Construction Companies Must Prepare for a Surge of Third-Party Contractors
February 08, 2021 —
Kim Holly - Construction ExecutiveEconomists agree that the trajectory of the current recession has been different from any other. Looking back at the 2008 economic crisis, there are noticeable trends in the construction space that indicate a surge in third-party contractor hiring could be coming in 2021.
The demand for more contract work will come as no surprise for seasoned construction executives—the share of contractors at U.S. businesses has increased by 15% in the last decade. Contractors are a valuable asset in the construction industry, but organizations will need to prepare for the coming influx to ensure third-party contractors and full-time employees are set up for success to keep operations running smoothly.
THE CONTRACTOR SURGE BLUEPRINT
Managing a substantial influx of contractors on construction worksites can be an overwhelming task. However, with guiding principles in place, construction executives can successfully incorporate more contractors into their operations and effectively manage associated risks.
Reprinted courtesy of
Kim Holly, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Recent Bribery and Anti-Corruption Enforcement Trends in Global Construction Industry
August 26, 2019 —
Ralph A. Finizio & Anthony Finizio - ConsensusDocsBribery and corruption have long plagued the construction industry, particularly in the developing world and emerging markets. Large contracts often trickle down through layers of subcontractors, presenting opportunities for corruption at each level. The risk is enhanced in certain foreign jurisdictions, where large corporations may be wholly or partially state-owned enterprises and public officials may expect payment in exchange for state-issued licenses or government contracts.
Recent enforcement trends indicate that both the U.S. Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) are increasingly targeting the construction industry for anti-bribery and corruption actions under the Foreign Corrupt Practices Act (FCPA). Several former DOJ officials also recently commented that the construction industry has become a focus of anti-corruption enforcement efforts.
The FCPA is a formidable tool for regulators, making it unlawful to influence a foreign government official with any type of payment or personal reward. While certain safe harbors apply — including de minimis payments made to expedite routine governmental action or the payment being lawful in the foreign jurisdiction — these exceptions are construed narrowly and can be difficult to apply in practice.
Reprinted courtesy of
Ralph A. Finizio, Pepper Hamilton LLP and
Anthony Finizio, Pepper Hamilton LLP
Mr. Finizio may be contacted at finizior@pepperlaw.com
Mr. Finizio may be contacted at finizioa@pepperlaw.com
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“But I didn’t know what I was signing….”
May 30, 2018 —
Bobby Kethcart - Snell & Wilmer Real Estate Litigation BlogIn real estate cases—which frequently involve long purchase agreements, loan documents, personal guarantees, deeds of trust, etc.—we’ve likely all had a client or opposing party who trots out the line that they didn’t know what they were signing, or they didn’t read or understand what they were signing, so the document shouldn’t be enforced according to its terms.
Most of us instinctively believe the claim is a loser: You signed the document, you’re bound by it.
But is this actually right?
Well, we did some digging. Here is the Arizona law on the subject:
Nationwide Resources Corp. v. Massabni, 134 Ariz. 557, 658 P.2d 210 (App. 1982):
“A mistake of only one of the parties to a contract in the expression of his agreement or as to the subject matter does not affect its binding force and ordinarily affords no ground for its avoidance, or for relief, even in equity.”
“A manifestation of acceptance to the offeror or his agent forms a contract regardless of the intent of the acceptor.”
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Bobby Kethcart, Snell & WilmerMr. Kethcart may be contacted at
rkethcart@swlaw.com
Building Resiliency: Withstanding Wildfires and Other Natural Disasters
September 25, 2023 —
Bill Creedon - Construction ExecutiveAccording to the National Fire Protection Association, between 2016 and 2020 an estimated average of 4,300 fires per year plagued structures under construction, adding up to about $376 million in annual property damage. More recently, the National Centers for Environmental Information reported that wildfires accounted for more than $3.2 billion in damages across the United States. These figures alone point to the heightened awareness that all companies—particularly construction companies—should maintain surrounding the unique challenges and risks that wildfires can present and how they could potentially impact the integrity of projects and the associated safety of their workers.
As North America grapples with the increasing frequency and severity of wildfires, hurricanes and additional severe weather events, numerous industries have had to adapt and implement proactive measures to minimize their risks and associated exposures. The impact of these natural disasters on the construction industry is indisputable, necessitating proactive measures that construction companies should seriously consider adopting to effectively mitigate those risks, efficiently navigate insurance complexities and seamlessly integrate data-driven solutions alongside modern tools like AI and predictive modeling.
Reprinted courtesy of
Bill Creedon, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Mr. Creedon may be contacted at
bill.creedon@wtwco.com
House of the Week: Spanish Dream Home on California's Riviera
July 30, 2014 —
Emily Heffter – BloombergFamous clients of renowned Los Angeles architect Richard Landry are not known for their restraint.
The Brentwood estate he designed for Tom Brady and Gisele Bundchen has a moat and just sold to Dr. Dre for $40 million. Michael Jackson died in a home Landry designed (a rental), and he has designed luxurious mansions for Wayne Gretzky, Michael Bolton, Mark Wahlberg and Kenny G.
Still, homeowner Lorna Auerbach did something unique when Landry started designing her dream home in Pacific Palisades: She flew him to Spain, with her, for 10 days.
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Emily Heffter, Bloomberg
COVID-19 Likely No Longer Covered Under Force Majeure
February 01, 2023 —
Rachel E. Pelovitz - Construction ExecutiveA recent decision by the U.S. Government Accountability Office (GAO) has shaken up construction contracts. While companies could claim “force majeure” to exempt themselves from contractual obligations during much of the pandemic, this decision challenges ongoing validity of those claims.
The decision was based on the Army Corps of Engineers deeming a bid from Boulder, Colorado–based American Mine Services (AMS) as nonresponsive because it included a COVID-19 force majeure clause. In reviewing the Corps’ decision, GAO—referencing the Federal Acquisition Regulation—found that “epidemics” and “quarantine restrictions” were already included in the contract between the Corps and AMS. Although AMS claimed that “COVID-19 is considered a force majeure event along with any other similar disease, epidemic or pandemic event,” the GAO concluded that this interpretation limited the rights of the government too much.
Reprinted courtesy of
Rachel E. Pelovitz, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Ms. Pelovitz may be contacted at
pelovitz@abc.org
House of Digital Twins
March 08, 2021 —
Cristina Savian - AEC BusinessAs a vocal and passionate advocate for the adoption of Digital Twins for our built assets, I keep finding myself standing in, what feels like, the middle of a house of cards, observing its always rocky structure in constant danger of collapse. A wobbly system threatened by the tremors stressed by one of the most prominent digital revolutions that our construction industry has ever experienced.
DIGITAL TWINS FOR OUR BUILT ASSET.
This booming industry trend is gaining speed at a rate that the construction industry has never experienced before. Construction has always been slow at innovating and still holds its title as the least digitalised industry, but the Digital Twin revolution has now found our location and is ready to disrupt. I often witness how these forces attempt to pull down the cards, but, to my surprise, their resilience is what keeps holding the house together. Hold on, is this resilience or resistance?
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Cristina Savian, AEC Business
Research Project Underway to Prepare Water Utilities for Wildfire Events
January 23, 2023 —
Brown and CaldwellPORTLAND, Ore., January 17, 2023 — A multi-disciplinary team of utilities, academia, and consultants have convened to develop a study and publish guidance to improve water treatment resilience against the impacts of forest fires.
Critical to water security, forested watersheds provide 75 percent of the world’s accessible freshwater (Food and Agriculture Organization of United Nations 2021) and supply drinking water for more than two-thirds of North American consumers (EPA 2019). The frequency and severity of forest fires have been increasing globally with warming temperatures and shifting precipitation patterns due to climate change. Wildfires can cause costly, long-term water treatment issues that push water treatment processes beyond their design and operational response capabilities.
Such issues include filtration effectiveness, disinfection efficacy, the elevation of disinfection by-product formation, and increased bioavailable phosphorus leading to problematic cyanobacterial/algal blooms.
Led by a principal research team of Lynn Stephens (Brown and Caldwell), Dr. Mac Gifford and Yone Akagi (Portland Water Bureau), and Dr. Monica Emelko (University of Waterloo), Water Research Foundation (WRF) project #5168 is funded by the foundation’s Emerging Opportunities Program and the Portland Water Bureau (PWB).
About The Water Research Foundation
The Water Research Foundation (WRF) is the leading research organization advancing the science of all water to meet the evolving needs of its subscribers and the water sector. WRF is a nonprofit, educational organization that funds, manages, and publishes research on the technology, operation, and management of drinking water, wastewater, reuse, and stormwater systems—all in pursuit of ensuring water quality and improving water services to the public. For more information, visit www.waterrf.org
About Brown and Caldwell
Headquartered in Walnut Creek, Calif., Brown and Caldwell is a full-service environmental engineering and construction services firm with 52 offices and more than 1,700 professionals across North America and the Pacific. For over 75 years, our creative solutions have helped municipalities, private industry, and government agencies successfully overcome their most challenging water and environmental obstacles. As an employee-owned company, Brown and Caldwell is passionate about exceeding our clients’ expectations and making a difference for our employees, our communities, and our environment. For more information, visit www.brownandcaldwell.com
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