Centerpoint was the general contractor on an apartment building project. Centerpoint purchased roof trusses directly from the manufacturer, Trussway. During construction a truss had been set in place but not yet installed. A worker retained by a … [Read more...]
Whether a subcontractor is bound by a price proposal submitted to a general contractor, in a situation in which negotiations regarding price and subcontract terms take place after the proposal is submitted. C.G. Schmidt, Inc., v. Permasteelisa North America. United States Court of Appeals, Seventh Circuit (2016), by Hugh Anderson
C.G. Schmidt (CGS) was a candidate to be the general contractor on an 18-story office building project in Milwaukee. CGS’s initial proposal to the owner was based in part on a $12 million sub-bid for the building’s curtain wall, by Permasteelisa … [Read more...]
What is the duration of a payment bond? Maschmeyer Concrete Company of Florida v. American Southern Insurance Company. United States District Court, Middle District, Florida (2016), by Hugh Anderson
The City of Orlando solicited bids for concrete repair and construction. The initial term of the contract was one year, but the City could renew the contract for additional terms up to five years total. The contractor was required to provide a … [Read more...]
Effect on a third party of a settlement agreement between the project owner and a supplier of materials. Aggregate Construction, Inc., v. Aaron Swan & Associates, Inc. Supreme Court of South Dakota (2015), by Hugh Anderson
Aggregate Construction was a supplier to highway contractors. The specifications for a South Dakota DOT project required aggregate that would meet a specific sodium sulfate soundness level. Aggregate retained Swan to test aggregate from a particular … [Read more...]
Whether a company that collected field information about an electrical utility’s facilities was practicing surveying. Southeastern Reprographics, Inc., v. Bureau of Professional and Occupational Affairs. Commonwealth Court of Pennsylvania (2015), by Hugh Anderson
The Central Electric Cooperative (CEC), a rural electric distribution company, contracted with Davey Resource Group (DRG) to conduct a field inventory of all CEC equipment, including transmission, distribution, and light poles, equipment, regulators, … [Read more...]
Engineering firm’s duty to defend project owner against a claim based on design deficiencies. Penta Corporation v. Town of Newport. Superior Court, New Hampshire (2016), by Hugh Anderson
The Town of Newport, N.H., retained AECOM to study the Town’s wastewater treatment plant, prepare drawings and specifications of upgrades, and provide construction-phase engineering services. AECOM recommended a disc filter system as part of the … [Read more...]
Engineer’s exposure to contractor claims. Balfour Beatty Infrastructure, Inc. v. Rummel Klepper & Kahl,, LLP. Court of Special Appeals of Maryland (2016), by Hugh Anderson
Summary: Design-bid-build City of Baltimore wastewater treatment plant upgrade project. The engineering firm Rummel Klepper & Kahl prepared the design and project timeline estimates. Fru-Con Construction (predecessor to Balfour Beatty … [Read more...]
Exceptions to statute of repose. Miron v. MNI, Inc. Court of Appeals of Wisconsin (2016), by Hugh Anderson
Summary: Alan Miron was a laborer for a company hired by Target to demolish a store in Milwaukee. During demolition in 2011, a fixture wall fell on and injured Miron. An investigation showed that a wall cleat intended to hold the fixture wall in … [Read more...]
Engineering/Architecture firms’ exposure to liability for scaffold collapse. McKean v. Yates Engineering Corporation. Court of Appeals of Mississippi (2015),by Hugh Anderson
Summary: This case presents a host of issues, some of which will be listed in bulleted form at the end of the Comment below. The focus of the summary will be on the potential liability of the project architect and the contractor’s engineering … [Read more...]
Obligation of Commercial General Liability insurance carrier when the insured has settled a claim without notice to, or involvement of, insurance carrier. Travelers Property Casualty Company v. Stresscon Corporation. Supreme Court of Colorado. (2016), by Hugh Anderson
Summary: After a serious crane accident on a construction project, the general contractor, Mortenson, sought delay damages from its concrete subcontractor, Stresscon. Stresscon notified its Commercial General Liability insurance carrier, Travelers. … [Read more...]