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Real Estate & Construction News Roundup (09/06/23) – Nonprofit Helping Marginalized Groups, Life Sciences Taking over Office Space, and Housing Affordability Hits New Low

October 24, 2023 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
In our latest roundup, Walmart adds their own generative AI, major airlines reduce their capacity at regional airports, autoworkers prepare for a strike as negotiations continue, and more!

A nonprofit in Philadelphia is helping connect marginalized business owners with construction projects before bids are announced to improve equity in deals. (Kristen Mosbrucker-Garza, WHYY)
While the traditional office space market has been rocky, the life sciences market has taken over, creating more than one out of every four new projects. (Greg Cornfield, Commercial Observer)
Along with JLL, Walmart has joined the growing list of major U.S. companies supplying their own generative AI tools to some of their employees. (Lindsey Wilkinson, Construction Dive)

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No Coverage For Damage Caused by Chinese Drywall

December 02, 2015 — Tred R. Eyerly – Insurance Law Hawaii
The Florida Court of Appeals determined that there was no coverage for damage to the insured's home caused by the installation of Chinese drywall. Peek v. Am. Integrity Ins. Co., 2015 Fla. App. LEXIS 14147 (Fla. Ct. App. Sept. 25, 2015). Chinese drywall was installed in the Peek's new home. After moving in, the Peeks reported to American Integrity a sulfur odor caused by the Chinese drywall. The odor caused the Peeks to vacate their home. The Peeks also claimed corrosion and deterioration of copper coils in the air conditioning system were caused by the Chinese drywall. American Integrity denied coverage based upon policy exclusions for latent defects, corrosion, pollutants, and faulty, inadequate or defective constrution materials. The Peeks sued American Integrity. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Construction Jobs Expected to Rise in Post-Hurricane Rebuilding

November 07, 2012 — CDJ STAFF
Businessweek reports that construction jobs and materials will see increased demand as property owners in New York and New Jersey rebuild after hurricane Sandy. Tom Jeffery, of Irvine, California-based CoreLogic, a real estate information service, noted that “a high percent of damaged properties are going to be repaired.” Experts estimate property damage to total anywhere from $7 billion to $40 billion. It is also estimated that about 739,000 properties in the area are underwater in the way that has nothing to do with flooding, with negative equity of 25 percent or more. Many of these homeowners are likely to walk away from their mortgages. Ken Simonson, chief economist of the Associated General Contractors of America, expects “localized spikes in construction employment throughout November and the winter.” Martin Connor, the chief financial officer of Toll Brothers, expects to see more a rise in labor costs than in materials. Read the court decision
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Gut Feeling Does Not Disqualify Expert Opinion

July 06, 2011 — CDJ STAFF

The New Jersey Supreme Court issued a ruling in June on the case of Nevins v. Toll in which they reversed an earlier decision and remanded the case to a lower court for retrial. At issue in the case was the testimony of the plaintiff’s expert, J. Anthony Dowling. In depositions, Mr. Dowling said that his estimates for repair were based on a “gut feeling.” Dowling said he had “very little” experience in cost estimates for single-family homes. The defendants sought to bar Dowling’s testimony which was granted by the judge. Without an expert, Ms. Nevin’s case was dismissed.

Describing Dowling’s report as “far from a model of how an expert’s opinion in a construction case should be presented,” the court noted that Dowling is not a professional expert witness. However, the court did note that Dowling is a professional cost estimator. Despite Mr. Dowling using his “gut feeling” to construct his estimate, the New Jersey Supreme Court felt that whether his estimate is convincing is “a question for the jury.”

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What Cal/OSHA’s “Permanent” COVID Standards Mean for Employers

March 06, 2023 — Payne & Fears LLP
Effective Feb. 3, 2023, California has implemented new, “permanent,” COVID-19 standards. The new regulations were adopted by Cal/OSHA on Dec. 15, 2022, but only became effective upon the review and final approval by the Office of Administrative Law. These non-emergency regulations—slated to remain in effect for two years—supplant the COVID-19 Prevention Emergency Temporary Standard (ETS) that have been in effect since early in the pandemic. The non-emergency regulations abandon core parts of the ETS, include new definitions for key terms, and update requirements for important provisions. We discuss the primary changes below. The regulation itself is available online, as well as a copy provided by Cal/OSHA comparing the differences between the ETS and the new regulation. An End to Exclusion Pay The non-emergency regulations do not require employers to maintain exclusion pay (an excluded employee’s earnings, seniority, rights, and benefits). All that employers must do under the new regulations is inform confirmed COVID-19 cases and close contacts about potential COVID-19 benefits under federal or local laws (where applicable). This does not affect employees who may receive paid time off under other federal, state, and local laws, as well as through collective bargaining agreements or other employer policies. Read the court decision
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Reprinted courtesy of Payne & Fears LLP

UK Court Rules Against Bechtel in High-Speed Rail Contract Dispute

March 29, 2021 — Peter Reina - Engineering News-Record
The U.K. subsidiary of Bechtel Inc. has lost its legal challenge against the owner of the U.K. London-Birmingham high-speed railroad project, HS2, over its failed bid for a roughly $140-million Construction Partner (CP) contract in early 2019. Reprinted courtesy of Peter Reina, Engineering News-Record Mr. Reina may be contacted at reina@btinternet.com Read the full story... Read the court decision
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Gordie Howe Bridge Project Team Looks for a Third Period Comeback

September 26, 2022 — Jeff Yoders - Engineering News-Record
The late Detroit Red Wings hockey great Gordie Howe was beloved in his native Canada and in his adopted U.S. home. A new international bridge connecting both places is trying to create similar goodwill for border traffic, but the project’s public-private partnership team and the Canadian government authority it is working for will have to join together to shift lines and mount a comeback in the third period of its construction. Reprinted courtesy of Jeff Yoders, Engineering News-Record Mr. Yoders may be contacted at yodersj@enr.com Read the full story... Read the court decision
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Rio Olympics Work Was a Mess and Then Something Curious Happened

April 06, 2016 — Jonathan Levin, Tariq Panja & David Biller – Bloomberg
In early 2014, a senior Olympic Committee official returned from a trip to Rio de Janeiro and declared Brazil’s preparations for the Summer Games to be the worst he’d ever seen. In the two years since, a crippling recession set in, dozens of construction executives were ensnared in a nationwide corruption scandal and the president has been pushed to the brink of impeachment. And the preparations? They’re basically fine now, actually. In what is emerging as a rare bright spot in a country buffeted by crisis on all sides, the organizing committee is saying that more than 95 percent of the venues are complete some four months ahead of the opening ceremony and, what’s more, data shows spending has largely remained under control. Reprinted courtesy of Bloomberg reporters Jonathan Levin, Tariq Pania and David Biller Read the court decision
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