Seattle Washington Building Expert Directory

French Government Fines National Architects' Group $1.6M Over Fee-Fixing

December 09, 2019 — Debra K. Rubin - Engineering News-Record
The French government’s anti-trust agency has fined the national architects’ registration group and four regional councils $1.64 million (€1.5 million) for price-fixing design fees on public works. Reprinted courtesy of Debra K. Rubin, Engineering News-Record Ms. Rubin may be contacted at rubind@enr.com Read the full story... Read the court decision
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An Interesting Look at Mechanic’s Lien Priority and Necessary Parties

May 13, 2019 — Christopher G. Hill - Construction Law Musings
As regular readers of Construction Law Musings are well aware, I like to discuss mechanic’s liens. Whether it is their picky nature, the way court’s treat them or the soon to take effect changes in the form, mechanic’s liens are a topic near and dear to my heart as a construction attorney. This past month the Fairfax Circuit Court took on the intersection of mechanic’s lien priority under Virginia Code section 43-21 (the lien priority statute) and what constitute necessary parties that must be named in any enforcement suit. In Marines Plumbing, LLC v. Durbin, et al., the Court discussed an all too typical scenario. Marines Plumbing performed repair work on the defendants’ property and the defendants did not pay for the work. Marines Plumbing recorded a memorandum of lien and subsequently sued to enforce that lien. In filing its suit, Marines Plumbing failed to name the trustees and lender on a deed of trust securing the loan on the property. Needless to say, the Defendants moved to dismiss the action for failure to name necessary parties (lender and trustees). Read the court decision
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Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

The Texas Supreme Court Limits the Use of the Economic Loss Rule

September 03, 2014 — Beverley BevenFlorez-CDJ STAFF
According to David Fisk of Kane Russell Coleman & Logan PC, in an article published by JD Supra Business Advisor, “[T]he Texas Supreme Court issued a per curium opinion limiting the application of the economic loss doctrine or rule, as it is referred to in Texas, in the context of residential construction defect claims.” In Chapman Custom Homes, Inc. v Dallas Plumbing Co., the court “ruled that a plumbing subcontractor assumes an implied duty not to flood or otherwise damage a home while performing its contract with a builder” and that “the economic loss rule does not apply in this context.” Read the court decision
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China Construction Bank Sued in US Over Reinsurance Fraud Losses

June 21, 2024 — Robert Burnson - Bloomberg
China Construction Bank Corp., the nation’s third-largest commercial lender, was accused in a US lawsuit of enabling a massive fraud in the reinsurance industry that left companies with “monumental losses” and sinking stock prices. The bank allowed employees to conspire with Israeli insurance startup Vesttoo Ltd. to sell reinsurance policies that weren’t real, according to a complaint filed late Thursday by the Porch Group in Manhattan federal court. Vesttoo filed for Chapter 11 bankruptcy in August after it was accused of using some $2 billion of fraudulent letters of credit. The Porch Group said that its unit Homeowners of America Insurance Co. lost tens of millions of dollars when its purported $300 million letter of credit proved worthless. “Not only did HOA incur colossal losses, but news of its exposure to the fraud perpetrated by Vesttoo and CCB shocked the market and imposed severe losses on Porch Group’s shareholders as its stock price plummeted,” according to the suit. Read the court decision
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Reprinted courtesy of Robert Burnson, Bloomberg

Is Modular Construction Destined to Fail?

March 11, 2024 — Aarni Heiskanen - AEC Business
The construction sector is a harsh environment for innovation. I’ve been following the story of one Finnish innovative contractor, Lehto Group, over the years with enthusiasm. I was saddened to hear that the group’s three significant subsidiaries joined the ranks of many Finnish contractors who have filed for bankruptcy over the last six months. Lehto developed industrialized building concepts and had its own production facilities. The company had a promising start but eventually ran into problems. Was the industrial approach a mistake, or were other factors contributing to the firm’s fall? Three Contributing Factors Lehto Group’s collapse was not a surprise to its competitors, who had observed warning signs years prior. The company’s order book plummeted in 2024 despite still employing around 500 workers. Rakennuslehti, the leading construction magazine in Finland, asked three experienced industry professionals to give their views on Lehto’s failure. The interviewees spoke anonymously due to the small size of the Finnish market and the sensitive nature of commenting on a competitor’s matters. Read the court decision
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Reprinted courtesy of Aarni Heiskanen, AEC Business
Mr. Heiskanen may be contacted at aec-business@aepartners.fi

Exploring Architects’ Perspectives on AI: A Survey of Fears and Hopes

March 19, 2024 — Aarni Heiskanen - AEC Business
RIBA, the Royal Institute of British Architects, ran a survey in late 2023 with 500 respondents on the impact of AI on their profession. The study also explored the near-term outlook for AI adoption and use. The results reveal divided opinions among architects. A popular view is that AI threatens the profession, even though a larger portion sees tools like AI as necessary in the coming years. The Present Use of AI The respondents were asked, for the projects they are currently working on, how often their practice used AI in any way. In all, 41% said that they use AI to some degree. Of those, 43% agree that AI has improved efficiency in the architectural design processes, while 24% disagree. Read the court decision
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Reprinted courtesy of Aarni Heiskanen, AEC Business
Mr. Heiskanen may be contacted at aec-business@aepartners.fi

Henderson Land to Spend $839 Million on Hong Kong Retail Complex

September 03, 2014 — Michelle Yun – Bloomberg
Henderson Land Development Co. (12), controlled by billionaire Lee Shau-kee, will spend HK$6.5 billion ($839 million) on a shopping center in a prime retail area of Hong Kong after beating 17 rivals to win a land tender. The complex in the Tsim Sha Tsui district will be completed by 2019 and will house retail, services and dining, as well as a public 345-space parking garage, spokeswoman Bonnie Ngan said yesterday, citing Vice Chairman Martin Lee. Henderson won the site for HK$4.69 billion as the highest bidder, the government said in a statement yesterday. Henderson beat other developers, including Cheung Kong Holdings Ltd. (1), Sino Land Co. (83), and Sun Hung Kai Properties Ltd., to win the site in the district host to global luxury brands and hotels such as the Peninsula. The price was more than the HK$3.4 billion median estimate of three surveyors compiled by Bloomberg News. Read the court decision
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Reprinted courtesy of Michelle Yun, Bloomberg
Ms. Yun may be contacted at myun11@bloomberg.net

2023 Executive Insights From Leaders in Construction Law

June 12, 2023 — Construction Executive
If a major project is interrupted or canceled, are there any laws that provide protection for unpaid contractors that have performed work? Angela Richie Partner, Co-Chair, Construction Practice Group Gordon Rees Scully Mansukhani With the current volatility and uncertainty in the economy, project interruptions and cancellations are on the rise; hence, you need to take steps now to make sure you have a method to get paid for the work you have performed. For private projects, make sure you have followed the pre-lien notification requirements for the state in which the project is located before you start work, if they are required. Then, be sure to follow the lien notice and lien filing requirements for the state. Each state is different, so you want to be ready with the appropriate documentation in advance of the project interruption or cancellation. Reprinted courtesy of Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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