Attention Contractors: U.S. Department of Labor Issues Guidance on Avoiding Discrimination When Using AI in Hiring
November 25, 2024 —
Matthew DeVries - Best Practices Construction LawI recently blogged about the use of
AI and ChatGBT in the construction industry. Today’s guest post by
Alexandra Shulman and
Leah Lively addresses the recent guidance by the USDOL on the issue of using AI when hiring in recruitment, which is applicable to those constructions who use AI in the recruitment process.
AI in hiring: About 80% of U.S. and almost all Fortune 500 companies use AI-powered hiring software. AI may be used to target online advertising for job opportunities and to match candidates to jobs on employment platforms (e.g., LinkedIn, Indeed). AI may also be used to reject or rank applicants using automated resume screening and chatbots based on knockout questions, keyword requirements, or specific qualifications or characteristics.
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Matthew DeVries, BuchalterMr. DeVries may be contacted at
mdevries@buchalter.com
U.K. Developer Pledges Building Safety in Wake of Grenfell
April 19, 2022 —
Ryan Hesketh - BloombergCrest Nicholson Plc intends to sign the building safety pledge set up in the aftermath of the Grenfell fire in 2017 to improve standards that may cost the U.K. developer as much as 120 million pounds ($157 million).
The company’s best estimate of further liability as a result of the pledge would be 80 million pounds to 120 million pounds, according to a statement Tuesday. Since 2019, Crest Nicholson has recorded 47.8 million pounds of net charges from obligations imposed after the fire at Grenfell Tower in London in which flammable cladding materials contributed to the deaths of 72 people.
The Secretary of State for the Department for Levelling Up, Housing and Communities announced in January the government’s intention to increase the legal obligation on developers to fix potentially dangerous buildings. Since then, Crest Nicholson has engaged in “intensive dialogue” with the government about the new guidelines, resulting in the decision to sign the pledge, the firm said in the statement.
The new restrictions will be enacted in law through proposed amendments to the Building Safety Bill that is currently passing through parliament. Crest Nicholson is currently considering whether any further regulatory approvals are required in respect of the proposed laws, according to the statement.
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Ryan Hesketh, Bloomberg
Construction Costs Absorb Two Big Hits This Quarter
July 14, 2016 —
Tim Grogan and Bruce Buckley – Engineering News-RecordTwo big events hit construction this quarter: Brexit—that is, the British vote to leave the European Union— and the U.S government’s decision to increase tariff duties on Chinese cold-rolled flat steel by 522%. However, neither will have much of an impact on domestic construction costs, according to ENR’s sources.
Reprinted courtesy of
Tim Grogan, ENR and
Bruce Buckley, ENR
Mr. Grogan may be contacted at grogant@enr.com
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Admissibility of Expert Opinions in Insurance Bad Faith Trials
November 04, 2019 —
David M. McLain – Colorado Construction LitigationIn 2010, Hansen Construction was sued for construction defects and was defended by three separate insurance carriers pursuant to various primary CGL insurance policies.[i] One of Hansen’s primary carriers, Maxum Indemnity Company, issued two primary policies, one from 2006-2007 and one from 2007-2008. Everest National Insurance Company issued a single excess liability policy for the 2007-2008 policy year, and which was to drop down and provide additional coverage should the 2007-2008 Maxum policy become exhausted. In November 2010, Maxum denied coverage under its 2007-2008 primarily policy but agreed to defend under the 2006-2007 primarily policy. When Maxum denied coverage under its 2007-2008 primary policy, Everest National Insurance denied under its excess liability policy.
In 2016, pursuant to a settlement agreement between Hansen Construction and Maxum, Maxum retroactively reallocated funds it owed to Hansen Construction from the 2006-2007 Maxum primary policy to the 2007-2008 Maxum primary policy, which became exhausted by the payment. Thereafter, Hansen Construction demanded coverage from Everest National, which continued to deny the claim. Hansen Construction then sued Everest National for, among other things, bad faith breach of contract.
In the bad faith action, both parties retained experts to testify at trial regarding insurance industry standards of care and whether Everest National’s conduct in handling Hansen Construction’s claim was reasonable. Both parties sought to strike the other’s expert testimony as improper and inadmissible under Federal Rule of Evidence 702.
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David McLain, Higgins, Hopkins, McLain & RoswellMr. McLain may be contacted at
mclain@hhmrlaw.com
Environmental Justice Update: The Justice40 Initiative
April 29, 2024 —
Anthony B. Cavender - Gravel2Gavel Construction & Real Estate Law BlogSoon after taking office, President Biden issued Executive Order 14008, entitled, “Tackling the Climate Crisis at Home and Abroad.” This is an unusually long and complex executive order and includes many provisions relating to environmental justice and the plight of “disadvantaged communities” that are overwhelmed by many environmental threats. Section 223 of the Order describes the President’s “Justice40 Initiative,” which is designed to ensure that 40% of Federal benefits flow to disadvantaged communities through an “all of government approach.” There is a recognition that some disadvantaged communities lack the personnel and resources to take advantage of this Initiative, so technical training funds will be made available. The Order establishes new offices throughout the Federal bureaucracy to handle and expedite environmental justice matters.
The Office of Management and Budget (OMB) and the Council on Environmental Quality (CEQ) play a large role in implementing the Initiative by issuing appropriate guidance and assisting the Federal agencies to locate, among the thousands of programs they supervise, suitable programs that will assist disadvantaged communities. At last count, 518 Federal programs administered by 19 distinct Federal agencies could be a good source for the resources needed by disadvantaged communities to cope with air and water pollution and solid waste issues. Direct grants will be made in many cases, and other programs require the community to apply for the funds promised by the Executive Order. In addition, the Order requires participating Federal agencies to assess the value and effectiveness of the benefits bestowed. OMB and the CEQ have issued guidance documents and conducted many meetings with key personnel and members of the disadvantaged communities.
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Anthony B. Cavender, PillsburyMr. Cavender may be contacted at
anthony.cavender@pillsburylaw.com
Hovnanian Reports “A Year of Solid Profitability”
December 30, 2013 —
CDJ STAFFHovnanian Enterprises has released its results for its fourth quarter and the twelve months ending in October 2013, which are described by Ara K. Havnanian, the company’s Chairman of the Board, President and Chief Executive Officer as “a year of solid profitability,” which he attributes to “revenue growth, gross margin improvement and operating efficiencies,” as reported by The Wall Street Journal.
The company’s total revenues for 2013 were $1.85 billion, a 24.2% increase over the 2012 totals. Home sales totaled 5,930, a 10.7% increase over the prior year. Mr. Hovnanian expects “increased demand for new homes,” and he believes that “our industry is still in the early stages of a housing recovery.”
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Invest In America Act Offers 494 Billion In Funding to U.S. Infrastructure and Millions of New Jobs
July 20, 2020 —
Stefanie A. Salomon - Peckar & AbramsonThe Investing in a New Vision for the Environment and Surface Transportation in America (INVEST in America) Act was approved by the House Transportation and Infrastructure Committee on June 18, 2020 and is making its way up to Congress. The bill will create millions of jobs and provide substantial investment in the nation’s deteriorating highways, bridges and public transit systems. The bill also endeavors to leave behind a smaller carbon footprint, a major improvement for the nation’s biggest source of carbon pollution.
Investing in a New Vision for the Environment and Surface Transportation in America Act
According to the American Society of Civil Engineers, the current condition of the nation’s infrastructure earns a grade of D+, and there exists an estimated $2 trillion funding gap to bring it into a state of good repair by 2025. While Americans have benefited from a century of infrastructure building, neglect has befallen our once greatest achievements – the roadways and arteries that led to the explosive growth of our nation. In the 1930s, 4.2 percent of the country’s GDP was spent on infrastructure investment. Unfortunately, by 2016 that number fell to 1.5 percent resulting in the substandard conditions that now confront us. Stated more bluntly, our nation’s infrastructure is crumbling and immediate investment in required to bring it up to par. The INVEST in America Act is our “immediate” opportunity to start replacing the outdated systems of the past with smarter, safer, and more resilient infrastructure.
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Stefanie A. Salomon, Peckar & AbramsonMs. Salomon may be contacted at
ssalomon@pecklaw.com
Construction Contracts and The Uniform Commercial Code: When Does it Apply and Understanding the Pre-Dominant Factor Test
November 01, 2022 —
Keith Sparks - Ahlers Cressman & Sleight PLLCThe Uniform Commercial Code (“UCC”) replaces the common law in many commercial transactions, providing provisions and a framework governing the conduct of business. The UCC attempts to develop uniformity among state laws on commercial matters as many of these contracts involve parties from different states. The UCC has been adopted in almost all states, including Washington, and substantially mirror each other throughout the country.
The question that is most commonly presented, in the Construction law context, is when does the UCC apply and control?
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Keith Sparks, Ahlers Cressman & Sleight PLLCMr. Sparks may be contacted at
keith.sparks@acslawyers.com