New York City Construction: Boom Times Again?
October 22, 2013 —
CDJ STAFFConstruction spending in New York City is expected to reach $31.5 billion this year, which would be the first time has exceeded $30 billion since 2006. Further , construction spending is projected to grow to $37 billion in 2015. During that same period, construction jobs are expected to grow from 120,000 to 130,000.
Richard Anderson, the president of the New York Building Congress noted that “just five years after the worst downturn since the Great Depression, the city’s construction industry finds itself on the brink of yet another building boom.” Much of the increase is due to new residential construction.
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DC Circuit Approves, with Some Misgivings, FERC’s Approval of the Atlantic Sunrise Natural Gas Pipeline Extension
December 02, 2019 —
Anthony B. Cavender - Gravel2GavelThe U.S. Court of Appeals for the DC Circuit decided the case of Allegheny Defense Project, et al. v. Federal Energy Regulatory Commission on August 2, 2019. In a Per Curiam opinion, the court denied petitions challenging the Commission’s orders permitting the Transcontinental Gas Pipe Line Company’s expansion of an existing natural gas pipeline which extends from northern Pennsylvania across the Carolinas into Alabama. The expansion is called the “Atlantic Sunrise Project.” In February 2017, FERC approved the expansion, and denied various petitions, filed by environmental organizations and affected landowners, who then challenged the decision in the DC Circuit. However, the court concluded, on the basis of the administrative record, that these challenges “cannot surmount the deferential standards of agency review and binding DC Circuit precedent.” Under the law, the Commission must consider whether the projected pipeline project meets a market need, and whether the public benefits outweigh the harms. If both criteria are satisfied, FERC will, as in this instance, issue a certificate authorizing the pipeline’s construction, and that certificate also empowers the certificate holder to exercise eminent domain authority under to the Natural Gas Act when necessary. It was the latter consequence of the FERC’s determinations that caused several Pennsylvania landowners to file their objections with the Commission and seek to stay construction.
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Anthony B. Cavender, PillsburyMr. Cavender may be contacted at
anthony.cavender@pillsburylaw.com
Colorado Introduces Construction Defect Bill for Commuter Communities
January 23, 2013 —
CDJ STAFFA Colorado State Senator has introduced a bill suggesting a change to the way that construction defect claims are handled in "transit-oriented developments." And what are these? According to the bill these are "any multi-family residential or mixed-use project within one-half mile of any commuter rail stop, commuter light rail stop, or commuter bus stop." So the bill would treat homes with good public transportation differently from those not so convenient to public transportation.
The bill, SB 52, would institute a right to repair for construction defects in these developments. Construction defect claims would be referred to binding arbitration. Further, construction professionals could not be sued for environmental conditions related to transit, commercial, public, or retail use.
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New EPA Regulation for Phase I Environmental Site Assessments
January 27, 2014 —
Beverley BevenFlorez-CDJ STAFFThe EPA recently amended the “’All Appropriate Inquiries Rule’ concerning environmental site assessments of potentially contaminated sites,” reports the Schinnerer Risk Management Blog. Engineers will need to be aware that “Phase I assessments should now reference ASTM International’s E1527-13 “Standard Practice for Environmental Site Assessments: Phase I Environmental Site Assessment Process” in order to comply with the All Appropriate Inquiries Rule.”
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New York Revises Retainage Requirements for Private Construction Contracts: Overview of the “5% Retainage Law”
January 22, 2024 —
Levi W. Barrett, Patrick T. Murray, Skyler L. Santomartino & Mark A. Snyder - Peckar & Abramson, P.C.On November 17, 2023, the State of New York enacted the “5% Retainage Law.” This legislation effectively limits the amount of retainage that can be held from general contractors and subcontractors to no more than 5%. It applies to many but not all construction contracts. In addition, the new law revises late stage billing requirements, enabling contractors to invoice for retainage at substantial completion. Previously, the parties to a construction contract were free to negotiate any retainage amount, limited only by an unspecified “reasonable amount” that would be released as the parties contractually set forth.
Summary
The new law amends Sections 756-a and 756-c of the General Business Law (part of Article 35E of the GBL, known as the “Prompt Pay Act”), and applies to private construction contracts “where the aggregate cost of the construction project, including all labor, services, materials and equipment to be furnished, equals or exceeds one hundred fifty thousand dollars.”
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Levi W. Barrett, Peckar & Abramson, P.C.,
Patrick T. Murray, Peckar & Abramson, P.C.,
Skyler L. Santomartino, Peckar & Abramson, P.C. and
Mark A. Snyder, Peckar & Abramson, P.C.
Mr. Barrett may be contacted at lbarrett@pecklaw.com
Mr. Murray may be contacted at pmurray@pecklaw.com
Mr. Santomartino may be contacted at ssantomartino@pecklaw.com
Mr. Snyder may be contacted at msnyder@pecklaw.com
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Federal Court Finds Occurrence for Faulty Workmanship Under Virginia Law
July 31, 2013 —
Tred Eyerly, Insurance Law HawaiiThe Federal District Court in Virginia found that allegations of faulty workmanship could arise from an occurrence. Nautilus Ins. Co. v. Strongwell Corp., 2013 U.S. Dist. LEXIS 79163 (W. D. Va. June 4, 2013).
Strongwell supplied certain fiberglass reinforced plastic materials to a subcontractor of Black & Veatch for a construction project at power plant. Black & Veatch subsequently sued Strongwell, claiming that numerous defects in Strongwell's materials and work were discovered after the project was completed. The complaint further alleged that as a result of the defects, there was widespread property damage to portions of the power plant.
Nautilus defended under a reservation of rights. Nautilus also filed suit for a declaratory judgment that to establish it had no duty to defend or indemnify Strongwell. Strongwell moved to dismiss the complaint insofar as it requested a declaration that there was no duty to defend. Strongwell also filed a motion to stay the coverage action until the underlying case was completed.
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Tred EyerlyTred Eyerly can be contacted at
te@hawaiilawyer.com
Newmeyer & Dillion Announces Three New Partners
January 04, 2018 —
NEWMEYER & DILLION LLPOriginally Published by CDJ on March 16, 2017
NEWPORT BEACH, Calif. – FEBRUARY 7, 2017 – Prominent business and real estate law firm Newmeyer & Dillion LLP is pleased to announce that three of the firm’s attorneys – Ben Ammerman, Anne Kelley and Rondi Walsh – have been elected to partnership. Their promotions are effective immediately.
“The elevation of these three attorneys is a testament to their leadership, hard work, and unwavering commitment to superior service for our clients and the firm,” proclaimed Jeff Dennis, Newmeyer & Dillion’s Managing Partner. “This is an exciting time for the firm as we look forward to their continued success and contributions.”
Ammerman (based in Newport Beach, CA) focuses his practice in the areas of business, real estate, and tort litigation. In addition to his private practice, Ammerman presently serves as a Commander in the Navy Reserve Judge Advocate General’s Corps. He's also an active alumnus, currently named co-chair of the University of Southern California’s 20th Reunion Committee.
Kelley (based in Walnut Creek, CA) concentrates primarily in construction litigation and insurance coverage matters. She has over 12 years of experience working closely with builders, developers, contractors and subcontractors throughout Northern California developing legal strategies specific to the needs of each matter and the client’s business and goals. Kelley has litigated a wide variety of complex insurance coverage disputes.
Walsh (based in Newport Beach, CA) has incorporated into her practice the representation of policyholders in first and third-party insurance coverage, and business lawsuits involving contracts, property disputes, products liability and construction defect issues. She also has litigated numerous political and election law matters and has worked both professionally and as a volunteer on numerous political campaigns. Walsh is also an active member with the National Charity League.
About Newmeyer & Dillion
For more than 30 years, Newmeyer & Dillion has delivered creative and outstanding legal solutions and trial results for a wide array of clients. With over 70 attorneys practicing in all aspects of business, employment, real estate, construction and insurance law, Newmeyer & Dillion delivers legal services tailored to meet each client’s needs. Headquartered in Newport Beach, California, with offices in Walnut Creek, California and Las Vegas, Nevada, Newmeyer & Dillion attorneys are recognized by The Best Lawyers in America©, and Super Lawyers as top tier and some of the best lawyers in California, and have been given Martindale-Hubbell Peer Review's AV Preeminent® highest rating. For additional information, call 949-854-7000 or visit www.ndlf.com.
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Enforceability Of Subcontract “Pay-When-Paid” Provisions – An Important Update
June 15, 2020 —
Patrick McNamara - Porter Law GroupA California Court of Appeals opinion published earlier this month brings a change to payment bond claims brought by unpaid subcontractors and suppliers. The decision (Crosno Construction, Inc. v. Travelers Casualty and Surety Company of America) places limitations on a payment bond surety’s ability to rely on subcontract “pay-when-paid” language, stating that a payment provision typically found in subcontracts is contrary to the “reasonable time” statutory requirement and will not be enforced. This represents a major shift in California construction payment bond claim rights.
Plaintiff Crosno Construction, Inc. (“Crosno) was a subcontractor to general contractor Clark Brothers (“Clark”), who was principal on a public works payment bond issued by Travelers. The owner was a public agency district (“District.”) Crosno had completed most of its subcontract work when a dispute between District and Clark arose, causing the project to stop. Crosno then sought payment through a payment bond claim against Travelers. Travelers denied the claim, relying on the subcontract’s payment provisions and asserting the defense that it had no obligation to pay on the bond claim because the litigation between Clark and the District had not yet reached its conclusion.
Subcontract. The subcontract between Clark and Crosno contained a “pay-when-paid” provision stating that Clark would pay Crosno within a reasonable time after receiving payment from the District. In defining “a reasonable time,” the subcontract language provided that the time for payment “in no event shall be less than the time [Clark] and [Crosno] require to pursue to conclusion their legal remedies against [District] or other responsible party to obtain payment.”
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Patrick McNamara, Porter Law GroupMr. McNamara may be contacted at
pmcnamara@porterlaw.com