Construction Updates

Read need-to-know updates, commentary, and analysis on Construction issues written by leading professionals.
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Construction E-Note - September 2016

Pokémon Go is the newest craze to hit smartphones, finding colossal success in America. Some estimates claim that five percent of all android users had installed the game on their phones within one week of launch. Nintendo’s...more

New York Court Confirms: Additional Insured Coverage Limited to Contractual Privity

On September 15, 2016, the New York Supreme Court, Appellate Division, First Department found that an additional insured endorsement provided additional insured coverage only to the entity in direct contractual privity with...more

Hawaii Labor Department Imposes Massive Penalties, Sends Clear Message to Employers

Taking advantage of a new law that substantially increases penalties, the Wage Standards Division of the Hawaii State Department of Labor & Industrial Relations (“DLIR”) has issued penalties totaling $767,095 to a...more

The Absent Commissioner: After a hearing, who may render a decision on the claim?

Bentley v. Jonathan Piner Construction (NC Court of Appeals, 9/20/16) Plaintiff suffered a right eye injury on March 3, 2014, when working on a construction site.? Defendants denied the claim, arguing that plaintiff was...more

Court of Appeals Changes Calculation of Statute of Repose

Colorado law generally prohibits construction defect lawsuits against a construction professional brought “more than six years after the substantial completion of the improvement to the real property.” § 13-80-104, C.R.S....more

Texas Supreme Court Affirms Property Owners' Rights Within the Extraterritorial Jurisdiction

On May 27, 2016, in Town of Lakewood Village v. Bizios, the Texas Supreme Court held that general law municipalities do not have the authority to enforce building codes within their extraterritorial jurisdictions (ETJs). This...more

What a pain in the glass: The Supreme Court of Canada impacts construction and insurance industries

Builders risk coverage extended to “service providers” and not just to those who “construct” - The Supreme Court of Canada’s recent decision, Ledcor Construction Ltd v. Northbridge Indemnity Insurance Co., 2016 SCC 37,...more

State of Alaska Tightens Its Claim Provisions

In 2015, the Alaska Department of Transportation and Public Facilities significantly amended the claims provision of its Standard Specifications—105-1.17. The amendments incorporate language from the standard conditions...more

Don’t Sleep on Your NJ Construction Lien Enforcement Deadline

So you’ve managed to successfully file a construction lien claim in New Jersey. Well, don’t then kick back and relax for too long, because if you fail to take action to enforce that lien claim within the limited time...more

Canadian Contractual Interpretation Just Got More Difficult

Supreme Court of Canada Revives Correctness Test for Interpreting Standard Form Contracts - There is a new exception to the new Canadian approach for reviewing the interpretation of contracts: a trial court’s...more

California Legislative Update - New Laws Affecting Builders and Contractors

August marks the return to school and bill signing season for California Governor Jerry Brown. In the past month – and like he does every August and September – Governor Brown signed well over one hundred pieces of...more

Subcontractor Exception Torpedoes Insurers’ Defense To Faulty Workmanship Claim

As this blog has reported, a line of cases deciding coverage disputes over faulty workmanship runs against (or, at least, around) a basic rule for interpreting insurance policies. Under that rule, the scope of coverage is...more

Harsh Consequences for Contractor’s False Payment Certifications in Massachusetts

On most construction projects, a project owner will require the contractor to certify that it has fully paid each of its subcontractors as a condition to the owner making payment to the contractor. The purpose of these...more

Considerations for Construction Industry Employers as They Continue to Prepare for New Salary Thresholds Under White-Collar...

These changes to the overtime exemptions will touch almost every employer in the country, but they are likely to have a disproportionate impact on construction-related businesses, which are among the industries projected to...more

Contractual Indemnification

Aluma Systems Concrete Construction of California v. Nibbi Bros. Inc., et al. - Court of Appeal, First Appellate District (August 16, 2016) - This case considered the applicability of a contract’s indemnification...more

New Jersey Federal District Court Holds That Arbitration Clause In AIA A201-1997 Does Not Apply To Post Construction Disputes

Blackman & Co., Inc., v. GE Bus. Fin. Servs., Inc., 2016 U.S. Dist. LEXIS 87904 (D.N.J. July 7, 2016) - Grove Street Realty Urban Renewal, LLC (“Grove Street”) contracted with Blackman & Co., Inc. (“Blackman”) to manage...more

OSHA Clarifies Cranes and Derricks in Construction Standard for Moving Grave Headstones, Monuments

Using a crane to move headstones and small monuments is “generally” not defined as construction, but the crane operator is still responsible for stringent worker-safety rules regarding crane operations, the Occupational...more

Unpaid Subcontractors Beware

Alberta Court of Appeal confirms no duty to disclose existence of labour and material bond unless asked - Labour and material payment bonds (L&M Bonds) serve an important purpose on a construction project by providing...more

OSHA’s Final Rule on Crystalline Silica Standards

Earlier this year, the Occupational Safety and Health Administration (OSHA) published its long-awaited final rule (https://www.gpo.gov/fdsys/pkg/FR-2016-03-25/pdf/2016-04800.pdf) setting new workplace permissible exposure...more

What Federal Contractors Need to Know to Comply With Fair Pay & Safe Workplaces Rule

On August 25, 2016, the federal government implemented Executive Order 13673, first put forth by the Obama Administration in 2014.Officially known as the Fair Pay & Safe Workplaces rule, and more commonly referred to as the...more

Mississippi Court Rejects Expansive Reading of Oral Construction Contracts

In McKean, et. al. v. Yates Engineering, 2015 Miss. App. LEXIS 446 (2015), the Court of Appeals of Mississippi affirmed the Circuit Court’s dismissal of four (4) plaintiffs’ personal injury claims stemming from the collapse...more

Asia's infrastructure opportunity

Both Japan and China have significantly increased their commitment to invest in Asian infrastructure, but steps must be taken in a number of other areas to unleash the region's full potential....more

Supreme Court of Pennsylvania Holds That Under Prompt Payment Act, Imposition of Penalty and Attorneys’ Fees Is Discretionary, Not...

Scott Enters., Inc. v. City of Allentown, 2016 Pa. LEXIS 1503 (Pa. July 19, 2016) - The Supreme Court of Pennsylvania reversed an order of the Commonwealth Court and held that the prompt payment provisions of the...more

Defence & Indemnity - August 2016: II. LIABILITY ISSUES #2

B. There is no vicarious liability for an occupier of land for the negligence of an independent contractor on the basis of agency. Heikkila v. Apex Land Corporation, 2016 ABCA 126 [4191]...more

Class Action Arbitration after Dell Webb

Agreeing to arbitrate disputes, in lieu of traditional litigation, is not a new phenomenon. As consumers, we all contractually agree to arbitrate disputes on an almost daily basis. While not everyone may read the entire...more

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