Federal and local law enforcement officers raided nine sites around the valley on Wednesday in a sweeping probe into possible collusion between homeowners associations and businesses benefiting from construction defect lawsuits.

The raids are part of a “pending public corruption case,” according to Federal Bureau of Investigation spokesman Dave Staretz, who refused to release details. He said no arrests were made.

коли под наемAccording to a law enforcement source, the FBI is investigating whether individuals were placed on homeowners association boards who, in turn, would direct business stemming from construction defect lawsuits to select companies.

At issue, according to the source, is whether HOA members were steering contracts to certain construction companies.

Other sources said there has long been speculation that some HOA representatives were hiring certain law firms to handle construction defect lawsuits in exchange for kickbacks.

According to this article and others, a law firm would become involved with a homeowners association in the Las Vegas area representing the board in a construction defect case. The law firm (it was always the same firm, according to law enforcement) would recommend that the repairs be made by one Leon Benzer. His construction company would front the costs of the work and thereby receive the bulk of any settlement or award at the conclusion of the law suit. If the HOA board didn’t go along, they were replaced through carefully orchestrated and possibly fraudulent election proceedings. The new HOA board would likely be comprised of members that were on good terms with either Benzer or the law firm.

Benzer is purported to be an advocate for homeowners but the implications are much different. The FBI and local law enforcement are still tight-lipped about the investigation, so little more is known at this time.

Link to Las Vegas Review Journal Article, Link to Las Vegas Now Article

Updated: A well-known construction defect plaintiff attorney, Nancy Quon, has been added to the roster:

Agents are also interested in documents related to political consultant Steve Wark, who served as president of the Vistaña Homeowners Association, as well as prominent construction defect attorneys Scott Canepa and Nancy Quon.

“A federal agency has joined some of the nation’s biggest landlords in trying to repeal stronger safety requirements for new skyscrapers that were added to the country’s most widely used building code last year, arguing that they would be too expensive to meet.

“The new provisions, which include requiring tall office buildings to have more robust fireproofing and an extra emergency stairwell, were enacted as a result of an exhaustive federal study into the collapse of the twin towers at the World Trade Center seven years ago this week.

The entire article is worth a read. Emotionally charged politics vs. economic interests of major political contributors square off. In the middle is the NIST’s report following the investigation of the WTC collapses and the ICC attempting to translate that data into applicable codes.

Link to Article, Link to ICC News Release from 2005

In Veeck v. Southern Building Code Congress, 293 F.3d 791, the United States Court of Appeals, Fifth Circuit, met en banc “because of the novelty and importance of the issues” presented before the court:

“The issue in this en banc case is the extent to which a private organization may assert copyright protection for its model codes, after the models have been adopted by a legislative body and become ‘the law’. Specifically, may a code-writing organization prevent a website operator from posting the text of a model code where the code is identified simply as the building code of a city that enacted the model code as law?”

In an exhaustive opinion that carefully traced the reasons why our laws must be public, the Honorable Chief Judge Edith H. Jones stated the conclusion of the court:

“Our short answer is that as law, the model codes enter the public domain and are not subject to the copyright holder’s exclusive prerogatives.”

So without further ado, please take the time to download the full set of the 2007 California Building Code, made available by Carl Malamud of the Public.Resource.Org as a gift to the public in honor of this country’s Declaration of Independence.

Link to Download Page, from BoingBoing.net

P.S. – Laws cannot be copyrighted.

“A Blaine County judge has rejected Tom Hanks’ second request for arbitration over what the actor says was $2.5 million in faulty workmanship by the construction company that built his sprawling compound north of this central Idaho resort town.

“Following the decision, a lawyer for the construction company said it will seek monetary damages from Hanks and his wife, Rita Wilson, for what it alleges was “abuse of process” for filing the second arbitration request.”

Link to Article

“To model how flames turn buildings into ashes, the nation’s leading fire researchers don’t play with matches over the sink. Instead they burn down entire homes, cubicles and warehouses.

“At the National Institutes of Standards and Technologies, researchers set huge fires under a 40-foot-long by 30-foot-wide exhaust hood that is connected to an $8 million control unit.

Link to Article

“Manhattan prosecutors are investigating whether the leading concrete testing company in the New York area, which has been hired to measure and analyze the strength of the concrete poured at some of the biggest construction projects in the city, failed to do some tests and falsified others, officials involved in the inquiry said on Friday.

“The investigation has uncovered problems with tests the company conducted on concrete poured over the last two years at the new Yankee Stadium in the Bronx and the foundation of the Freedom Tower in Lower Manhattan, along with as many as a dozen other projects, said several of the officials, who spoke on the condition of anonymity because the investigation is continuing.

“The investigation has also raised questions about past work done by the company, Testwell Laboratories Inc., at a wide range of sites around the city. Construction and inspection practices in the city are already under scrutiny as a result of a series of fatal accidents and arrests on corruption charges.”

This article is fascinating on a number of levels. First, who would have thought that the New York Times would run an article that goes into such detail about concrete testing, specifically slump tests? Secondly, and perhaps more notable, law enforcement is conducting an investigation into the practices of a noted high profile concrete testing firm. But it isn’t just any law enforcement division, it is the Manhattan District Attorney Office’s Labor Racketeering Unit. Racketeering? That’s a serious charge.

It should be noted that Testwell Laboratories, Inc. (website appears to be down – here is the Google cache of the site) provides much more than concrete testing, offering a full range of testing services including geotechnical, metallurgy, construction materials, petrographic and chemical. Testwall Laboratories, Inc. describes itself (ironically) as “an independent full-service testing, inspection, quality control and quality assurance organization that has earned a valued reputation for reliability and professionalism in the construction industry“. [Emphasis added.]

Link to Article

???????? ????? ????????From lippeatt.com

Link to Part 1, Link to Part 2, Link to Part 3

California’s residential construction industry is approaching uncharted waters as a housing slump, tight liability insurance coverage and new laws for handling construction defect litigation all collide.

The collision makes an already challenging business environment fraught with even more danger. Some attorneys, especially those representing subcontractors, say they fear for their clients’ future.

“This is going to be a big problem,” said Blane Smith, an insurance-coverage attorney.

Link to Article

“In a case that is being closely watched in the multi-family housing industry, the Ninth Circuit Court of Appeals yesterday released its opinion affirming the lower court’s holding that the 2-year statute of limitations for a private civil action alleging violation of the Fair Housing Act’s accessibility requirements for design and construction is triggered, i.e., the violation is complete, at the conclusion of the design and construction phase, which occurs on the date the last certificate of occupancy is issued.”

It seems that for the foreseeable future, accessibility claims under Fair Housing Act will be subject to a two year statute of limitations after all. This means that plaintiffs only have two years from the occupancy date to file a claim for such violations. This is quite favorable for developers, contractors and designers but may go against the intent of the Fair Housing Act, as illustrated by dissenting Circuit Court Judge, Hon. Judge Fisher:

“The majority erroneously treats a building’s improper design and construction as the event that triggers the Fair Housing Act’s (FHA) two-year statute of limitations. It does so by finding an ambiguity in the statute and then resolving that ambiguity contrary to the overall purpose and structure of the FHA and its legislative and judicial history.

“I believe instead that the most plausible reading of the statute is that the limitations period begins (at the earliest) when a disabled person actually experiences discrimination — either in attempting to buy or rent a noncompliant housing unit, in “testing” such a unit or upon moving in as a tenant.

In other words, Fisher feels that the two year statute should begin following discovery of such a violation. However the majority opinion from the Ninth Circuit felt that this two year statute should begin once the work is done. So what happens if a property is completed, but nobody moves in for two years? According to this decision, if there is a violation of the Fair Housing Act that creates a situation that is discriminatory, nothing happens at all.

Link to Article, Link to Post from Ninth Circuit Opinions Blog, Link to Opinion (PDF)

1. Umm Said Qatar – April 3, 1977 (Weld Failure, Gas Processing Plant, 3 killed, US$ 76,350,000/179,000,000)
2. Abqaiq Saudi Arabia – April 15, 1978 (Corrosion, Gas Processing Plant, US$ 53,700,000/117,000,000)
3. Ekofisk Norway – March 27, 1980 (Weld Failure, Offshore Platform, 123 killed)
4. Edmonton Canada – April 18, 1982 (Fatigue, Petrochemical Plant, US$ 21,000,000/33,000,000)
5. Remeoville Illinois US- July 23, 1984 (Weld Failure, Refinery, 17 killed, US$ 191,000,000/273,000,000)
6. San Juan Ixhuatepec Mexico City Mexico – November 19, 1984 (Pipe Leaking, LPG Terminal, 650 killed 64,000 injured, US$ 19,940,000/29,000,000)
7. Las Piedras Venezuela- December 13, 1984 (Hydrogen Embrittlement, Refinery, US$ 62,076,000/89,000,000)
8. Norco Louisiana- US May 5, 1988 (Erosion-Corrosion, Refinery, 4 killed, 20 injured, 4500 evacuated US$ 254,700,000/336,000,000)
9. Piper Alpha North Sea UK – July 8, 1988 (Gas Leaking, Offshore Platform, 167 killed, US$965,000,000/1,270,000,000)
10. Antwerp Belgium – March 7, 1989 (Fatigue/Weld Failure, Petrochemical Plant, US$ 77,000,000/99,000,000)
11. Richmond California US – April 10, 1989 (Weld Failure, Refinery, 8 injured,US$87,170,000/112,000,000)
12. Baton Rauge Louisiana US – December 24, 1989 (Brittle Fracture, Refinery,US$ 68,900,000/89,000,000)
13. Coatzacoalcos Mexico – March 11, 1991 (Pipe Leaking, Petrochemical Plant,US$ 91,300,000/112,000,000)
14. Dhaka Bangladesh – June 20, 1991 (Weld Failure, Petrochemical Plant, US$ 71,000,000)
15. North Rhine Germany – December 10, 1991(Erosion-Corrosion, Refinery, US$ 50,500,000/62,000,000)
16. Guadalajara Mexico – April 22, 1992 (Corrosion, Fuel Pipeline, 206 killed, 500 injured, 15,000 evacuated, US$ 300,000,000)
17. Westlake Louisiana US – July 28, 1992 (Weld Failure/Corrosion, Petrochemical Plant, US$ 25,000,000/30,000,000)
18. Wilmington California US – October 8, 1992 (Erosion-Corrosion, Refinery, US$ 73,300,000/96,000,000)
19. Sodegaura Japan- October 16, 1992 (Fatigue, Refinery, 10 killed, 7 injured, US$ 160,500,000/196,000,000)
20. La Mede, France November 9, 1992 (Pipe Leaking, Refinery, US$ 260,000,000/318,000,000)
21. Baton Rouge Louisiana US – August 2, 1993 (Creep, Refinery Plant, USD 65,200,000/78,000,000)
22. Simpsonville Sacramento US- June 6, 1996 (Pitting Corrosion, Fuel Pipeline, USD 27,000,000/33,000,000)
23. Rio Piedras San Juan Puerto Rico – November 21, 1996 (Wrong Material in HCA, Gas Distribution Pipeline, 33 killed, 69 injured, USD 5,000,000)
24. Martinez California US – January 27, 1997 (Creep, Refinery, USD 80,000,000/82,000,000)
25. Yokkaichi Mie Japan – May 2, 1997 (Erosion-Corrosion, Petrochemical Plant)
26. Visakhapatnam India – September 14, 1997 (Pipe Leaking, Refinery,50 killed, 27 injured, 100 evacuated, USD 64,000,000)
27. St Helena California US – December 2, 1997( Corrosion-Pitting, Fuel Pipeline, USD 14,000,000/17,000,000)
28. Bintulu Serawak Malaysia -December 25, 1997 (Gas Processing Plant, High Temperature Failure, 12 injured, USD 275,000,000/294,000,000)
29. Longford Victoria Australia -September 25, 1998 (Brittle Fracture, Gas Processing Plant, 2 killed, 8 injured, USD 160,000,000/171,000,000)
30. Berre l’Etang France – October 6, 1998 (Corrosion, Refinery,USD 22,000,000/23,000,000)
31. Idjerhe Niger Delta Nigeria – October 17, 1998 (Pipe Leaking,Fuel Pipeline,100 killed)
32. Knoxville Tennesse US – February 9, 1999 (Brittle Fracture, 15 evacuated, USD 8,100,000)
33. Martinez Caifornia US – February 23, 1999 (Corrosion, 4 killed, 1 injured)
34. Winchester Kentucky US – January 27, 2000 (Crude Oil Pipeline, Fatigue, USD 7,100,000)
35. Hunt Texas US- March 3, 2000 (Corrosion, Fuel Pipeline, USD 40,000,000)
36. Prince Georges US – April 7, 2000 (Pipe Leaking, Fuel Pipeline, USD 50,000,000/ 57,000,000)
37. Mina Al-Ahmadi Kuwait – June 25, 2000 (Erosion-Corrosion, Refinery, 5 killed, 50 injured, USD412,000,000/ 433,000,000)
38. Carlsbad New Mexico US – August 19, 2000 (Corrosion-Pitting, Gas Pipeline, 12 killed, USD 100,000,000)
39. Roncador Brazil – March 15, 2001 (Tank Leaking, Offshore Platform, 2 killed, 8 missed, USD 515,000,000)
40. Carson City California US – April 23, 2001 (Pipe Leaking, Refinery, USD 120,000,000/124,000,000)
41. Rawdhatain Kuwait – January 31, 2002 (Pipe Leaking, Refinery, 4 killed,18 injured, USD 200,000,000)
42. Brookdale Manitoba Canada- April 14, 2002 (Stress Corrosion Cracking, Natural Gas Pipeline, USD 13,000,000)
43. Moomba Australia – January 1, 2004 (Liquid Metal Embrittlement, Gas Processing Plant, USD 5,000,000)
44. Skikda Algeria – January 19, 2004 (Liquid Metal Embrittlement, LNG Plant, 27 killed 72 injured, USD 30,000,000)
45. Humber Estuary Killingholme UK – April 16, 2001 (Erosion Corrosion, Refinery, USD 82,400,000)
46. Ghislenghien Belgium- July 30, 2004 (Pipe Leaking, Natural Gas Pipeline, 24 killed, 120 injured)
47. Mihama Japan August 9, 2004 (Erosion-Corrosion, Power Plant, 6 killed, 5 injured)
48. Texas City Texas US – March 23, 2005 (High Temperature Hydrogen Attack, Refinery, 15 killed, 170 injured, USD 30,000,000)
49. Sidoarjo East Java Indonesia- November 22, 2006 (Pipe Leaking, Natural Gas Pipeline,11 killed)
50. Free Town Sierra Leone – December 21, 2007 (Pipe Leaking, Natural Gas Pipeline, 17 killed)

Links to Part 1, Part 2, Part 3, Part 4, Part 5

“After crossing the short hallway to the master suite, she shows off her bedroom, the beautiful master bathroom, the seethrough gas fireplace and connected patio space. Then she leads her guest up a short flight of stairs to the exercise room, with gorgeous views of the Red Mountains. Coming back down the stairs she pulls from her pocket what looks like a car door remote. She stands back, presses one of the buttons and says, ‘And this is the secret room.’

“The stair case begins to raise and below it is a another set of stairs, this one leading down to a small dark room the same size and shape as the exercise room above it.

“‘Watch your head,’ says Kircher as she crouchees slightly and makes her way down the stairs.”

Link to Creative Home Engineering website, Link to Creative Home Engineering Gallery, East Valley Tribune article, Link to CNBC video, from Gizmodo

The number of local construction-defect lawsuits has risen alongside the valley’s population. And one reason for this may be the heavy regulatory burden assumed by the area’s building and safety officials who oversaw all the area development.

County officials say that at the height of the building boom some inspectors were doing as many as 70 inspections a day. In response to reports that county building inspectors were conducting as many as 120 inspections a day during 2004 and 2006, Clark County Director of Development Services Ron Lynn said those numbers never got higher than between 60 and 70.

This article seems to echo the sentiments of many outsiders to the construction defect industry – that it is the responsibility of the local building departments (i.e.: the government) to prevent construction defects by policing contractors. In order for such a situation to exist, the local official would have to be on site at all times, or at least on a daily basis, at every single project. Instead, officials perform periodic inspections at certain key points in the construction of a project. For this reason, it is almost unheard of to see successful legal action taken against building officials for construction defect claims. Although some forward-thinking developers employ third party consultants to maintain an active presence during construction, this is not commonplace, especially in the production housing segment. Those developers that have relied upon such quality control consultants, have very little exposure in terms of construction defect claims, as problems are corrected as they arise. Until this practice becomes more widespread, homeowners will continue to rely upon construction defect consultants, such as SHCC, Inc., to aid in resolving these issues.

Link to Article

“A case heard last week by the 9th U.S. Circuit Court of Appeals involving a North Las Vegas apartment complex has potential for ‘groundbreaking’ ramifications, a local attorney for one of the defendants said Monday.

“An organization for disabled citizens has sued multiple defendants who had any part in designing and building Craig Ranch Villas, formerly the Villas at Rancho del Norte, in 1997 for violations of the Fair Housing Act, alleging inadequate sidewalk ramps for wheelchairs, lack of accessible building entrances and undersized interior doorways, among other things.

“The case has been incorporated into a lawsuit from Idaho (Garcia v. Brockway) and is being followed nationally by major multifamily and fair housing organizations, said Bill Curran of Ballard Spahr Andrews & Ingersoll. The Las Vegas law firm is representing Michael Turk, one of the principal builders who has since sold his majority interest in the property and moved to California.

“The outcome of the court’s ruling will determine the statute of limitations for violations of the Fair Housing Act for all multifamily apartments and condos built after 1991, Curran said.”

This case may have a significant affect on the world of construction defect litigation, as pointed out later in the article. The major point behind this ruling is not whether or not accessibility should be a consideration in multifamily construction, but whether or not there should be a statute of limitations regarding accessibility claims.

Link to Article
 

Weve gathered all the best construction jokes from all over for your amusement.

Here you will find construction worker jokes, architect jokes, engineer jokes, plumber jokes, funny worksite jokes, blonde construction worker jokes, project manager jokes, you name it, if its a joke about construction, here it is.

If you have a joke that isnt in here, send it in.

Please note – a lot of these jokes might be offensive to some people. The views of others do not reflect the views of SHCC, Inc. But some of these jokes are pretty funny. Enjoy at your own risk.

Link to Joke Index

The two companies that managed the design and construction of the costly Big Dig project here will pay more than $400 million in an agreement with the government over leaky tunnels and a fatal ceiling collapse.

State and federal officials said Wednesday that the companies, the Bechtel Infrastructure Corporation and Parsons Brinckerhoff, had acknowledged oversight failures and agreed to pay the state and federal governments $407 million. Several smaller companies will pay an additional $51 million, they said.

Michael J. Sullivan, the United States attorney in Boston, called the agreement “evidence of our commitment to vigorously investigate and prosecute those who have perpetrated a fraud on American taxpayers.” The Big Dig, long considered the nation’s most complex highway project, has cost about $15 billion over nearly two decades.

Link to Article

Buildings rot – it’s a matter of fact rather than a matter of time.

Defects like leaking roofs and windows, breaking insulating, concrete cracks, unfinished finishes and many more wait to be discovered before warranty ends. However, it’s not only the buildings’ age, but the result of increased planning and cost pressure. Even new erected buildings can be deficient.

But there’s help! Most common planning and building defects can be trained in the “Mängelquartett” (a playing card game like “Happy Family”, typically with cars) – a game designed by the German architectural practice “karhard architektur + design”. Have fun. Once started, you won’t stop compiling snagging lists wherever you are..

Too bad this game is in German..

Link to Article, from Treehugger

“TranslucentConcrete is a combination of optical fibres and fine concrete. Thousands of fibres run side by side transmitting light between the two surfaces of each element. Because of their small size the fibres blend into concrete becoming a component of the material like small pieces of ballast. In this manner, the result is not only having the two materials mixed – glass in concrete – but a third, new material, which is homogeneous in its inner structure and on its main surfaces as well.”

Link to Article, from Gizmodo

• $50 Million for Drywall? Serious Materials is a company that is best known for sound attenuation construction products. Recently they announced development of a new type of drywall that will take 90% less energy to produce resulting in a 98% reduction in greenhouse gases. EcoRock, as it is called, has impressed investors, raising $50M thus far.
• Nine Creative Staircases This article features some really inspiring staircase designs for what is normally a fairly boring subject.
• New Spin on Low E Glazing Glass isn’t the best product for energy efficiency by itself – something called emissivity. To increase the efficiency, which means decreasing emissivity (hence “Low-E”), special materials are applied to glass. Some glazing products are better for keeping heat inside the building in colder climates while other products reflect sunlight keeping the inside cooler in warmer climates. But what about temperate climates with both hot summers and cold winters? Dr. Heinz Kunert of KSD Fenster in Germany created a pivoting glazing panel with one type of each coating on either side. So during the winter, rotate the window with the more insulating side on the interior, and during the summer, rotate the window to face the reflective coating to the outside.
• The Big Dig House We covered the topic of The Big Dig before – a Boston area public works project that has ended in disaster. We re-visit the subject to highlight what some enterprising folks at Single Speed Design have done with some of the leftovers. They removed some 300 tons of material from the project and recycled it to make a very nice and modern home.

“A double glazing salesman launched a violent assault on a customer moments after discovering they had spoken to a rival company, a court was told yesterday.”

Link to Article

• First up is a story that has come up before. It involves a homeowner, a builder, some defective construction and a binding arbitration clause. The homeowner is in foreclosure and cannot afford to continue through arbitration. The author that received a letter from the homeowner has experience in construction and offers his take on the situation:
  

  “Based on my experience, I think we can safely predict that defective construction and the gross violations of consumer/homeowner rights by big builders and frightened municipalities (it’s hard to sue a city and win, by the way) will only grow as a national issue as the housing bubble bursts.” Link to Article

• In a Washington state case a condo developer was denied a claim against an insurance carrier involving water intrusion caused by defective construction. Link to Article
• And finally, comes an article that offers advice to contractors to avoid construction defect claims that is worth a read. Link to Article

• At the top of this year’s holiday wish list for anyone in the construction defect investigation business is the Rigid SeeSnake micro Inspection Camera. This would almost fit on my tool belt. Link to Article, Link to Product Page
• Next up is a nail assist device to guide your nail into the board and away from your your thumb. Link to Article
• And finally, the very awesome ToolMonger.com brings us not one, not two, but three outstanding tools worth looking into:
  1. The Thinking Man’s Duct Tape
  2. Felker’s New/Improved Tile Master XL Plus
  3. Spatula-Tong Combination BBQ Tool

“So smooth, it was like sliding in a drawer. That’s how one local news organization described the delicate process of rolling in a new 6,500-ton segment of the upper deck of the San Francisco-Oakland Bay Bridge over Labor Day weekend. The operation also was remarkably fast, with the installation taking a little under three hours, about half the time originally predicted. In fact, nearly every aspect of the complex retrofit-by-replacement just to the east of the Yerba Buena Island Tunnel was so well-orchestrated that Caltrans and the Bay Area Toll Authority (BATA) were able to shave 11 hours off the schedule, and reopen the bridge to traffic at 6 p.m. on Labor Day proper — far ahead of the original deadline of 5 a.m. on Tuesday.”

Link to Article, Link to Video (from BoingBoing)

In Nevada, a homeowner has two options, they may either file a claim with the Nevada State Contractors Board at no charge or they may contact a lawyer and file a Chapter 40.  Chapter 40 was written to protect homeowners with homes that have true defects.  A Chapter 40 done by a reputable attorney should only cost the homeowner $40; all other costs are recouped in court from the builder.  An attorney that is implementing Chapter 40 in this way, which is the way the legislature intended, will NOT take a case they cannot win because they will not be paid.

According to Reese, some attorneys are including a cancellation fee in their contracts with homeowners similar to what mobile phone carriers use. If a case will not proceed under Chapter 40 rules, the attorney charges the homeowner a $6,000 fee. More reputable attorneys, he points out, will instead recommend homeowners utilize the free services of the Nevada State Contractors Board which may result in a speedier resolution to construction defect issues. Perhaps the windfalls associated with construction defect litigation in Nevada are not so easy to come by…

Link to Article

“The court specifically found that the seller could not have been unaware of the serious water problems and resulting mold throughout the house. Carpet which had been installed just before the sale was soaking wet when lifted. There was black mold in the utility closet, obscured by boxes and storage items. Wood support beams were visibly stained and rotted through, in areas where sheet rock was missing from the walls, so the seller could not have missed it. The evidence appears to have been overwhelming that the house was in terrible condition. The court did not discuss the contents of the home inspector’s report. It appears that the defendant’s deception and untruthfulness was hugely significant and overcame any argument that the home inspector should have noted these deficiencies.”

The Connecticut Superior Court judge that heard the case ordered the seller to compensate the buyers for not only the repairs but additional money. Sounds good, right – justice was served. The reason that this is surprisingly not too common has to do with what we like to refer to as the Construction Defect Lawsuit Life-cycle. Most homeowners join construction defect lawsuits because they have genuine concerns over the construction of their home. The first step in the process is for the attorney representing the homeowner to pay for an expert to thoroughly investigate the home to produce a preliminary defect list. The next step is the investigation and mediation phase whereupon myriad attorneys, insurance adjusters, experts and others representing plaintiffs (homeowners or HOA generally) and defense (developer, architects, general contractors, subcontractors, etc.) evaluate and debate the nature and extent of any construction defects. Following this, the case is eventually resolved through one of (at least) three ways: either the case is dropped, settled out of court, or decided in trial. If the homeowner comes out ahead and receives money at the conclusion of the case (their attorney usually gets 30 – 40%), what happens next? That is the part that hasn’t been addressed in any meaningful way yet.

Here is the homeowner with a fairly large check (depending on the plaintiff attorney and various factors the homeowner will average $10,000 up to about $60,000) and a home that according to many experts, is riddled with construction defects. Does the attorney provide the homeowner with a punchlist of items to be addressed by a reputable contractor with references to contractors specializing in those types of repairs? I should think not. Does the expert that testified on behalf of the homeowner oversee repairs to the home that they recommended under oath perhaps? Hardly ever. Following a trial, the homeowner could theoretically obtain transcripts and try to piece together the testimony and reports of the various experts, but ultimately, the homeowner is usually left with nothing but a check and a vague notion of the major defects. Without a lot of direction, addressing truly defective or improperly installed components and associated damages is very difficult. Often times homeowners try to address some of the major issues as best as possible. Often they end up upgrading some of the finishes. Sometimes they spend the money on other things (or so we’ve heard). According to many Southern California realtors, rarely if ever do homeowners disclose during a sell that their home was involved in a construction defect lawsuit – especially if it was settled out of court. The homeowners that were plaintiffs in a construction defect lawsuit have profited, their attorneys profited, the experts hired by their attorney profited, often (strange as it seems) the defense attorneys profit (they are paid by the hour), the experts for the defense profit and even the mediators profit. Insurance carriers recoup their expenses by raising premiums, developers charge more for their homes and the cycle begins anew at a different location. And the house is still defective, no repairs have been made, and yet for some reason, none of this is disclosed to future buyers.

Perhaps this scenario will change in the future, but regardless it is clear that there is a definite gap in the life-cycle. And just to clarify: this isn’t the fault of anyone in particular, and the integrity of the industry as a whole (both the construction defect industry and residential construction itself) has definitely improved over time.

Link to Article

Stephen Kanner, a principal of Kanner Architects in Los Angeles, and his friend Joe Gaddo, an architect based in Ghana, are helping to develop a cement additive that could decrease construction costs there by a one third—no small accomplishment in a country where concrete is the preferred building material and yet few people are able to afford it.

The new additive is called PozzoGhana, a wordplay on an Italian ash-based additive called pozzolana. PozzoGhana is made of a mixture of palm kernels, which come from the fruit of palm trees that grow abundantly in Ghana, as well as lime and local clays. It will be used as a supplement to help reduce the use of imported cement, whose cost is rising. The simple process of producing PozzoGhana, the use of cheap local materials, and the less expensive local labor make it a cheaper option. “It could make a difference in so many construction projects,” Kanner says, “especially if we can help with the low-income housing market.”

Link to Article

A component product’s failure to perform as represented by its manufacturer is a frequent claim in a construction defect cases. Often, defendants of such claims attempt to hide behind general disclaimers and limitations of warranty. Addressing the failure of a component product of yachts, the Federal Court for the New Jersey District recently denied a manufacturer’s summary judgment motion, having concluded that a general disclaimer of warranty will not automatically defeat an express warranty created by representations, descriptions and affirmations set forth in a product bulletin.

Link to Article

Apple Inc. co-founder and legendary hacker Steve Wozniak [book review] recently found a new passion in energy-efficient housing. Last month he told PC World magazine, “I have a long dream to build my own house in a very energy-efficient approach. That’s going to be very soon. It uses the right kind of wood that serves as a heater and as an air conditioner, combined with some other techniques in how the wood is assembled to operate energy life pressure. You don’t have to add energy into a house after you build it. I love that concept. It’s like the way I used to make computers. I want to build it myself. That’s a project that could be finished this summer, next summer, but not too far from now.” Here at ECN we thought you’d like to know more, so we interviewed Woz by email. Here is a transcript of our questions and his answers. His preface: “I’m too busy to do this [interview] now, but I’ll do it anyway. I have to say that I’m not a green expert but did encounter some technologies that were very right for a home.”

Link to Article

No doubt: someone was negligent in the collapse of the Big Dig tunnel in Boston that killed one. The Latin phrase res ipsa loquitur comes to mind.

But it’s hard to understand why Massachusetts officials are going after Powers Fasteners, Inc.

Powers received an order for standard-set epoxy to be used in the tunnel ceiling, and sold $1287 worth. The construction company then used a different, fast-set, epoxy that was not designed for such long-term use. As a result, ceiling panels fell, crushing a car and killing one person. But Massachusetts is indicting Powers. Given that the penalty is a $1000 fine, the only purpose of this use of taxpayer dollars is to carry water for trial lawyers—or, perhaps, to help spread blame in the eventual suit against the Massachusetts Turnpike Authority by having a criminal conviction in hand.

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Mix a love fest with Europe, a little bit of Home Depot Expo and the craftsmanship of the average American homebuilder and you get an ugly statement about this housing boom. Mortgage-liquidity architecture dots the landscape as a reminder of our real estate excess.

Shoddy construction is another consequence as homebuilders slapped up homes faster than at any period in history. Building inspectors, like mortgage regulators, often turned a blind eye as they raced to keep up with the builders.

The litigators are having a field day, representing homeowners who are suing over a myriad of defects. Poor workmanship becomes evident to homeowners when their property depreciates — a bad market brings out the bitterness in us all. The investor lawsuits from the dot.com crash are still being sorted out, and I suspect housing defect litigation will persist for a decade, which is the statute of limitations period for new construction in many states.

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