DELAY CLAUSES IN CONSTRUCTION CONTRACTS

No Damage for Delay

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Sixth Circuit Holds Defective Workmanship Not Covered by Contractor’s CGL Policy

Defective workmanship is not a covered occurrence, according to a 6th circuit decision. The concept of defective work continues to be interpreted differently by states around the country.

Green Building/Construction Law

insurance_policyA recent post on Insurance Developments (this blog’s sister blog) discussed a recent unpublished opinion by the Sixth Circuit Court of Appeals, which held that a contractor’s allegedly poor workmanship did not constitute an “occurrence” under the contractor’s policy, thereby relieving the insurer of the obligation to indemnify the contractor in a construction defect action. While this topic is not specifically related to green building (there are few reported decisions or active cases that are), the principle is nonetheless applicable to contractors working on green building projects.

Very briefly (click the link above if you want to read a slightly more in-depth discussion), Wal-Mart contracted with MW Builders to construct a new Wal-Mart in Kentucky. MW Builders subcontracted the site preparation and some preliminary foundation work to Kay & Kay. After construction was complete, cracks began to develop in the building’s walls, allegedly resulting from settlement below the foundation. MW…

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Modified Comparative Fault and Construction Defect Litigation – The End of Joint and Several Liability?

joint and several treatment is unlikely in most case scenarios due to a party having to be more than 50% of the aggregate fault leading to or causing damages. Specifically, in an action to recover damages resulting from personal injury, wrongful death, or damage to property............. if indivisible damages are determined to be proximately caused by more than one defendant, joint and several liability does not apply to any defendant whose conduct is determined to be less than 50% of the total fault for the indivisible damages as compared with the total of: (i) the fault of all the defendants; and (ii) the fault (comparative negligence), if any, of the plaintiff.