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What is a lost productivity / inefficiency claim? These are claims where a contractor claims it incurred increased labor (and, perhaps, equipment usage) because an event (referred to as an impact) caused it to work inefficiently. There needs to be a causal link between the cause of the impact and the increased labor costs. See Appeals of—Fox Construction, Inc., ASBCA No.
It is time for a very favorable case for an owner that experiences latent defects. In construction defect cases, there is a ten-year statute of repose to sue for latent defects. Specifically, under Florida Statute s. 95.11(3)(c) the “action must be commenced within 10 years after the date of actual possession by the owner, the date of the issuance of a certificate of occupanc ...
Executing partial releases and a final release in consideration of payment are routine on construction projects. Counsel will correctly tell you not to sign a release if you don’t intend to release all of your claims through the date of the release. Counsel will also tell you to be sure to exempt those claims from a release that you do not intend on releasing.
I previously discussed the value of an owner recording a Notice of Contest of Lien under Florida Statute s. 713.22 to shorten a lienor’s statute of limitations to foreclose a construction lien to 60 days from the date the lien is contested. For more information on recording a notice of contest of lien please look at this posting and this posting.
On sophisticated construction projects (federal, Florida public, or Florida private projects), it is not uncommon for a prime (general) contractor to require that certain subcontractors furnish the prime contractor a payment bond. When the subcontractor furnishes the prime contractor a payment bond, this bond is a common law bond because it is not a bond furnished in accordan ...
Here is an interesting lender liability dispute by a contractor against a construction lender on a failed construction project with a potentially harsh outcome to the contractor. In Jax Utilities Management, Inc. v. Hancock Bank, 40 Fla. L. Weekly D948a, (Fla. 1st DCA 2015), a housing development project went belly up, for lack of a better expression.
Oh boy! When it comes to workers compensation immunity, suppliers, particularly rental equipment suppliers, better watch out as they are not entitled to the same safeguards as subcontractors when it comes to injuries on a construction project! The Fourth District Court of Appeals in Ciceron v. Sunbelt Rentals, Inc., 40 Fla. L. Weekly D897a (Fla.
I previously wrote about insurance coverage issues in a construction defect dispute, specifically in the context of the insurer denying coverage outright and refusing to defend its insured. As a sequel to this posting, a noteworthy opinion was issued by the Eleventh Circuit Court of Appeals in Carithers v. Mid-Continent Cas. Co., 2015 WL 1529038 (11th Cir.
Contractors (or even subcontractors) in privity of contract with a private owner must serve a Contractor’s Final Payment Affidavit within 5 days before foreclosing on the lien. The objective is to swear to the owner the final payment the contractor is seeking and those unpaid lienors working under the contractor. This is set forth in Florida Statute s. 713.
Prime contractors working on federal government projects, or any project for that matter, have job site or field overhead / general conditions. Incurring extended field office overhead on a federal government project happens and, in many instances, is due to differing site conditions or another impact (e.g., design issue, change order work, etc.) caused by the government.
If you are an owner and discover construction or design defects, you are going to want consult with a lawyer to make sure you know your rights under Florida Statutes Chapter 558. This includes sending a written notice of the construction or design defects identifying the defects with sufficient detail to the potentially responsible parties.
Contractors working on federal projects should be familiar with the Davis Bacon Act (40 USC s. 3142 and formerly cited as 40 U.S.C. 276a). This Act requires contractors to pay, at a minimum, prevailing wage rates including fringe benefits for labor as determined by the Secretary of Labor. The wage rate for select workers is oftentimes an exhibit to the contract.
The recent opinion in U.S. f/u/b/o Marenalley Construction, LLC v. Zurich American Insurance Co., 2015 WL 1137053 (E.D.Pa. 2015) is a great example as to what could happen when a prime contractor submits a Contract Disputes Act claim to the federal government that includes subcontractor amounts and then a subcontractor simultaneously pursues the same amounts from the prime co ...
To follow-up on the article Workers Compensation—Tidbits on Construction Projects, the recent opinion in Roof Painting By Hartzell, Inc./Summit Holdings-Claims Center v. Hernandez, 2015 WL 641199 (Fla. 1st DCA 2015) touches upon the application of a statutory employer in the construction context. Here, a contractor was hired to provide pressure cleaning and related services.
Workers compensation is a “must have” insurance in the construction industry. Certain officers are entitled to be statutorily exempt from workers compensation (pursuant to Florida Statutes Chapter 440). See Fla.Stat. 440.02(15). But, if exempt, these officers are not entitled to receive workers compensation benefits.
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