Association Weighs Legal Options
Association Continues to Push for Changes to Form Itself
Together, AGC of America and its Michigan Chapter have extended the association’s long string of successful efforts to establish that the commercial general liability insurance (CGL) policy sold to construction contractors across the United States does provide coverage for property damage resulting from unexpected and unintended defects in a subcontractor’s workmanship (unless one of the policy’s specific exclusions applies). On June 29, 2020, the Michigan Supreme Court became the latest of many state supreme courts to agree that such damage is an “occurrence.”
Together, AGC of America and its Maryland Chapter have plugged a potential loophole in standard contract provisions intended to preclude costly litigation over the damage that a project suffers during the course of construction. The association’s victory in Maryland’s highest court means the standard provisions will continue to have their intended effect, precluding litigation over property damage that builder’s risk insurance will cover.
On March 25, AGC called on the Cybersecurity and Infrastructure Security Agency (CISA), a division of the Department of Homeland Security, to issue a revision to recent COVID-19 related guidance that will explicitly include all construction workers as “Essential Critical Infrastructure Workers.” The absence of the word “construction” from many of the critical infrastructure workforces described in the guidance has become problematic as many state and local governments appear to be overlooking the memorandum and evaluating only the descriptions included under the various listed critical infrastructure workforces. In the few instances where construction is noted or, perhaps, implicitly referenced in the list, significant confusion has arisen. It is imperative that CISA issue a technical correction to this guidance to avoid states and localities from creating a confusing patchwork of regulations that would inhibit the full industry’s essential role in helping address the COVID-19 outbreak and protecting national security.
Construction Firms Are Already Taking Steps to Protect Employees, Most of Whom Already Wear Protective Equipment, While Halting Work Will Undermine Efforts to Add Hospital Capacity
On Jan. 23, the U.S. Environmental Protection Agency and the U.S. Army Corps of Engineers finalized an AGC-supported rule to define “waters of the United States” – providing clarity when a federal permit is needed for work in or near federal waters. The new Navigable Waters Protection Rule better identifies federal waters, respects states’ primary role in land use and pollution prevention, and balances major case law from the last couple of decades.
AGC members and chapter staff who negotiate collective bargaining agreements for their company or chapter are invited to a half-day Collective Bargaining Seminar that will take place during AGC of America’s 2020 Convention in the morning of March 9 in Las Vegas, NV.
Cutting Off Vital Infrastructure Funding Will Hurt Efforts to Improve California’s Infrastructure and Air Quality; Construction Association Urges Federal Officials to Give State a Grace Period