Contractor Sued for Contract Fraud by Government
December 11, 2013 —
CDJ STAFFA Canton, Ohio construction company, TAB Construction, has been sued by the federal government over claims that the company lied about its location in order to receive contracts from the U.S. government. According to the suit, TAB received about $13 million for contracts with the U.S. Army Corps of Engineers. The firm had gained the contracts through a Small Business Administration program that allowed firms in certain areas to compete for contracts, however, the firm was not located in the appropriate area.
When the SBA found that TAB was not doing business out of an address that qualified for the SBA’s HUBZone program, the company claimed to be working from another address that qualified. Upon investigation, the SBA found this also was not true.
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3D Printing: A New Era in Concrete Construction
April 11, 2022 —
Zoey Zhao - Construction ExecutiveThe construction of buildings using concrete has been around since the time of the Romans. In all those centuries, concrete structures have been built using essentially the same method: forms, reinforcement, mixing, pouring, setting, repeat.
The process is costly and time-consuming. The construction of the forms alone demands dozens of workers and requires a substantial amount of lumber, keeping labor and materials costs high. Builders might save some time using prefabricated concrete blocks, but such materials are not appropriate for every construction project and carry their own expenses.
For the first time in history, builders have an alternative to traditional concrete construction methods that are more cost-effective, less expensive, more environmentally friendly and allow for a wide range of possible construction projects. Three-dimensional concrete printing for construction has emerged in the building field as a viable and efficient alternative.
Reprinted courtesy of
Zoey Zhao, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Ms. Zhao may be contacted at
zoey@aictbuild.com
Fannie-Freddie Elimination Model in Apartments: Mortgages
April 08, 2014 —
Sarah Mulholland – BloombergThe apartment-lending units of Fannie Mae (FNMA) and Freddie Mac were among their few money makers after the U.S. housing collapse. Now they should help transform the U.S. mortgage industry.
Lawmakers seeking to eliminate the two government lenders, which were seized by regulators during the 2008 credit crisis, see an antidote to the reckless lending that blew up the U.S. housing market in the structure of the firms’ multifamily operations, which share risks with lenders.
Senate Banking Committee Chairman Tim Johnson and Republican Mike Crapo are proposing legislation to create a new government-backed reinsurer of mortgage bonds that would require private investors to bear losses on the first 10 percent of capital. The model for the provision mirrors Fannie Mae and Freddie Mac (FMCC)’s multifamily lending operations, requiring lenders to shoulder some of the risk on loans they originate.
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Sarah Mulholland, BloombergMs. Mulholland may be contacted at
smulholland3@bloomberg.net
New York Labor Laws and Action Over Exclusions
February 01, 2021 —
Theresa A. Guertin & Ashley McWilliams - Saxe Doernberger & Vita, P.C.One of the most important methods for shifting risk in the construction context is insurance coverage. Upstream parties such as owner/developers and general contractors typically require that their downstream subcontractors who perform work on their properties or projects bring specific insurance to the table. These insurance requirements have a twofold purpose: protect the upstream parties, through additional insured coverage, from liabilities caused by the subcontractor; and protect the downstream parties by ensuring that they have adequate insurance for their own potential liabilities.
In New York, subcontractor insurance coverage can have some surprising terms which frustrate risk transfer. Numerous policies contain “Action Over” exclusions, which bar coverage for one of the most significant exposures faced by owner-developers and general contractors: bodily injury lawsuits brought by subcontractor employees. It is critical that upstream parties understand the unique impact of New York’s labor laws on the insurance market and be prepared to identify and request removal of Action Over exclusions on subcontractor insurance policies.
Reprinted courtesy of
Theresa A. Guertin, Saxe Doernberger & Vita, P.C. and
Ashley McWilliams, Saxe Doernberger & Vita, P.C.
Ms. Guertin may be contacted at TGuertin@sdvlaw.com
Ms. McWilliams may be contacted at AMcWilliams@sdvlaw.com
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Another Law Will Increase Construction Costs in New York
May 29, 2023 —
Bill Wilson - Construction Law ZoneNew York recently enacted legislation known as Carlos’ Law, which increases penalties for corporate liability for the death of, or serious injury to, an employee. The bill, S.621B / A.4947B, was named after Carlos Moncayo, a construction worker killed in a trench collapse on a New York City construction project. Moncayo’s employer repeatedly flouted safety rules and ignored warnings of dangerous conditions on its construction site before failing to properly support the trench that collapsed and killed Moncayo. Moncayo’s employer was convicted for his death, but the penalty was light. The company was sentenced to pay only $10,000, the maximum penalty at the time for any company convicted of a felony in New York State. The legislature responded with Carlos’ Law, which increases accountability for “employers,” and expands the scope of “employees” covered.
The corporate criminal law, NY Penal § 20.20(2)(c)(iv), imposes liability on an employer when “the conduct constituting the offense is engaged in by an agent of the corporation while acting within the scope of his employment and on behalf of the corporation, and the offense is . . . in relation to a crime involving the death or serious physical injury of an employee where the corporation acted negligently, recklessly, intentionally, or knowingly.” An “agent” of an employer is any “director, officer or employee of a corporation, or any other person who is authorized to act on behalf of the corporation.” § 20.20(a). An “employee” now includes any person providing labor or services for remuneration for a private entity or business within New York State without regard to an individual’s immigration status, and includes part-time workers, independent contractors, apprentices, day laborers and other workers. § 10.00 (22). The penalties for criminal corporate liability for the death or serious injury of an employee now include maximums of $500,000 when centered on a felony, and $300,000 when centered on a misdemeanor. § 80.10(1)(a) and (b).
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Bill Wilson, Robinson & Cole LLPMr. Wilson may be contacted at
wwilson@rc.com
ASCE's Architectural Engineering Institute Announces Winners of 2021 AEI Professional Project Award
April 19, 2021 —
American Society of Civil EngineersRESTON, Va. – The
American Society of Civil Engineers' (ASCE) Architectural Engineering Institute (AEI) is pleased to announce the 100 Mount Street project by Skidmore, Owings & Merrill and Billie Jean King Main Library, also by Skidmore, Owings & Merrill as Best Overall Projects winners for AEI's Professional Project Awards. The 100 Mount Street project won the award Best Overall Project Over $100 Million, while the Billie Jean King Main Library won the award for Best Overall Project Under $100 Million. Traditionally, AEI announces project winners during its in-person annual Awards Banquet; however, ASCE held the banquet virtually this year to follow CDC guidelines which suggest avoiding large gatherings.
The AEI Professional Project Award recognizes outstanding achievements in design and construction by honoring the art and science of an integrated approach to architectural engineering. The program focuses on high performance buildings including structural, mechanical, electrical and lighting systems as well as construction management and architectural engineering integration. Projects are evaluated on originality and innovative character, integration and collaboration, sustainability, energy efficiency and economics, effective use of technology and constructability and site logistics.
ABOUT THE AMERICAN SOCIETY OF CIVIL ENGINEERS
Founded in 1852, the American Society of Civil Engineers represents more than 150,000 civil engineers worldwide and is America's oldest national engineering society. ASCE works to raise awareness of the need to maintain and modernize the nation's infrastructure using sustainable and resilient practices, advocates for increasing and optimizing investment in infrastructure, and improve engineering knowledge and competency. For more information, visit www.asce.org and follow us on Twitter, @ASCETweets and @ASCEGovRel.
About ASCE's Architectural Engineering Institute
Established in 1998, AEI is the premier organization for architectural engineering, promoting an integrated, multi-disciplinary approach to planning, design, construction and operation of buildings, by encouraging innovation, collaboration and excellence in practice, education and research of architectural engineering. For more information, visit www.asce.org/aei.
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American Society of Civil Engineers
Read Her Lips: “No New Buildings”
November 18, 2011 —
CDJ STAFFMartha Johnson, the head of the General Services Administration, has said that her agency will not be building any new buildings in the near future. Among other duties, the GSA is responsible for the building, renovating, and leasing of federal office space. The White House had proposed $840 million in new construction, the Senate only $56 million. The House did not appropriate any money for the agency to use for new construction.
In addition to cutbacks on new buildings, Congress is suggesting only $280 million in repairs of existing government buildings. In order to cut back, the GSA has dropped plans to renovate their own offices in favor of renovations at the Department of Homeland Security and the Food and Drug Administration.
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Construction Defect Dispute Governed by Contract Disputes Act not yet Suited to being a "Suit"
June 25, 2019 —
William S. Bennett - Saxe Doernberger & Vita, P.C.The Southern District of California recently held that a series of demands for a general contractor to investigate and repair several construction defects at a U.S. Army facility did not constitute a “suit” within the meaning of the general contractor’s commercial general liability (“CGL”) policy.
In Harper Construction Co., Inc. v. Nat’l Union Fire Ins. Co. of Pittsburgh, Pa., the U.S. Government hired Harper Construction Company (“Harper”) to construct a U.S. Army training facility for the Patriot Missile System in Fort Sill, Oklahoma. No. 18-cv-00471-BAS-NLS (S.D. Cal. Mar. 28, 2019). During the project, Harper hired Harper Mechanical Contractors (“Harper Mechanical”), an independent company, as a subcontractor “to perform demolition, grading, and other work at the Project.”
After Harper completed the project, the government informed Harper of property damage at the project, “including, but not limited to, gypsum wallboard cracks and binding doors.” Harper attempted to repair the issues, but the problems continued. The issues were apparently the result of Harper Mechanical’s grading work. Subsequently, the government sent two letters requesting an investigation and asking Harper to “propose a plan to correct the issues.” As Harper undertook an investigation spanning multiple years, the government became increasingly frustrated with the delays. The government threatened to initiate “formal administrative recourse” and to demolish the project, forcing Harper to re-build from the ground up. It also sent Harper another letter requesting Harper submit a formal proposal to correct the issues.
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William S. Bennett, Saxe Doernberger & Vita, P.C.Mr. Bennett may be contacted at
wsb@sdvlaw.com
