Insurance Mind-sets

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‘Faulty construction’: Plumbers, contractors receiving flood of calls for pipes bursting HOUSTON – Unscheduled extreme makeovers wikipedia reference are happening throughout the area as a result of the extreme weather week that has paralyzed the state of Texas. Licensed plumber Mike Marsh is seeing a lot of exposed pipes in places homeowners can’t, inside their walls. After examining one pipe that burst inside the wall of a home in Sienna Marsh had this assessment, “They’re not insulated. They’re not even taken proper care of.” This pipe burst could have been avoided, according to Marsh. Not in the days leading up to this week’s storm and freezing temperatures but rather when the home was going up. “This is faulty construction. If things were done right here, we wouldn’t have to repair this,” Marsh said. General contractor Michael Ferguson is staying busy as well. However, this week has been unlike anything he has seen in 36-years of contractor work. “Crazy, a nightmare, not believe what I’m seeing and having to deal with,” said Ferguson, outside of the home where he was doing sheetrock work on Thursday. Plumbers and contractors are facing a significant challenge, primarily getting their hands-on materials to make necessary repairs. “Right now we are trying to stop leaks, capping lines, that’s all we can do right now because we don’t have the parts to get the repairs done,” Ferguson said. Lisa Carter and her husband Sam were in need of a quick fix after a watery discovery, “It was raining just everywhere in the entire room,” Carter said. Carter was able to get repairs done because she has access to plumbing materials through her work. “There are no parts to be had anywhere in the state of Texas. Everybody is trying to scramble to help everybody. Not only did I buy parts for my house but I bought parts for the plumbers so that he can go and fix other people’s houses to make them whole,” Carter said. For Ferguson and Marsh, this was just another home on their list. Marsh shared that he has received approximately 2,000 calls and messages this week. Copyright 2021 by KPRC Click2Houston - All rights reserved.

https://www.click2houston.com/news/local/2021/02/19/faulty-construction-plumbers-contractors-receiving-flood-of-calls-for-pipes-bursting/

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Similarly, without any change in the work or instructions from an agency, a contractor may find it difficult to recover under the Changes clause for additional procedures brought on by COVID. Cases examining security environments may also provide insight into how contractors can recover for additional work under COVID—particularly with regard to the requirement that the cause of delay be unforeseeable. For example, in ECC International, LLC, a contractor sought costs resulting from the Government’s closure of a gate needed to access the construction site. ASBCA No. 60484, 18-1 BCA ¶ 37,203. While the Government had closed the gate for security concerns, the contractor argued that use of the gate constituted part of its approved security plan. Given that the contractor was on notice that it was providing services in “a wartime contingency environment,” the ASBCA determined the Government’s action were foreseeable and thus, not a constructive change. In Terraseis Trading Limited, the contractor was terminated for cause for not meeting its data collection delivery date. ASBCA Nos. 58731, 58732, 15-1 BCA ¶ 36,176. The contractor argued that it could not have foreseen that the Afghan government would be unable to provide needed security because it had provided adequate security on two previous projects. Again, the Board disagreed and found that the contractor affirmatively opted into a project with complex security issues. The foreseeability of a dynamic security working environment was relevant to the Board; this same reasoning might also be extended to working in a COVID environment. Top Takeaways for Construction Contractors It might seem given that delays experienced while attempting to perform in a pandemic, with all the challenges posed by health screenings, travel restrictions, and shuttering businesses, are caused solely by COVID-19. But the epidemic and security cases described above serve as reminders that the path to establishing excusable delay, and especially compensable delay, can be rocky and will be rooted in details. For that reason, we cannot overstate the importance of documentation, both to establish any delay in the first instance, and to bolster the assertion that the pandemic was in fact the only cause of a particular delay. As construction contractors review potential grounds for seeking schedule and monetary adjustments related to performance in 2020 and prepare for a second year of performance in a pandemic, contractors should make sure to document challenges, decisions, and costs with as much specificity as possible, and to integrate lessons learned from 2020 into future projects.

https://www.jdsupra.com/legalnews/construction-claims-in-the-covid-era-8696382/