Certain Private Projects Now Fall Under Prevailing Wage Laws. Is Yours One of Them?
November 21, 2022 —
Nancy Cox - Construction ExecutiveFor the last few years, New York State Labor Law has required that all contractors overseeing public development projects pay their workers the prevailing wage rate, which includes a regulated hourly rate for wage and benefits. Fast forward to 2022, the requirements of Section 224-A are extending to private projects costing more than $5 million where 30% or more of the financing for the construction costs was obtained from public sources like state or local funding.
There are a number of forms of financing that qualify as public funding, and its important for developers to understand exactly how these are defined under the new law. Public funding includes any indirect or direct payment from government authorities, savings from fees, tax credits or payments in lieu of taxes, loans from public entities and more.
In order to provide further clarity, the law also clearly defined certain project exemptions to the new rule. First, affordable housing projects will not be affected, along with historic rehabilitation projects or small renewable energy projects. Also, projects for established non-profit companies receive an exemption as long as the company reports gross annual revenues less than $5 million. Other exemptions include projects for schools under 60,000 square feet and those funded by the Urban Development Corporation’s Restore New York's Communities Initiative.
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Nancy Cox, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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No Coverage for Collapse of Building
January 04, 2021 —
Tred R. Eyerly - Insurance Law HawaiiDamage to a building caused by the break of a water pipe was not a collapse under the policy. Naabani Twin Stars v. Travelers Cos., 2020 U.S. Dist. LEXIS 196443 (D. N. M. Oct. 22, 2020).
An underground water line ruptured on plaintiffs property This caused a collapse under the adjacent parking lot, which in turn caused land beneath the building go change positions and damage the building. A geotechnical consultant concluded that a material change in the site conditions occurred as a direct result of the rupture of the water pipe in the parking lot, and that those changes directly affected the settlement of the building.
Travelers denied coverage for the damage. Travelers concluded that the building settlement was the result of subsurface movement, which invoked the earth movement exclusion. Travelers inspection concluded that the building was not in a state of collapse. The policy defined collapse as "an abrupt falling down or caving in of a building or structure, or any part of a building or structure, with the result that the building, or part of the building, cannot be occupied for its intended purpose."
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Online Meetings & Privacy in Today’s WFH Environment
May 25, 2020 —
Heather Whitehead & Joshua Anderson - Newmeyer DillionAs a result of the COVID-19 (commonly referred to as the Coronavirus) pandemic, remote working arrangements have become the new norm. For those working from home (WFH), the software program “Zoom Meetings,” has found a substantial increase in demand and popularity as a means to facilitate meetings online rather than meeting in person. There are also a number of other similar platforms available for online meetings such as Skype and Teams (from Microsoft), Go to Meeting (from LogMeIn) and WebEx Meetings (Cisco).
Best Practices for Businesses - Privacy and Security Protocols
With these platforms becoming a necessity for businesses, there are a number of best practices that should be considered to safely conduct online meetings and teleconferences as well as protect information. These include the following:
- Upgrade to the most recent version of the program or application;
- Use passwords, especially with recurring meetings;
- Protect all passwords as well as personal meeting identifiers used in Zoom and other platforms;
- Carefully moderate meetings and ask meeting attendees to identify themselves at the beginning of a meeting;
- Consider allowing only authenticated users to participate in meetings;
- Use the Waiting Rooms feature in Zoom; and
- Enable features available only to meeting hosts.
Reprinted courtesy of
Heather Whitehead, Newmeyer Dillion and
Joshua Anderson, Newmeyer Dillion
Ms. Whitehead may be contacted at heather.whitehead@ndlf.com
Mr. Anderson may be contacted at joshua.anderson@ndlf.com
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Fracking Fears Grow as Oklahoma Hit by More Earthquakes Than California
July 09, 2014 —
Zain Shauk – BloombergSquinting into a laptop perched on the back of his pickup, Austin Holland searches for a signal from a coffee-can-sized sensor buried under the grassy prairie.
Holland, Oklahoma’s seismology chief, is determined to find the cause of an unprecedented earthquake epidemic in the state. And he suspects pumping wastewater from oil and gas drilling back into the Earth has a lot to do with it.
“If my research takes me to the point where we determine the safest thing to do is to shut down injection -- and consequently production -- in large portions of the state, then that’s what we have to do,” Holland said. “That’s for the politicians and the regulators to work out.”
So far this year, Oklahoma has had more than twice the number of earthquakes as California, making it the most seismically active state in the continental U.S. As recently as 2003, Oklahoma was ranked 17th for earthquakes. That shift has given rise to concern among communities and environmentalists that injecting vast amounts of wastewater back into the ground is contributing to the rise in Oklahoma’s quakes. The state pumps about 350,000 barrels of oil a day, making it the fifth largest producer in the U.S.
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Zain Shauk, BloombergMr. Shauk may be contacted at
zshauk@bloomberg.net
The Difference Between Routine Document Destruction and Spoliation
October 18, 2021 —
Steven A. Neeley - Construction ExecutiveIn today’s world, there is a tendency to believe that everything must be preserved forever. The common belief is that documents, emails, text messages, etc. cannot be deleted because doing so may be viewed as spoliation (i.e., intentionally destroying relevant evidence). A party guilty of spoliation can be sanctioned, which can include an adverse inference that the lost information would have helped the other side. But that does not mean that contractors have to preserve every conceivable piece of information or data under all circumstances. There are key differences between routine document destruction (when done before receiving notice of potential claims or litigation) and spoliation.
The Armed Services Board of Contract Appeals decision in Appeal of Sungjee Constr. Co., Ltd., ASBCA Nos. 62002 and 62170 (Mar. 23, 2021) provides a good reminder. There, Sungjee challenged its default termination under a construction contract at Osan Air Base in South Korea. Sungjee argued that the government denied it access to the site for 352 days (out of a 450-day performance period) by refusing to issue passes that were needed to access the base. The government argued that it had issued the passes, but it could not produce them to Sungjee in discovery because they had been destroyed as part of a routine document destruction policy. The base security force issued hard copy passes and entered the information in a biometric system. The government was able to produce the biometric system data but not the hard copy passes because they were destroyed each year.
Sungjee argued the government was guilty of spoliation and moved for sanctions. It asked the Board to draw an adverse inference that the passes would have shown that the government had not issued proper passes on a timely basis, which delayed Sungjee’s performance. The Board denied Sungjee’s motion for several reasons.
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Steven A. Neeley, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Mr. Neeley may be contacted at
steve.neeley@huschblackwell.com
In Colorado, Primary Insurers are Necessary Parties in Declaratory Judgment Actions
December 09, 2011 —
Heather M. Anderson, Colorado Construction LitigationThe United States District Court for the District of Colorado recently ruled that primary insurers are necessary parties, under Fed. R. Civ. P. 19, in a declaratory judgment action being pursued by an excess carrier. See Insurance Co. of State of Pennsylvania v. LNC Communities II, LLC, 2011 WL 5548955 (D. Colo. 2011). Federal Rule of Civil Procedure 19 is almost identical to Colorado Rule of Civil Procedure 19 and pertains to the joinder of persons needed for “just adjudication.” The Insurance Co. of the State of Pennsylvania (“ICSOP”) sought a declaratory judgment that it did not have a duty to defend or indemnify the defendants (collectively referred to as “Lennar Companies”) with regard to the underlying lawsuit brought by The Falls at Legend Trail Owners Association, Inc. (the “HOA”). Id. at *2. In its lawsuit, the HOA alleged Lennar Companies were liable for construction defects at The Falls at Legend Trail residential development.
Lennar Companies held two primary insurance policies, one issued by OneBeacon Insurance Company f/k/a General Accident Insurance Company (“General Accident”) and the other issued by American Safety Risk Retention Group, Inc. (“American Safety”). Lennar Companies also carried excess policies issued by ICSOP and Ohio Casualty Insurance Company (“Ohio Casualty”).
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Reprinted courtesy of Heather M. Anderson of Higgins, Hopkins, McClain & Roswell, LLP. Ms Anderson can be contacted at anderson@hhmrlaw.com
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With Vice President's Tie-Breaker, US Senate Approves Far-Reaching Climate Bill
August 29, 2022 —
Pam McFarland & Debra K. Rubin - Engineering News-RecordWith Vice President Kamala Harris casting the decisive vote, the U.S. Senate passed 51-50 an economic package on Aug. 7 that authorizes $369 billion to address climate change. The bill now moves to the U.S. House of Representatives, which is expected to pass the bill later this week, and then to the White House for President Joe Biden's signature.
Reprinted courtesy of
Pam McFarland, Engineering News-Record and
Debra K. Rubin, Engineering News-Record
Ms. McFarland may be contacted at mcfarlandp@enr.com
Ms. Rubin may be contacted at rubind@enr.com
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Construction Law: Unexpected, Fascinating, Bizarre
April 25, 2012 —
CDJ STAFFGuy Randles offers an amusing set of odd construction law cases in the Daily Journal of Commerce, which he describes as “the unexpected, the fascinating and even the bizarre.” He noted that in one case “a whistleblower claimed he was terminated for reporting to the owner that the contractor’s painters had not applied the required coating thickness.” The whistleblower was the project manager and “was responsible for ensuring the proper coating thickness.”
A less amusing case was that of an architect who was arrested for manslaughter. Gerard Baker “told investigators that the considered the fireplaces to be merely decorative.” Randles notes that “the mansion’s fireplaces were built of wood framing and lined with combustible drywall.” Further, a “gas fireplace even vented into the house’s interior.” Building officials called the house “a death trap.” According to the LA police chief this may be the only case in which building defects lead to a manslaughter charge.
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