Columbus Ohio Building Expert Directory

Homebuyers Aren't Sweating the Fed

December 17, 2015 — Rani Molla – BloombergGadfly
Home prices are escalating, but the culprit isn't the Federal Reserve. The Fed is expected to raise its benchmark rate for the first time since 2006, meaning mortgage rate hikes are likely to follow. Small mortgage-rate increases and, by extension, incrementally higher monthly mortgage payments, usually won't undermine sales because buyers aren't sensitive to small payment changes. Mortgage rates, still at historic lows, have already baked in an expected rate increase of 25 basis points, according to PwC Real Estate Advisory Leader Mitch Roschelle. The National Association of Home Builders Chief Economist David Crowe agrees, adding that the housing market could even digest a cumulative 50 basis point hike by the end of 2016. The real stress in the housing market is coming from somewhere else: labor shortages. Read the court decision
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Reprinted courtesy of Rani Molla, BloombergGadfly

A Termination for Convenience Is Not a Termination for Default

April 22, 2024 — David Adelstein - Florida Construction Legal Updates
A termination for convenience is NOT a termination for default. They are NOT the same. They should NOT be treated as the same. I am a huge proponent of termination for convenience provisions because sometimes a party needs to be able to exercise a termination for convenience, but the termination is not one that rises to a basis for default. However, exercising a termination for convenience does not mean you get to go back in time and convert the termination for convenience into a termination for default. It does not work like that. Nor should it. An opinion out of the Civilian Board of Contract Appeals – Williams Building Company, Inc. v. Department of State, CBCA 7147, 2024 WL 1099788 (CBCA 2024 – demonstrates a fundamental distinction between a termination for convenience and a termination for default, i.e., that you don’t get to conjure up defaults when you exercise a termination for convenience:

Because a termination for convenience essentially turns a fixed-price construction contract into a cost-reimbursement contract, allowing the contractor to recover its incurred performance costs, the resolution of this appeal will involve identifying the total costs that [Contractor] incurred in performing this contract before [Government] terminated it for convenience. Since [Government] terminated the contract for convenience rather than for default, it no longer matters whether, in the past,[Contractor] acted intentionally in overstating the amount of its incurred costs or committed a contract breach. Ultimately, as permitted in response to a termination for convenience, [Contractor] will recover those allowable costs that [Contractor]establishes it incurred in performing the contract.

Williams Building Company, supra.

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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

Scope of Alaska’s Dump Lien Statute Substantially Reduced For Natural Gas Contractors

March 16, 2020 — Trevor Lane - Ahlers Cressman & Sleight PLLC
In All American Oilfield, LLC v. Cook Inlet Energy, LLC,[1] the Supreme Court of Alaska clarified and substantially reduced a natural gas contractor’s ability to secure a preferred lien for its contribution to a natural gas well. Alaska’s dump lien statute (AS § 34.35.140) authorizes a laborer to claim a lien for the amount owed for their labor in the production of a “dump or mass” of “extracted, hoisted and raised” matter from a mine. While Alaska’s dump lien statute is one of three Alaskan statutes allowing laborers to attach liens to mines, mining equipment or minerals,[2] the dump lien statute is unique because it is prior and preferred over other liens, increasing the laborer’s chance of being paid in a bankruptcy proceeding. Attaching a lien to a “dump or mass” of hard-rock minerals piled outside a mine or oil stored in a tank is relatively straightforward. However, natural gas is typically left in its natural reservoir until removed by a pipeline that carries the gas to a location far from the mine. Natural gas is not extracted and stored in a “dump or mass” like other minerals, and until August 2019, controversy existed over how—or if—the dump lien statute could be used by natural gas contractors. Read the court decision
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Reprinted courtesy of Trevor Lane, Ahlers Cressman & Sleight PLLC
Mr. Lane may be contacted at trevor.lane@acslawyers.com

BIM Legal Liabilities: Not That Different

February 10, 2020 — Christopher G. Hill - Construction Law Musings
For this week’s Guest Post Friday here at Musings, we welcome Scott P. Fitzsimmons. Scott is an attorney with the construction law firm Watt, Tieder, Hoffar & Fitzgerald, where he represents contractors, subcontractors, owners, and engineers. He is also a LEED AP and an instructor for AGC of D.C., where he teaches BIM Contract Negotiation and Risk Allocation as part of AGC’s Certificate of Management, Building Information Modeling program. When a new technology is introduced to the construction industry, contractors inevitably ask themselves one question “Great, how can this new gadget get me into trouble?” Building Information Modeling (BIM) is exactly the kind of technology that raises this fear. But, BIM has been around for a few years now, and the construction industry has done a good job of curtailing the fear of unanticipated legal liability. Nevertheless, contractors should be aware of the pitfalls BIM introduces and should know how to limit their risk arising from this new “gadget.” Often described as “CAD on Steroids,” BIM is truly much more than a simple design program. Along with early clash detection, BIM provides time and cost integration; calculates energy efficiency; and assists building maintenance long after project completion. Unlike CAD, BIM also modifies the collaborative nature of a construction project. Thus, subcontractors no longer review a design, submit shop drawings, and go to work. Rather, subcontractors are brought into the design process early in the project and often are asked to contribute to the design long before construction begins. Asking a contractor or subcontractor to provide design services appears to shift the roles of an architect and a contractor. So, the questions abound: Is a contractor now responsible for design? Can the contractor be held responsible for defective design? Do not fret. To date, there has been only one advertised case addressing BIM liability. The reason is simple. For almost a hundred years, the United States Supreme Court has held that contractors are not responsible for defective design on a traditional design-bid-build project. Using BIM, therefore, should not modify a contractor’s responsibility. But, to ensure that your obligations do not extend beyond construction, all BIM requirements should be in writing and made part of your contract. Read the court decision
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Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

The “Program Accessibility” Exception for Public Entities Under the ADA

September 10, 2014 — Garret Murai – California Construction Law Blog
Public owners, as well as private owners and tenants of commercial and retail properties, are at risk of lawsuits brought under the Americans with Disabilities Act of 1990 (“ADA”) and related state law alleging that their facilities are not accessible by those with disabilities. A common misperception among private owners and tenants is that facilities constructed before the ADA went into effect in 1992 are exempt or “grandfathered” from the ADA’s requirements. Not so. At least generally. If, however, you are a public entity, there is such an exception. Lucky you. Under the ADA, public facilities constructed prior to January 26, 1992 need not be “accessible to and usable by individuals with disabilities” so long as a public entity’s “service[s], program[s] and activit[ies], when viewed in [their] entirety, [are] readily accessible to and usable by individuals with disabilities.” Known as “program accessibility,” the exception has left many public entities scratching their heads as to what they can and must do. Read the court decision
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Reprinted courtesy of Garret Murai, Kronick Moskovitz Tiedemann & Girard
Mr. Murai may be contacted at gmurai@kmtg.com

Surety Trends to Keep an Eye on in the Construction Industry

March 25, 2024 — Oliver Craig - Construction Executive
Reflecting on the dynamics of the 2023 construction and surety industries, it is evident that opportunities and challenges have emerged for contractors that will shape the landscape for the year ahead. Contractors can not only capitalize on these trends but protect the successful companies they have already built. PROJECT OPPORTUNITIES There has been a notable increase in public works opportunities, driven by increased government spending and the aging infrastructure in the United States. This trend is expected to continue in 2024 and beyond, with a notable portion of work coming in transportation- and public-utility-related infrastructure. Due to increased spending, many contractors are reporting historically high backlogs—and that often includes the largest project their company has contracted in their history. While increased spending presents more opportunity, it’s critical contractors be even more diligent about new opportunities, giving additional consideration to the following: Job Selection: New geographies, scope, project owners and/or subcontractor relationships commonly come with a learning curve. With the current state of the market, it’s not the ideal time to be learning costly lessons. Contractors should focus on having a proactive go/no-go strategy when reviewing potential projects to identify risks early and plan accordingly. Reprinted courtesy of Oliver Craig, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Best Practices for Installing Networks in New Buildings

August 14, 2023 — Patrick Chown - Construction Executive
A previous article, "How to Install Networks in an Old Building," discussed the various challenges of implementing networking infrastructure in older spaces. The building layout, age of the building and use cases were the major challenges involved. New buildings provide an opportunity to incorporate state-of-the-art networking infrastructure from the ground up. Careful planning and foresight are essential to ensure optimal network performance and avoid future issues. In new buildings, including corporate offices, multifamily residential complexes, hospitals, educational institutions and retail spaces, the potential use cases and users can vary significantly. Each of these spaces comes with its unique networking requirements. Regardless of the specific network applications, there are fundamental frameworks and best practices that can be employed to build a solid network foundation. By following these guidelines and adapting them to the specific needs of your new building, you can ensure a robust and flexible network infrastructure that accommodates ever-evolving technological demands. Reprinted courtesy of Patrick Chown, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Remote Depositions in the Post-Covid-19 World

September 06, 2021 — Islam M. Ahmad - Wilke Fleury, LLP
Despite the easing of COVID-19 restrictions in California, many of the changes imposed on the legal industry by the pandemic will likely remain in effect for the foreseeable future. One major change for litigators has been conducting depositions remotely. This change takes an already intricate task and makes it further complex by adding a new dimension of factors to consider. It is imperative that litigators understand these factors to avoid giving their opposition an undue advantage and to maximize the utility of depositions. While we may disagree as to whether remote depositions are a welcome change, the fact of the matter is that lawyers must adapt to them and provide adequate legal representation. This article explores some of the challenges and opportunities presented by remote depositions.

The Deponent

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Reprinted courtesy of Islam M. Ahmad, Wilke Fleury, LLP
Mr. Ahmad may be contacted at iahmad@wilkefleury.com

COLUMBUS OHIO BUILDING EXPERT DIRECTORY AND CAPABILITIES