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Is a worksite accident that occurred during the construction of a stormwater detention vault excluded from coverage by a residential construction exclusion in a commercial general liability policy?  A Washington State court recently answered, yes. In Evanston Insurance Co. v. NW Classic Builders, LLC, Felipe Flores was injured while constructing a stormwater detention vault for a new residential subdivision in Sammimish, Washington. His employer, ARH & Associates, contracted with NW Classic Builders, the general contractor.  Flores sued NW Classic Builders for failing to provide a safe w

With tighter terms on construction loans and permanent financing, payment claims in the construction arena have increased. Noticeable during this uptick are assertions of violations of the Texas Construction Trust Fund Act. The Act is found in Chapter 162 of the Texas Property Code and creates overarching rules for all real property construction projects, with one applying specifically to residential construction over $5,000. The Construction Trust Fund Act classifies construction payments made to a contractor or subcontractor or one of their officers, directors, agents under a construction co

In late December 2023, the Federal Acquisition Rules were amended to require project labor agreements (PLA) in all federal projects with an estimated total construction cost of $35 million or more.  Will this new rule enhance or impede competition on large scale construction projects, and will it moderate or escalate labor costs?  The battle lines have been drawn, but the questions remain unanswered. Under FAR 22.503, federal agencies must require use of PLAs for contractors and subcontractors engaged in construction on the large scale projects unless an exception applies. The exceptions, wh

The 2023 Texas Legislative Session brought several important changes to residential construction. First, HB 2022, effective September 1, 2023, made several changes to the Residential Construction Liability Act (RCLA) and second, HB 2024, effective June 9, 2023, created a shorter statute of repose for qualifying contractors. Modifications to the RCLA The RCLA, Chapter 27 of the Texas Property Code, applies to “any action to recover damages or other relief arising from a construction defect, except a claim for personal injury, survival, or wrongful death or for damage to goods.” Tex. Prop. C

Recently, the Armed Services Board of Contract Appeals found that the U.S. Navy waived claims for liquidated damages and was unjustified in terminating a contractor when it allowed the contractor to miss the contract completion date and never set a new completion date.   The contractor, Consorzio Stabile GMG SCARL, was contracted by the U.S. Navy to install blast resistant doors at a facility in Bahrain. Corsorzio’s contract  required the doors would be installed no later than September 29, 2019.  Consorzio had numerous problems in obtaining the properly designed and manufactured doors,