Construction Law Review is an update and discussion of current trends in construction law, published by attorneys at Pepper Hamilton LLP with offices in Philadelphia, New York, Boston, Washington DC, Pittsburgh, Princeton, Wilmington, Silicon Valley, Orange County, Los Angeles, Harrisburg, Detroit, and Berwyn.
Stag II Lindon LLC and Stag Industrial Inc. (collectively “Stag”) owned a building in Lindon, Utah. Stag contracted with CentiMark Corp. (“CentiMark”) to perform work on the building’s roof. CentiMark’s work required it to manipulate, move, and reinstall existing heating cables on the roof. Shortly after completion of the work, in March of 2014, a fire occurred on the roof which was traced to the location of heat tape, which CentiMark had removed and replaced.
In November 2009, Tropical Storm Ida hit El Salvador, causing flooding, landslides, and the destruction of homes, roads, bridges, schools, health clinics, and other infrastructure. The United States Agency for International Development (“USAID”) provided $25 million in funding to rebuild damaged infrastructure. USAID retained Defendant CDM International Inc. (“CDM”) to conduct studies and assessment for the construction of eight schools and one health clinic (the “Projects”) and to create preliminary designs and technical specifications for these Projects. These preliminary designs were intended to constitute at least thirty percent of final designs for the Projects. Relying on the preliminary designs created by CDM, Plaintiff Arco Ingenieros, S.A. de C.V. (“ARCO”) submitted bids to act as the design-build contractor for the Projects. USAID awarded the Projects to ARCO.
This construction dispute involved rights and obligations under a performance bond supplied for an office building construction project in Denver, Colorado. Whiting-Turner Contracting Company was the general contractor, and it subcontracted Klempco Construction to construct an anchor system for the project’s underground parking garage. Klempco provided performance and payment bonds for the project from Guarantee Company of North America USA (“GCNA”). When Klempco fell behind schedule, it stopped paying its sub-subcontractors and directed Whiting-Turner to assume responsibility for its work and sub-subcontractors.