Is Your Construction Business Feeling the Effects of the Final DBA Rule?
June 04, 2024 —
Nathaniel Peniston - Construction ExecutiveThe Biden administration’s final rule “Updating the Davis-Bacon and Related Acts Regulations” took effect on Oct. 23, 2023. In “the first comprehensive regulatory review in nearly 40 years,” the Department of Labor has returned to the definition of “prevailing wage” it used from 1935 to 1983—before Microsoft released the first Windows operating system.
Construction industry leaders must be aware that this is the most comprehensive review and overhaul of the act in 40 years; with it, the DOL has attempted to modernize its approach to wage creation and fringe benefit allocation. There are more than 50 procedural changes to the act, which means it is very important for contractors to be aware of wage classifications when bidding, performing work on Davis-Bacon Act projects and using applicable fringe dollars for bona fide benefits.
UNDERSTANDING THE CHANGES
Some of the critical adjustments included in the final rule that contractors should be aware of include:
Wage determination changes during a project: Historically, contractors could rely on the wage determinations used to win a project for the life of the project. However, the final rule now requires the contractor to use current wage determinations when a contract is changed or extended. The DOL “proposed this change because—like a new contract—the exercise of an option requires the incorporation of the most current wage determination.”
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Nathaniel Peniston, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Mr. Peniston may be contacted at
npeniston@fbg.com
A Changing Climate for State Policy-Making Regarding Climate Change
February 18, 2020 —
Sheila McCafferty Harvey - Gravel2Gavel Construction & Real Estate Law BlogIssued by 13 federal agencies, the 2018 Fourth National Climate Assessment presented a stark warning on the consequences of climate change for the United States. The report predicts that if significant steps are not taken to rein in global warming, the damage will reduce the U.S. economy by as much as 10 percent by the end of the century. The report, which was mandated by Congress and made public by the White House, is notable not only for the precision of its calculations and bluntness of its conclusions—the 1,656-page assessment lays out the devastating effects of a changing climate on the economy—but also in how it conflicts with President Donald Trump’s environmental deregulation plan. U.S. policy efforts at the state and local levels are ramping up to address this complex topic. These include:
Targeting Net-Zero Emissions. Hailed as the most aggressive climate law in the nation, New York State’s Climate Leadership and Community Protection Act are targeting 100 percent carbon-free electricity by 2040 and economy-wide, net-zero carbon emissions by 2050. California set a statewide target to reach carbon neutrality by 2045.
Reducing and Renewing. New Mexico established a statewide goal of reducing greenhouse gas emissions by 45 percent below 2005 levels by 2030. Nevada passed a bill to increase the amount of electricity it gets from renewable resources to 50 percent by 2030.
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Sheila McCafferty Harvey, PillsburyMs. Harvey may be contacted at
sheila.harvey@pillsburylaw.com
The Flood Insurance Reform Act May be Extended to 2016
April 07, 2011 —
Beverley BevenFlorez CDJ STAFFThe Flood Insurance Reform Act of 2011 (H. R. 1309) has been referred to the House Committee on Financial Services—the first step in the legislative process. The bill, if passed, would extend the program to September 30, 2016. It is currently slated to be terminated September 30 of this year. The bill also contains changes to premium rates, mapping protocols, and privatization initiatives.
H. R. 1309 has garnered the support of several Insurance organizations. Leigh Ann Pusey, president and CEO of the American Insurance Association (AIA), sent a letter of support to the Chair and Ranking member of the House Financial Services Subcommittee. “AIA has advocated for a long term reauthorization of the NFIP to protect consumers and help increase stability for real estate transactions and policyholders,” Pusey said. “AIA believes the five-year extension contained in HR 1309, will provide certainty in the flood program thereby increasing consumer and business confidence in the NFIP.”
Jimi Grande, senior vice president of federal and political affairs for the National Association of Mutual Insurance Companies (NAMIC) spoke out in support of the bill. “For the NFIP to survive, the prices for flood insurance must reflect the actual costs of flood risk for a property,” Grande said. “HR 1309 will provide that transparency. In addition, the Technical Mapping Advisory Council will give communities a voice in the flood mapping process, fostering a better understanding of what flood maps represent and how they are made.”
Read H. R. 1309...
Read the American Insurance Association statement...
Read the NAMIC Press Release...
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Virtual Reality for Construction
July 14, 2016 —
Aarni Heiskanen – AEC BusinessParadoxically, Virtual Reality (VR) technologies are still lagging behind the visions that people have for their use. However, VR has already demonstrated its capacity to change the ways we design, make decisions about, and produce built environments.
Is VR finally feasible?
Two AEC Hackathons and meetings with certain startups have made me think that Virtual Reality (VR) might finally break through in construction. There are two reasons for my belief. Firstly, 3D and building information modeling (BIM) are widely adopted in the industry. The idea of virtual buildings and environments is nothing new and has become very natural. Secondly, there’s a growing interest in Gaming and Entertainment VR investments. This will push the technology forward and make it affordable to consumers.
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aarni@aepartners.fi
Don’t Get Caught Holding the Bag: Hold the State Liable When General Contractor Fails to Pay on a Public Project
June 21, 2017 —
Sean Minahan - Construction Contractor AdvisorAccording to a quick Google search the term “holding the bag” comes from the mid eighteenth century and means be left with the onus of what was originally another’s responsibility. Nobody wants to be left holding the bag. But that is the situation our client (subcontractor) found themselves in when upon completion of a public project the general contractor went out of business before paying the remaining amount due and owing to our client.
Under Nebraska law, liens are not allowed against public projects. Instead the subcontractor is to make a claim on the payment and performance bond secured by the general contractor at the start of the project. In our case, the general contractor never secured a bond on which to make a claim; consequently leaving our client holding the bag.
Fortunately, we were able to hand the bag back to the State and obtain full payment for the services and materials provided.
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Sean Minahan, Lamson, Dugan and Murray, LLPMr. Minahan may be contacted at
sminahan@ldmlaw.com
Instant Hotel Tower, But Is It Safe?
March 28, 2012 —
CDJ STAFFBroad Sustainable Building has leapfrogged in China’s construction boom by building a thirty-story hotel in just fifteen days in the city of Changsha. According to an article in the Los Angeles Times, most of the building was prefabricated, but most prefabricated buildings require a longer time for assembly. Broad claimed that it cut no corners on safety. However, Zhang Li, a Beijing architect, told the Times that “incredible speed also means incredible risk.”
At the completion date, the interior was still partially finished. Some rooms were furnished, while others weren’t quite so ready. The hotel will be used to house clients who are visiting Broad and some of its employees.
Broad called their process “the most profound innovation in human history” and predicted that soon a third of new buildings worldwide would be constructed this way. The company anticipates using the same process to build taller buildings, with hopes of eventually constructing a 150-story building.
China is currently undergoing a building boom which Zhang attributed to a desire to catch up to the developed world. As a result of this boom, he noted that building inspections are often skipped in China to speed up building.
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Federal Magistrate Judge Recommends Rescission of Policies
February 12, 2024 —
Craig Rokuson - Traub LiebermanIn the recent case of Union Mut. Fire Ins. Co. v. 142 Driggs LLC, 2023 U.S. Dist. LEXIS 220393, Magistrate Judge Lois Bloom of the United States District Court for the Eastern District of New York recommended granting the insurer's default judgment and holding that of three policies issued to 142 Driggs LLC ("Driggs") be rescinded ab initio.
Driggs had represented on its insurance applications that it did not provide parking to anyone other than itself, tenants, and its guests at the subject insured premises. However, Union Mutual learned that Driggs had been renting out three garages to non-tenants. Second, Driggs represented that the mercantile square footage was around 1,000 square feet, when in actuality, it was larger than allowed under the policies.
Union Mutual provided underwriting guidelines in connection with its default motion, which state that "parking provided for anyone other than the insured, tenants and their guests," presents an "unacceptable risk." The guidelines also state that answering yes to any "preliminary application questions (which presumably included those regarding mercantile square footage and parking) is an "unacceptable risk." The court held that these guidelines supported a finding that Driggs made material misrepresentation and that Union Mutual relied on these misrepresentations in issuing the policies. The court, as such, recommended that the policies at issue be rescinded from inception.
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Craig Rokuson, Traub LiebermanMr. Rokuson may be contacted at
crokuson@tlsslaw.com
How Berlin’s Futuristic Airport Became a $6 Billion Embarrassment
October 28, 2015 —
Joshua Hammer – BloombergThe inspectors could hardly believe what they were seeing. Summoned from their headquarters near Munich, the team of logistics, safety, and aviation experts had arrived at newly constructed Berlin Brandenburg International Willy Brandt Airport in the fall of 2011 to begin a lengthy series of checks and approvals for the €600 million ($656 million) terminal on the outskirts of the German capital. Expected to open the following June, the airport, billed as Europe’s “most modern,” was intended to handle 27 million passengers a year and crown Berlin as the continent’s 21st century crossroads.
The team of inspectors, known as ORAT, for Operations Readiness and Airport Transfer, brought in a dummy plane and volunteers as test passengers. They examined everything from baggage carousels and security gates to the fire protection system. The last was an especially high priority: None could forget the 1996 fire that roared through Düsseldorf Airport’s passenger terminal, killing 17.
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Joshua Hammer, Bloomberg