A Texas court recently affirmed the dismissal of construction defect claims by a residential condominium unit owners’ association because it lacked standing to assert claims against the developer, general contractor, and subcontractors of a new high-rise project in Houston. (more…)
The Federal Circuit Court of Appeals very recently issued an important decision in K-Con, Inc. v. Secretary of the Armywhich requires a construction contractor to provide performance and payment bonds, even though the contract does not expressly require it. The Court relied on the Christian Doctrine to incorporate into the contract, as a matter of law, bond requirements from the Federal Miller Act that were not physically written in. (more…)
The Fourth District Court of Appeals in Florida recently issued a decision in Gindel v. Centex Homes, that increases the amount of time homeowners have to file a lawsuit against homebuilders. The Court relied on basic principles of statutory interpretation to conclude that issuing pre-suit notice is an “action” under Florida’s statute of repose. (more…)
Although licensed home builders in Alabama are not required to maintain liability insurance, a new law requires them to disclose whether or not they have such insurance prior to the commencement of construction. The insurance disclosure must be signed by the home builder and the homeowner, as well as a witness selected by the homeowner. This will require home builders to modify their normal practice of engaging with homeowners for new work. Home builders may wish to build the insurance disclosure into their written contract for construction, as long as there is also a place for the homeowner’s witness to also sign. This new law is codified at Alabama Code Section 34-14A-19, and went into effect on June 1, 2018. Failure to comply may lead to sanctions by the Home Builders Licensure Board.
In 2013, China announced its plan to fund and construct a global transportation and infrastructure network known as the Belt and Road Initiative (“BRI”). Since that time, BRI projects have helped China to become a rival to the United States and European Union on the geo-political scene. They have also allowed Chinese companies to close the gap with their western counterparts in the global construction, engineering, advanced manufacturing, and logistics sectors. Western companies and governments need to take notice or risk being left behind. (more…)
The Alabama Homebuilders Association of Alabama, Inc. (the Homebuilders) has sued the Alabama State Board for Registration of Architects (the Board) seeking to invalidate a regulation that requires an architect for the design of townhouses. Alabama’s code exempts from the practice of architecture the making of plans and specifications for the construction of “single-family residence buildings.” The Board’s regulations state that an architect is not required for design of a “detached single-family residence.” (more…)
The Louisiana First Circuit recently held that a Private Works Act payment bond surety cannot raise a pay-if-paid provision in its principal’s contract as a defense to a claim against the bond. (more…)
Although the air may not be cool and crisp yet, it is August, and in the South, that means football season is just around the corner. Perhaps it is “football brain” that drove our thoughts in presenting recommendations for creating and running a successful joint venture (“JV”), resulting in the analogies discussed below. However, we believe it is more than that. A successful joint venture, much like a successful football program, requires thoughtful planning during the inception phase, strong leadership with well-defined roles, and careful risk management. Coin-toss, kick-off, and read on to learn effective ways to make your JV perform like it is playing on the varsity team.
It is not often the FBI is brought in to investigate a construction dispute regarding design, delay, and cost overruns. However, this is exactly what has happened on the taxpayer-funded baseball stadium project in Hartford, Conn. for the Colorado Rockies’ Double-A team, the Hartford Yard Goats. (more…)
A United States district court in Alabama recently dismissed an owner’s claim for indemnity against a contractor based on Alabama’s statute of repose. The indemnity claim arose out of a 2014 accident on an escalator built in 1997. (more…)