Eighteen months after a devastating fire, the historic Chatham County Courthouse will soon be rebuilt. Congratulations to H.M. Kern Corporation of Greensboro, who on October 3 was awarded a $4.41 contract by the Chatham County Commissioners after the project was publicly bid. The Notice to Proceed should be issued shortly, and the project should be complete in about a year.
Photo by Donald Lee Pardou via Flickr/Creative Commons license
The Commissioners’ news release is here; coverage from WRAL can be found here. Both accounts indicate that the project will be funded from insurance proceeds paid by the carrier for the contractor who had been performing renovation work on the courthouse at the time of the fire. An investigation has concluded that the renovation contractor’s welding operation on the building’s roof caused the March 2010 blaze.
- Photo by pdufour via Stock.XCHNG
In a pair of recent decisions, the N.C. Court of Appeals has clarified that an “accident“ or “occurrence” may arise from faulty construction, ruled that the “your work” exclusion is not so broad as to exclude from CGL coverage damage to property other than the faulty work product itself, and held that lost revenue and other consequential damages may be recoverable against a CGL policy, even if such damages arise from the defective construction itself. Taken together, the two opinions narrow the reach of the “your work” exclusion in North Carolina, and should preclude the type of firestorm that engulfed the contracting community, insurance industry and legislature in South Carolina earlier this year, when its Supreme Court came to virtually opposite legal conclusions.
You’ll find a full discussion and analysis of both decisions, including their potential impact on the construction industry here in North Carolina, after the jump.