News & Publications
Trending Exception to the Exclusion: Finding a Subcontractor’s Defect Isn’t “Your Work”
Most contractors’ Commercial General Liability (CGL) policies are based on the post-1986 Insurance Services Office, Inc. (ISO) standard form policies that include a “Your Work” exclusion that precludes coverage for property damage to work or operations performed by a contractor or on the contractor’s behalf. However, the “Your Work” exclusion includes an express exception that states that the exclusion does not apply if the damages arise out of work performed on the contractor’s behalf by a subcontractor. Despite this express exception, most courts have historically interpreted these CGL policies to exclude coverage for property damage caused by defective work of subcontractors based on a determination that such defective subcontractor work did not constitute “property damage” arising from an “occurrence” under the policies and, accordingly, there was no initial grant of coverage. In determining that there was no initial grant of coverage, most courts did not perform a detailed analysis of the language of the “Your Work” exclusion or its exceptions. Read more.
Infrastructure Priorities Under the Trump Administration
One of the Trump administration’s central policy goals is a broad initiative to upgrade the nation’s infrastructure, which would have a robust impact on the construction industry, federal spending and the use of public-private partnerships. While the specific contours of the proposed infrastructure plan will take time to develop, recent developments have shed light on some of the details. Read more.
Update: Court Grants Permanent Injunction in Local Hire Lawsuit
On January 31, 2017, Judge Michael Russo of the Cuyahoga County Common Pleas Court granted the city of Cleveland a permanent injunction in the city’s lawsuit against the state of Ohio related to Ohio’s new local hiring statute, House Bill 180. Read more.
New Ohio Property Tax Exemption for Commercial and Industrial Development
Substitute Senate Bill 235 creates new authority for municipalities to grant a tax exemption for certain commercial and industrial construction projects. Ohio Governor John Kasich signed the bill into law (with line-item vetoes) on December 22, 2016. Read more.
GAO’s Bid Protest Annual Report Shows Record High Effectiveness Rate While NDAA Calls for Bid Protest Study
The federal bid protest system saw a number of developments last month that government contractors should keep in mind as they consider potential bid protests in the new year. In December, the Government Accountability Office (GAO) released its Bid Protest Annual Report to Congress for Fiscal Year 2016, showing a higher number of total cases filed since the previous year, a significant increase in sustained protests, and a record high effectiveness rate of 46 percent. Read more.