A Few Green Building Notes
December 02, 2019 —
Christopher G. Hill - Construction Law MusingsThis past week, the blogosphere (if that’s even the word these days) has been abuzz about green building and the value that green can add to a project. Three items in particular (among many) got my attention.
The first of these was the fact that a new private sustainability rating system is ready for launch. The Institute for Sustainable Infrastructure (or ISI) is seeking public comment on its proposed envISIon. This new system (aptly dubbed Version 1.0) will go “live” in July for comment. Why mention this new system? First of all, ISI’s founding members are the American Society of Civil Engineers (ASCE), the American Public Works Association (APWA) and the American Council of Engineering Companies (ACEC). This trio gives the new program some fairly heavy weight backing. Second, while there are rating systems aside from the ever present LEED, none have taken hold in any real way to compete with LEED. I am curious to see if the envISIon system has any better luck. Finally, this shows that sustainable building is of interest to more than the USGBC and those of us that discuss LEED on a daily basis. I find this to be a great thing that could lead to more societal acceptance of sustainable practices as a standard practice rather than a goal.
Hopefully such efforts will offset the other two notes that caught my eye recently.
The first of these is the foreclosure of the Chapel Hill, North Carolina Greenbridge project. This project is well documented at my friend Doug Reiser’s (@douglasreiser) Builders Counsel blog so I won’t further discuss the details here. However, the question that Doug asks is a good one, i. e. were the “green” elements of the project to blame?
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Construction and Contract Issues Blamed for Problems at Anchorage Port
August 27, 2013 —
CDJ STAFFA third-party audit of the construction at the Port of Anchorage has found fault with the design provided by the engineers. In response, PND, the engineering firm involved, has claimed that it was not their design, but faulty construction of it that lead to an interruption in the construction project.
Separately, the Office of the Inspector General has called into question how MARAD, the agency which oversaw the port construction, handled the planning and contracts for the project.
Control of the project has been taken over by the Municipality of Anchorage, and they have called into question PND’s open cell sheet pile design and PND’s design of the dock infrastructure. Simpson, Gumpertz and Heger reviewed the design, comparing it to a design provided by CH2M Hill, and found that the PND design was inadequate. A contract was subsequently awarded to CH2M Hill.
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The Dangers of an Unlicensed Contractor from Every Angle
January 11, 2021 —
William L. Porter - Porter Law GroupThe State of California requires that contractors in the building trades be licensed. Individuals and business entities obtain their contractors licenses by demonstrating to the California Contractors State License Board that they have the requisite knowledge, skill, and experience to be licensed. The CSLB issues licenses to those meeting requirements. As a construction attorney of longstanding tenure, I have witnessed the impact of unlicensed building contractors from every point of view. If you are considering hiring an unlicensed contractor, acting as an unlicensed contractor or even working for an unlicensed contractor as an employee, please consider the following perils:
To the Owner Considering Hiring an Unlicensed Contractor:
On the positive side for owners considering hiring an unlicensed contractor, the general rule in California is that an owner can escape the obligation to pay an unlicensed contractor for work performed and materials supplied because unlicensed contractors are prohibited from bringing legal actions against owners for payment. The law even goes so far as to allow the Owner to bring a legal action against the unlicensed Contractor for reimbursement of anything the owner paid to the unlicensed contractor. This is done through a “disgorgement” action (see, Business and Professions Code 7031. See also, the following article: Disgorgement Article). Despite this, there are a great many negative potential consequences to be considered by any owner who might consider hiring an unlicensed contractor. Among them are the following:
- If you are considering not paying your unlicensed contractor because Business and Professions Code 7031 allows it, please consider that unlicensed contractors, who have clearly demonstrated a disinclination to follow legal obligations in the first place, may resort to “less than socially acceptable” means of exacting retribution against those who do not pay them or who demand the return of money paid through a disgorgement action I am sorry to say this. Let us leave it at that.
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William L. Porter, Porter Law GroupMr. Porter may be contacted at
bporter@porterlaw.com
California Pipeline Disaster Brings More Scandal for PG&E
September 17, 2014 —
Mark Chediak – BloombergA deadly pipeline explosion that shattered a California town four years ago continues to rip through the state agency weighing a record penalty for the disaster.
The president of the California Public Utilities Commission asked his chief of staff to resign and recused himself from the case after “inappropriate e-mail exchanges” with PG&E Corp. (PCG) raised questions about bias, according to a statement from the commission yesterday. The CPUC may decide within weeks whether to levy a proposed $1.4 billion penalty -- the biggest safety fine in the state’s history -- against PG&E for the 2010 explosion of a natural gas pipeline that killed eight people in San Bruno.
Commission President Michael Peevey, who has been accused by San Bruno officials and consumer advocates of being too close to the utility, said in the statement he would not take part in penalty deliberations to eliminate any appearance of impropriety. The move is a step toward regaining credibility for the CPUC after two years of political infighting has created an ongoing climate of scandal.
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Mark Chediak, BloombergMr. Chediak may be contacted at
mchediak@bloomberg.net
Maximizing Contractual Indemnity Rights: Insuring the Indemnitor's Obligation
December 02, 2015 —
William Kennedy – White and Williams LLPContracting parties can circumvent the limitations of common law tort doctrines by drafting contracts with language that details the allocation or shifting of the risk of tort loss. Properly composed, “broad form” contractual indemnity provisions can permit an Indemnitee to shift the full range of tort exposure – damages and defense fees and costs – if they have the kind of specificity set forth in Part Two of this series, "Maximizing Contractual Indemnity Rights: Components of an Effective Provision." In most business transactions, however, both the Indemnitee and the Indemnitor want the indemnity obligation to be insured.
Part Three: Insuring the Indemnitor's Obligation
“Insured Contract Coverage”
Although CGL policies do not typically cover an Insured’s breaches of contract, per se, most insurance policies do cover a policyholder’s “incidental contracts” or “insured contracts” under which the policyholder has an obligation to indemnify an Indemnitee. The business contract (as opposed to the insurance policy) should require the Indemnitor to take all steps necessary to have the Indemnitee identified as either a Covered Person, Insured, or Additional Insured on the Indemnitor’s applicable insurance policies. There are subtle, but potentially significant legal rights and responsibilities that hinge on whether an entity is a Covered Person, Insured, Additional Insured, or some other classification. Purported Indemnitees may need to consult insurance coverage counsel to ensure that they are seeking the appropriate status from the Indemnitor’s CGL insurer.
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William Kennedy, White and Williams LLPMr. Kennedy may be contacted at
kennedyw@whiteandwilliams.com
2018 Legislative Changes Affecting the Construction Industry
June 06, 2018 —
Melinda S. Gentile - Peckar & AbramsonThe 2018 Florida Legislative Session recently concluded and a number of important construction-related House Bills (HB) and Senate Bills (SB) were presented during the Session. Florida Governor Rick Scott has 15 days to act on the legislation once each Bill has passed the House and Senate. Bills signed by the Governor go into effect on July 1, 2018, unless indicated otherwise. These Bills may impact General Contractors and Construction Managers in a number of ways, not the least of which is the period of time that a cause of action may be initiated for the design, planning or construction of an improvement.
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Melinda Gentile, Peckar & AbramsonMs. Gentile may be contacted at
mgentile@pecklaw.com
Construction Defect Bill a Long Shot in Nevada
June 28, 2013 —
CDJ STAFFConstruction defect reform may still be on the table in Nevada, according to the Reno Gazette Journal. Assembly member Pat Hickey got a committee hearing for Assembly Bill 504 on Sunday. The bill is backed by the construction industry and opposed by trial lawyers. Hickey told the Assembly Commerce and Labor committee that “this bill is not perfect, I would like for it to do more,” and said that without changes Nevada will “continue to reward litigation over resolution.”
AB504 would, among other provisions, provide some protection to subcontractors from the actions of general contractors, though Ira Hansen, an assembly member from Sparks and the owner of a plumbing business, called it a “backhanded slap.” The Gazette noted that similar language pertaining to subcontractors was in AB367, which is sponsored by Democrats. Hickey and Hansen are both Republicans.
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Towards Paperless Construction: PaperLight
June 02, 2016 —
Aarni Heiskanen – AEC BusinessI just toured the newly built headquarters of a financial corporation. Our guide, a M&A specialist, boasted that they have completely removed paper from their offices. Could paperless construction become feasible any time soon? PaperLight is a portable smart board that could replace paper drawings on many occasions.
Rollout, Inc., the developer of PaperLight, says that 90% of contractors still use paper plans. AEC firms spend, on average, $1600 per employee on printing annually. Over 37 million construction drawings are printed every year. Finding a usable solution that reduces these numbers makes economic sense. Even more so if you consider all the costs of errors that result from using outdated paper drawings.
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aarni@aepartners.fi