Cambridge Massachusetts Building Consultant Directory

Connecticut Reverses Course for Construction Managers on School Projects

August 05, 2024 — Anand Gupta - Construction Law Zone Blog
On June 6, 2024, Connecticut Governor Ned Lamont signed into law Public Act 24-151 (H.B. 5524) (Bill 5524). Bill 5524 authorized and adjusted bonds of the state and provisions related to state and municipal tax administration, as well as addressed school building projects. Notably, Bill 5524 removed the ban on construction managers self-performing work on public school construction projects, effective July 1, 2024. Allowing construction managers to self-perform certain portions of the work, such as general trades, subject to the standard bidding requirements, is a common industry practice that, theoretically, reduces total project costs by reducing the amount of subcontracted work. However, proponents of banning self-performance argue that construction managers have too much information to bid fairly and competitively. Reprinted courtesy of Anand Gupta, Robinson+Cole Mr. Gupta may be contacted at agupta@rc.com Read the full story...

Damage Caused Not by Superstorm Sandy, But by Faulty Workmanship, Not Covered

December 10, 2024 — Tred R. Eyerly - Insurance Law Hawaii
The federal district court adopted the Report and Recommendations (R&R) of the magistrate judge, finding there was no coverage for faulty workmanship in replacing a roof for an apartment complex. Burlington Ins. Co. v. PCGNY Corp., 2024 U.S. Dist. LEXIS 167814 (S.D. N. Y. Sept. 16, 2024). Skyline Restoration was hired by the apartment complex to replace the apartments' roofs. Skyline subcontracted with PCGNY Corporation. The roofs were later damaged during Superstorm Sandy. Defendant Affiliated FM Insurance Company ("Affilliated"), a subrogee of the owner of the apartment complex, sued Skyline for defective, faulty and unworkmanlike removal and replacement of the roofs. Skyline filed a Third-Party Complaint against PCGNY. Plaintiff Burlington Insurance Company filed this coverage action against Skyline, Affiliated, PCGNY and others seeking a declaration that it had no duty to defend and/or indemnify PCGNY and/or Skyline, and that it was permitted to withdraw from the defense of PCGNY. Burlington filed a motion for summary judgment. The motion was referred to the magistrate judge who recommended that Burlington be granted a declaration that it had no duty to defend or indemnify PCGNY or Skyline and that it be allowed to withdraw from the defense of PCGNY in the underlying case. Read the full story...
Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

NYC Landlord Accused of Skirting Law With Rent-Free Months Offer

October 15, 2024 — Natalie Wong - Bloomberg
The opening of Tower 28, one of the tallest residential towers in New York City outside Manhattan, brought rent-stabilized units to Long Island City roughly seven years ago, adding affordable listings to a neighborhood where soaring prices were increasingly squeezing out many renters. Now, three tenants at the 58-story building have filed a class-action lawsuit alleging the landlord sought to evade New York City rent regulations in order to raise prices even higher over time. The lawsuit against the limited liability company tied to 42-12 28th St. in Queens claims that the property owner recorded initial rents with the New York State Division of Housing and Community Renewal that were higher than what the first tenant was actually charged and paid. In doing so, any future rent increases were based off a higher figure, according to the lawsuit. Read the full story...
Reprinted courtesy of Natalie Wong, Bloomberg

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

Executive Insights 2024: Leaders in Construction Law

August 05, 2024 — Construction Executive
The key risks that should always be taken into account when a contract is signed are risks associated with uncompensated delays and cost increases. Provisions relating to the scope of work deserve significant attention to help minimize these risks. Defining the scope of work is often put on the backburner while parties focus on negotiating the rest of the terms and conditions of the contract. And when these scopes are inserted, they are often not closely reviewed by attorneys who tend to defer to project personnel on scope. These situations can lead to costly disputes. Instead, make sure: (1) the correct plans and specifications have been referenced in the contract; (2) an attorney or his/her business counterpart is familiar with relevant specifications; (3) the exhibit containing the assumptions and clarifications is clearly written, has been coordinated with language in the body of the contract and can be clearly understood by attorneys and business people beyond the preconstruction personnel who drafted them; and (4) the contract addresses the order of precedence in the event of a conflict between or among contract provisions (including exhibits). With regard to specifications referenced above, an attorney review is advised because many specification sections, including submittal sections, change order sections, payment provisions and construction progress documentation sections, regularly vary from the negotiated sections of the actual contract. Contractors also unwittingly accept design risk through performance specifications, and the accompanying obligations and risks are underestimated by those tasked with the initial review of those documents. In sum, a clear scope is as important as clear terms and conditions. Reprinted courtesy of Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the full story...

BWB&O’s Motion for Summary Judgment is Granted in a Premises Liability Matter

November 05, 2024 — Dolores Montoya - Bremer Whyte Brown & O'Meara LLP
Congratulations to Newport Beach Partner Courtney Serrato and Associate Joseph Real on Prevailing on a Motion for Summary Judgment for their Client! Plaintiff filed a lawsuit alleging negligence and premises liability against BWB&O’s client, a general contractor of a multi-level construction project. Plaintiff was injured after a fall at the construction project and filed suit against BWB&O’s client and another subcontractor. Plaintiff alleged BWB&O’s client was negligent and was responsible for causing Plaintiff’s fall. BWB&O filed a Motion for Summary Judgment arguing under the Privette Doctrine and its progeny, it neither owed nor breached any duty to Plaintiff and that no exception to the doctrine applied. Under the Privette Doctrine, when a person or entity hires an independent contractor to provide work or services, and one of the contractor’s employees is injured on the job, the hirer is generally not liable to the employee. Read the full story...
Reprinted courtesy of Dolores Montoya, Bremer Whyte Brown & O'Meara LLP

Real Estate & Construction News Roundup (7/10/24) – Strong Construction Investment in Data Centers, Increase Use of Proptech in Hospitality and Effects of Remote-Work on Housing Market

August 05, 2024 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
In our latest roundup, renters stay in their units longer, GenAI change how commercial real estate operates, and banks continue high exposure due to commercial real estate.

Strong investor interest, particularly in opportunistic and value-add segments, signals a strong market for construction firms specializing in high-yield projects. (Sebastian Obando, Construction Dive)
A growing number of renters are staying in their units for longer periods of time than they did a decade ago with over one-third of U.S. renters have lived in the same apartment for more than five years. (Mary Salmonsen, Multifamily Dive)
Several U.S. regional and mid-sized banks continue to face the squeeze from high exposure to the commercial real estate sector that has been shaken by higher-for-longer interest rates and empty office buildings. (Reuters)

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Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team

Surprising Dismissal of False Claims Act Case Based on Appointments Clause - What Does It Mean?

October 15, 2024 — Steven H. Lee - Lewis Brisbois Newsroom
Atlanta, Ga. (October 1, 2024) - In a surprising turn of events, the U.S. District Court for the Middle District of Florida recently dismissed a False Claims Act (FCA) lawsuit brought by relator Clarissa Zafirov against Florida Medical Associates, LLC, and other defendants. U.S. District Judge Kathryn Kimball Mizelle ruled that the FCA’s qui tam provisions, which allow private individuals to bring lawsuits on behalf of the government, violate the Constitution’s Appointments Clause. This decision follows another unexpected ruling by U.S. District Judge Aileen Cannon in the Southern District of Florida, where the court similarly dismissed an indictment against former President Donald Trump based on the same constitutional clause. At the heart of these rulings is the argument that FCA relators - who decide whom to sue, which legal theories to pursue, and how to proceed - exercise significant executive authority. Because they are not appointed by the President, a department head, or a court, the judges concluded that these relators hold their positions unconstitutionally. As a result, Judge Mizelle dismissed the case entirely. Read the full story...
Reprinted courtesy of Steven H. Lee, Lewis Brisbois
Mr. Lee may be contacted at Steven.Lee@lewisbrisbois.com

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