Avoiding Project Planning Disasters: How to Spot Problem Projects
December 13, 2021 —
James T. Dixon - Construction ExecutiveThe burden of project planning falls first and foremost upon a project owner. Owners have varying levels of sophistication, and the smart ones fill weak spots on their staff by engaging project managers, construction managers and owner’s representatives.
Typically, the owner then delegates the largest part of the project’s plan to the contractor in terms of creation and execution of a critical path method schedule during the construction phase. Before accepting that burden, a wise contractor will evaluate the project to determine if it is on a path to success or disaster. It is guaranteed that an owner’s problems will become the contractor’s problems in one way or another.
There are legendary projects that were also legendary planning failures. The iconic Sydney Opera House is one. The design competition began in 1955. After selecting the architect, the owner implemented a team that involved that architect, a structural engineer and an executive committee of inexperienced politicians. The original plan included a budget of $7 million (Australian) and a completion schedule spread over four years. That executive committee forced the project to start before designs were complete, doubled the number of theaters and then put a strangle-hold on the payment process, eventually causing the architect to quit and return to Europe with the construction drawings. The Opera House opened for its first performance in 1973—14 years late and $98 million over budget.
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James T. Dixon, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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EEOC Chair Issues New Report “Building for the Future: Advancing Equal Employment Opportunity in the Construction Industry”
June 05, 2023 —
The U.S. Equal Employment Opportunity CommissionWASHINGTON – The U.S. Equal Employment Opportunity Commission (EEOC) Chair Charlotte A. Burrows issued a report today titled, “
Building For The Future: Advancing Equal Employment Opportunity in the Construction Industry.” The report provides findings and next steps based on the agency’s enforcement experience, witness testimony presented at the EEOC’s
May 2022 hearing on discrimination and harassment in construction and other Commission hearings, and academic research.
“The recent historic federal infrastructure investments provide a once-in-a-generation opportunity to break down barriers and expand opportunity in the construction industry,” said EEOC Chair Charlotte A. Burrows. “While discrimination has long been an issue in the industry, we can decide the future. I look forward to working with industry leaders, employers, and unions to help ensure safe and inclusive workplaces for all workers.”
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Wilke Fleury Attorney Featured in 2022 Best Lawyers in America and Best Lawyers: Ones To Watch!
September 13, 2021 —
Wilke Fleury LLPWilke Fleury congratulates attorneys David Frenznick, Adriana Cervantes, Matthew Powell and Dan Egan on their inclusion in the 2022 Edition of Best Lawyers in America!
Since it was first published in 1983, Best Lawyers® has become universally regarded as the definitive guide to legal excellence. Best Lawyers lists are compiled based on an exhaustive peer-review evaluation. Almost 108,000 industry-leading lawyers are eligible to vote (from around the world), and they have received over 13 million evaluations on the legal abilities of other lawyers based on their specific practice areas around the world. For the 2021 Edition of The Best Lawyers in America©, 9.4 million votes were analyzed.
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Wilke Fleury LLP
ASCE Report Calls for Sweeping Changes to Texas Grid Infrastructure
March 28, 2022 —
C.J. Schexnayder - Engineering News-RecordA just-released detailed analysis of the catastrophic 2021 Texas winter storm finds systemic flaws in the state's electric sector contributed to a “cascade of failures” that overwhelmed its power grid and left millions freezing in the dark.
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C.J. Schexnayder, Engineering News-Record
ENR may be contacted at enr@enr.com
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Biden's Next 100 Days: Major Impacts Expected for the Construction Industry
May 10, 2021 —
Tom Ichniowski, Pam Radtke Russell & Bruce Buckley - Engineering News-RecordAs President Joe Biden’s busy first 100 days in office—which included enactment of a $1.9-trillion pandemic rescue bill and proposals for two other massive measures—wrap up, the months ahead also are expected to generate plenty of legislative and regulatory action with major impact for the construction sector.
Reprinted courtesy of
Tom Ichniowski, ENR,
Pam Radtke Russell, ENR and
Bruce Buckley, ENR
Mr. Ichniowski may be contacted at ichniowskit@enr.com
Ms. Russell may be contacted at Russellp@bnpmedia.com
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Illinois Supreme Court Rules Labor Costs Not Depreciated to Determine Actual Cash Value
November 19, 2021 —
Tred R. Eyerly - Insurance Law HawaiiThe Illinois Supreme Court determined that a homeowner insurer may not depreciate labor costs in calculating actual cash value (ACV) after a loss under the policy. Sproull v. State Farm Fire and Casualty Co., 2021 Ill. LEXIS 619 (Ill. Sept. 23, 2021).
Plaintiff was insured under a homeowner's policy that provided replacement cost coverage for structural damage. Under the policy, the insured would initially receive an ACV payment but then could receive replacement cost value (RCV) if repairs or replacement were completed within two years and the insurer was timely notified. The policy did not define "actual cash value."
Plaintiff suffered wind damage to his residence and timely submitted a property damage claim to State Farm. The adjuster determined that the building sustained a loss with RCV of $1711.54. In calculating ACV, State Farm began with the RCV and then subtracted plaintiff's $1000 deductible and an additional $394.36, including taxes, for depreciation. Plaintiff thus received an ACV payment of $317.18. Plaintiff claimed that he was underpaid on his ACV claim because State Farm depreciated labor, which is intangible and thus not subject to wear, tear, and obsolescence. Further, labor should not have been depreciated because it was not susceptible to aging or wearing and its value did not diminish over time.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Congress Addresses Homebuilding Credit Crunch
May 20, 2011 —
CDJ STAFFThe National Association of Home Builders (NAHB) reports that Representatives Gary Miller (CA), Brad Miller (NC) and twenty-nine cosponsors have put forth a bill with bipartisan support to “address the severe credit crunch for acquisition, development, and construction (AD&C) financing.” They report in addition to more than 1.4 million construction workers who have been “idled since 2006,” the housing slump has cost 3 million jobs and $145 million in wages.
NAHB reports that they worked closely with lawmakers on the bill. The association had members meet with legislators both in D.C. and in their home districts. They state that HR 1755 would help homebuilders “find the credit they need to move forward with new or existing projects.”
The bill would allow lenders to use the value upon completion when assessing loan collateral and ban the use of foreclosed or distressed sale properties in assessing values of projects. The would bill would also lessen restrictions by banking regulators, which the lead sponsors said “have hindered federal and state chartered banks and thrifts’ ability to make and maintain loans to qualified small home builders that have viable projects.”
The NAHB is urging members of Congress to cosponsor the bill and is urging the Senate to introduce a companion bill.
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Read HR 1755
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Unjust Enrichment Claims When There Is No Binding Contract
December 04, 2023 —
David Adelstein - Florida Construction Legal UpdatesA recent appellate opinion starts off, “This is a typical South Florida construction dispute.” (See case citation at the bottom) Let’s see, is it? No. It’s a garden variety payment dispute where the parties did NOT have a binding contract. Why? That’s for a different day (because the smart practice is ALWAYS to have a contract!) but it touches on the equitable, unjust enrichment claim. And it touches on competing unjust enrichment claims and the apportionment of those claims. In other words, can both parties be right on their unjust enrichment claims?
An owner hired a general contractor for home renovations. Work started but the relationship soured and the general contractor did not complete the work. The general contractor filed a payment dispute against the owner based on unpaid invoices. It pled alternative theories of recovery against the owner: breach of contract and unjust enrichment. The owner filed a counterclaim against the general contractor for the same claims. During the non-jury trial, the general contractor presented unpaid invoices along with testimony that the invoices represented the value of services rendered. The owner presented evidence of the completion of work damages.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com