In Pencoyd Iron Works v. Axis Constr. Services, Ltd., 2012 Phila. Ct. Com. Pl. LEXIS 23 (January 18, 2012), the trial court enforced a pay if paid clause in a subcontract, finding the subcontractor assumed the risk of nonpayment in the event the general contractor was not paid by the owner. The language of the
2012
Huge Summary Judgment Decision on Insurance Coverage for Construction Defects
Judge Patrick Border issued a Minute Order yesterday granting summary judgment to insureds in an enormous ongoing construction defect litigation class action lawsuit. The Minute Order, which I will attempt to include in a later post, does not identify the reasoning for the decision, but this is a big, post-Group Builders, post-legislation case that requires insurers…
Building Code Council Bill Voted Down
The Hawaii State Senate defeated a bill its opponents said would have effectively removed the state from active involvement in building design and construction standards.
The Senate voted down Senate Bill 2692, which would abolish the State Building Code Council, and provide for a transition from the current to the new proposed law, and requires…
New ICA Case on Economic Loss Doctrine
The ICA issued an opinion today affirming summary judgment in favor of a designer's motion for summary judgment on the grounds that professional negligence claims were barred by the economic loss doctrine. In the case, a building owner contracted with a general contractor to install a thermal eneregy system. The general contractor subcontracted mechanical engineering…
How Much Would It Cost to Undo the Rail Project?
Critics of the rail project often complain that the $5+ billion anticipated price tag for the project does not approximate the project's actual cost. Former governor Ben Cayetano has staked his mayoral candidacy on his challenge of the rail project, noting that the monies slated to be used for the rail project are sorely needed elsewhere. …
UHERO Forecast: Construction Sector Still Forthcoming
On February 10 , UHERO issued its forecast for the first quarter of 2012. The forecast was mixed, noting a disappointing 2011 and the lingering failure of Hawaii's construction sector to bounce back from the recession. This is some of what the report had to say about construction:
"In the construction sector, it is necessary to talk
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President’s Budget Includes $250 Million for Rail Construction
PBN reports that President Obama's budget requests $250 million dollars for the Honolulu rail transit project — $100 million more than any other rail project in the country. This information comes on the heels of a new Hawaii News Now/Star Bulletin poll that reflects public support for the rail project has declined into negative territory.
No Damages for Delay Clause case from North Carolina Refuses to Enforce Provision when Contract Also Contemplated “Equitable Adjustment”
In Southern Seeding Service, Inc., v. W.C. English, Inc., 2011 N.C. App. LEXIS 2432 (December 6, 2011), the North Carolina Court of Appeals reversed a trial court's determination that a "no damages for delay" clause prevented a subcontractor from claiming delay damages under a separate "equitable adjustment" clause. The court held the trial court's blending…
Japan Times reports Deal on Relocation of Troops Stationed in Okinawa: 3300 may be sent to Hawaii
The Japan Times reports Tokyo and Washington said Wednesday they have agreed to revise a 2006 bilateral accord aimed at transferring U.S. Marines from Okinawa to Guam. Previously, the transfer was effectively contingent upon construction of a replacement airfield by 2014. No longer.
The two sides say they are negotiating on moving some of the marines…
Rail receives green light from Federal Transit Authority to Proceed with Advanced Construction
The City has the green light to commence with construction of the foundation and pillars that will make up the first segment of the Honolulu rail project. The City has been authorized to spend $184.7 million on this first segment of work.