Home | Login | About Us | Contact Us | Site Map | Privacy Policy
Construction Claims Online The Leading Web Resource for Those Involved in the Business of Avoiding, Managing, and Resolving Construction Disputes
Search This Site

Advanced Search

Browse Claims Library


Subscribe
Current Issue
Past Issues
Sample Issue
Bookstore
Directory
Links
Press Releases
Editorial Calendar
Editorial Board

FREE NEWSLETTER!

Volume 6 - Number 07 | February 18, 2008

EDITOR'S NOTES
When homeowners move into a newly constructed home, the home usually comes with a warranty that gives the owners a certain amount of time to submit warranty correction items—structural settling, HVAC issues, appliance malfunctions, etc. A developer in one California community required homeowners to sign the closing documents, which included mention of the warranty clause, but did not provide a copy of the actual warranty until several weeks later. The booklet contained several questionable items, including an arbitration clause that greatly favored the developer. When warranty problems arose and the developer tried to compel arbitration per the warranty clause, two courts determined that the clause was one-sided and therefore unenforceable.

Paperwork is the bane of any manager. Many managers complain that there is usually too much of it and not enough time in the day to complete it. Despite the drudgery, however, it has its purpose. For example, if change orders are requested and approved, an owner needs to complete the necessary paperwork to fulfill the contract requirements. Otherwise, he may find himself in breach of contract, as one owner discovered.

Liability for professional services is an area of construction that causes confusion and dissent among the various state and federal courts. An Arizona court is the latest to tackle this issue.

Finally, don't miss the Construction Law Conference in London on March 5th and 6th. Construction Claims subscribers receive a 10% discount. Links to the brochure and the discount coupon are available at www.constructionclaims.com.


NEW HOME WARRANTY ARBITRATION CLAUSE RULED UNCONSCIONABLE
A California court finds a warranty clause in new home warranty one-sided. Because it was not timely presented for the buyer’s review before the purchase was complete, the clause is unenforceable.

FAILURE TO ADJUST GUARANTEED MAXIMUM PRICE MAY HAVE BEEN A BREACH
Approving and paying for change order work without reflecting the adjustment in a guaranteed maximum price contract can add up to breach of contract, rules a federal appeals court.

ENGINEER’S LIMITATION OF LIABILITY DID NOT VIOLATE PUBLIC POLICY
Courts and states have mixed opinions about liability for professional service-related errors. An Arizona court rules that such a clause is enforceable.

BIM AUDIO CONFERENCE TAKES ON GOVERNMENT PROJECTS
Building information modeling is quickly becoming a mainstay in the construction process. WPL Publishing is hosting a series of interactive audio conferences on BIM. The next conference will be held on February 20th at 1 p.m. (EST).