Proposed legislation to change Florida's construction-defect notice statute

Sanjay Kurian recently posted an interesting article concerning proposed changes to Florida’s statute governing notice of construction defects. 

Proposed legislation to change Chapter 558

The Legislature will be considering legislation this year to change Chapter 558, Florida Statutes.  Chapter 558 is  required process for any party seeking to pursue claims for construction defects.  The original goal of Chapter 558 was to provide an opportunity to settle defect claims without litigation or arbitration, and not to create another source of dispute or litigation.  This bill is contrary to that original intent. The proposed bill would create new rights and defeats any realistic hope to amicably resolve claims as more fully explained below.  These changes, if enacted, will negatively impact all owners of construction improvements including hospitals, doctor’s offices, school buildings, condominiums, single family homes and commercial buildings.  The proposed legislation can be found here and the specific problems are noted below.

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Lunch Presentation on Advances in Construction Procurement and Performance for Owners and Contractors at the Forum's Midwinter Meeting

Please join Divisions 5, 11, and 12 for a lunch presentation on "Advances in Construction Procurement and Performance for Owners and Contractors" at the Forum on Construction Law's Midwinter Meeting on Thursday, January 29, 2015, from 11:30 a.m. to 1:00 p.m. 

The topic will be presented by Dr. Kenneth Sullivan, an Associate Professor at Arizona State University. Dr. Sullivan specializes in performance measurement, risk management, best value contracting, organizational transformation, and accountability systems. His processes have been implemented in design, engineering, construction, and facility services projects valued at $3B+. He holds a B.S. and M.S. in Civil and Environmental Engineering; MBA in Real Estate and Urban Economics; and PhD in Civil and Environmental Engineering from University of Wisconsin - Madison. Author of 120+ peer reviewed publications, he won the 2012 ASCE Journal of Leadership and Management in Engineering Best Article. Dr. Sullivan has created a Masters Degree program in Facility Asset and Project Management. He won the Ira A. Fulton School of Engineering 2008, 2009 and 2012 Teaching Awards and 2013 IFMA Educator of the Year.

Dinner with Division 12 at the Forum's Midwinter Meeting

As many of you know, the ABA Forum on Construction Law is holding its 2015 Midwinter Meeting next week in Scottsdale, Arizona. Divisions 12 and 1 are having dinner on Thursday night at TK's Urban Tavern. Known for its "casual dining, serious food," TK's is a locally owned small business that is committed to supporting local farms.  Its menu features a variety of quality dishes served in a casual atmosphere.  

TK's is located just a short 0.6 mile walk from our hotel, at the east end of Kierland Commons.  We are taking over the whole restaurant for this event, so there will be plenty of opportunities to catch up with friends, both old and new.  We hope you can join us for what promises to be a wonderful event.

Please contact Cathy Altman to RSVP for this event. Space is limited.

Date and Time: ​Thursday, January 29, 2015 at 8:00 to 10:00 PM

Venue: ​​TK’s Urban Tavern, 15037 N Scottsdale Rd, Scottsdale, AZ, (480) 664-0873

AIArchitect: Avoid Renegotiation with New AIA Contract Documents

Steve Cimino has posted an interesting update on the AIArchitect website concerning new AIA Contract Documents: 

Avoid Renegotiation with New AIA Contract Documents

The latest set of agreements allows for less time negotiating and more time designing

The AIA has released eight new contract documents, including a set of Master Agreements with Service and Work Orders designed to avoid the need for renegotiation when new tasks are added to a project.

The AIA Master Agreement set includes the following documents:

• A121™–2014, Standard Form of Master Agreement Between Owner and Contractor, where work is provided under Multiple Work Orders
• A121™-2014 Exhibit, A: Determination of the Cost of the Work
• A221™–2014, Work Order for use with Master Agreement Between Owner and Contractor
• B121™–2014, Standard Form of Master Agreement Between Owner and Architect for Services provided under Multiple Service Orders
• B221™–2014, Service Order for use with Master Agreement Between Owner and Architect
• C421™–2014, Standard Form of Master Agreement Between Architect and Consultant for Services Provided under Multiple Service Orders
• C422™–2014, Service Order for use with Master Agreement Between Architect and Consultant

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Illinois Public-Construction Bonds Are “Deemed” to Include Both a Performance and Payment Guarantee

The following post is courtesy of Daniel Dorfman at Harris Winick Harris, LLP.

Last month, in Lake County Grading Company, LLC v. Village of Antioch, the Illinois Supreme Court handed down a ruling concerning bonds procured under the Illinois Public Construction Bond Act. The Court held that performance bonds procured under the Act are deemed to include payment obligations, regardless of whether the bonds expressly include payment guarantees.

Take Full Advantage of the Opportunity to Mediate

Suzanne McSorley recently posted an interesting article in Under Construction concerning strategies for success at mediation.

Take Full Advantage of the Opportunity to Mediate: Prepare; Don’t Just Show Up!

We all know the Scout motto: Be prepared. Life is not merely showing up. It’s being ready when you do show up.  So, prepare for your mediation; don’t just show up!

In nearly 20 years of serving as mediation neutral, I have observed too many litigants who have intentionally or inadvertently adopted this attitude toward mediation:  they know that the mediation session will provide an opportunity to settle their case, and they show up, full of hope tempered with a little pessimism.  But they just show up! While I doubt any readers of Under Construction are guilty of this offense, I continue to be amazed at how infrequently parties – even parties with substantial claims – really prepare for mediation.  At best, lack of preparation prolongs the mediation process and increases its cost.  At worst, failure to prepare wastes a great opportunity to bring a dispute to an earlier and less expensive resolution. 

Preparation is as critical to success in mediation as it is to success at trial or in arbitration.  But, to a great extent, the kind of preparation needed for mediation is quite different from the kind of preparation needed for trial.  

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On The Dispute Resolver: A Contractual-Liability Exclusion to Insurance Coverage Might Not Apply to Defective-Work Claims Against a Contractor.

The Dispute Resolver has a recent post of interest to owners:

The U.S. Court of Appeals for the Fifth Circuit recently held that, under Texas law, an insurer could not exclude coverage for property damage claims against a general contractor that were based on violations of express warranties of good workmanship and repair. Such claims did not fall within the typical contractual-liability exclusion used in the general contractor’s commercial general liability policy (“CGL policy”). The Fifth Circuit reversed the district court and rendered summary judgment in favor of the homeowners asserting the insured’s rights, remanding for a determination of attorneys’ fees.

Crownover v. Mid-Continent Cas. Co., --- F. 3d ----, No. 11-10166, 2014 U.S. App. LEXIS 20737 (5th Cir. Oct. 29, 2014), on reh’g from 757 F. 3d 200 (5th Cir. 2014).

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