Ongoing Operations and Completed Operations Coverage

I often speak with prime contractors and owners who assure me that they require subcontractors to name them as additional insureds. This is the correct line of thinking as additional insured treatment is one of the key principals to adequately transfer the risk of construction defects or non property injury. The devil, as they say, is in the details, however. During these inquiries I often … Continue reading Ongoing Operations and Completed Operations Coverage

Insurance Market Leader Ames and Gough report Premium Price Decreases

Although a slim majority of insurance companies providing architects and engineers professional liability insurance saw their rates stabilize in 2016, nearly one in three experienced modest rate decreases, according to a new survey by Ames & Gough. Despite intense competition, insurers are maintaining underwriting discipline and placing greater emphasis on claims experience. This year, 95 percent of the insurers surveyed identified recent claims experience as … Continue reading Insurance Market Leader Ames and Gough report Premium Price Decreases

The Miller Act and Performance Bonds

The Miller Act, 40 U.S.C. §§ 3131–3134, provides that, before any contract for the construction, alteration, or repair of any public building or public work of the United States of more than $150,000 (increased fris awarded to any person, that person (usually the general contractor) must furnish: (1) A performance bond in an amount the contracting officer considers adequate for the protection of the United … Continue reading The Miller Act and Performance Bonds

The Miller Act: An Introduction

The Miller Act is codified at 40 U.S.C. §§ 3131-3134.  The Act requires a general contractor contracting with the federal government or a federal governmental entity for a construction project with a contract in excess of $150,000 to obtain both a performance bond and a payment bond. The Miller Act’s primary function is to foster construction and development in the public sector, while protecting infrastructure and public … Continue reading The Miller Act: An Introduction

Construction Manager entitled to Additional Insured Status

A recent decision in New York has held that a construction manager was entitled to additional insured treatment under a general contractor’s CGL policy.  Turner Constr. Co. v. Navigators Ins. Co., 2015 N.Y. Misc. LEXIS 2704 (N.Y. Sup. Ct. July 23, 2015). The Construction Manager (“Turner”)    was hired to “provide pre-construction services and construction management services for the Project.”   The owner hired two … Continue reading Construction Manager entitled to Additional Insured Status

Florida Rules Developer Not Entitled to Additional Insured Coverage for Negligent Misrepresentation

A Florida court has determined that a project owner’s (Cypress) general partner was not an additional insured under an insurance policy issued to the Genral Contractor (WPC) who constructed the project.  The ruling was made in conjunction with a lawsuit brought by a homeowners association for construction defects, maintenance issues and failure to disclose material facts.  WPC’s insurer (St. Paul) was not obligated to defend … Continue reading Florida Rules Developer Not Entitled to Additional Insured Coverage for Negligent Misrepresentation

Kentucky Commercial Subcontractor’s Work Deemed to be Faulty and Insurance Not Triggered

A recent unpublished opinion by the Sixth Circuit Court of Appealshas held that a contractor’s allegedly poor workmanship did not   constitute an “occurrence” under the contractor’s policy of insurance.  The facts in this matter can be summarized, as follows:  Wal-Mart contracted with MW Builders (“Contractor”) to construct a new store in Kentucky. Contractor subcontracted the site preparation and some preliminary foundation work to a subcontractor … Continue reading Kentucky Commercial Subcontractor’s Work Deemed to be Faulty and Insurance Not Triggered

When the Plans & the Code Don’t Mix, Can a Sub Sue a Design Professional for Negligence?

Originally posted on N.C. Construction Law, Policy & News:
Photo by CGehlen via Flickr * Talk about being stuck between a rock and a hard place. You’re an electrical sub who notices during your performance that installing certain light fixtures per plans would run afoul of the manufacturer’s instructions and violate the building code.  You bring the issue to the attention of your general contractor, who submits an RFI.  The… Continue reading When the Plans & the Code Don’t Mix, Can a Sub Sue a Design Professional for Negligence?

An LLC does not shield active members from liability in South Carolina Construction Defect ruling

In this case of first impression arising from a general contractor’s liability for construction defects, the Court held that a member of a limited liability company (LLC) can be held personally liable for negligent acts committed while working for the LLC of which he was a member. The Court stated that, based upon the General Assembly’s intent, the Uniform Limited Liability Act does not shield … Continue reading An LLC does not shield active members from liability in South Carolina Construction Defect ruling