Fairfield Connecticut Building Expert Directory

De-escalating The Impact of Price Escalation

August 10, 2021 — Brian C. Padove - ConsensusDocs
What happens when construction material prices abruptly rise by 15%, 35%, 50%? Moreover, what happens to a construction project when such volatility occurs? While there is no definite answer, delays in procuring such materials and associated cost overruns will likely impact the construction project. The last 15 months contractors have had to work through extraordinary construction material price increases, such as a 90% price increase for lumber from April 2020 to April 2021. While there is no statistic quantifying the impact these increases have had on the construction industry, the increases surely have had an influence, whether it has been through lost profits, delays, or damage to contractors’ otherwise strong reputation for timely performance. Considerations Prior To Contract Execution The first way to mitigate price escalation is identifying materials most susceptible to price volatility during the bidding process and then having an open discussion with upstream parties regarding the potential price volatility. Additionally, the bid may also include either (1) an allowance for the materials providing additional funds, if necessary, should the material price increase, or (2) a shortened timeframe in which the bid is open, which would lessen the time in which a price shift may occur. Read the court decision
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Reprinted courtesy of Brian C. Padove, Watt, Tieder, Hoffar & Fitzgerald, LLP
Mr. Padove may be contacted at bpadove@watttieder.com

A Glimpse Into Post-Judgment Collections and Perhaps the Near Future?

July 13, 2020 — Garret Murai - California Construction Law Blog
According to a recent study conducted by the Harvard University, the University of Chicago, and the University of Illinois, more than 100,000 small businesses (firms with fewer than 500 employees) representing 2% of small businesses in the America have closed their doors permanently due to the coronavirus. The next case, although about events occurring before COVID-19, provides a glimpse of what litigation may look like in the intervening months and years as companies struggle to keep their doors open. The Wanke Case Waterproofing company Wanke, Industrial, Commercial, Residential, Inc. sued a former employee, Scott Keck, and his competing company, WP Solutions, Inc., for trade secret misappropriation and obtained a judgment for $1,190,929. At the time, general contractor AV Builder Corp. had hired WP Solutions as a waterproofing subcontractor on fire residential and commercial projects. In the face of the judgment obtained by Wanke, Keck declared bankruptcy and dissolved WP Solutions. Read the court decision
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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

Chinese Drywall Manufacturer Claims Product Was Not for American Market

October 22, 2013 — CDJ STAFF
Taishan Gypsum Co. Ltd. Claimed in a hearing at the Fifth Circuit Court of Appeals that when they sold about $8.5 million of contaminated drywall to Venture Supply Inc. of Virginia, that they had no awareness that the drywall would be sold in the United States. Joe Cyr, an attorney for Taisan told the court that “Venture Supply never said it was going to distribute the goods in Virginia.” One of the judges on the three-judge panel, Judge Jennifer Walker Elrod, was skeptical of Taishan’s claim, asking, “it was packed and labeled for the Virginia market, isn’t that correct?” When asked by a judge if Taishan was trying to avoid accountability, Cyr said that Tiashan “has not said that it doesn’t want to be accountable for its drywall.” Taishan holds the position that claims against it should be arbitrated in the People’s Republic of China. Read the court decision
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White and Williams Announces the Election of Five Lawyers to the Partnership and the Promotion of Five Associates to Counsel

February 16, 2016 — White and Williams LLP
White and Williams is proud to announce that Meredith Bieber, Eric Hermanson, Timothy Martin, Brian Tetro and Debra Weinrich have been elected to the partnership. The firm has also promoted Alan Charkey, Michael DiFebbo, William Doerler, Justin Fortescue and Stephen Milewski from associate to counsel. The newly elected partners and promoted counsel represent the wide array of practices that White and Williams offers its clients, including construction, finance, healthcare, insurance coverage, product liability, real estate, reinsurance, and subrogation. These accomplished lawyers have earned this elevation based on their contributions to the firm and their practices. “We are delighted to elect these five lawyers to the partnership and promote five exceptional associates to counsel. Those included in these promotions represent the breadth of services and the deep bench that we have to offer at White and Williams,” said Patti Santelle, Managing Partner of the firm. “The election of our new partners and promotion of our new counsel is a reflection of their success and dedication as well as the continued health of the firm.” Read the court decision
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Reprinted courtesy of White and Williams LLP

Labor Under the Miller Act And Estoppel of Statute of Limitations

May 08, 2023 — David Adelstein - Florida Construction Legal Updates
If you want a case that goes into history of the federal Miller Act, check out the Fourth Circuit Court of Appeal’s opinion in U.S. ex rel. Dickson v. Fidelity and Deposit Company of Maryland, 2023 WL 3083440 (4th Cir. 2023). While I am not going to delve into this history, it’s a worthwhile read. It is also a worthwhile read for two other points. First, it discusses what constitutes “labor” under the Miller Act. Second, it discusses doctrine of estoppel to prevent a surety from raising the statute of limitations to bar a Miller Act payment bond claim, which is a doctrine you do NOT want to rely on, as this case reinforces. Both of these points applicable to Miller Act claims are discussed below. This case dealt with a prime contractor renovating staircases that was terminated by the federal government. The prime contractor hired a professional engineer as its subcontractor to serve as its project manager and supervise labor on the project. The engineer/subcontractor also had “logistical and clerical duties, taking various field measurements, cleaning the worksite, moving tools and materials, and sometimes even watering the concrete himself.” Dickson, supra, at *1. Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

Real Estate & Construction News Round-Up (03/08/23) – Updates on U.S. Mortgage Applications, the Inflation Reduction Act, and Multifamily Sector

March 20, 2023 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
This week’s round-up explores the cooling housing market and plummeting mortgage applications, potential tax-savings as a result of the 2022 Inflation Reduction Act (IRA), and new developments in the multifamily sector.

Rising interest rates are impacting affordability and cooling the U.S. housing market, driving mortgage applications to lowest levels in decades. (Nicole Friedman, The Wall Street Journal)
A number of companies are going all out to entice workers back to the office, and as new data on New York City emerges, upscale offices might help do the trick. (Emily Peck, Axios)
For real estate developers and investors across the U.S., tax-saving opportunities are popping up as a result of the Inflation Reduction Act of 2022. (David Harlan & Laura Theiss, Dallas Business Journal)

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Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team

Why Construction Firms Should Think Differently on the Issue of Sustainability

May 25, 2020 — Chris Batterson - Construction Executive
How does a construction company differentiate itself from the competition? If the company owner don’t know the answer to this question, or if the first thought that popped into his or her mind was a generic answer along the lines of customer service, keep reading. While all businesses should strive to deliver better results for their customers, if a construction firm is looking to stand out from the crowd, putting sustainability at the very center of everything it does will be a clear difference maker. Finding ways to divert construction and demolition (C&D) waste materials away from landfills and into recycling streams is a must. Keeping track of and measuring your C&D recycling rates on a per-project basis, and also company-wide, can be the difference between winning and losing a contract. Reprinted courtesy of Chris Batterson, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Mr. Batterson may be contacted at chris.batterson@rubiconglobal.com

Toll Brothers Surges on May Gain in Deposits for New Homes

June 01, 2020 — Prashant Gopal - Bloomberg
Toll Brothers Inc. shares surged after the company posted profit that beat estimates and said deposits on new homes were up in recent weeks, a potential sign of optimism for the luxury housing market. The homebuilder, which focuses on higher-end customers, has struggled during the pandemic. It reported orders for the second quarter that missed estimates and said the key metric had plunged starting March 16, when much of the economy shut down. But investors shrugged off those results, focusing instead on a 13% year-over-year gain this month in deposits, which the company called a “leading indicator of current market demand.” Read the court decision
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Reprinted courtesy of Prashant Gopal, Bloomberg

FAIRFIELD CONNECTICUT BUILDING EXPERT DIRECTORY AND CAPABILITIES