Labor Shortages In Construction
December 04, 2023 —
Jason Feld & Chris Bates - Kahana FeldSimilar to other industries, the ongoing labor shortage crisis in the United States is detrimentally impacting construction activities in both the residential and commercial sector. According to the Bureau of Labor Statistics, the turnover rate for the construction industry since 2021 has risen to 56%. And while the national unemployment rate ranges between 0.4% to 7.5%, the unemployment rate for construction is roughly four times the national average (See, Associated Builders and Contractors, Markenstein Advisors Report dated July 28, 2023). 73% of workers preferred to stay in a remote work environment, and another 40% of the global workforce has elected to voluntarily remove themselves from the workplace. (See, 2021 Microsoft Work Index). In particular with the construction industry, employment rates have returned to pre-pandemic levels hovering around 12% unemployment in 2020 to 6% in 2022. (See, Joint Center for Housing Studies at Harvard University, Carlos Martin).
So where did all the workers go? During the height of the 2020 Covid-19 Pandemic and for the next few years, the county experienced what most people are calling “The Great Resignation”. May people took jobs with better pay and better alignment with their values. Approximately 40% stated a new business. Many elected to become stay-at-home parents forgoing a paycheck to raise their families while the other spouse works, especially due to the rising costs of childcare. About 1 in every 4 baby-boomers retired. Others took part-time employment, entered military service or left the workforce due to disability or injury. (See, Bloomberg Businessweek).
Reprinted courtesy of
Jason Feld, Kahana Feld and
Chris Bates, Kahana Feld
Mr. Feld may be contacted at jfeld@kahanafeld.com
Mr. Bates may be contacted at cbates@kahanafeld.com
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SNC-Lavalin’s Former Head of Construction Pleads Guilty to Bribery, Money Laundering
October 01, 2014 —
Beverley BevenFlorez-CDJ STAFFRiadh Ben Aissa, a former SNC-Lavalin executive, “pleaded guilty to charges including bribery and money laundering in Switzerland, according to a court filing released on Wednesday,” reported the Wall Street Journal.
SNC-Lavalin “issued a separate statement acknowledging the court's acceptance of Mr. Ben Aissa's guilty pleas, adding it was recognized as ‘an injured party’ in the case and would recover an unspecified amount of money from him.”
Chief Executive Robert Card stated, “SNC-Lavalin's goal is nothing less than to set a new standard for clean business in the engineering and construction industry,” as quoted by the Wall Street Journal. “We've adopted a zero-tolerance policy for ethics violations of any kind. We have the right people in place and systems and procedures which are designed to protect the company and its stakeholders from future fraudulent actions."
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Gilbane Project Exec Completes His Mission Against the Odds
January 19, 2017 —
Debra K. Rubin - Engineering News-RecordAfghanistan’s new Ministry of Defense headquarters in Kabul was supposed to symbolize the nation’s future—and U.S. support in that effort—as a self-sustaining, sophisticated structure akin to the Pentagon. But U.S. funding shortfalls stretched an anticipated 18-month project, which began in 2009, into years. While experienced in running projects in an underdeveloped country in which terror attacks and unstable regional politics are routine, Gilbane Building Co. Project Executive Michael P. Sousa wanted no part of this one in 2013, when he first toured it. “The structure was in a severe state of disrepair and riddled with poor construction,” he says, terming it “an embarrassment” to the U.S. government.
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Debra K. Rubin, ENRMs. Rubin may be contacted at
rubind@enr.com
Specific Performance: Equitable Remedy to Enforce Affirmative Obligation
January 18, 2021 —
David Adelstein - Florida Construction Legal UpdatesWhen a party breaches an agreement, particularly when dealing with real estate, there is an equitable remedy known as specific performance that requests the trial judge issue an order to affirmatively force the breaching party to perform, i.e., close on the real estate contract. You are asking the court to require the other party to specifically perform an affirmative obligation. See Melbourne Ocean Club Condominium Ass’n, Inc. v. Elledge, 71 So.3d 144, 146 (Fla. 2011).
A decree of specific performance is an equitable remedy ‘not granted as a matter of right or grace but as a matter of sound judicial discretion’ governed by legal and equitable principles. Specific performance shall only be granted when 1) the plaintiff is clearly entitled to it, 2) there is no adequate remedy at law, and 3) the judge believes that justice requires it.
Castigliano v. O’Connor, 911 So.2d 145, 148 (Fla. 3d DCA 2005) (internal citations omitted).
An example of specific performance may play out, as mentioned, in a real estate contract where a seller refuses to close on the transaction.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
With Wildfires at a Peak, “Firetech” Is Joining Smart City Lineups
October 21, 2024 —
James P. Bobotek - Gravel2Gavel Construction & Real Estate Law BlogThe
threat of extreme wildfires has doubled in the past 20 years, with almost 20,000 fires blazing across the United States in 2024 alone. These high-intensity fires can be deadly, expensive, and create lingering health and environmental consequences. While we are used to seeing firefighters on the frontlines, researchers hope that next-generation smart technology, augmented by artificial intelligence (AI), will also play a key role in battling these conflagrations. Many municipalities, particularly those near wildfire-prone forests, are beginning to incorporate fire-focused advances (or “firetech”) into their smart city ecosystems.
“Smart cities” are urban centers enhanced by utilities, emergency services,
traffic signals and more that are linked through information and communications technology. Though the concept can spark cybersecurity-related concerns, many locales are gradually implementing many different kinds of smart tech. Following the 2023 wildfire that devastated Maui, for example, Hawaii installed a network of
cloud-based fire and wind sensors that use AI to detect wildfires in real time. Smart tools like these can aid in predicting and discovering fires, streamlining emergency alert protocols, calculating vital analytics and improving firefighter safety. The National Fire Protection Association (NFPA) is
actively studying these innovations, particularly in terms of environmental (smart buildings or robotics), operational (communications) and personnel (PPE sensors or biometrics). Below are a few of the key technologies to watch in this emerging field:
- Smart Sensors. A total of 80 sensors (64 wildfire sensors and 16 wind sensors) were placed throughout Hawaii starting in March of 2024. Attached to existing utility poles, they detect heat in the air, and then engage AI and smart learning to distinguish smoke particles and gases produced by fires from those commonly found in Hawaii’s atmosphere—such as volcanic ash and ocean salt. Positioned in “strings,” the sensors “talk” to each other and send text messages to officials when they find a problem.
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James P. Bobotek, PillsburyMr. Bobotek may be contacted at
james.bobotek@pillsburylaw.com
Get Construction Defects in Writing
December 11, 2013 —
CDJ STAFFSometimes, even if a developer is willing to make a repair, sometimes the repair doesn’t get to the actual problem, according to Nicholas D. Cowie of Cowie & Mott, writing on his blog. He notes that “getting it ‘right’ the first time is important and written documentation is key.” He gives the example of “when a developer agrees to informally repair a window or roof leak, the ‘repair,’ as far as the developer is concerned, may consist merely of sending out a worker with a caulk gun to seal gaps that should have been protected with a solid flashing material during the original installation.”
As a better course, he says that homeowner associations should “request a written description of the proposed repair” in order that it can be evaluated. This also allows follow-up to determine if the agreed-upon repair was done properly. And, although some homeowners associations would rather not have the original subcontractor repair their own work, here warranties often come into play.
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National Demand Increases for Apartments, Refuting Calls for Construction Defect Immunity in Colorado
September 08, 2016 —
Jesse Witt – The Witt LawfirmFor the last four years, the homebuilders’ lobby has been aggressively pushing the idea that consumer protection laws are stifling condominium construction in Colorado. The lobbyists claim that the fear of liability for construction defects has forced many local developers to build apartments instead of condominiums. They have dismissed the notions that the shift to apartments merely reflects supply and demand, or that modern families might actually prefer to rent rather than buy. To support this theory, they have touted high condominium sales in other states. A new story from NPR’s Here & Now refutes this claim, however.
Contrary to what the lobbyists have been saying, data now confirm that large numbers of Americans prefer to rent, not buy, their homes. NPR reported today that home ownership in the U.S. fell to its lowest rate since 1965, while the share of U.S. households who rent is nearing a 50-year high. This trend appears nationwide and can hardly be blamed on consumer protection laws in Colorado.
Reprinted courtesy of
Jesse Howard Witt, Acerbic Witt
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Mr. Witt welcomes comments at www.witt.law
The Vallagio HOA Appeals the Decision from the Colorado Court of Appeals
August 04, 2015 —
David M. McLain – Colorado Construction LitigationAs highlighted in our most recent post, the Colorado Court of Appeals’ Vallagio decision upheld a declaration provision that prohibited the amendment of a mandatory arbitration clause without the consent of the developer/declarant. Vallagio at Inverness Residential Condominium Association, Inc. v. Metropolitan Homes, Inc., et al., 2015COA65 (Colo. App. May 7, 2015). This case protects a developer/declarant’s ability to arbitrate construction defect claims with a well-crafted declaration that requires declarant consent in order to amend the mandatory arbitration provisions for construction defect actions.
However, the Vallagio ruling still hangs in the balance while the Colorado Supreme Court considers the condominium association’s petition for certiorari review, filed June 18, 2015. In its petition, the association argues that the declarant consent requirement violates public policy and four separate sections of the Colorado Common Interest Act (“CCIOA”).
For instance, the association argued in the courts below that a declarant consent requirement violates section 217 of CCIOA, which governs unit owners’ voting percentage requirements and provides that declarations may not require more than 67% affirmative vote for amendments. The Court of Appeals rejected this argument, reasoning that other provisions of section 217 contemplate consent requirements by parties other than unit owners, such as first mortgagees.
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David M. McLain, Higgins, Hopkins, McLain & Roswell, LLCMr. McLain may be contacted at
mclain@hhmrlaw.com