Concurrent Delay vs. Assessment of Liquidated Damages

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Initially, courts dealt with a dearth of sophistication when determining the responsibility for the concurrent delay in the assessment of liquidated damages. Courts have now been permitting the assessment of liquidated damages, even where there are both Contractor and Owner-caused delays. Critical Path Method (CPM) scheduling software—aided by expert testimony—made a change in approach and willingness to use complex scheduling possible. Courts have tended to award liquidated damages with reasonable certainty when caused by the Contractor.

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Topics: Claims

How the Courts Rule on Project Delays

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Despite the fact there is a set project schedule, we often find that construction projects are delayed and finish later than expected. As a result, Owners will often attempt to assess their liquidated damages against their Contractors for the delay at the end of the project. In doing so, Contractors typically claim that the delay was either Owner-Caused or a Concurrent Delay, which means the delay occurred due to acts of others beyond their control by multiple, independent parties.

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Topics: Surety Bonding, Claims

5 New Scenarios Regarding COVID Construction Claims

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The construction industry has started picking up the pieces from COVID-19. Together, we have learned new lessons and developed new strategies for the future. Since this pandemic is unique, as disputes start to occur, we will start to see how the courts take precedent on COVID-19 cases. Here are 5 new construction scenarios to consider that could potentially lead to a claim.

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Topics: Claims

The Simple Step-by-Step Guide for the Worker’s Comp Claims Process

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Managing Worker’s Compensation (WC) claims for your employees can be complex and tricky. Here is a breakdown of the claims process to assist you in understanding what to expect when an injury is reported.

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Topics: Claims

Picking Up The Pieces: COVID’s Effect on the Construction Industry

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The COVID-19 pandemic continues to have the most significant and widespread economic impact since World War II. Unfortunately, there are no benchmarks to compare what is happening or to accurately assess the overall medium and long-term impacts. As Owners and Contractors start picking up the pieces from this pandemic—and as we see projects that were halted, businesses that have been closed, and many other construction concerns—there are a few things to be mindful of:

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Topics: Claims

3 Types of Construction Contract Damages

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In today’s construction climate, building projects and construction contracts can be extremely complex. A Contractor must become thoroughly familiar and fully understand the contract’s terms and conditions.

Any uncertainty with the provisions in a contract may lead to costly disputes whether the resolution is by way of mediation, arbitration, or litigation. All of these dispute resolution forums can be expensive and time-consuming. The ultimate purpose of dispute resolution is to determine the amount of money the party claiming to be damaged by a contract breach can reasonably expect to recover. 

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Topics: Claims, Contracts

Will My Insurance Cover COVID-19 Claims? (Part 2)

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Last week we began the dialogue on possible COVID-19 claims and what, if any, insurance coverage could be triggered. This week, we will expand that discussion to the following coverages—Pollution, Professional, and Subcontractor Default Insurance (SDI).

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Topics: Claims

Will My Insurance Cover COVID-19 Claims? (Part 1)

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As the COVID-19 pandemic touches the construction industry at large, there are many questions surrounding insurance coverage on a job site and possible subsequent COVID-19 claims. This series will review some of the more common coverages and things to consider given coverage uncertainty.

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Topics: Claims

Diffusing the Risk of California Workers’ Compensation Litigation

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Navigating the Workers’ Compensation (WC) system can be confusing and overwhelming. Injured employees need to feel comfortable with the system, with the employer’s response, and with the benefits they are entitled to. When an employee is injured, their livelihood can be seriously affected. Unfortunately, a collective myth exists in the injured worker’s mind that their employment is in jeopardy because of this incident. How stressful is that?

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Topics: Claims, Workers' Compensation

5 Facts About Claims Reserves

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No matter how safe your company may be, accidents are unfortunately inevitable—and when accidents happen, claims will follow. Did you know when a claim is settled, insurance companies pay the policyholder from a claims reserve? Continue reading this post to learn five important facts about claims reserves.

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Topics: Claims