Construction Industry Legal Blog

You have proven that a delay occurred, effectively addressed the common and most applicable defenses and sifted through a few available methods to calculate damages. While these other methods, the Total Cost Method and the Modified Total Cost Method, pertain mostly to the actual work done, they do not assist in recovering jobsite or general and administrative overhead. Luckily enough, the courts have been kind enough to create a formula to allow for calculating the monetary amount for home-office overhead that corresponds to the unplanned increase in resources as a result of a delay. This post will discuss what is known as the Eichleay Formula, which is used to approximate the amount of unabsorbed overhead that is a result of a particular delay.

Roofing systems are an integral part of any new construction. There are a number of things to consider when selecting a new roof system. Of course, cost and durability head the list, but aesthetics and architectural style are important, too. The right roof system for your home or building is one that balances these considerations. This is a three part blog that will discuss basic residential roofing considerations in Florida. Part I will discussed the basic components and types of roofs. This Part II will discuss the ventilation and “Enemies” of your roofing system. Part III will discuss considerations in selecting a roofing contractor.

Once a creditor obtains a judgment against a debtor, attempting to garnish the funds, accounts and assets of that debtor held by a third party is an extremely efficient and often successful means for collecting on that judgment. Chapter 77, Florida Statutes, governs garnishment actions within the State of Florida and provides for two main types of garnishment, which have been discussed in previous Blog posts. These include a Writ of Garnishment issued to a bank or financial institution and a Continuing Writ of Garnishment issued to a debtor’s employer. Although a judgment creditor can utilize both forms of garnishment in attempting to collect on the judgment, under Section 222.11, Florida Statutes, a debtor has the right to make claimed exemptions to garnishment actions when the debtor is head of household. However, such claimed exemptions may not preclude a creditor’s attempt at garnishment in certain situations. This Blog post discusses when claimed exemptions for head of household may not apply to garnishment actions when the debtor is an independent contractor, the sole owner of a corporation or an owner of a single member LLC.

You have successfully proven that a delay occurred, effectively addressed the common and most applicable defenses and, subsequently, determined the Total Cost Method does not assist you in calculating the delay damages. Luckily, or unlucky depending on whether trying to collect or avoid paying damages, courts allow the use of a number of different methods to ascertain the measure of delay damages. Out of the usual objections with the Total Cost Method—the contractor receiving a windfall, lack of reliability and specificity and the low burden of proof—the Modified Total Cost Method was established. This Blog post will describe the “ins and outs” of the Modified Total Cost Method.

Roofing systems are an integral part of any new construction. There are a number of things to consider when selecting a new roof system. Of course, cost and durability head the list, but aesthetics and architectural style are important, too. The right roof materials and system for your home is one that balances these considerations. This is a three part blog that will discuss basic residential roofing considerations in Florida. Part I will discuss the basic components and types of roofs.

You have successfully proven that a delay occurred and effectively addressed the common and most applicable defenses. Now comes the part of the process for determining the amount of damages that resulted from the delay. Calculating the amount of damages is rarely a simple task. A common theme of this series so far is that there are numerous factors and methods used when dealing with delay damages. Calculating the amount of damages is no exception. This Blog post delves into two methods that are used when ascertaining the amount of damages is extremely difficult: a liquidated damages clause and the Total Cost Method.

Once a delay is successfully proven—discussed in part one of this multi-series—the next step is to deal with any possible defenses.  This process varies depending on which side you are on:  whether seeking damage for delays or attempting to refrain from paying delay damages.  This step must be completed prior […]

The affirmative defense of “First Cost” was formally recognized by a Florida court in the recent decision Sch. Bd. Of Broward County v. Pierce Goodwin Alexander & Linville, 2014 Fla. App. LEXIS 3916 (Fla. 4th DCA Mar. 19, 2014). The concept of first cost has been understood throughout the construction industry for quite a while, but had yet to be formally recognized by that name in Florida courts. See id. at *30. This blog examines the first cost defense and its application in the Pierce Goodwin Alexander & Linville case.

Are you a contractor or subcontractor who has taken on a job, agreed to have it completed by a certain date, and failed to meet that deadline due to an unforeseeable delay? How about an owner that has been promised completion of a project by a specific date that was not met? If they have done much business, everyone involved in the construction industry that fits within these categories should have answered in the affirmative. Today, virtually every project has a tight budget and an aggressive schedule, and delays seem inevitable. Under Florida law, when unexpected events occur that delay a project, damages are often awarded to compensate for the impact of the delay. Damages are not recoverable, however, if the agreement indicates only an estimated time of completion or provides no liability for delays.[1] These damages include, but are not limited to, compensating for: increased material costs, increased labor costs due to increases in pay rates, increased labor costs due to loss of productivity, increased overhead, interest on unpaid funds, loss of bonding capacity, loss of profit on other work that could been undertaken but for the delayed job and costs of preparing the delay claim. Delay claims have proliferated in recent years, and are currently one of the largest categories of claims participants in the construction process routinely make. This Blog post will provide a general overview of establishing that a delay occurred, and is the first in a multi-part series explaining delay damages and their potential recovery.

When negotiating construction contracts for residential or commercial projects, there are several key provisions to include and that require careful consideration. While this list is not exhaustive, parties to construction contracts must consider the provisions for scope of work, order of precedence, notice of claims, indemnification, insurance and dispute resolution.