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Doug Hanson

The Punch List provides you with a review of current state and federal cases, as well as legislative and regulatory changes, affecting the construction industry. Some of the topics include contracts, classification of workers, construction bidding, independent contractors, negligence, construction defects, liens, insurance claims, and various other important topics in the industry.  Click on the subscription button below to customize your updates.
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Lien Value Under Fixed-Price Contracts

Monday, 09 September 2013 10:12


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What happens when a contractor forecloses on a contractors’ lien before the construction project is finished?  According to a Federal District Court in Arkansas, the contractor may not recoup any profits built into a fixed-price contract and may not foreclose on amounts spent on unused materials.

   

Contractor Missed Substantial Completion Deadline and Required to Pay Liquidated Damages

Thursday, 05 September 2013 09:30


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In a lawsuit over liquidated damages, a contractor filed suit against a Mississippi school district because the school held on to $19,500 it potentially owed to the contractor for renovations to a high school.  The school district claimed the contractor failed to timely complete the project and was required to pay the amount withheld as liquidated damages pursuant to their contract.  The trial court agreed with the school district and the contractor appealed the decision to the Court of Appeals of Mississippi.

   

Faulty Workmanship Covered by Commercial General Liability Policies in Growing Number of States

Wednesday, 04 September 2013 09:26


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An increasing number of state high courts, most recently the Connecticut Supreme Court, have held that damage resulting from unintended construction defects may be considered an ‘occurrence’ covered as ‘property damage’ in a commercial general liability insurance policy.  Tennessee follows the same line of reasoning.

   

Builders’ Risk Policies: Insurance Coverage to Construction Completion

Tuesday, 27 August 2013 15:38


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Builders’ risk policies are insurance policies that cover property damages that arise during a construction project. Generally, these policies only provide coverage during the course of construction, erection, or fabrication. Thus, a contractor with a builders’ risk policy may have his claim denied by the insurer to the extent any damages happen to arise after the completion of the construction project that is the subject of the policy. The Tennessee Court of Appeals recently addressed a case wherein the insurer under a builders’ risk policy denied coverage for such reason.

   

Georgia Supreme Court Weighs in on “Occurrences” under Commercial General Liability Policies

Wednesday, 21 August 2013 10:21


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In a case certified from the United States Court of Appeals for the Eleventh Circuit to the Georgia Supreme Court, the Georgia high court addressed the meaning of “occurrence” in the construction context.  In case you have not kept count, Georgia is at least the fourth state high court to rule on this issue in 2013, joining the high courts of North Dakota, Alabama and Connecticut.  At its core, the issue all the courts are wrangling over involves whether construction defects are covered as “occurrences” under standard commercial general liability (CGL) policies.

   

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