Construction Industry Legal Blog

By Austin B Calhoun

Do you know what your CGL insurance policy covers? General contractors may expect that their CGL policy covers the cost to repair defective work, or other components of the project that were damaged by defective work. This may be one of the primary reasons a contractor purchases CGL insurance. However, this coverage may not exist. It depends on the language of the policy and endorsements. Of particular importance is the “your work” exclusion and the “subcontractor exception,” which were the subject of a recent Florida case. In J.B.D. Construction, Inc. v. Mid-Continent Casualty Company, 2014 U.S. App. LEXIS 13358 (11th Cir. July 11, 2014), the court denied coverage based on the “your work” exclusion. This blog looks first at the concept of “property damage” coverage and then examines how the holding of J.B.D. Construction impacts the breadth of property excluded from “property damage” coverage by the “your work” exclusion. Lastly, we examine how elimination of the “subcontractor exception” renders your insurance nearly useless in construction defect cases.

In Florida, design-build contracts do not need to identify a licensed architect . This rule was clarified in the recent case of first impression, Diaz & Russell Corporation, et al. v. Dept. of Business and Professional Regulation, 2014 Fla. App. LEXIS 8113, No. 3D13-1764 (Fla. 3d DCA May 28, 2014). An exception in Section 481.229(3), Florida Statutes, allows contractors to “negotiate” design-build contracts, so long as the negotiating contractor is neither offering to render, nor actually rendering, the architectural services of the project.

This is the final submission in a series of Blog posts dedicated specifically to explaining delay damages.  This series has covered these damages from beginning to end.  From successfully proving that a delay occurred, while addressing common defenses and discussing the various methods used to calculate delay damages (Part III, […]

Design Professionals, such as architects and engineers, may be subject to malpractice actions arising from their performance of professional services.  The Florida statute of limitations for professional malpractice claims is two years. Unlike other professionals in Florida, design professionals may also be subject to causes of action arising from services […]

As is evident from the previous posts of this series, delay damages are complex. This is Part VIII of the series dedicated specifically to explaining these damages. Previous posts in the series have discussed proving that a delay occurred, addressed the most applicable and common defenses and varying methods to calculate delay damages—the Total Cost Method, the Modified Total Cost Method, the Jury Verdict Method, the Eichleay Formula and damages for an increase in labor, material and equipment costs. This post will discuss two methods that award damages for either a total or partial loss of labor productivity.

Construction contracts contain many risk-shifting mechanisms. One such mechanism is the “pay when paid” provision that requires payment from one party before there is any requirement to pay another party. Typically, this contract provision is found in the contract between the general contractor and its subcontractors, as well as in the subcontractor’s contract with its subcontractors. If not properly worded, this risk shifting provision will not have its intended consequences.

This is Part VII in a series of Blog posts dedicated to explaining delay damages. Previous posts in the series have discussed proving that a delay occurred, addressed the most applicable and common defenses and varying methods to calculate delay damages—the Total Cost Method, the Modified Total Cost Method, the Eichleay Formula and damages for an increase in labor, material and equipment costs. Another method used to calculate delay damages is the Jury Verdict Method, which is a combination of a few methods previously discussed.

Roofing systems are an integral part of any new construction. There are a number of things to consider when selecting a new roof system. Of course, cost and durability head the list, but aesthetics and architectural style are important, too. The right roof system for your home or building is one that balances these considerations. This is a three part blog that will discuss basic residential roofing considerations in Florida. Part I discussed the basic components and types of roofs. Part II discussed the “Enemies” of your roofing system. This Part III will discuss various factors and considerations in selecting a roofing contractor.

The 2014 Florida Legislative session came to an end on May 2, 2014. With a $1.2 billion surplus and elections looming in the fall, cuts in state taxes and fees were a priority for Governor Scott and for legislative leaders. Early in the session, the Legislature passed a $395 million roll-back in vehicle and vessel registration fees which may help the construction industry – fees that were increased in 2009 under the watch of former Governor Charlie Crist.

Insurance plays a key role with any business and its business relations with others. While parties may have good intentions as to their respective insurance obligations, they may fail to procure the requisite insurance coverage under the parties’ contract. When this happens, the results can be irreparable.