Architects in New York can be found liable for damages in various situations, depending on who claims damage, and the basis of the claim itself. For example, where an owner has a direct contract with the architect, the owner could bring forth a simple claim based on the contract or a claim based on a tort action. Such a tort action, based on negligence, is a claim for malpractice.
Are contractors responsible for the impacts of their work on neighboring residents? Oftentimes, they are. This is especially true in densely populated urban areas where literally hundreds of people could be affected by a project only fifty feet away. Some of the principles in these cases are outlined below.
Construction contracts require contractors and subcontractors to carry commercial general liability, or CGL, insurance and to name not only the contracting parties but additional third parties, such as project owners, as additional insured. Recent commercial general liability litigation, however, suggests that contractors and subcontractors should review the language of their CGL policies carefully because third parties to the contract, even if they are contractually required to be additionally insured, may actually be excluded by the insurance policies.
Like the strings of a marionette puppet, after the completion of a New York construction project, there are various legal theories that serve as ties between the builder and the owner. For the builder, the sooner these lingering ties can be removed the less exposure they face for claims of defects. For the owners, the longer they are able to establish these connections, the longer they may have legal recourse against the builder for defects.
Any property owner considering construction work will want reassurance that the work will be done well, and will be free of defects for a specified time frame. Many contractors even include a warranty clause in their contract. Such warranties (also called guarantees) require the contractor to correct any defects through additional work on the project over the specified time. What are some of the specific factors within Construction Warranties?
Warranties under New York law may be found where they are expressly given, as in the example of the contractor above; but may also be implied through the conduct of the parties, or by operation of the law. For example, if the contractor agreement did not contain any warranty clause, the owner would be able to bring a legal action against the contractor for breach of warranty or contract within six years of project substantial completion under the New York Uniform Commercial Code. Many property owners may be surprised to learn that they may actually be better protected with no warranty provision in the agreement, over one that states coverage for a shorter time frame.
Often times in discussions with contractors, I hear many of the same types of issues repeat themselves, and from the perspective of counsel, quite preventable. While not every potential problem on a project can be determined upfront, keeping the following 5 tips for contractors in mind might be helpful in preventing problems, improving business practices, and effectively managing risks.
- Be proactive throughout the project. You know that your work is good, and you expect your project owner to be pleased, but some owners may be difficult or unreasonable to please. Sometimes complaints as to work in the trailing end of a project can also be made as a pretext to avoid making full payment. For that reason, don’t wait for problems to arise. You should document the quality, completeness, and progression of your work as you are working on the project. I have seen projects where contractors were no longer allowed access to the project, and obtaining access to document completeness of work can be difficult once a problem arises.
At a minimum, you should be photographing conditions of all areas of the site within the scope of your work to show (1) existing conditions at the time you begin work, (2) inspection phases, (3) substantial completion, and (4) final completion.
In a recent client conference, I was asked, “So what is arbitration, anyhow?” In the context of a construction claim or in seeking to prevent such a claim, there are several significant advantages that arbitration can provide in lieu of litigation. In today’s challenging business environment, this signifies awareness of the various options available that could make an important impact on your business’ circumstance.
Briefly stated, arbitration is a private, informal process by which all parties agree, in writing, to submit their dispute to one or more impartial persons authorized to resolve the controversy by rendering a final and binding award.[i] What makes this process unique is the ability, with some advance consideration, to customize and tailor the dispute resolution process to suit the needs of the company.
Can homeowners be held responsible for injuries that may occur to contractors while work is being done on their property? Many homeowners love new home face-lifts, but did they ever think what a dangerous home improvement job consisted of? Well, what happens if a contractor is injured while working? Who is responsible for their medical costs?
With respect to homeowner liability for contractor injuries in New York, homeowners of one or two family dwellings are exempt from liability from any contractor injuries suffered while work was performed on their property under labor law § 240 & § 241, unless he or she has directed or controlled the work being performed.
Under New York State Law §§ 240 and 241 a homeowner can be found liable for any resulting contractor injuries only if their contractor can show the homeowner provided specific instruction as to how work is to be performed or the homeowner provided certain tools or equipment to be used.
Although, incidental homeowner interactions are not sufficient to invoke homeowner liability for injuries, a showing of directing the actual work performance is necessary.
Much construction litigation arises from disputes over Scaffold Law liability. Simply, the Scaffold Law makes certain contractors and project owners liable for injuries to workers on construction sites. The Scaffold Law has been criticized for the burdens it imposes on contractors and owners and for allowing workers to collect even if they have ignored safety rules.
Owners of New York based construction businesses are more likely to be mindful of construction law issues relating to contract performance and defective work. Many however are unaware they are also under increasing risks of liability in compliance with newly enacted requirements under New York Employment and Labor Laws.