Under Construction - June 2017


Letter from the Editor

Welcome to the summer 2017 edition of our Under Construction newsletter. In this issue, to accompany the summer heat, we highlight several hot topic items affecting the construction industry, such as the recent revisions to the AIA construction and design agreements. These changes are made every 10 years and this year, a number of substantive and significant changes were made that could affect your bottom line. They are addressed in the first article.

Recently, the Arizona Supreme Court decided two cases that directly impact the construction industry. One pertains to the enforceability of contractual liquidated damages and the other deals with the Statute of Repose and whether it applies to government entities. Both of these cases, and what their decisions mean moving forward, are covered by our next article.

Next, two California articles look at recent California appellate cases, one that significantly expands a subcontractor’s potential indemnification obligations to a general contractor and another that decided a 10-year battle between an owner and general contractor concerning the determination of what constitutes “completion” for purposes of commencement of the 90-day period within which mechanic’s liens must be filed in California.

The following two articles take a look at issues in Colorado. The first examines a recent case where the Colorado Supreme Court held that contractual privity is necessary for a home buyer to assert a claim for breach of the implied warranty of suitability against a developer. The second discusses new legislation, Colorado Construction Defect Action Reform: HB 17-1279, which was recently signed into law by Governor Hickenlooper.

Our newsletter is rounded out with an article that takes a look at how contractors can maximize their available insurance coverage in mediation. Mediating a very significant construction case involving tens of millions of dollars in claimed damages on both sides teaches significant lessons. This article focuses on what could be done by contractors who are being represented by counsel retained by an insurance company and who need to maximize their available insurance coverage in order to obtain resolution in mediation.

We hope you will find these articles informative and enlightening. Please let us know if you want us to address a specific construction issue in a future newsletter. Have a safe and enjoyable Chevy Chase summer vacation!

Jim Sienicki

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