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Construction Industry Still Unaware of Potential CGL Coverage Related to Faulty Workmanship

A recent Georgia case illustrates that many in the construction industry still believe that CGL insurance policies exclude coverage for defective construction – a belief that resulted in loss of coverage for one contractor.  The court affirmed that, “while construction defects constituting a breach of contract are not covered by [CGL] policies, negligently performed faulty workmanship that damages other property may constitute an ‘occurrence.’”

Based on a mistaken belief of no coverage, a contractor failed to provide timely notice to its insurance carrier.  As a result, the court dismissed the CGL insurer from the case, leaving the contractor (and the owner) without insurance coverage for substantial damages. Read More »Construction Industry Still Unaware of Potential CGL Coverage Related to Faulty Workmanship

Guest Post: Georgia Sales Tax Basics For Contractors

This guest post was written by Al Clark with Smith Adcock and Company LLP ([email protected]).

Contractors in Georgia have special sales tax reporting and filing requirements. Non-compliance with those rules can be expensive if audited. A GC may be liable for sales tax the sub was supposed to pay on materials, or a GC may be required to withhold on payments to a non-resident subcontractor.Read More »Guest Post: Georgia Sales Tax Basics For Contractors

Diminution in Value and Repair Costs Awardable in Water Run-Off Claim

Like some construction claims, water run-off claims can involve many types of damages, which may be caused by many different parties.  In a July 2012 water run-off case, a homeowner was allowed to recover damages for both diminution in value and repair costs.  While such damages would be considered duplicative in normal scenarios, they were permitted in this water run-off case. Read More »Diminution in Value and Repair Costs Awardable in Water Run-Off Claim

Contractor’s Risk of Personal Injury Claims

In an appellate opinion released June 28, 2013, a contractor and its subcontractor were found not liable for injuries sustained by a personal-injury plaintiff.  The court found that Plaintiff had presented no evidence that Contractor and Subcontractor failed to properly perform their work, or that they should have discovered the defect that caused Plaintiff’s injury. Read More »Contractor’s Risk of Personal Injury Claims

Survey on the Benefits of Construction Estimating Software

This guest post is from Derek Singleton of Software Advice.

Contractors rely on a variety of methods to estimate their project costs. Some prefer to create their project estimates by hand using pen and paper while others rely on construction-specific software designed specifically for estimating costs. For a while, there’s been a debate over which method is the most effective and accurate. Read More »Survey on the Benefits of Construction Estimating Software

Energy Savings Contracts: Risks and Rewards

AHC attorney David R. Cook published an article about Energy Savings Performance Contracts in the November/December edition of Building Profits Magazine, which is a publication of the Construction Financial Management Association.

Facility owners are paying increased attention to energy usage, operation and maintenance (O&M) costs, infrastructure management, and the overall financial performance of their facilities.   They have called upon the construction industry to assist in these efforts, and some segments of the industry have flourished around owners’ demands for energy efficiency and cost reduction.Read More »Energy Savings Contracts: Risks and Rewards

Contractual Limitations Period Must Have Clearly Identifiable Starting Point

Many construction-related contracts contain a contractual period of limitations — a contract term that establishes a period of time during which a party must file a claim against the other party (“limitations provision”).  Such a contractual provision precludes an aggrieved party from filing a lawsuit after the period expires.   They are generally enforceable in Georgia.

In Carrier Corp. v. Rollins, Inc., the Court of Appeals of Georgia interpreted a limitations provision contained in a $2 million contract for installation of an HVAC system at the owner’s headquarters.  The owner filed suit alleging that the HVAC system installed by the contractor never functioned properly. Read More »Contractual Limitations Period Must Have Clearly Identifiable Starting Point