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    Commercial Real Estate Brokerages in an Uncertain Russian Market

    March 28, 2022 —
    Several commercial real estate firms have joined the growing list of companies temporarily suspending – or outright terminating – property and facility management operations in Russia amid economic sanctions and mounting international pressure. CBRE is the latest to make such a move, discontinuing its Russian leasing, investment and property management operations and denouncing Russia’s invasion of Ukraine in a statement issued March 7th. Other major players, including Savills, Knight Frank, and Colliers, have already suspended operations in the country, citing similar concern for international sanctions and the humanitarian impact of the invasion. Colliers is going even further to suspend operations in Belarus as well. Recently, global real estate service giant JLL switched course, issuing a formal statement that “with great sadness,” it will begin the process of separating from its domestic operations in Russia, though not commenting on whether the separation will be temporary or permanent. This is a significant change from just earlier this month , where, when asked about pulling operations from the country, JLL stated it would stay abreast of the situation abroad and continue to ensure the safety of its people and clients. Now that CBRE and Dallas-based JLL have joined the list, Houston-based powerhouse Hines appears to be continuing its “wait and see” approach. Hines currently owns Russian assets valued at $2.9 billion, nearly 2 percent of its entire $160 billion asset portfolio, and its property management portfolio manages more than 243 million square feet worldwide. While other firms have temporarily suspended current operations, Hines has gone so far as to say it will avoid servicing any future investments in the country, though it did similarly condemn Russia’s actions. With JLL’s recent decision , if Hines does take a stronger stance, it will likely happen soon. Reprinted courtesy of Cait Horner, Pillsbury and Adam J. Weaver, Pillsbury Ms. Horner may be contacted at cait.horner@pillsburylaw.com Mr. Weaver may be contacted at adam.weaver@pillsburylaw.com Read the court decision
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    Reprinted courtesy of

    Discussing Parametric Design with Shajay Bhooshan of Zaha Hadid Architects

    May 10, 2017 —
    obotics, 3D printing, and digital fabrication—these evolving technologies are changing how we design and construct. Looking into the future can surprisingly cause us to rediscover history, as I learned when discussing parametric design with Shajay Bhooshan. During the AEC Hackathon Munich in April 2017, I became acquainted with Shajay Bhooshan, associate at Zaha Hadid Architects. Shajay showed me designs that were intriguingly reminiscent of natural forms but completely modern in expression. He explained how these lightweight structures had been digitally designed and constructed with minimal use of material. One of the examples he shared was a large shell structure that consisted of aluminium elements that could be assembled and dismantled easily. Read the court decision
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    Reprinted courtesy of Aarni Heiskanen, AEC Business
    Mr. Heiskanen may be contacted at info@aepartners.fi

    Some Construction Contract Basics- Necessities and Pitfalls

    January 03, 2022 —
    Recently, I’ve been on an “advising” kick here at Construction Law Musings. My last two posts have been about communication and trusting your gut when it comes to a smooth construction project. This post will be the third in the trilogy (and who knows maybe I’ll have a 4th and 5th like the Hitchhiker’s Guide to the Galaxy “trilogy”). While all construction contractors should use their communication skills and instincts to assure a smooth and hopefully profitable project, all of the gut following and great communication will not help you if your contract is not up to snuff. In the spirit of giving you a few basics things to look at, here’s my list of three basics that you need in your contract and a three things to be on the lookout for in others’ contracts. First, the good stuff that needs to be there:
    1. Attorney Fees Clause– without it, a Virginia court (and most other courts) will not award you a judgment for any attorney fees spent to protect your rights.
    2. Dispute Resolution– whether the specified resolution is through the litigation process, ADR or some combination, such a clause or paragraph will only help define the parameters of what happens with a claim.
    3. Detailed scope of work– Without the proper detail in the scope of work, the parties cannot properly set expectations and know what happens when things change.
    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

    Ambiguity Kills in Construction Contracting

    May 27, 2019 —
    Well, I’m back and hope to have a more consistent publishing schedule moving forward. I appreciate the continued readership through what has been a busy time for my solo construction practice over the last couple of months. Now, back to our program. . . Here at Construction Law Musings, I have often beaten the drum of a solid contract that leaves as little as possible to chance or the dreaded “grey areas” where we construction lawyers like to make money. An example of the issues that can arise from ambiguity can be found in a case from 2017 in the Western District of Virginia, W.C. English, Inc. v. Rummel, Klepper & Kahl, LLP et al In this case, English, a general contractor, entered into a contract for Quality Assurance (QA) functions with RK&K, the defendant, on a contract English entered into with the Virginia Department of Transportation (VDOT). Needless to say, because this would not be a post at Musings otherwise, there were issues with the QA performed by RK&K leading to additional costs for English to correct certain work that did not comply with the contract documents between VDOT and English. English sued for breach of contract based upon a term sheet, signed by the parties, from RK&K that required RK&K to indemnify English for claims by VDOT that related to RK&K’s work (the English Term Sheet). RK&K moved to dismiss the complaint based upon a different term sheet, also signed by the parties, which stated that RK&K could not be held responsible for English’s failure to perform pursuant to the contract documents (the RK&K Term Sheet). 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 Louvre Abu Dhabi’s Mega-Structure Domed Roof Completed

    September 24, 2014 —
    The final part of the Louvre Abu Dhabi’s 180-metres (almost 600 feet) long domed roof was put into place on Monday, according to Arabian Business. The 12,000 tonne dome is “made up of a steel structure, weighing 7,000 tonnes (almost as much as the Eiffel Tower), and a further 5,000 tonnes of aluminum cladding.” Carlos Antonio-Wakim, executive director of development at master developers TDIC, stated (as quoted by Arabian Business) that construction was on schedule for the opening of the museum, which is on Saadiyat Island, by the end of next year. “The concrete works under the dome is all done, so we have all the galleries up and fit-out of those galleries has already begun,” Antonio-Wakim told Arabian Business. “There is also a lot of electromechanical works. A complex project like this requires a lot of mechanical and electrical coordination.” Read the court decision
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    Reprinted courtesy of

    Eighth Circuit Affirms Judgment for Bad Faith after Insured's Home Destroyed by Fire

    January 21, 2019 —
    The Eighth Circuit affirmed the district court's judgment that the insurer acted in bad faith when it denied the insured's claim based upon misrepresentations in the application after destruction of his house by fire. Hayes v. Metropolitan Pro. and Cas. Ins. Co., 2018 U.S. App. LEXIS 31813 (8th Cir. Nov. 9, 2018). Hayes' home was insured by Met under a homeowner's policy. Hayes used the detached garage as part of a home base for his plumbing business. He also rented out the second and third levels of the residence to a tenant and her two children. When Hayes applied for the policy in 2007, Met argues he indicated on the application that the premises were not used to conduct business, and were not used as rental property. Read the court decision
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    Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
    Mr. Eyerly may be contacted at te@hawaiilawyer.com

    Improvements to AIA Contracts?

    February 05, 2015 —
    Joel Sciascia, general counsel for the construction management company Pavarini McGovern, made some insightful comments in the Viewpoint section of the latest Engineering News Record magazine. He argues that architects should not be the initial decision maker (“IDM”) under AIA contracts. Instead of using the architect, Mr. Sciascia suggests the use of an independent dispute-resolution board. In 2007, the AIA introduced a new concept into the A-201 documents through which the owner and contractor had the option of naming an independent third party to resolve disputes, instead of automatically allowing the architect to resolve disputes. But, if the parties did not select any specific independent decision maker, the architect would be considered the default initial decision maker. Read the court decision
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    Reprinted courtesy of Craig Martin, Lamson, Dugan and Murray, LLP
    Mr. Martin may be contacted at cmartin@ldmlaw.com

    New Case Alert: Oregon Supreme Court Prohibits Insurer’s Attempt to Relitigate Insured’s Liability

    November 17, 2016 —
    In a big win for policyholders, the Oregon Supreme Court recently ruled that that insurance companies are not allowed to relitigate the nature of damages awarded against their insureds during an underlying trial. In a coverage dispute stemming from a contractor’s faulty work on a condominium development, the insurer argued that at least a portion of the damages awarded represented the cost of repairing the contractor’s own work product. Coverage for such damages would be explicitly excluded by the policy. However, the Oregon Supreme Court found that the jury had been instructed that it could not award damages for the contractor’s own faulty workmanship. The court declined to give the insurer a chance to attempt to reclassify the nature of these damages. Read the court decision
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    Reprinted courtesy of Austin D. Moody, Saxe Doernberger & Vita, P.C.
    Mr. Moody may be contacted at adm@sdvlaw.com