The Michigan Supreme Court overturned precedent and joined the jurisdictions that allow damages arising from construction defects to be the basis of a claim against a subcontractor’s comprehensive general liability (“CGL”) policy written on a 1986 ISO form. This decision opens the door to CGL claims for construction defects that had been shut in Michigan since Hawkeye-Security Ins Co v Vector Constr Co, 185 Mich App 369; 460 NW2d 329 (1990). Continue reading “Michigan Supreme Court Opens Door to CGL Claims for Construction Defects”
Seventh Circuit Court of Appeals Holds Literal Interpretation of ‘Within 90 Days’ Under the Miller Act
An appeals decision by the Seventh Circuit underscores the importance of strict adherence to the requirements of the Miller Act. A&C Construction & Installation, Co. WLL v. Zurich American Insurance Company and The Insurance Company of the State of Pennsylvania, decided June 30, 2020, concerns a Miller Act claim on a payment bond by a subcontractor on a federal construction project.
To read the full text of this Duane Morris Alert, please visit the firm website.
Invest More and Invest Quickly: The Prime Minister’s New Deal
As Vijay Bange commented in his blog post on Tuesday, Boris Johnson has announced £5bn of new funding for building and infrastructure projects in the UK.
This sounds like a lot of money, but in real terms it is not anything like enough to restart the economy in the manner suggested by the Government. In the heady days before COVID-19, Chancellor Rishi Sunak announced new investment into infrastructure in the UK totaling £600bn between now and 2025. By comparison, £5bn is nothing like what is required to “level up” the economy in the way promised by the Chancellor. In his Dudley address, the Prime Minister confirmed that the £5bn promised was an accelerated release of those funds promised by the Chancellor, but it remains to be seen whether that £600bn will ultimately be released.
To read the full text of this post by Duane Morris partner Steve Nichol, please visit the Duane Morris London Blog.
Boris Johnson Announces Plans to Rebuild Britain
As the government eases the lockdown provisions around the country, the Prime Minister today made a speech in Dudley, the historical heart of the industrial revolution, setting out his £5 billion economic recovery plan for the country. This is the government’s plan to build our way out of the recession caused by the pandemic, and has been compared to the New Deal proposed during the Great Depression by US President Franklin D Roosevelt.
To read the full text of this post by Duane Morris partner Vijay Bange, please visit the Duane Morris London Blog.
Climate Change – A Wind of Change for Construction?
On Friday 28th February there was an incredibly well supported and organised Youth Strike for climate change protest in Bristol, at which Greta Thunberg addressed the masses. Thousands were there in support. There were safety concerns given the number of children attending this protest. There were clearly some mixed views given the disruption caused to locals, with anger at the damage to the college green in front of the Anglican Cathedral grounds.
What resonated with me was a local man’s comments during an interview for national news. He said that “it won’t change anything”. However, we then had the decision of the Court of Appeal in favour of climate campaigners that has sent a real wakeup call. The Court ruled that the transport secretary at the relevant time, who made the decision for the new third runway at Heathrow Airport, should have taken into account the latest government commitments on climate change before granting permission for the proposed expansion at Heathrow.
To read the full text of this article by Duane Morris partner Vijay Bange, please visit the firm website.
New York’s Construction Master Guidance Requires COVID-19 Precautions for All Projects
Governor Andrew Cuomo has released interim guidance regarding construction in New York state. These guidelines apply to both nonessential construction businesses in regions that are permitted to reopen and essential construction businesses throughout the state that were previously permitted to remain open.
To read the full text of this Duane Morris Alert, please visit the firm website.
New York Forward Plan Reopens Construction in Phase One
On May 15, 2020, Governor Andrew Cuomo’s Executive Orders 202.6 and 202.8, which stopped all nonessential work in New York, will expire. New York will then shift to “New York Forward,” the state’s plan to reopen nonessential businesses and return people to work, without triggering renewed spread of COVID-19 or overwhelming the healthcare system.
To read the full text of this Duane Morris Alert, please visit the firm website.
Considerations of UK Construction Remobilisation, Part 2
Last week we discussed, in light of the encouragement from Robert Jenrick MP (Secretary of State for Housing, Communities and Local Government) for the construction industry to remobilise, the government’s apparent reluctance to provide confidence and clarity for the construction industry in respect of the safe operation of sites.
In the Prime Minister’s address to the nation on 10 May 2020, he re-stated that encouragement for the construction industry, where possible, to return to work.
To read the full text of this post by Duane Morris attorneys Steve Nichol and Matthew Friedlander, please visit the Duane Morris London Blog.
Considerations of UK Construction Remobilisation
The construction industry in the UK has been afforded the freedom to continue work where it is safe to do so since the lockdown was implemented. It is a freedom that the sector has done its best to exploit where it can, with significant works continuing on a variety of essential and less essential projects. A number of leading construction companies and housebuilders have continued or recommenced work where they are able to do so, and a number of high profile projects are apparently progressing well. Build UK has reported that its members, who comprise some of the largest contractors operating in the UK, are now working on 73% of sites (up from 69% last week). However, the issues for the industry facing the prospect of full remobilisation to all sites have not changed.
To read the full text of this post by Steve Nichol and Matthew Friedlander, please visit the Duane Morris London Blog.
Construction Industry at Core of Post-COVID-19 Debates
By Owen Newman and Chris Chasin
Who is in the best position to sustain the loss? And what outcome is in the overall best interests of industry, economy and the public at-large? Governments will grapple with these issues in the context of COVID-19 in the months and years to come. And the construction industry, willing or not, will find itself at the core of these debates as it deals with COVID-19 related cost and schedule impacts caused by work stoppages, disruption of labor resources and productivity, disturbed supply chains and varied safety requirements. Continue reading “Construction Industry at Core of Post-COVID-19 Debates”