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DIRECTORY AND CAPABILITIES

No Coverage for Faulty Installation of Windows

May 06, 2025 — Tred R. Eyerly - Insurance Law Hawaii
The federal district t court granted summary judgment to the insurer, agreeing there was no "occurrence" nor "property damage" resulting from the faulty installation of windows. Employers Mut. Casualty Co. v. Knipp Equipment Inc., 2025 U.S. Dis. 24400 (D. Kan. Feb. 11, 2025). Edwards County and Knipp entered into a contract for the removal and replacement of the Courthouse's 113 windows. Three weeks after the job was completed, a rainstorm struck and several of the windows leaked. Edwards County filed a Statement of Claim with the American Arbitration Association, claiming Knipp breached its duty to perform the work and render the services owed to Edwards County in a good and workmanlike manner. Edwards County alleged that the windows had to be removed, re-sized, and re-installed, at the estimated cost of $420,000. Read the full story...
Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

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NCDOT Aims to Reopen Helene-damaged Interstate 40 by New Year's Day

December 10, 2024 — Derek Lacey - Engineering News-Record
Interstate 40, closed in late September when flooding from Hurricane Helene caused multiple landslides and washouts in the Pigeon River Gorge between North Carolina and Tennessee, is expected to partially reopen on New Year’s Day 2025, more than three months after the storm. Long-term reconstruction plans are still in early development. Read the full story...
Reprinted courtesy of Derek Lacey, ENR
Mr. Lacey may be contacted at laceyd@enr.com

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It’s Called “Delegation” – Basic Risks and Considerations for Delegated Design on Projects

April 29, 2025 — William Underwood - ConsensusDocs
The use of delegated design on projects can create many practical benefits. But it can also create additional pitfalls and risks for contractors accepting delegated design responsibilities. Recognizing and understanding these various considerations is important for contractors taking on delegated design roles. This article examines some of these considerations and provides practical advice to address them. However, this article does not cover the entire waterfront of delegated design issues, nor does it address every single potential pitfall or consideration. Rather, it highlights certain issues for contractors to consider on projects with delegated design components. Under a traditional design-bid-build model, the contractor is generally entitled to rely upon the design it is given (which is typically complete). And the contractor is generally not responsible for defects or errors in that design (a concept often referred to as the Spearin doctrine, based on the famous case of that name). Typically, that design is prepared by the design professional of record (DPR), who remains responsible for the adequacy of that design. However, there are various instances in which it might make more sense to “delegate” certain design components to a contractor. This is particularly true given the ever-increasing specialization of materials, processes, sub-components, etc. used on construction projects. And in certain instances, the contractor may be better positioned to develop select portions of a design, particularly if it is highly specialized in nature. Read the full story...
Reprinted courtesy of William Underwood, Jones Walker, LLP
Mr. Underwood may be contacted at wunderwood@joneswalker.com

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Governor Bob Ferguson’s Recent Executive Orders – A Positive Sign for Washington’s Construction Industry

January 21, 2025 — Ryan Sternoff & Trygve Groh - Ahlers Cressman & Sleight
On January 15th, in his first act as Washington’s Governor, Bob Ferguson signed three executive orders, two of which may have a direct impact by removing some of the “red tape” that stifles Washington’s construction industry. This appears to be a positive sign that the Governor’s office is focused on pragmatic action, rather than partisan politics. Executive Order 25-02 is entitled “Assessing Regulatory Efficiency and Addressing Washington’s Affordable Housing Crisis” and directs all executive and small cabinet agencies (collectively, “State Agencies”) to review their rules and regulations and prepare a report for the Governor’s Office that identifies rules or regulations that impact the construction of new housing. The reports will also identify rules or regulations that are no longer necessary and can be rescinded, rules or regulations that can be amended to speed up housing construction. The reports will include descriptions of proposed amendments to such rules and regulations. The reports must be provided to the Governor’s Office within sixty days. Read the full story...
Reprinted courtesy of Ryan Sternoff, Ahlers Cressman & Sleight
Mr. Sternoff may be contacted at ryan.sternoff@acslawyers.com

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In Appellate Division First, New York Appellate Team Successfully Invokes “Party Finality” Doctrine to Obtain Dismissal of Appeal for Commercial Guarantors

December 23, 2024 — Dean Pillarella - Lewis Brisbois
New York, N.Y. (November 20, 2024) - In Roc-Le Triomphe Associates, LLC v. DeSouza, 2024 NY Slip Op 05654 (1st Dep’t 2024), Associate Dean Pillarella, a member of the Appellate Practice, successfully invoked the party finality doctrine to obtain the dismissal of an appeal for the firm’s commercial guarantor clients. The action concerned rent allegedly due and owing under a commercial lease by the lease’s tenant and guarantors. Pursuant to a 2022 order, the guarantors were awarded summary judgment and dismissal of all claims against them, with the landlord’s claims against the tenant left intact. After the decision and order was served with notice of entry by the prevailing party, the landlord did not file a notice of appeal from the order but, instead, filed a notice of appeal from a later judgment months after the time to appeal the order had expired. Read the full story...
Reprinted courtesy of Dean Pillarella, Lewis Brisbois
Mr. Pillarella may be contacted at Dean.Pillarella@lewisbrisbois.com

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Mind Those Deadlines! Party Loses Appeal of Arbitration Decision by Failing to Timely File a Petition to Vacate

April 01, 2025 — Garret Murai - California Construction Law Blog
Arbitration provisions are increasingly common in construction contracts. Indeed, the boilerplate AIA contract documents include a standard arbitration provision providing for arbitration before the American Arbitration Association (“AAA”) (Note: AAA isn’t the only arbitration provider, and I’ve often wondered why the AIA includes the AAA only. Some sort of deal perhaps?). Whether you love arbitration or not – although “love” may be a bit of a strong word, and perhaps “prefer over litigation,” is more appropriate – there are strict deadlines under California law when it comes to confirming an arbitration award (if you win), challenging an arbitration award (if you lost), or seeking to vacate an arbitration award. In Valencia v. Mendoza, 103 Cal.App.5th 427 (2024), the Second District Court of Appeals discussed those deadlines in a case involving a “flip” gone wrong. Read the full story...
Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

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Real Estate & Construction News Roundup (2/19/25) – An Embrace of AI, A Squeeze on Construction and a Jump in Mortgage Refinance Demand

March 04, 2025 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
In our latest roundup, tech giants invest in new data centers, senators introduce bill aimed at price-setting algorithms, DoD stops PLA requirements, and more!

• The real estate industry is embracing AI for enhancements across a wide range of applications. (Kathleen Walch, Forbes)
• A joint venture among OpenAI, Softbank and Oracle plans to invest $100 billion in AI infrastructure, with the potential to scale up to $500 billion by the end of 2028. (Sebastian Obando, Construction Dive)
• Construction firms are likely to feel the squeeze within months if the new fees on imported materials take effect in March. (Sebastian Obando, Construction Dive)

Read the full story...
Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team

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Real Estate & Construction News Roundup (1/28/25) – FTC Suing Greystar, DOJ Investigating Top Residential Landlords and Trump Facing Housing Conundrum

February 03, 2025 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
In our latest roundup, construction technology funding stabilizes, office vacancies hit new high, builders outline recommendations to Trump, and more!

• Following a 44% downturn in construction technology investment in 2023, the contech funding ecosystem seems to have stabilized last year (Matthew Thibault, Construction Dive)
• The Federal Trade Commission and the state of Colorado are suing Greystar for allegedly deceiving consumers about monthly rent costs by adding mandatory fees on top of advertised prices. (Jennifer Goodman, Multifamily Dive)
• To support construction growth, the Associated General Contractors of America recently outlined five key recommendations for the Trump administration. (Sebastian Obando, Smartcities Dive)

Read the full story...
Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team

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