there are issues on the job site, there will be no baseline for how to resolve those issues. That said, I am also reminded on an almost daily basis that humans interact with these contracts. People negotiate the contracts and are the main forces that drive the success (or failure) of the construction project. Money is involved (often a lot of it) and there can at times be temptations to try and squeeze one last dollar out of the job despite what the contract says. Even the strongest contract cannot act as real-time protection against one party that refuses to comply with the contract and its performance or payment terms. Read the full story...
Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

NCDOT Aims to Reopen Helene-damaged Interstate 40 by New Year's Day

December 10, 2024 — Derek Lacey - Engineering News-Record
Interstate 40, closed in late September when flooding from Hurricane Helene caused multiple landslides and washouts in the Pigeon River Gorge between North Carolina and Tennessee, is expected to partially reopen on New Year’s Day 2025, more than three months after the storm. Long-term reconstruction plans are still in early development. Read the full story...
Reprinted courtesy of Derek Lacey, ENR
Mr. Lacey may be contacted at laceyd@enr.com

Nuclear Fusion Pushes to Reach Commercial Power Plant Stage

August 05, 2024 — Mary B. Powers, Debra K. Rubin, Peter Reina & David Godkin - Engineering News-Record
The quest to develop nuclear fusion—the process that energizes the sun and other stars—as an earth-based power source dates back more than a century when Albert Einstein and other scientists theorized how enormous amounts of energy could be produced when atoms fuse. That research was partly diverted for wartime weapons priorities but later targeted to develop fusion for commercial-scale energy—what sector proponents have called the “holy grail” for decades since. Reprinted courtesy of Mary B. Powers, Engineering News-Record, Debra K. Rubin, Engineering News-Record, Peter Reina, Engineering News-Record and David Godkin, Engineering News-Record Ms. Rubin may be contacted at rubind@enr.com Mr. Reina may be contacted at reina@btinternet.com Read the full story...

Assessments Underway After Hurricane Milton Rips Off Stadium Roof, Snaps Crane Boom in Florida

November 05, 2024 — James Leggate - Engineering News-Record
Hurricane Milton and tornados it spurred killed at least five people and knocked out power to 4 million homes and businesses in Florida after making landfall Oct. 9 near Siesta Key in Sarasota County. With assessments and rescues still underway, state officials say the damage was not as bad as it could have been. Reprinted courtesy of James Leggate, Engineering News-Record Mr. Leggate may be contacted at leggatej@enr.com Read the full story...

Sources of Insurance Recovery for Emerging PFAS Claims

December 17, 2024 — Jasjeet K. Sahani - Saxe Doernberger & Vita, P.C.
This year, the Environmental Protection Agency (“EPA”) issued its first-ever national, legally enforceable drinking water standard to protect communities from exposure to harmful per-and polyfluoroalkyl substances (“PFAS”), also known as “forever chemicals.”[1] In addition, the Food and Drug Administration announced that grease-proofing materials containing PFAS are no longer being sold for use in food packaging in the United States.[2] These are likely the first in a line of many PFAS regulations that will emerge as the harmful effects of PFAS are further understood. With this increasing regulatory focus on PFAS and their harmful effects, companies whose operations might involve these substances should be aware of what they are and potential sources of recovery for claims that arise from their omnipresence. PFAS Background According to the EPA, PFAS are widely used, long-lasting chemicals which break down slowly over time.[3] PFAS can be found in thousands of items, including, but not limited to: pots and pans, cleaning products, fabric and leather coatings, firefighting foam, carpeting, roofing materials, paints, sealants, caulks, and adhesives.[4] Additionally, manufacturing processes, waste storage, and treatment sites commonly release PFAS into the air, soil, and water.[5] Read the full story...
Reprinted courtesy of Jasjeet K. Sahani, Saxe Doernberger & Vita, P.C.
Ms. Sahani may be contacted at JSahani@sdvlaw.com

More (and Simpler) Options Under New Oregon Retention Law

October 21, 2024 — Michael Yelle - Ahlers Cressman & Sleight PLLC
Similar to the changes made by the Washington Legislature last year, the Oregon Legislature recently changed its retention law. Oregon public works agencies and large commercial project owners are now required to accept surety bonds in lieu of withholding retainage on construction projects. There is also no longer a requirement to deposit retention funds in an interest-bearing escrow account. The owner or public agency must accept the bond in lieu of retainage unless specific grounds exist. For example, public agencies must find there is “good cause” for rejection of the bond based on the “unique project circumstances. Private owners have less discretion to reject a bond and if the bond meets the statutory requirements, per ORS 701.435(1)(a) “the owner and lender shall accept” the bond “in lieu of all or any portion of the retainage…” Courts have not analyzed when “good cause” exists for public agencies to reject bonds or exactly what will allow a private owner to reject a bond. However, an agency or owner cannot have a general policy to reject retention bonds. The statute does not provide next steps if the contractor disagrees with a decision to reject the bond. It may be necessary to proceed under the contract’s dispute resolution procedure or it may be more appropriate to take the issue directly to the courts. Read the full story...
Reprinted courtesy of Michael Yelle, Ahlers Cressman & Sleight PLLC
Mr. Yelle may be contacted at michael.yelle@acslawyers.com

There is No Presumptive Resumption!

January 21, 2025 — Daniel Lund III - Lexology
A Louisiana school board filed suit in court in 2018 on a construction project but was rebuffed based upon arguments by the general contractor and surety defendants. Those defendants asserted that the court filings were premature, based upon an arbitration clause in the general contract. The trial court agreed and stayed the litigation, “pending completion of arbitration.” Arbitration was never filed. Interestingly, within the arbitration clause, the following language existed: “For statute of limitations purposes, receipt of written demand for arbitration shall constitute the institution of legal or equitable proceedings based upon the Claim.” Read the full story...
Reprinted courtesy of Daniel Lund III, Phelps
Mr. Lund may be contacted at daniel.lund@phelps.com

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