Cambridge Massachusetts Building Expert Directory

New Jersey/New York “Occurrence”

July 30, 2014 — Scott Patterson – CD Coverage
In National Union Fire Insurance Co. of Pittsburgh, PA v. Turner Construction Co., 986 N.Y.S.2d 74 (N.Y. App. Div. 2014), Turner was the general contractor for a high rise office building constructed in New Jersey for owner GSJC. Turner subcontracted with Permasteelisa for the building’s exterior curtain wall which consisted of granite and glass with an attached network of decorative pipe rails. A segment of the pipe rails fell from the building onto the street. GSJC determined that a significant percentage of the pipe rail connections to the curtain wall did not conform to specifications or were defective. GSJC sued Turner and Permasteelisa in New Jersey state court for breach of contract, breach of warranty, and negligence, seeking damages for the damage to the curtain wall and the danger of additional pipe rail falling in the future. National Union, which had issued an OCIP policy for the project, defended Turner and Permasteelisa under a reservation of rights and then filed a declaratory judgment action in New York state court. The New York trial court entered judgment for National Union. On appeal, the intermediate court of appeals affirmed. As to choice of law, the court stated that “it is undisputed that the law of New Jersey governs this action, which turns on insurance policy interpretation, and that New Jersey and New York law are consistent as to the issues in dispute here.” Read the court decision
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Reprinted courtesy of Scott Patterson, CD Coverage

Construction Warranties: Have You Seen Me Lately?

February 07, 2022 — Christopher D. Cazenave - ConsensusDocs
A construction contract typically contains many different types of warranties. Owners expect contractors to explicitly warrant their workmanship, contractor-provided materials and equipment, and in many instances to assume other warranty risks that may obligate the contractor years after the project is completed. No contractor wants to be surprised years after a project is completed by the existence of warranty obligations that were not considered or negotiated at the outset of the project. To help avoid this situation, warranties should be treated similar to other critical risk-sharing provisions in the contract in concert with other bargained-for provisions, including for example price and schedule. This article provides a brief overview of warranty obligations found in typical construction contracts followed by a few practical considerations for contractors to consider when negotiating warranty obligations. Reprinted courtesy of Christopher D. Cazenave, Jones Walker, LLP (ConsensusDocs) Mr. Cazenave may be contacted at ccazenave@joneswalker.com Read the court decision
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Second Month of US Construction Spending Down

November 05, 2014 — Beverley BevenFlorez-CDJ STAFF
ABC News reported that US Construction spending was down again in September, though housing had a slight rebound. "Construction spending dropped 0.4 percent in September compared to August when spending fell 0.5 percent, the Commerce Department reported Monday," as quoted by ABC News. However, "expectation is that further gains in construction will help support growth this quarter and into next year. Many economists are looking for the economy to grow at a 3 percent rate in the final three months of this year and average 3 percent in 2015 as well," according to ABC News. Read the court decision
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The Brexit Effect on the Construction Industry

June 30, 2016 — Beverley BevenFlorez-CDJ STAFF
Now that the United Kingdom (UK) has voted to leave the European Union (EU)—commonly known as ‘Brexit’—much discussion has arisen on how it will affect the construction industry both in the UK and globally. Brexit could impact the U.S. housing market in various ways, some negative and some positive. For instance, the mortgage refinancing industry is poised to receive a “glut of applications due to low interest rates,” Construction Dive reported. It’s also possible that the U.S. will receive an influx of foreign investors who may perceive the UK as being too isolationist, making the U.S. seem “more open to global business,” according to the Detroit Free Press. They also pointed out that the vote has already impacted the U.S. housing market, since it is most likely the reason the Federal Reserve decided against raising interest rates in June. Furthermore, Construction Dive presented two different views of how home buying may be effected. On the one hand, investors who lost money in the stock market may be less inclined or able to purchase property at this time. But on the other hand, if Brexit causes home prices to decline, it may “be a relief to those homebuyers finding it difficult to come up with a down payment, particularly first-timers who are facing limited starter-home inventory in addition to steep price tags.” Barron’s does not seem to believe that the stock market decline due to Brexit will affect the U.S. building industry. The publication maintained their “relatively favorable view of the home builders” industry for the following reasons: “1) Healthy demand trends seen in our monthly survey of real-estate agents; 2) 100% U.S. exposure and tailwinds from lower mortgage rates; and 3) Generally undemanding valuations. However, we are somewhat balanced by: 1) Rates have already been favorable, limiting incremental buyer urgency; 2) Risk that continued market volatility or broader economic fallout could hurt housing fundamentals; and 3) Industry gross margins face pressure from rising land and labor costs. We forecast accelerating order growth through the fourth quarter, driven by community count growth and easier second-half comps, and think improving trends would be a positive catalyst.” Less positive are the predictions for the UK construction industry. CNBC reported that migrant workers currently make up twelve percent of the UK construction force, and Brexit could cause the labor shortage to worsen. According to Global Construction, Brian Berry, Chief Executive of the Federation of Master Builders agreed that the industry needs migrant workers, however, he also stated that the UK needs to begin investing in their own “home-grown talent” through increasing apprenticeships. Another prediction is that infrastructure projects may be adversely effected. For instance, the Independent reported that an anonymous source alleged that international investors have already begun to delay future infrastructure projects in the UK due to the uncertainty of the UK and the EU parting terms negotiation. Current projects may also be in jeopardy, according to the source, since the projects are often contingent upon existing shipping trade rules—if smaller ships can no longer go straight into Europe, it could be enough to halt these projects. According to the Architects’ Journal, projects will stop—and they have evidence that one already has been halted: “Within minutes of the Brexit news, Daniel Minsky, who works with a boutique investment and development agency in London, was told that a proposed land deal had been pulled. The buyer withdrew at 7.05am this morning because they felt the residential value ‘was too risky.’” The Architects’ Journal also predicted that environmentally friendly projects may decline since many of the green initiatives were governed by the EU under the Energy Performance in Buildings Directive. However, James Shackleton of Eversheds LLP disagreed with the assessment. Shackleton believes that Brexit may not result in less regulation, giving the following examples: “The Construction Design and Management Regulations 2015 which essentially enact EU Directive 1992/57/EEC and require certain minimum health and safety requirements in design and construction, are unlikely to be swept away.” Furthermore, the “Energy Performance of Buildings (Certificates and Inspections) (England and Wales) Regulations 2007 enacting EU Directive 2002/91/EC requiring Energy Performance Certificates for buildings is unlikely to be repealed,” Shackleton claimed. Read the full story, Construction Dive… Read the full story, Detroit Free Press… Read the full story, Barron’s… Read the full story, CNBC… Read the full story, Global Construction… Read the full story, Independent… Read the full story, The Architects’ Journal… Read the full story, Eversheds LLP (Lexology)… Read the court decision
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Experts Weigh In on Bilingual Best Practices for Jobsites

February 22, 2018 — Jim Parsons – ENR
It’s the rare construction firm that doesn’t cite people as its most important resource. And over the past two decades, that asset has become increasingly bilingual. Indeed, more than 27% of workers in construction are Hispanic or of Latino ethnicity, according to the most recent available data from the U.S. Bureau of Labor Statistics (BLS). Read the court decision
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Reprinted courtesy of Jim Parsons, Engineering News-Record

Court of Appeals Affirms Dismissal of Owner’s Claims Based on Contractual One-Year Claims Limitations Period

October 04, 2021 — Cassidy Ingram - Ahlers Cressman & Sleight
In a recent unpublished decision – Tadych v. Noble Ridge Construction, Inc.– the Washington State Court of Appeals, Division One, held that a one-year contractual claim limitations clause was valid and enforceable. The Tadych decision is important because it reiterates the strict approach courts will take to a claim limitations clause less than the statutory six years for breach of contract claims prescribed by RCW 4.16.040(1). In other words, when the parties agree to shorten the limitations period, the agreement will be enforced barring any procedural or substantive unconscionability. In Tadych, plaintiff owners (the Tadychs) contracted with defendant contractor (Noble Ridge Construction, Inc., or NRC) for the construction of a custom home in 2012. The contract provided a one-year claim limitations clause in which claims could be raised, and that all claims not raised in the one-year period would be waived. In December 2013, as the project neared completion, the Tadychs met with NRC to identify any outstanding project issues. The Tadychs noted several, including rainwater pools at the landing at the bottom of the stairs and several nicks and cracks on the stucco exterior walls. Read the court decision
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Reprinted courtesy of Cassidy Ingram, Ahlers Cressman & Sleight
Ms. Ingram may be contacted at cassidy.ingram@acslawyers.com

Regional US Airports Are Back After Years of Decay

September 23, 2024 — Lebawit Lily Girma - Bloomberg
The ski resorts near Gunnison and Crested Butte, Colorado, are so close to Aspen, you’d think the area wouldn’t need its own airport. Their glitzier neighbor is just 48 miles north as the crow flies, though that’s roughly 150 miles by road. But people flocking to Crested Butte’s laid back town, extreme ski slopes and epic mountain biking have a new reason to bypass farther-away Aspen: the destination’s gleaming new airport, which debuted in January 2023. Not only is the Gunnison-Crested Butte Regional Airport terminal easy to get across quickly, at just 40,000 square feet, it's also heated and cooled with geothermal energy and uses triple glazed windows to keep travelers warm in a town known to be one of the coldest places in the US. And Crested Butte isn’t the only small town airport receiving an upgrade. All across the US, at least a dozen small and medium-size facilities are being renovated and, in some cases, entirely rebuilt—typically on budgets that stretch eight and nine figures. That contradicts a long-held belief among aviation industry pros that these regional facilities were destined to gather dust and die out. Read the court decision
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Reprinted courtesy of Lebawit Lily Girma, Bloomberg

The G2G Year in Review: 2020

January 18, 2021 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
As we say goodbye to 2020, we wanted to share our top five most-read articles of 2020 from Gravel2Gavel. The most-read blog posts covered real estate and construction industry trends ranging from proptech trends like blockchain tokenization to COVID-specific rent carveouts and management disclosures to trends and market updates. Our posts provided deep industry insight and summarized hot topics that addressed the legal implications and disruptions that affected the market. Our 2020 roundup:

Blockchain-Based Tokenization of Commercial Real Estate by Josh Morton and Matt Olhausen. Josh and Matt discuss the increasing interest in technology applications for real estate assets, or “Proptech,” and tokenization’s potential.
Real Estate Trends: Looking Ahead to 2021 by Adam Weaver. Adam discussed the pandemic’s influence and future trends for the real estate market.

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

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