U.S. Housing Starts Exceed Estimates After a Stronger December
January 04, 2018 —
Sho Chandra - BloombergOriginally Published by CDJ on February 16, 2017
Builders started work on more U.S. homes than forecast in January after an upward revision to starts in the prior month, a sign construction was on a steady path entering 2017.
Residential starts totaled an annualized 1.25 million, easing from a 1.28 million pace in the prior month, a Commerce Department report showed Thursday. The median forecast of economists surveyed by Bloomberg was 1.23 million. Permits, a proxy for future construction, increased at the fastest pace since November 2015 on a pickup in applications for apartment building.
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Sho Chandra, Bloomberg
U.S. Homeowners Are Lingering Longer, and the Wait Is Paying Off
July 28, 2018 —
Jeremy Hill - BloombergHomeowners in the U.S. are holding on to their houses longer than they have in at least 18 years, and when they do sell, they’re reaping gains that haven’t been seen since before the housing crisis.
Those who sold in the second quarter did so after owning their homes for an average of 8.09 years, the longest stretch since Attom Data Solutions started tracking the statistic in 2000. The wait appears to be paying off: Second-quarter sellers recorded gains averaging $58,000 -- the most since the third quarter of 2007.
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Jeremy Hill, Bloomberg
Connecticut Supreme Court Finds Faulty Work By Subcontractor Constitutes "Occurrence"
July 31, 2013 —
Tred Eyerly, Insurance Law HawaiiThe U.S. District Court in Alabama certified a question to the Connecticut Supreme Court: Is damage to a project caused by faulty workmanship "property damage" resulting from an "occurrence"? With some qualification, the Connecticut Supreme Court answered in the affirmative. Capstone Building Corp. v. Am. Motorists Ins. Co., SC 18886 (Conn. June 11, 2013).
Captsone Development agreed to coordinate and supervise construction on a building at the University of Conneticut. Capstone Building was the general contractor. UConn secured an OCIP policy from American Motorist Insurance Company ("AMICO"). More than three years after completion, UConn notified the insureds of alleged defects in the project, including elevated levels of carbon monoxide. The source of the leak was the individual hot water heaters in residential units and insufficient draft of exhaust from the heater.Other defects were found during an investigation.
The insureds tendered to AMICO. Coverage was denied because the liability arose out of the insureds' own work.The insureds settled with UConn, paying $1 million each. The insureds then sued AMICO in Alabama and the question was certified to the Connecticut Supreme Court.
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Tred EyerlyTred Eyerly can be contacted at
te@hawaiilawyer.com
The Importance of Providing Notice to a Surety
October 21, 2015 —
Craig Martin – Construction Contractor AdvisorA recent case out of Missouri emphasizes the importance of providing notice to a surety when a bonded subcontractor is in default. When the question of whether a surety will be obligated under the bond is in the balance, notice is crucial.
In CMS v. Safeco Insurance Company, Safeco provided a performance bond to a subcontractor for the benefit of CMS. The bond specifically provided:
“PRINCIPAL DEFAULT. Whenever the Principal [Subcontractor] shall be, and is declared by the Obligee [CMS] to be in default under the Subcontract, with the Obligee having performed its obligations in the Subcontract, the Surety [Safeco] may promptly remedy the default, or shall promptly:
4.1 COMPLETE SUBCONTRACT. . . .
4.2 OBTAIN NEW CONTRACTORS. . . .
4.3 PAY OBLIGEE. . . .
4.4 DENY LIABILITY. . .”
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Craig Martin, Lamson, Dugan and Murray, LLPMr. Martin may be contacted at
cmartin@ldmlaw.com
How Helsinki Airport Uses BIM to Create the Best Customer Experience
September 07, 2017 —
Aarni Heiskanen - AEC BusinessHelsinki Airport is arguably one of the best in the world. Thanks to its perfect location between Asia and Europe, it’s becoming an ever-more-popular hub. I interviewed Finavia’s Design Manager, Kari Ristolainen, about the airport’s development program and how building information modeling (BIM) is essential to its success.
On my way to Finavia’s project office, I walked by the newly opened South Pier. The construction company’s blue site huts were still there, but inside, the terminal seemed fully operational. The South Pier is the latest addition in the development program that started in 2014. Of the 21 airports that Finavia has in Finland, Helsinki is the crown jewel. The €900 million expansion and renovation program will eventually double the airport’s capacity.
In 2014, Finavia chose Lemminkäinen as the project management contractor for the terminal expansion. Destia is the partner in the alliance for extending the airport apron. PES Architects continues as the principal designer, while other designers include Sweco Structures, Granlund, and SITO.
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
info@aepartners.fi
Real Estate & Construction News Round-Up (02/15/23) – Proptech Solutions, Supply Chain Pivots, and the Inflation Reduction Act
March 06, 2023 —
Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law BlogThis week’s round-up explores how proptech could alleviate the financial burden of property owners’ vacant office space, manufacturing firms are bolstering the industrial real estate sector, a 200-MW Texas project is first to leverage IRA tax credit for stand-alone energy storage, and more.
- Proptech could serve as an economic regenerator to the rise in empty office space that has recently become a major financial liability for businesses. (Joe Dyton, Connected Real Estate Magazine)
- The global business process outsourcing (BPO) industry and accompanying real estate infrastructure that supports it should be aware of the potential impact of AI chatbots becoming capable of optimizing customer service with minimal human input. (Zain Jaffer, Forbes)
- Industrial real estate is being bolstered by manufacturing firms increasingly returning their operations to the U.S., which was already one of the hottest commercial property sectors in the last decade. (JLL)
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Pillsbury's Construction & Real Estate Law Team
Virtual Jury Trials: The Next Wave of Remote Legal Practice
July 13, 2020 —
David R. Zaslow & Mark Paladino - White and WilliamsOne of the most obvious and unavoidable results of the COVID-19 crisis has been the postponement of jury service and, by extension, all jury trials. Given the inherent difficulties of convening juries in a world of social distancing, it is likely that multiple jurisdictions will be unable to conduct live jury trials for at least the next several months.
Recognizing the mounting delay and substantial docket backlog that is attendant to several months without jury trials, one court most recently permitted the litigants, upon consent, to try a new innovation – the nation’s first virtual jury trial conducted entirely on the Zoom platform. More than two dozen potential jurors in Collin County, Texas attended jury selection from home by smartphone, laptop, and tablet, a process that was streamed live on YouTube. The presiding judge occasionally provided prospective jurors technical advice on how to best use their devices.
Once selected, the jurors virtually attended a one-day, “summary jury trial” of an insurance dispute in which they heard a condensed version of the case and delivered a non-binding verdict. The parties were then able to gauge how their cases would fare before a jury in a full-scale trial and, with that insight, agreed to proceed to a mediation in an attempt to reach a resolution. Court officials further touted the abbreviated, non-binding experience as an ideal test for the viability of remotely holding jury trials that would result in a final judgment. This real-world test, albeit in a non-binding exercise, may be an indication of things to come, as courts in Indiana and Arizona have already communicated an intention to conduct jury trials remotely once able.
Reprinted courtesy of
David R. Zaslow, White and Williams and
Mark Paladino, White and Williams
Mr. Zaslow may be contacted at zaslowd@whiteandwilliams.com
Mr. Paladino may be contacted at paladinom@whiteandwilliams.com
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Issues to Watch Out for When Managing Remote Workers
July 13, 2020 —
Melissa (Powar) Clarke - Payne & FearsManaging remote workers comes with its share of challenges. The complexities of setting and articulating expectations in a remote work environment – and providing feedback about performance tied to those expectations - adds an additional burden to our already-crowded work lives, particularly for managers who are new to remote supervisory roles.
This article highlights some key issues that arise when managing remote workers.
Issue 1: Insufficient feedback
Annual reviews are not enough. Data clearly reflects that employees who receive regular feedback are happier, and more productive, in their roles. Employees require a “continuous feedback loop” to grow and improve. While many companies started migrating toward continuous feedback before the pandemic, remote work further increases the need for more frequent (formal and informal) check-ins. Organizations must provide management with a toolkit for providing – and receiving – constant feedback, and this toolkit should take into account changes in work styles and modalities of communication when employees are remote. Given the ease with which we can give face-to-face feedback compared to “virtual” feedback, this toolkit becomes even more important when only some employees are remote and others have returned onsite.
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Melissa (Powar) Clarke, Payne & FearsMs. Clarke may be contacted at
mec@paynefears.com