Cambridge Massachusetts Building Expert Directory

Material Prices Climb…And Climb…Are You Considering A Material Escalation Provision?

May 31, 2021 — David Adelstein - Florida Construction Legal Updates
As you may know, material prices have been climbing. And they continue to climb based on the volatility of the material market. On top of that, there are lead times in getting material due to supply chain and other related concerns. The question is, how are you addressing these risks? These are risks that need to be addressed in your contract. As it relates to climbing material prices, one consideration is a material escalation provision. The objective of this provision is to address the volatility of the material market in economic climates, such as today’s climate, where the price of material continues to climb. Locking down a material price today will be different than locking down the same price months from today. This volatility and risk impacts pricing and budgets. Naturally, an owner and contractor would like to be in a position to lock down supplier prices as soon as possible—both to secure pricing and to account for items with long lead times or that recent data forecasts a long lead time due to supply chain concerns. However, this is not always possible or practical and can depend on numerous issues such as when the owner contracts with the contractor, when the owner issues the notice to proceed (and permits are issued), final construction documents and revisions to the construction documents, the type of material, whether there is staging or storage available for the materials, and the current status including climitazation of the project. Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

Housing Starts in U.S. Slumped More Than Forecast in March

April 20, 2016 — Sho Chandra – Bloomberg
New-home construction in the U.S. slumped more than projected in March, reflecting a broad-based retreat that showed the industry lost momentum heading into the busiest time of year. Residential starts decreased 8.8 percent to a 1.09 million annualized rate that was the lowest since October and weaker than any forecast of economists surveyed by Bloomberg, Commerce Department data showed Tuesday in Washington. Permits, a proxy for future construction, also dropped. Read the court decision
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Reprinted courtesy of Sho Chandra, Bloomberg

Appetite for Deconstruction

July 02, 2024 — Patrick Sisson - Bloomberg
The death of 206 College Avenue was slow and painstaking. Over several days in January 2022, dozens of bundled-up volunteers swarmed over the three-story property, a tired wooden boarding house built in the early 1900s in Ithaca, New York. Long used as rental apartments for Cornell University students, the 13-bedroom house was set to be demolished, along with several neighboring structures of the same vintage, to make room for a new multi-use complex. But while those buildings were quickly reduced to rubble by trackhoes, the house at 206 was deconstructed, piece by piece, so that its elements could be used again. The Catherine Commons Deconstruction Project, an effort by Cornell’s Circular Construction Lab, was a large-scale pilot designed to show how building waste can be kept out of landfills. As volunteers pulled nails out of fir, oak, and walnut boards and hauled lumber off to be sorted and redistributed, a team of eight workers with heavy machinery began meticulously sawing, slicing and removing 8-by-18-foot panels of the old building. These were trucked off to a warehouse, where they’d be taken apart and recycled. The labor that went into this process was substantially more than a typical demolition. But it avoided the societal penalties left behind at nearly every building and demo site across the US. The sheer volume of waste generated by knocking down, adding to or renovating buildings in the US is stunning: 600 million tons of construction demolition waste annually, according to the most recent EPA estimate from 2018. Roughly 75% gets ground up into aggregate and fill, and only a small share is recycled and reused, necessitating production of new material for the next project. For scale, municipal solid waste only accounts for 300 million tons every year. Read the court decision
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Reprinted courtesy of Patrick Sisson, Bloomberg

Shoring of Ceiling Does Not Constitute Collapse Under Policy's Definition

November 12, 2019 — Tred R. Eyerly - Insurance Law Hawaii
Despite the need to shore up the ceiling, the building was not in a state of collapse under the language of the policy. Ravinia Vouge Cleaners v. Travelers Cas. Ins. Co. of Am., 2019 U.S. Dist. LEXIS 123594 (N.D. Ill. July 24, 2019). Ravinia Cleaners held a property policy issued by Travelers for the building from which it operated its dry-cleaning business. On February 2, 2015, there was heavy snowfall. On February 4, Ravinia reported to Travelers a leak coming from the ceiling. A temporary "shoring " was placed on the ceiling. Ravinia reported to Travelers that there was damage to the roof on February 25, 2015. Travelers hired an engineer who observed a buckling truss and roof displacing downward. The inspector recommended that the building be vacated and not occupied until adequate shoring was in place. Travelers denied coverage because the building was in a state of imminent collapse which was caused by the weight of ice and snow, and defective construction of the truss system. The policy excluded damage relating to a "collapse of a building." Collapse was defined by the policy as "an abrupt falling down or caving in of a building or any part of a building," such that the building could not be occupied for its intended purpose. There were exceptions to the exclusion, however, if the cause of the collapse was: (1) weight of snow; or (2) use of defective materials or methods in construction if the collapse occurred after construction. The policy also excluded damage from a building being in a state of imminent collapse unless the damage was caused by: (1) weight of snow; or (2) use of defective materials or methods in construction if the collapse occurred during construction. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Court Affirms Duty to Defend Additional Insured Contractor

December 05, 2022 — Tred R. Eyerly - Insurance Law Hawaii
The appellate court affirmed the lower court's ruling that the insurer must defend. Main St. Am. Assurance Co. v. Merchants Mut. Ins. Co., 2022 N.Y. App. Div. LEXIS 5507 (N.Y. App. Div., Oct. 7, 2022). XL Construction Services, LLC was the contractor on a construction project. Timothy J. O'Connor was insured when performing drywall finishing as a self-employee subcontractor on the project. As part of a written indemnification and insurance agreement between the parties, O'Connor was obligated to obtain insurance for the benefit of XL Construction. O'Connor was insured by Merchants Mutual Insurance Company under a policy containing an additional insureds endorsement that provided coverage to a party where required by a written agreement, but "only with respect to liability for 'bodily injury' . . . caused in whole or in part, by . . . [O'Connor's] acts or omissions." The trial court found there was a duty to defend and entered judgment that Merchants Mutual was obligated to provided a defense to XL Construction. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Arizona Is the No. 1 Merit Shop Construction State, According to ABC’s 2020 Scorecard

February 15, 2021 — ABC - Construction Executive
Associated Builders and Contractors released its 2020 Merit Shop Scorecard, an annual ranking based on state policies and programs that encourage workforce development, strengthen career and technical education, grow careers in construction, and promote fair and open competition for taxpayer-funded construction projects. Arizona topped the rankings for the first time this year based on the state’s promotion of free enterprise and investment in tomorrow’s construction workforce, a top priority for ABC. Georgia followed Arizona in second place this year, up from fifth in 2019. Florida, a year-to-year high performer, remained in the top five after two years in the top rank in 2018 and 2019. “A foundational pillar of ABC is building the next generation of craft professionals, and the top states in this year’s rankings lead the country in workforce development policies,” said Ben Brubeck, ABC’s vice president of regulatory, labor and state affairs. “The merit shop contractor can flourish in free enterprise environments created in states like Arizona and Florida, which has positive ripple effects on a state’s overall economic growth.” Reprinted courtesy of ABC, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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2021 Real Estate Trends: New Year, New Reality—A Day of Reckoning for Borrowers and Tenants

February 08, 2021 — Robert J. Grados & Adam Weaver - Gravel2Gavel Construction & Real Estate Law Blog
On the one-year anniversary of China’s Wuhan lockdown, COVID-19 has become a part of everyday life and as we enter the new year, real estate borrowers and lenders alike will need to understand this new normal and face the reality that is fast approaching. In 2020, as the COVID-19 pandemic swept across the United States, many state and local governments instituted eviction moratoria and other protections for real estate tenants and borrowers. These protections created a window of opportunity for tenants and borrowers to negotiate reasonable solutions with their respective landlords and lenders regarding rent and debt payments amid the COVID-19 pandemic. This temporary period of restricted remedies also allowed courts to analyze legal arguments on how the COVID-19 pandemic impacts the real estate industry. However, with court rulings forthcoming and many of these eviction protections set to expire in 2021, landlords and tenants as well as borrowers and lenders will be forced to have discussions regarding the realities of their industry and their ability to pay their respective rents and mortgages amid the ongoing COVID-19 crisis. Throughout 2020, lenders and landlords were forced to accommodate workout negotiations as their ability to evict or foreclose upon defaulting tenants or borrowers was prohibited. Many commercial real estate parties were able to come to agreements on what borrowers and tenants were able to pay, given the impact of the COVID-19 pandemic on their respective industries. As the legal protections are rolled back and the leverage shifts back into the hands of the lenders and landlords, we will likely see a trend of aggressive landlords and lenders and an increased number of evictions and foreclosures, especially in industries that are most vulnerable to the COVID-19 pandemic: retail and hospitality. Reprinted courtesy of Robert J. Grados, Pillsbury and Adam Weaver, Pillsbury Mr. Grados may be contacted at robert.grados@pillsburylaw.com Mr. Weaver may be contacted at adam.weaver@pillsburylaw.com Read the court decision
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Predicting the Future of Texas’s Grid Is a Texas-Sized Challenge

June 27, 2022 — Nathaniel Bullard - Bloomberg
A little more than a year after a paralyzing winter freeze, the Texas power market just experienced the stress of extreme heat. Last week, power prices in Houston briefly jumped above $5,000 per megawatt-hour as high temperatures coincided with a number of generators being offline for maintenance. Yet a few days earlier, power prices in west Texas had been negative $883 dollars per megawatt-hour, because at the time wind generation was abundant and demand was low. “Dynamic” is one way to describe the price swings within the Electric Reliability Council of Texas (Ercot), the grid that provides the majority of the state’s power. “Jarring” or “terrifying” might be other words for it, particularly for those buying power in the spot market. Read the court decision
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Reprinted courtesy of Nathaniel Bullard, Bloomberg

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