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...

Builders Risk Policy Faulty Workmanship Exclusion applied to Wall Collapse

by Kent Holland | Apr 3, 2018 | Newsletter Article

When a wall collapsed during renovation of a row house, the developer sought to recover repair costs under its Builders Risk Insurance policy. The carrier denied coverage based on an exclusion in the policy for defects in construction or workmanship. It also asserted...

Spearin Doctrine Applies to Design-Build Contracts allowing Trade Subcontractor to Rely on Designs Provided by Engineer/Subcontractor

by Kent Holland | Feb 26, 2018 | Newsletter Article

On a design-build project involving MCAS Camp Pendleton, a subcontractor filed suit against Balfour Beatty Construction (“BBC”), the design-build contractor. This was under the Miller Act and alleged breach of contract and breach of implied warranty of specifications...

Contractor’s CGL Policy Professional Liability Exclusion Precludes Coverage for Damages from Subcontracted Land Surveyor’s Error

by Kent Holland | Feb 26, 2018 | Newsletter Article, professional liability exclusion

General Contractor (GC) constructed two condominium buildings too close to the adjoining property. This was due to an error made by the land surveyor who was working under subcontract to the GC. An occupancy permit would not be issued by the County unless the problem...