Recent events have again demonstrated the fragility of the network of overseas suppliers for industries ranging from automobile manufacturers to big-box retailers. Supply disruptions can be caused by labor disputes at port facilities; by piracy, cyclones or other events that disrupt goods-in-transit; and by natural or man-made events such as earthquakes or armed conflicts that disrupt production or transportation in an overseas country. Unfortunately, the construction industry is not immune to disruptions in the supply of goods from foreign sources. Most construction contracts include a force majeure provision; however, not all such provisions are created equal. Some provisions do not… Read more
Tag: pcrofton
CGL Policy Coverage for Rip and Tear Costs
General contractors are all too familiar with the limitations in a CGL policy relating to defective work. Those limitations exclude coverage for costs associated with damage caused by “your work.” There is a limited exception to the “your work” exclusion in some CGL policies that affords coverage for damage to other work caused by defective work performed by subcontractors (the “Subcontractor Exception”). Regardless, there is no coverage for the costs of correcting the defective work itself – only for damage to other work caused by the defective work. Water intrusion situations provide good examples of how this coverage works. A subcontractor’s… Read more