Introduction

"Allocation" is mostly "science", but critical parts include the “art” of applying professional judgment. Construction defect litigation claims come in all possible project types, sizes, and ownership structures. It is rare that construction defect (CD) claims are related to a single party. There are usually multiple parties who share responsibility, and sometimes, there are dozens.

Given how complicated allocation is, it is important to have an engineered process for assigning supportable portions of the cost to repair defects and other damages to each responsible party. This includes (1.) making a sensible list of defects ("issues") that can be allocated, (2.) assigning values to each issue or category, (3.) making a list of all possibly involved parties and (4.) understanding their role in the project, and (5.) assigning justified portions of responsibility for each issue. A real, professional, supportable allocation has a lot of moving parts. There is lots of math, connected spreadsheets, and professional judgment from expert witnesses and lawyers.

Our panel includes experienced lawyers with understanding of insurance coverage and building experts who understand defects, analysis, and contractual roles & responsibilities.

Learning Objectives

• Review the process for assigning supportable portions of the cost to repair defects and other damages to each responsible party.

• Define what parts of allocating responsibility are "science" with little room for argument.

• Examine what parts of allocating responsibility is more "art," or open to professional judgement.

• Show the common documents and spreadsheets seen in allocating responsibility for construction defects.

• Explain the math behind arriving at allocation percentages.

Program Outline

1. Introduction

2. Working Backwards

3. Analyzing Construction Defects

4. Allocation Matrix 

5. Who - What - Where

6. Professional Judgement

7. Making a Case

8. Conclusion

Our Panel

Continuing Education Credit

A disclaimer that you must attend the live webinar to obtain credit. This course has been approved by the Florida Department of Financial Services for insurance continuing education credit. To receive credit with either the Florida Department of Financial Services or the California Department of Insurance, remember to scan the QR code certifying your attendance and identity at the end of the program or click the link provided in the webinar chat box at any time in the program. To receive credit with either Florida Department of Financial Services or the Nevada Division of Insurance, both polling questions must be answered accurately. Certificates of attendance will be sent to eligible webinar attendees within three business days of the webinar.

This webinar is approved for 1.0 credit hour of continuing education credit in the following state(s):

• California State Bar - Provider #11573

• California Department of Insurance (Provider #180291) - Course #389332

• Nevada State Bar (Provider #51574) - Course #P_20230921_51574

• Nevada Division of Insurance (Provider #168687) - Course #26876 ; Offering ID #193554

• Florida Department of Financial Services (Provider #373045) - Course #126420; Offering ID #1184895

  • Pete Fowler’s Presenter ID #1346570

  • Don Gifford’s Presenter ID #1346632

  • John Toohey Presenter ID #1347026

  • Scott Rembold Presenter ID #1313166

• Florida State Bar (Provider #1023251) - Course #2307702N

• Texas State Bar (Provider #A16251) - Course #174205627