CONSTRUCTION DEFECT JOURNAL

"News and Information for Construction Defect and Claims Professionals"

CONSTRUCTION DEFECT JOURNAL - ISSUE 242749 - MONDAY, MAY 19, 2025

2 Workers Looking at Powerlines

ESFI takes on the leading causes of electrical fatalities during national electrical safety month.

ESFI Spreads Awareness of Overhead Power Line Safety With "Always Look Up" Campaign

May 19, 2025
Electrical Safety Foundation International

ARLINGTON, Va., May 14, 2025 (GLOBE NEWSWIRE) -- Data compiled and analyzed by the Electrical Safety Foundation International (ESFI) shows that the most significant category of workplace electrical fatalities is non-electrical workers coming into contact with overhead power lines. Many of these accidents involve workers with little or no electrical safety training. Contact with overhead power lines is also one of the leading causes of electrical fatalities outside of the workplace across the United States.

In fact, overhead power line contact accounts for 48% of all workplace electrical fatalities, 57% of electrical fatalities in non-electrical occupations, and 30% of all electrical fatalities that occur in the United States. The Centers for Disease Control (CDC) reports that between 2018 and 2023, there were 538 total fatalities caused by overhead power lines in the U.S. A large number of these incidents can be avoided with heightened awareness of outside surroundings. "Overhead power line contacts are unique because in many cases the fatality occurred when the power line was clearly visible," said Daniel Majano, ESFI's Program Director.

In response, ESFI launched an update to its "Always Look Up" campaign in May to spread awareness to key groups. This year, as part of its National Electrical Safety Month efforts, ESFI is releasing several new materials, including a new infographic, to remind the public to be aware of overhead power lines in their surroundings.

ABOUT ESFI
The mission of the Electrical Safety Foundation International (ESFI) is to prevent electrically related injuries, deaths, and fires through public education and outreach by being the trusted voice on electrical safety. For free safety materials that you can share throughout your community, visit esfi.org.

CDJ NEWS THIS WEEK



Construction workers on site

Mr. Heiskanen's recent conversation with three China Construction Third Engineering Bureau experts shed light on two breakthrough technologies that exemplify this shift.

Two Paths to Industrialized Construction: Lessons from China

May 19, 2025 — Aarni Heiskanen - AEC Business

Chinese construction has been in the headlines for record-breaking speed: a 10-story residential building erected in 28 hours and 45 minutes, or a 57-story skyscraper built in 19 working days. These projects rely on meticulous planning, extreme prefabrication, and clockwork execution.

Besides those unique showcase projects, I wanted to learn how Chinese AEC firms are industrializing construction at scale. My recent conversation with three China Construction Third Engineering Bureau (CSCEC 3rd Bureau) experts shed light on two breakthrough technologies that exemplify this shift.

Two strategies for industrialization
As the construction industry evolves, two powerful strategies are emerging to drive industrialization: bringing construction into the factory or bringing the factory to the construction site.

Mr. Heiskanen may be contacted at aec-business@aepartners.fi

Reprinted courtesy of Aarni Heiskanen, AEC Business

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150 anniversary celebration

As part of the 150th celebration, MDP is hosting events in all of its regional markets, honoring the people and partnerships that have defined its legacy.

Maury Donnelly & Parr Celebrates 150 Years of Service, Growth, and Community Impact

May 19, 2025 — Maury Donnelly & Parr

BALTIMORE, May 14, 2025 /PRNewswire/ -- Maury Donnelly & Parr (MDP), a leading independent insurance firm, proudly announces its 150th anniversary—a milestone that honors its enduring legacy, exceptional client service, and commitment to the communities it serves.

"We're incredibly proud of this milestone and grateful to the clients and communities who have been part of our journey," said Brian Phoebus, Executive Vice President of Maury Donnelly & Parr. "From our roots in Baltimore to our rapid expansion along the East Coast, our mission has always been to deliver thoughtful, personalized insurance solutions while giving back in meaningful ways."

MDP has served countless businesses and families and gives back to many nonprofit and community organizations. The firm's culture of giving back is deeply embedded in its identity, with employees regularly volunteering and supporting causes in the neighborhoods where they live and work.

As part of the 150th celebration, MDP is hosting events in all of its regional markets, honoring the people and partnerships that have defined its legacy. These gatherings will spotlight the firm's enduring relationships with clients across industries such as real estate, construction, healthcare, and the nonprofit sector—reflecting MDP's long-standing commitment to helping businesses thrive.

About MDP
Founded in 1875 as a marine insurer to the businesses that utilized the Port of Baltimore, Maury, Donnelly & Parr, Inc. (MDP) operates today as an agent, consultant, broker, and risk manager in the insurance industry. As one of the oldest insurance firms in the Mid-Atlantic region, MDP celebrates its 150th anniversary in 2025. Through the years, our operations and services have grown, allowing our firm to provide insurance solutions to many different niche markets.

river meets sea

Witnesses said the area beneath the bridge deck had been on fire and because traffic across the bridge was stopped, no casualties occurred, according to the Associated Press.

Splashdown: Fire-Weakened Beijing Bridge Deck Falls Into River

May 12, 2025 — Richard Korman - Engineering News-Record

A deck section on a 26-year-old tied-arch Beijing bridge collapsed into the Chaobai River April 23, when tie rods hanging from an arch to one side of the deck failed, Chinese agencies and news media reported.

Mr. Korman may be contacted at kormanr@enr.com

Reprinted courtesy of Richard Korman, Engineering News-Record

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Hurricane building palm trees

In August 2021, Williams' home was damaged by Hurricane Ida.

Homeowner Allowed to Amend Complaint to Demonstrate Third-Party Beneficiary Status Under Lender-Placed Policy

May 12, 2025 — Tred R. Eyerly - Insurance Law Hawaii

The homeowner's complaint was improperly dismissed without leave to amend to demonstrate she was a third-party beneficiary of a lender-placed policy on her home. Williams v. Integon Nat'l Ins. Co., 2025 U.S. App LEXIS 6919 (5th Cir. March 25, 2025).

Ellen Williams purchased a home which was mortgaged by Flagstar Bank. Because she did not insure the home, Flagstaff obtained a "lender-placed hazard insurance policy from Integon at Williams' expense. The policy named Flagstaar as the "insured" and Williams as the "Borrower." Williams paid all premiums and complied with all requirements in the policy. Flagstar negotiated for a policy limit of $77,934, rather than opting to use its own insurable interest in the property to cap the liability risk. The policy provided as follows:

13. Loss Payment. WE will adjust each LOSS with [Flagstar] and will pay [Flagstar]. If the amount of Loss exceeds [Flagstar's] insurable interest, WE will pay BORROWER any residual amount due for the LOSS, not exceeding the Limit of Liability indicated on the NOTICE OF INSURANCE.

Mr. Eyerly may be contacted at te@hawaiilawyer.com

Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert

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Confidential file next to typewriter

One critical ruling on a motion to compel involved defendants’ suggestions that the contractor had not adequately protected trade secrets -- and defendants’ request for information from the contractor on the topic.

(Don’t) Go Fish

May 12, 2025 — Daniel Lund III - Lexology

The United States District Court for the Middle District of Louisiana faced significant discovery challenges in a complex trade secrets dispute initiated by a general contractor against several defendants, including former employees of the general contractor. The contractor alleged that defendants misappropriated confidential customer lists, pricing strategies, and business plans in order to unfairly compete against the contractor.

The contractor sought and was granted immediate injunctive relief, and, as the case progressed, the court implemented a protective order and a forensic protocol to manage the exchange and examination of the alleged misappropriated information. Despite these measures, discovery quickly became contentious.

One critical ruling on a motion to compel involved defendants’ suggestions that the contractor had not adequately protected trade secrets -- and defendants’ request for information from the contractor on the topic. The court found no substantial evidence of improper disclosures and ruled that requiring a contractor to review all its documents for potential external disclosures was disproportionate – without tangible evidence of such actions (the court emphasizing the necessity of specificity in discovery requests to avoid undue burdens). In connection therewith, the court also examined the contractor’s efforts to protect its trade secrets, which the court found adequate.

Mr. Lund may be contacted at daniel.lund@phelps.com

Reprinted courtesy of Daniel Lund III, Phelps

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Interior legislature

The bill will take effect upon the Governor’s signature or May 20, 2025.

Washington State Lawmakers Pass Statewide Rent Stabilization Legislation

May 12, 2025 — Lewis Brisbois Newsroom

(May 2, 2025) - On April 27, 2025, the Washington state Legislature passed HB 1217, the Housing Stability Act, which caps rent increases for most single-family and multi-family landlords and mandates specific notice requirements for rent increases that landlords must comply with to increase rents. The bill will take effect upon the Governor’s signature or May 20, 2025.

Below is a summary of key provisions in the bill.

  1. Landlords cannot raise rents in the first year of a tenancy.
  2. Any subsequent rent increase cannot exceed seven percent plus the consumer price index or 10 percent, whichever is lower.
  3. Landlords cannot impose more burdensome conditions on a month-to-month lease or charge a tenant more than a five-percent difference in rent for different lease terms. This restriction reduces the premium rents charged on month-to-month leases or leases for short-term duration.

Reprinted courtesy of Lewis Brisbois

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Measuring tapes

Just because you are pursuing a claim for unjust enrichment does not mean you don’t have to still prove your damages with a reasonable degree of certainty.

Unjust Enrichment Damages Must Be Measurable and Quantifiable

May 12, 2025 — David Adelstein - Florida Construction Legal Updates

Just because you are pursuing a claim for unjust enrichment does not mean you don’t have to still prove your damages with a reasonable degree of certainty. You ABSOLUTELY do:

Under Florida law, unjust enrichment damages must reflect the reasonable value of the plaintiff’s labor and costs expended for the benefit of the defendant or the value of the economic benefit that the plaintiff had conferred upon the defendant. While mathematical precision is not required, damages must be ‘measurable and quantifiable’ and supported by a ‘fact-based chain of reasoning’ so as to avoid conjecture.

Alvarez v. All Star Boxing, Inc., 50 Fla.L.Weekly D913a (Fla. 3d DCA 2025).

While Alvarez is a non-construction case, it deals with unjust enrichment which comes up in construction disputes. Here, unjust enrichment damages were awarded to the plaintiff. An appeal was taken because the defendant claimed the evidence didn’t support or link to the unjust enrichment damages that were awarded to the plaintiff. The appellate court agreed finding there was no ‘fact-based chain of reasoning” that could link the damages awarded (with relevant citations relative to damages that must be proven to support an unjust enrichment claim).

Mr. Adelstein may be contacted at dma@kirwinnorris.com

Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.

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Construction site next to powerline

This matter arose from an electrocution incident on a construction site that resulted in the passing of one individual and injuries to two others.

Congratulations to Partners Alison Hurley and Nicholas Rodriguez for Prevailing on Their Motion for Summary Judgment!

May 12, 2025 — Dolores Montoya - Bremer Whyte Brown & O'Meara LLP

Bremer Whyte Brown & O’Meara is pleased to share that Partners Alison Hurley and Nicholas Rodriguez successfully secured a grant of Summary Judgment in a complex case involving claims of wrongful death and personal injury.

This matter arose from an electrocution incident on a construction site that resulted in the passing of one individual and injuries to two others. The incident occurred when the workers were in the process of installing rebar on the fourth-floor deck of a construction project in Los Angeles, California. As they hoisted a piece of rebar past the edge of the building to attempt to fix a prior mistake, it contacted an active power line, causing the incident.

Plaintiffs included the four family members of the decedent, as well as the two injured workers. Nicholas and Alison represented the building owner, general contractor, and a hired subcontractor. Each plaintiff asserted some form of negligence and premises liability against these defendants alleging that defendants were the cause of the incident and resulting harm. However, Nicholas and Alison argued that each and every claim failed under the Privette doctrine as the incident and resulting harm occurred while the workers were in the course of their employment and under the direction and supervision of their employer. Moreover, pursuant to Privette and its progeny, defendants implicitly delegated to the employer of the workers any tort law duty defendants may have owed to ensure the safety of the workplace that was the subject of the contract. The Court agreed and found that defendants met their burden, and that plaintiffs could not present arguments to overcome the facts and prevailing authority.

Reprinted courtesy of Dolores Montoya, Bremer Whyte Brown & O'Meara LLP

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Three chess pieces center is connected to others

Zachary Torres-Fowler and Manav Singhla discussed the similarities and differences between domestic arbitration and international arbitration.

Toolbox Talk Series: International Arbitration for the "Domestic" Construction Lawyer

May 12, 2025 — Brendan J. Witry - The Dispute Resolver

As US-based construction lawyers know, arbitration is a frequently used method of dispute resolution. However, construction lawyers who practice primarily with projects and clients in the US may not be aware of the nuances that come with the use of arbitration on international projects. For this month's installment of the Toolbox Talk Series, Zachary Torres-Fowler and Manav Singhla discussed the similarities and differences between domestic arbitration and international arbitration.

Zachary and Manav first demystified the nature of international arbitration; it is simply a means of dispute resolution just like domestic arbitration. They discussed the advantages of international arbitration, most notably the easier means of enforcement. Particularly where there are different legal systems (i.e., common law vs. civil law) enforcing a judgment from one legal system can be difficult where the prevailing party must go elsewhere (with a different legal system/tradition) to collect.

Mr. Witry may be contacted at bwitry@lauriebrennan.com

Reprinted courtesy of Brendan J. Witry, Laurie & Brennan LLP

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Toast celebration

Anthony LaPlaca was recognized as one of “the top construction lawyers across the commonwealth.”

Anthony LaPlaca Selected as a 2025 Go-To Construction Lawyer by Massachusetts Lawyers Weekly

May 12, 2025 — Anthony LaPlaca - The Construction Seyt

Anthony LaPlaca, Construction partner in Seyfarth’s Boston office, was chosen as a Go-To Construction Lawyer by Massachusetts Lawyers Weekly (MLW) for 2025, recognizing him as one of “the top construction lawyers across the commonwealth.”

In LaPlaca’s profile, MLW writes:
“LaPlaca has spent his entire career litigating complex construction and design disputes across the country. While he primarily represents general contractors and design professionals, LaPlaca has substantial experience counseling owners and developers on commercial, transportation, entertainment, and energy projects, which allows him to see the best arguments on both sides of any issue.”

Mr. LaPlaca may be contacted at alaplaca@seyfarth.com

Reprinted courtesy of Anthony LaPlaca, Seyfarth Shaw LLP

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Change Order

Under budget, over budget, change orders and labor shortages. Construction projects are not lacking in surprises. Here's how to be prepared for them.

Four Ways to Master the Twists and Turns of Construction Project Change Orders

May 12, 2025 — Joshua Miles - Construction Executive

In an industry where projects often run over schedule and over budget, change orders, labor shortages and communication gaps can significantly reduce construction firms’ profits.

Delays and budget hikes are often inevitable because of the nature of construction work where change orders are frequent. However, if not managed properly, they can result in a loss of credibility with clients and cut deeply into profit.

Here are four construction project management tips that can ease the burden of inevitable project shifts that lead to hidden losses if not properly managed.

1. Create a Detailed Project Schedule
As projects evolve, superintendents often scramble to get the right skilled-trades workers on site at the right time to move projects forward.

Reprinted courtesy of Joshua Miles, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.

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Green grass forest with green glass earth

Attorney Anthony B. Cavender discusses recent environmental issues in the regulatory arena.

Environmental Update: Regulatory Notes – April 2025

May 12, 2025 — Anthony B. Cavender - Gravel2Gavel Construction & Real Estate Law Blog

April has proven a busy month for environmental issues when it comes to the regulatory arena. Below are just a few of the notable developments:

  • Coal-Fired Relief: On April 8, 2025, the President issued Presidential Proclamation 10914, “Regulatory Relief for Certain Stationary Sources to Promote American Energy,” published in the Federal Register on April 21, 2025, at 90 FR 16777. A 2024 change to EPA’s National Emissions Standards will place severe burdens on coal-fired power plants. Accordingly, the President, pursuant to the authority vested in him by the Constitution and Section 112(i)(4) of the Clean Air Act, proclaims that the sources identified in Annex I of this Proclamation are exempt from compliance with the rule for two years, beginning on July 8, 2027, and concluding on July 8, 2029. At the present time, technology to implement the new standards is not available. (Forty-seven stationary sources are identified in Annex I.)
  • A Modified General Permit for the CWA: On April 15, 2025, EPA published its modifications to the 2022 Clean Water Act Construction General Permit. (See 90 FR 15653.)Section 402 of the Act authorizes EPA to regulate construction activities that result in discharges of pollutants to the waters of the United States. The initial notice of a revised Construction General Permit was published in the Federal Register on January 24, 2022. The latest revisions apply to “Lands of Exclusive Federal Jurisdiction,” where EPA is the only permitting authority. In addition, this latest notice responds to the recent Supreme Court ruling in City and County of San Francisco v. EPA, which concerned ambiguous receiving water quality limitations applicable to many municipal wastewater treatment facilities. EPA is likely to provide additional guidance that will be of interest to National Pollutant Discharge Elimination System (NPDE) permittees.

Reprinted courtesy of Anthony B. Cavender, Pillsbury

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Forensic Architect CA, AZ, NV, CO, TX, UT, FL, NM, OK - NCARB - National Council of Architectural Registration Boards

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Rocks balancing weighing near beach

US Homebuilder Sentiment Ticks Up But Tariffs Weigh on Outlook

May 19, 2025 — Michael Sasso - Bloomberg

US homebuilder confidence barely rose this month on a pickup in current sales, though demand expectations stumbled to a more than one-year low and prices of construction materials are climbing on the heels of higher tariffs.

A gauge of overall conditions from the National Association of Home Builders and Wells Fargo rose 1 point to 40 in April, hovering near some of the lowest levels since late 2023. The median estimate of economists surveyed by Bloomberg called for a reading of 38.

The index’s components, however, were mixed. Builder expectations for sales in the next six months slipped 4 points to 43, reaching its lowest level since November 2023. Meantime, measures of present sales of single-family homes and traffic of prospective buyers each ticked up slightly.

Reprinted courtesy of Michael Sasso, Bloomberg

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Upward trend

March Construction Employment Up Just 1.8% Year Over Year

May 19, 2025 — ABC - Construction Executive

WASHINGTON, April 4—The construction industry added 13,000 jobs on net in March, according to an Associated Builders and Contractors analysis of data released today by the U.S. Bureau of Labor Statistics. On a year-over-year basis, industry employment has risen by a mere 143,000 jobs, an increase of 1.8%.

Nonresidential construction employment increased by 22,300 positions on net in March, with growth in 2 of the 3 subsegments. Nonresidential specialty trade added the most jobs, with a monthly increase of 19,300 positions, while heavy and civil engineering added 3,400 jobs. The nonresidential building subsegment lost 400 positions.

The construction unemployment rate decreased to 5.4% in March and is unchanged from one year ago. Unemployment across all industries rose from 4.1% in February to 4.2% last month.

Reprinted courtesy of ABC, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.

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Trend upward next to umbrella

Tariffs Threaten to Push US Home Insurance Rates Even Higher

May 19, 2025 — Leslie Kaufman - Bloomberg

With the Los Angeles fires in January and last week’s severe storms that brought flooding and tornadoes to the Midwest, extreme weather is already battering US homes in 2025. Homeowners should expect their insurance rates to jump accordingly, says Insurify, an insurance policy comparison website, in a new report.

The steep tariffs imposed by President Donald Trump will likely worsen the pain.

The average annual cost of home insurance will increase 8% nationally by the end of the year to $3,520 for a home worth $400,000, Insurify projects. Some states, including Louisiana, Iowa and Minnesota, will see double-digit increases.

Reprinted courtesy of Leslie Kaufman, Bloomberg

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Webinar

ABA’s GenAi in Construction Disputes: Document Analysis and Synthesis Webinar

May 19, 2025 — Beverley BevenFlorez – CDJ Staff

This one-day event presented by the American Bar Association “explores how generative AI reimagines document review methods in construction disputes; where projects generate 250,000+ documents and traditional review consumes +30% of legal budgets.” Participants will discover how “AI tools from leading platforms can reduce review time by up to 90% while maintaining compliance with ABA ethical guidelines and professional judgment.”

May 29th, 2025
Virtual Event

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Residents Forced to Evacuate Clearwater Condo Will Be Allowed to Go Get Belongings

Over the weekend, the dozens of residents that had to evacuate Tuesday, will be allowed back into their units, for 15-minutes, to get items they left behind, WFLA News reported.

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Inspection Underway at Clearwater Condos That Were Evacuated Due to Structural Concerns

Private engineers still need to finish their inspection to make sure everything is secure and then the city will have to come and do its own, 10 Tampa Bay News.

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