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DIRECTORY AND CAPABILITIES

Some Construction Contract Basics- Necessities and Pitfalls

January 03, 2022 — Christopher G. Hill - Construction Law Musings
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.

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Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

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California Beach Hotel to Get $185 Million Luxury Rebuild

September 17, 2014 — Nadja Brandt – Bloomberg
Rick Caruso, a Los Angeles shopping-mall developer, plans to spend about $185 million to rebuild a Southern California seaside hotel with a troubled past into a luxury getaway. The 170-room Miramar Beach Resort and Bungalows in Montecito, near Santa Barbara, will have such amenities as a beach club, spa, restaurants and two swimming pools, said Caruso, founder of closely held developer Caruso Affiliated. The site’s former hotel, known as Miramar by the Sea, has already been razed. Caruso bought the property in 2007 from H. Ty Warner, the billionaire creator of Beanie Babies plush toys and owner of the Four Seasons Hotel New York. The California hotel, on about 15 acres (6 hectares), had been out of service for more than a decade as past revival efforts were stalled by local opposition to development and the property market’s crash. Former owners include hotelier Ian Schrager. Read the court decision
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Reprinted courtesy of Nadja Brandt, Bloomberg
Ms. Brandt may be contacted at nbrandt@bloomberg.net

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Engineer Probing Champlain Towers Debacle Eyes Possibility of Three Successive Collapses

July 05, 2021 — Nadine M. Post - Engineering News-Record
Though the trigger may remain a mystery for some time, by the end of the week, the structural engineer probing the partial progressive collapse of a 40-year-old Surfside, Fla., residential condominium expects to complete a computer model of the unstable, 12-story remains of the building. The computer model of the still-standing wing of Champlain Towers South will initially be used to alert the search and rescue team to suspend operations if a hurricane is coming. Reprinted courtesy of Nadine M. Post, Engineering News-Record Ms. Post may be contacted at postn@enr.com Read the full story... Read the court decision
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Real Estate & Construction News Roundup (5/1/24) – IMF’s Data on Housing, REITs Versus Private Real Estate, and Suburban Versus Urban Office Property Market

May 28, 2024 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
In our latest roundup, apartment sales fall for seventh straight quarter, raising real estate capital proves challenging, aspiring homeowners face strong obstacles, and more!

• Rent increases have softened across the U.S. over the last year, and the combination of high home prices, elevated mortgage rates and low housing inventory creates strong obstacles for aspiring homeowners. (Alex Gailey, Bankrate)
• The housing market is showing innovative efforts to combat the inventory crisis with initiatives including repurposing commercial properties into residential units. (Angel Smith, Yahoo)
• Apartment sales fell for the seventh straight quarter in Q1, dropping 25% year over year to $20.6 billion. (Leslie Shaver, Multifamily Dive)

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

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Does a Landlord’s Violation of the Arizona Residential Landlord-Tenant Act Constitute Negligence Per Se?

September 21, 2020 — Kevin J. Parker - Snell & Wilmer Real Estate Litigation Blog
In a recent Arizona Court of Appeals case, Ibarra v. Gastelum, 2020 WL 4218020 (7/23/20), the Court of Appeals addressed the question whether – in a tenant’s personal injury claim against the landlord – a landlord’s violation of the Arizona Landlord-Tenant Act constituted negligence per se. The tenant alleged he was injured by stubbing his toe on a crack in the floor. The tenant alleged that he had made repeated demands that the landlord repair the crack. The statute required the landlord to make all repairs and do whatever is necessary to put and keep the premises in a fit and habitable condition. The tenant argued that a violation of the statute constituted negligence per se, meaning that the violation of the statute satisfied (as a matter of law) the first two elements of a negligence claim – duty and breach of duty. The tenant requested a negligence per se jury instruction. The trial court declined that request and refused to give the requested instruction. The tenant lost the jury trial and appealed. Reprinted courtesy of Kevin J. Parker, Snell & Wilmer Mr. Parker may be contacted at kparker@swlaw.com Read the full story... Read the court decision
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The OFCCP’s November 2019 Updated Technical Assistance Guide: What Every Federal Construction Contractor Should Know

March 23, 2020 — Sarah K. Carpenter - Smith Currie
The Department of Labor (“DOL”) Office of Federal Contract Compliance Programs (“OFCCP”) issued its 148-page Updated Construction Contractor Technical Assistance Guide (the “Guide”) on November 13, 2019. A complete copy of the Guide can be found here, but the below provides a summary of what every Federal Construction Contractor should know regarding the OFCCP’s November 2019 update to its prior 2006 publication. The DOL has identified the Guide as a “self-assessment tool” to assist contractors in meeting “their legal requirements and responsibilities for equal employment opportunity by preventing violations before they occur.” However, the Guide does not create or impose new requirements for Federal Construction Contractors. Instead, the Guide provides an overview of anti-discrimination and affirmative action requirements and obligations under existing laws and regulations, and suggests best practices and guidance. Specifically, the Guide provides:

• A concise summary of Federal Construction Contractors’ legal obligations under the three main laws enforced by the OFCCP: Executive Order 11246, Section 503 of the Rehabilitation Act of 1973, and the Vietnam Era Veterans’ Readjustment Assistance Act of 1974;
• A detailed explanation of requirements for written Affirmative Action Plans;
• A clear schedule of Standard Federal Equal Employment Opportunity Construction Contract Specifications;
• A reorganized recap of the sixteen affirmative action steps Federal Construction Contractors are required to implement in good-faith; and
• A user-friendly roadmap of what to expect during an OFCCP audit, including a discussion of record keeping requirements.

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Reprinted courtesy of Sarah K. Carpenter, Smith Currie
Ms. Carpenter may be contacted at skcarpenter@smithcurrie.com

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Neither Designated Work Exclusion nor Pre-Existing Damage Exclusion Defeat Duty to Defend

March 12, 2015 — Tred R. Eyerly – Insurance Law Hawaii
A duty to defend existed for alleged construction defects despite the designated work exclusion and the pre-existing damage exclusion. Gemini Ins. Co. v. N. Am Capacity Ins. Co., 2015 U.S. Dist. LEXIS 14836 (D. Nev. Feb. 6, 2015). Olsen Construction Company held three separate policies issued by Gemini from September 2002 to February 2005. North American issued a CGL policy to Olsen for the period February 2005 to February 2006. Olsen conducted repair work on decks at the location between 2002 and 2003. Olsen was sued for construction defects by the Homeowners' Association (HOA). Gemini defended and also tendered to North American. When North American refused the tender, Gemini sued for declaratory and equitable relief related to North American's duty to defend Olsen in the underlying case. North American moved for summary judgment. 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

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Court Upholds Plan to Eliminate Vehicles from Balboa Park Complex

June 10, 2015 — Kristen Lee Price and Lawrence S. Zucker II – Haight Brown & Bonesteel LLP
In Save Our Heritage Organisation v. City of San Diego, et al. (No. D063992, filed 5/28/15), the California Court of Appeal for the Fourth Appellate District upheld a controversial plan to eliminate vehicles from various plazas in historic Balboa Park. In reaching its decision, the Court of Appeal considered a question of first impression involving the interpretation of San Diego Municipal Code section 126.0504. Balboa Park, designated a National Historic Landmark in 1940, is a large urban park in the center of San Diego. The City of San Diego (“City”) recently approved a proposed plan (“Project”) to eliminate vehicles from the plazas within the Balboa Park complex and to return the plazas to purely pedestrian zones. Subsequently, a community group named Save Our Heritage Organisation (“SOHO”) filed a petition for a writ of mandate alleging, among other things, the City erroneously approved the Project. SOHO contended Municipal Code section 126.0504 mandated two key findings be made before the Project could be approved: (1) that the intended purpose of the property would not be adversely affected; and (2) without the proposed project, the property would not be put to a “reasonable beneficial use.” SOHO argued that although the City made the requisite findings, those findings lacked substantial evidentiary support. The trial court agreed with SOHO and directed the City to rescind the site development permit. The City argued on appeal that Municipal Code section 126.0504 vested it with “discretion to make a qualitative determination of whether an existing use of the property, even if deemed beneficial, is also a reasonable use of that property under all of the facts and circumstances applicable to the particular property in question.” The Court of Appeal agreed and reversed. Reprinted courtesy of Kristen Lee Price, Haight Brown & Bonesteel LLP and Lawrence S. Zucker II, Haight Brown & Bonesteel LLP Ms. Price may be contacted at kprice@hbblaw.com; Mr. Zucker may be contacted at lzucker@hbblaw.com Read the court decision
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