January 2012

1.  Kiewit has been awarded a $15 million dollar change order on its contract for the first segment of Honolulu's rail transit project, boosting the total cost of the contract to $502 million dollars.  The Honolulu Authority for Rapid Transporation (HART) says the contract price could increase if the project is further delayed. 

 2. HART representatives…

In Bricklayers of Western Pennsylvania Combined Funds, Inc. v. Scott's Development Company, 2012 WL 29299 (Pa. Super.), the Superior Court of Pennsylvania found that the trustees of employment funds had standing to file mechanics' lien claims for unpaid contributions owed to union members as a result of collective bargaining agreements between a contractor and the unions. …

On January 24, 2012, the Committee on Economic Revitalization and Business held a hearing to discuss a number of different bills being considered in the 2012 legislative session.  Attached here is an agenda for the meeting, which identifies proposed legislation that can affect Hawaii's construction industry.  Excerpts from the meeting agenda include the followng:

HB 1671

Status

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In Ori Anuenue Hale v. Kasan Constr. Corp.,  2012 Haw. App. LEXIS 49, January 17, 2012, the ICA was asked to overturn an arbitration award on behalf of a contractor on public policy grounds, due to violations of Hawaii's licensing and lien laws.  Kasan Construction Corp. ("Kasan") prevailed in an arbitration with owner Ori Anuenue Hale ("Ori"). …

In David v. Hett, No. 98,419, 2011 Kan. LEXIS 657 (Kan. Dec. 30, 2011), the Supreme Court of Kansas held that the economic loss doctrine does not prohibit homeowners' claims against residential service contractors for poor workmanship. 

 In that case, the homeowners (the Davids) had entered an oral agreement with a contractor (Hett) regarding concrete and

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The Hawaii Community Development Association (HCDA) is issuing a final RFP for what is planned to be Hawaii's tallest building – comprised of two towers, the first consisting of 300 affordable housing units, and the second consisting of 500 market priced units. The project is expected to cost in the range of $500 million dollars, with construction expected…

The Group Builders decision continues to generate insurance coverage litigation and legal gymnastics through state courts applying often directly conflicting law on CGL coverage for construction defects.  Another recent example is Axis Surplus Ins. Co. v. McCarthy/Kiewit, 2012 U.S. Dist. LEXIS 3612    (subscription required).  Kaiser hired Kiewit to perform construction at the Kaiser Moanalua Medical…