Cambridge Massachusetts Building Expert Directory

Office REITs in U.S. Plan the Most Construction in Decade

July 09, 2014 — Brian Louis – Bloomberg
Office buildings in top U.S. markets are getting so expensive that landlords are choosing to build rather than buy, spurring the most development by real estate investment trusts in at least a decade. Office REITs, led by Boston Properties Inc. (BXP), Vornado Realty Trust (VNO) and Kilroy Realty Corp. (KRC), are planning to plow almost $11 billion into new projects, triple the amount just two years ago and the most in data going back to 2004, according to research firm Green Street Advisors Inc. Much of that is focused on the coasts, including San Francisco and New York, the areas with the most demand from both tenants and investors. Prices for office buildings in major markets have surged past peak levels, lifted in part by sovereign-wealth funds and pensions willing to accept lower yields than other investors because they are seeking safe investments. For REITs, which have to answer to shareholders seeking higher returns, building is often a better option than competing with institutional buyers. Read the court decision
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Reprinted courtesy of Brian Louis, Bloomberg
Mr. Louis may be contacted at blouis1@bloomberg.net

Safety, Compliance and Productivity on the Jobsite

November 18, 2019 — Matthew Ramage - Construction Executive
With any project, managing a large contingency of workers—all with varying levels of security clearance—can be a logistical headache. On the majority of construction sites, managers lack the resources to quickly and accurately identify all onsite personnel and ensure the right labor, equipment and materials are in the right place at the right time. Equally important, construction managers need to know if worker certifications are current and only allow access to authorized areas. Multiple factors compound the need for better transparency across the workforce, including:

Safety. Construction work is inherently dangerous. In 2017, nearly 1,000 fatalities occurred on construction sites. This means that the industry accounted for more than 20% of private sector fatalities across all industries.
Regulatory. The Federal government has a heightened awareness of jobsite dangers and is targeting companies that are not making every effort to maximize the workers’ safety.
Security. Sites in urban environments require round-the-clock protection from urban explorers, thieves and the general public.
Employee wage disputes. Lawsuits and disputes over wages and hourly employment are increasing.
Reduced productivity. It can be difficult to measure and track productivity in construction.

Reprinted courtesy of Matthew Ramage, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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No Coverage for Co-Restaurant Owners Who Are Not Named In Policy

August 24, 2017 — Tred R. Eyerly - Insurance Law Hawaii
The Federal District Court denied two plaintiffs' claims for breach of the policy and for bad faith because they were not insureds under the policy. Tu v. Dongbu Ins. Co., 2017 U.S. Dist. LEXIS 115200 (N.D. Calif. July 24, 2017). Dongbu, a Hawaii insurance company, issued a two-year policy to Plaintiff Ken Tu for his business. He was the only named insured under the policy. The waste system at Plaintiffs' restaurant failed, causing fumes to impact neighboring tenants and waste to contaminate the underlying soil. Plaintiffs were forced to close the restaurant. A claim was tendered for damage and repair, loss of business income, and other insured losses. Dongbu denied coverage. Read the court decision
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Reprinted courtesy of Tred R. Eyerly - Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Recording “Un-Neighborly” Documents

April 03, 2019 — Bob Henry - Snell & Wilmer Real Estate Litigation Blog
In September 2018, in Baumgartner v. Timmins, 245 Ariz. 334, 429 P.3d 567, the Arizona Court of Appeals provided further clarification on what constitutes an “encumbrance” on a property for purposes of Arizona’s statutory scheme prohibiting the recording of “false documents.” The statute, A.R.S. § 33-420, prohibits the recording of documents that a person knows to be forged, are groundless, or that contain material misstatements (or false claims). A person who claims an “interest in, or a lien or encumbrance against” real property who records such documents can be held liable for $5,000 or treble the actual damages caused by the recording (whichever is greater), A.R.S. § 33-420(A), and perhaps even be found guilty of a class 1 misdemeanor, A.R.S. § 33-420(E). At issue in Baumgartner were neighbors fighting about CC&Rs—a typical neighborhood fight. In 2015, some of the neighbors filed suit against the Timminses for violating the CC&Rs. The Timminses did not contest the lawsuit, resulting in a default judgment. In what the Court of Appeals characterized as a lawsuit filed by the Timminses “in apparent response to the [first] lawsuit and resulting default judgment,” the Timminses created, signed, and recorded affidavits contending that the Plaintiffs in the original lawsuit were themselves “in violation of several provisions of the CC&Rs.” The Plaintiffs then filed suit again against the Timminses, this time contending that the Timminses had violated A.R.S. § 33-420 by recording the affidavits because the affidavits, the Plaintiffs contended, created encumbrances on their properties. The Apache County Superior Court agreed, and issued a final judgment nullifying the recorded documents and awarding the Timminses damages, along with their attorneys’ fees and costs. Read the court decision
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Reprinted courtesy of Bob Henry, Snell & Wilmer
Mr. Henry may be contacted at bhenry@swlaw.com

Alabama Court Determines No Coverage For Insured's Faulty Workmanship

June 28, 2013 — Tred Eyerly
The Alabama Supreme Court found there was no coverage for the insured cabinet maker for claims arising from alleged faulty workmanship. Shane Traylor Cabinetmaker, L.L.C. v. Am. Resources Ins. Co., Inc., 2013 Ala. LEXIS 42 (May 3, 2013). The insured was sued by a homeowner for property damage caused by faulty workmanship. The insurer refused to defend, contending there was no "occurrence." The trial court granted summary judgment to the insurer. Read the court decision
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Reprinted courtesy of Tred Eyerly
Tred Eyerly can be contacted at te@hawaiilawyer.com

Contractor Sues Golden Gate Bridge District Over Suicide Net Project

December 18, 2022 — James Leggate - Engineering News-Record
The project to install a suicide-deterrence net and perform other upgrades on the Golden Gate Bridge in San Francisco now is expected to complete five years late and cost more than double the original contract price, its contractors say. The joint venture leading the project filed a breach-of-contract complaint against the agency that manages the bridge seeking $195 million in damages, while the agency counters that delays were caused by changes in the contractor’s ownership. Reprinted courtesy of James Leggate, Engineering News-Record Mr. Leggate may be contacted at leggatej@enr.com Read the full story... Read the court decision
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Thoughts on New Pay if Paid Legislation

March 28, 2022 — Christopher G. Hill - Construction Law Musings
Recently, the Virginia General Assembly closed its session having passed legislation essentially banning “pay if paid” clauses in construction contracts, both public and private. Assuming that Governor Youngkin signs the bill into law on or before his deadline of April 11, 2022, the following new requirement will be grafted into any Virginia construction contract:

Such contract shall require such higher-tier contractor to pay such lower-tier subcontractor within the earlier of (i) 45 days of the satisfactory completion of the portion of the work for which the subcontractor has invoiced or (ii) seven days after receipt of amounts paid by the owner to the general contractor or by the higher-tier contractor to the lower-tier contractor for work performed by a subcontractor pursuant to the terms of the contract.

This is the main operative language (the 45-day payment requirement is also applied to project owners), but the legislation also imposes certain other notice duties upon both the owner and any higher-tier contractor on a construction project. Interestingly, the legislation does not include a provision making it only effective for those contracts entered into after its effective date. More on that later. 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

Houston Home Sales Fall for the First Time in Six Months

March 19, 2015 — John Gittelsohn and Prashant Gopal - Bloomberg
(Bloomberg) -- Houston home sales fell in February for the first time in six months, a sign lower oil prices are spooking buyers. Sales of single-family houses dropped 5.8 percent from a year earlier to 4,521 homes, the Houston Association of Realtors reported Wednesday. Purchases fell among residences costing less than $150,000 because of tight supply, and among properties selling for more than $500,000 as wealthier buyers paused amid economic uncertainty, said James Gaines, research economist at Texas A&M University’s real estate center. “They don’t know what the real impact of falling oil prices is,” Gaines said in a telephone interview from College Station, Texas. “We’re living in the twilight of uncertainty.” Reprinted courtesy of John Gittelsohn, Bloomberg and Prashant Gopal, Bloomberg Mr. Gittelsohn may be contacted at johngitt@bloomberg.net Mr. Gopal may be contacted at pgopal2@bloomberg.net Read the court decision
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