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HEADLINES ADDED: July 04, 2008
Homeowner's Refusal to Make One Payment in a Construction Installment Contract Constitutes a Substantial Breach of the Contract
The South Carolina Court of Appeals recently decided that a homeowner's refusal to make an installment under construction contract constituted a substantial breach of the contract. See Silver v. Aabstract Pools, 376 S.C. 585, 658 S.E.2d 539 (Ct. App. 2008). A homeowner and contractor contracted for the construction and installation of an in-ground swimming pool. The contract called for five payments upon the completion of five scheduled tasks. The homeowner made three of the payments according to the schedule, however, the homeowner refused to make the fourth payment because he... Read More
HEADLINES ADDED: June 30, 2008
“Opt-out” Class Action and Notification Procedure is the Exclusive Method of Class Action Litigation in South Carolina
In a recent decision, the S.C. Supreme Courtheld that the“Opt-out” class action and notification procedure is the exclusive method of lass action litigation in South Carolina. See Salmonsen v. CGD, Inc., 377 S.C. 442, 661 S.E.2d 81 (2008). Several homeowners instituted a class action suit seeking damages arising from the application of defective synthetic stucco Exterior Insulation and Finish System ("EIFS") to residential homes in the Charleston area. On appeal the South Carolina Supreme Court addressed procedural questions concerning the certification of the class and whether certification orders were immediately... Read More
Basis for Liens and Assessments Under the S.C. Horizontal Property Act
Liens for non-payment of assessments to a community association can arise under two different situations. First, the S.C. Horizontal Property Act provides a statutory basis for the creation of liens in the case of condominiums only. Second, liens may arise by contract through the Covenants, Conditions, and Restrictions. S.C. Code Ann. Section 27-31-190 of the S.C. Horizontal Property Act provides as follows: "The co-owners of the apartments are bound to contribute pro rata in the percentages computed according to Section 27-31-60 toward the expenses of administration and of maintenance and... Read More
HEADLINES ADDED: June 28, 2008
Maryland Expands Scope of Mechanic's Lien
This year, the Maryland legislature passed a new law that expands the definition of work or materials furnished “for or about the building” to include interior design services provided by a certified interior designer. This new legislation takes effect on October 1, 2008. This expands the scope of Maryland Mechanic’s Lien, because Maryland courts have previously held that work done or materials furnished that are not specifically listed in the Maryland Mechanic’s Lien statute cannot be the subject of a mechanic’s lien. For example, in Maryland, the court held... Read More
HEADLINES ADDED: June 27, 2008
Owner Who Builds His Own Home Offers No Implied Warranty of Workmalike Service nor Owes Duty of Care to Future Purchaser
In the recent case of Smith v. Breedlove, 377 S.C. 415, 661 S.E.2d 67, the SC Supreme Court held that a private individual who built a home as his personal residence, acting as his own general contractor, was not considered the builder or general contractor when a subsequent buyer sued for breach of implied warranty of workmanlike service. The implied warranty of workmanlike service applies to professional builders and contractors whose expertise is relied upon by home purchasers. Because the respondent never held himself out as a licensed contractor or... Read More
HEADLINES ADDED: June 21, 2008
Midland Construction goes into liquidation
Cheltenham-based Midland Construction has been ordered into liquidation after it was found to be conducting its business without insurance, with inadequate accounting records and a failure to register for VAT.... Read More
HEADLINES ADDED: June 18, 2008
NC Supreme Court Alters Incorporation by Reference
A recent case handed down by the North Carolina Supreme Court is likely to have a significant impact on how construction contracts are drafted in North Carolina.In Schenkel & Shultz, Inc. v. Hermon F. Fox & Associates, 685 S.E.2d 918 (2008), the North Carolina Supreme Court held that the standard practice of incorporating the entirety of a prime contract into a subprime contract (e.g., subcontract or subconsultant agreement) by reference may be flawed. In Schenkel, the court considered whether Schenkel (the Architect) and Fox (the Engineer) intended to incorporate... Read More
Darlington firm fined £15,000 after worker fall
Darlington-based building firm Bussey and Armstrong has been fined £15,000 following a serious injury to one of its workers.... Read More
HEADLINES ADDED: June 14, 2008
Three jailed as OFT gets tough
Three businessmen have been jailed for their part in a price-fixing ring in the first ever convictions for a cartel offence since criminal prosecution powers were given to the Office of Fair Trading under the Enterprise Act.... Read More
HEADLINES ADDED: June 11, 2008
Contractors wary of extra costs of CSCS SmartCard
Smartcards planned under the CSCS skills scheme will cost contractors too much to introduce.... Read More
HEADLINES ADDED: June 10, 2008
Federal Agents Probing Building-Permit Crimes File Charges
U.S. attorneys in Chicago have charged 15 property owners, developers, contractors and city officials under an ongoing investigation called Operation Crooked Code.... Read More
HEADLINES ADDED: May 29, 2008
Council seeks newt law change after road budget blowout
Contractor headaches caused by the presence of great-crested newts on sites could soon be eased after one council – which blew nearly 10% of its road scheme budget on a colony of amphibians that failed to materialise – wrote to the government calling for a change in policy.... Read More
New laws to benefit agency workers
Agency workers will enjoy increased employment rights under new legislation put forward by Gordon Brown last week.... Read More
HEADLINES ADDED: May 28, 2008
Bid-rigging: clients knocking back firms whom accused
Those not under investigation are using it to their advantage.... Read More
Maryland's Construction Trust Laws Limited by Court of Special Appeals
Maryland's Court of Special Appeals limited the breadth of Maryland's Construction Trust laws. This Statute states in relevant part:"Any officer, director, or managing agent of any contractor or subcontractor, who knowingly retains or uses the moneys held in trust under §§ 9-201 of this subtitle, or any part thereof, forany purpose other than to pay those subcontractors for whom the moneys are held in trust, shall be personally liable to any person damaged by the action."Thus, this statute imposes personal liability on someone who uses money held for the... Read More
HEADLINES ADDED: May 26, 2008
Unanticipated Consequences of the "Contractors and Federal Spending Accountability Act"
On April 23, 2008, the U.S. House of Representatives passed H.R. 3033, "Contractors and Federal Spending Accountability Act," agreeing by voice vote that GSA would maintain a centralized database of government contractors. The GSA database would collect information on contract defaults, suspensions, and debarments, as well as "any civil or criminal proceeding, or any administrative proceeding" for which a contractor paid at least $5,000 in restitution, that has been "concluded" by the federal or state governments. If a contractor committed in a three-year period more than one offense for... Read More
Scottish PPP proposal may be illegal
Officials are reviewing the Scottish Government’s controversial proposal to fund public sector projects amid fears the plan could be illegal.... Read More
HEADLINES ADDED: May 23, 2008
Unanticipated Consequences of the "Contractors and Federal Spending Accountability Act"
On April 23, 2008, the U.S. House of Representatives passed H.R. 3033, "Contractors and Federal Spending Accountability Act," agreeing by voice vote that GSA would maintain a centralized database of government contractors. The GSA database would collect information on contract defaults, suspensions, and debarments, as well as "any civil or criminal proceeding, or any administrative proceeding" for which a contractor paid at least $5,000 in restitution, that has been "concluded" by the federal or state governments. If a contractor committed in a three-year period more than one offense for... Read More
HEADLINES ADDED: May 21, 2008
Full Ninth Circuit Court of Appeals Affirms Lower Court's Holding in Garcia v. Brockway
In a case that is being closely watched in the multi-family housing industry, the Ninth Circuit Court of Appeals this week released its opinion affirming the lower court's holding that the 2-year statute of limitations for a private civil action alleging violation of the Fair Housing Act's accessibility requirements for design and construction is triggered, i.e., the violation is complete, at the conclusion of the design and construction phase, which occurs on the date the last certificate of occupancy is issued.The plaintiffs had asserted three theories to extend the... Read More
Construction firm gets £10,000 fine after excavator hits bricklayer
A construction firm has been fined £10,000 after a worker was hit by an excavator on site.... Read More
HEADLINES ADDED: May 20, 2008
Construction Act: payment provision amendments 'costly and unnecessary'
The Construction Confederation has attacked plans to amend the payment provisions of the Construction Act.... Read More
HEADLINES ADDED: May 17, 2008
B of the Bang contractors sued by Manchester council
The companies who built and designed Manchester’s B of the Bang sculpture are being sued.... Read More
CIS should be scrapped, says UCATT
UNION leaders are calling for the CIS tax system to be abolished.... Read More
HEADLINES ADDED: May 15, 2008
Bid-rigging: local authorities may launch action against accused companies
Local authorities are reviewing whether to launch action against companies’ accused of bid-rigging by the Office of Fair Trading.... Read More
Murray Construction and Development fined £10,000 over injured worker
A Sunderland building firm has been fined £10,000 after one of its employees fell 2.8m from rafters onto a concrete floor.... Read More
Digging Up Bones: New Provisions in the AIA A201 Impose New Obligations on Contractors
Recently, neighbors of mine decided to sell the family farm that has been in their family for almost 200 years. We know that the property has been in the family for this long based on the family cemetery plot located on the last bit of acreage that has not been subsumed by the surrounding neighborhoods that have swallowed what was originally about 100 acres of farmland.As part of my neighbor's quest to sell their family property, they know that they will be responsible to pay the costs to move... Read More
Bid-rigging: Welsh contractors to escape investigation
The Office of Fair Trading (OFT) will not extend its investigation into anti-competitive tendering practices into Wales, despite calls from politicians there.... Read More
HEADLINES ADDED: May 12, 2008
Bid-rigging: local authorities may launch action against accused companies
Local authorities are reviewing whether to launch action against companies’ accused of bid-rigging by the Office of Fair Trading.... Read More
HEADLINES ADDED: May 10, 2008
Bid-rigging: OFT tight-lipped on identity of firms in bid-rigging fight
The Office of Fair Trading (OFT) will maintain a vow of silence over its bid-rigging investigation until it makes an announcement next year on the level...... Read More
HEADLINES ADDED: May 09, 2008
Legislative Update for Residential Construction
The Maryland Legislature passed several bills affecting residential construction.House Bill 409 increased the limit from $15,000 to $20,000 on an award to a single claimant making a claim on the Home Improvement Guaranty Fund.House Bill 1309 requires the Maryland Home Improvement Commission to establish a licensing program for companies providing mold remediation on residential properties.Senate Bill 1008/House Bill 1557 double the initial registration fee for home builders to $600. It also doubles the renewal fee to $300 for a builder who has issued building permits for fewer than 11... Read More
HEADLINES ADDED: May 08, 2008
Technical Details: IBC Codes Pertaining to Asphalt Shingles
Section 1507.2 of the International Building Code (IBC) covers the requirements for the application of asphalt shingle roof coverings. The section states that asphalt roof coverings shall be applied in accordance with the standards set in this section and the manufacturer’s installation requirements. The following text provides a brief interpretation of these codes.... Read More
HEADLINES ADDED: May 02, 2008
McCourt Construction Charged In Overbilling Scheme on CA/T
McCourt Construction Co., Boston, lead partner in the McCourt/Obayashi Joint Venture, was charged on Feb. 29 with a single count of conspiracy to defraud the U.S. in connection with an overbilling scheme on a $245-million Central Artery/Tunnel, Interstate-93 tunnel-finishing contract.... Read More
Roofing boss charged with manslaughter
The owner of a roofing firm has been charged with the manslaughter of a worker who died after falling through a skylight.... Read More
Bid-rigging: US law firm lines up to represent clients
A US law firm is to offer public sector clients the chance to sue building contractors found guilty of anti-competitive tendering practices following the Office of Fair Trading's (OFT) investigation into 'bid-rigging' and 'cover-pricing'.... Read More
HEADLINES ADDED: April 30, 2008
"Free lancing" procurement for campus construction projects may lead to criminal investigation in Maryland
State legislators in Maryland have been grilling Morgan State University officials after an audit brought the university's method of construction spending into question. As reported in the Baltimore Sun and in The Chronicle of Higher Education, the legislative audit revealed that Morgan State, which is not part of the University of Maryland system but receives state funding, "had padded a $4.3-million contract with the Whiting Turner Construction Company with a $3.1-million cushion and now cannot account for part of that money. The audit also found that Whiting Turner had... Read More