By Bruce Jervis
Commercial general liability (CGL) insurance policies have been the source of much controversy in the construction industry. The policies insure against personal injury or property damage caused by an occurrence during the contractor’s performance of the work. But do the policies cover the work itself? Insurers certainly don’t intend them to. There is frequently an express exclusion to this effect.
There is another exclusion common in CGL insurance policies. There is no coverage for liability the contractor assumed under a contract or agreement. This exclusion was the subject of a recent decision by the Texas Supreme Court. A project owner sued a prime contractor for defective workmanship. The contractor demanded its CGL insurer defend the action and acknowledge insurance coverage. The insurer responded that the contractor had contractually assumed this liability because the Workmanship clause in the construction contract required the contractor to construct the project in a “good and workmanlike manner.” ... Read more.
Featured in this Week’s Construction Claims Advisor:
- Workmanship Clause Was Not Contractual Assumption of Liability
- Dispute Not Submitted to Arbitration – Attorney Fee Clause Did Not Apply
- Pending Civil Litigation Did Not Disqualify Offeror
By Steve Rizer
When it comes to commercial arbitration within the construction industry, it is possible to achieve a result that is fair and equitable -- as well as expeditious -- but certain requirements need to be met. This is one of the key points that The Holt Group LLC’s managing principal emphasized in summing up for ConstructionPro Week a presentation he delivered, entitled “The Advanced Ideal: Best Practices for Promoting Efficiency and Economy in Arbitration,” Jan. 30 at the American Bar Association’s Forum on the Construction Industry Midwinter Meeting in Paradise Island, the Bahamas.
Accomplishing such a goal “requires that there be a certain amount of good planning, starting with the development of an appropriate arbitration clause to go into the agreement to begin with,” said L. Tyrone Holt, who also serves as the College of Commercial Arbitrators’ president. After this step, there needs to be “the selection of counsel that have familiarity with arbitration in the construction industry and who are themselves committed to achieving a fair, expeditious, and cost-effective result.” He also stressed that it is important for the arbitrator, counsel, and parties to “cooperate throughout the process to achieve that result.” ... Read more.
By Steve Rizer
It will be interesting to see what kind of an impact the Southeast Energy Efficiency Alliance’s (SEEA) latest study will have on the U.S. public and private sectors going forward -- a study reporting a 387 percent return on investment (ROI) on monies committed to energy-efficiency programs in 16 southeastern cities from 2010 to 2013. Will this ROI data persuade congressional lawmakers, through the fiscal 2015 budget process, to increase their support of federal programs promoting energy efficiency across America? Will more commercial property owners be willing to invest the money it takes to optimize the energy efficiency of their buildings? ... Read more.