New Research Shows Engineering Firms' Impact on Economy, Continued Optimism on Business Climate
October 28, 2024 —
The ACEC Research InstituteWASHINGTON – The ACEC Research Institute – the leading source of original research for the business of engineering – released the results of two important studies on the current and future state of the engineering industry, and its role in the overall U.S. economy.
The reports, the
2024 Economic Assessment of the Engineering & Design Services Industry and the
Engineering Business Sentiment Report for 2024 Q4, both point to continued optimism for the industry and its firms, though somewhat softened compared to previous quarters.
"This research shows the outsized impact the engineering industry has on the American economy," said ACEC Research Institute Chair Mike Carragher. "As the engineering industry's contributions grow year over year, the Institute's research helps firm executives position their businesses for a successful future."
All told, the industry added $656 billion to the U.S. GDP in 2023, supported well over five million jobs directly or indirectly, and contributed $92 billion to federal tax coffers, with an additional $44 billion in state and local taxes.
Overall, the report found that the engineering and design services industry has continued to build on its year-over-year post-COVID gains, growing 5.5% in 2023 to $436 billion, with much of that growth driven by infrastructure projects. Non-residential and non-building construction, flush with government funding through the IIJA and Inflation Reduction Act, remained on an upward trajectory.
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Ambitious Building Plans in Boston
November 18, 2011 —
CDJ STAFFAlthough most are unlikely to change the Boston skyline, there are several large projects on the drawing boards. The site BostInnovation covered ten of them in a recent post. Downtown Boston will be the site of several of these large projects, including three towers to be added to the Christian Science Plaza, a 404-unit residential tower in the Theater District, and perhaps the largest of these projects, a 47-story tower to be built over Copley Plaza, which will tower over the adjacent buildings. None of the planned buildings will challenge the Hancock Tower’s 60 stories.
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Serving the 558 Notice of Construction Defect Letter in Light of the Statute of Repose
November 06, 2018 —
David Adelstein - Florida Construction Legal UpdatesFlorida Statutes Chapter 558 requires a Notice of Construction Defect letter (“558 Notice”) to be served before a construction defect lawsuit is commenced. This is a statutory requirement unless contractually waived for a completed project when latent defects or post-completion construction or design defects are pursued.
A recent Florida case held that this statutory requirement is NOT intended to bar a lawsuit based on Florida’s ten-year statute of repose for construction defects IF the 558 Notice is timely served within the statute of repose period. After the expiration of the statute of repose period, a construction defect lawsuit can no longer be commenced.
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David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
Federal Court Dismisses Coverage Action in Favor of Pending State Proceeding
October 12, 2020 —
Tred R. Eyerly - Insurance Law HawaiiThe federal district court declined to exercise jurisdiction over the coverage action that was parallel to a case pending in state court involving the same parties and same issues pending. Navigators Ins, Co. v. Chriso's Tree Trimming, 2020 U.S. Dist. LEXIS 129711 (E.D. Calif. July 22, 2020).
Pacific Gas & Electric (PG&E) entered into a tree, brush and wood removal contract with Mount F Enterprises, Inc. Mountain F subsequently entered into a subcontractor agreement with Chriso Tree Trimming, Inc. for work to be performed for PG&E. In August 2017, Chriso attempted to remove a tree, but the tree accidentally fell in the wrong direction and knocked down nearby powerlines. The powerlines came into contact with surrounding brush and started the "Railroad Fire." The fire was eventually contained on September 15, 2017, after 12, 407 acres were burned and 7 structures and 7 homes were destroyed.
Five subrogation lawsuits were filed in state court against Chriso and Mountain F by various insurance companies that paid for the damage caused by the Railroad Fire. A policy limits demand to settle all claims against Chriso and Mountain F was made. Navigators insured Chriso for $9 million through a Commercial Excess Liability Policy, payable once all other insurance was exhausted. The policy included a "Professional Services Endorsement" (PSE Exclusion) that excluded coverage of "professional services." "Professional services" was defined through a list of 12 non-exclusive professions and services that generally referred to activities involving specialized knowledge or skill that was predominantly mental or intellectual in nature rather than physical or manual.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
A Landlord’s Guide to the Center for Disease Control’s Eviction Moratorium
October 05, 2020 —
Colton Addy - Snell & Wilmer Real Estate Litigation BlogThe Center for Disease Control and Prevention (the “CDC”) and the Department of Health and Human Services (the “HHS”) has issued an order to temporarily halt a landlord’s right to evict certain residential tenants to prevent the further spread of COVID-19 (the “CDC Order”).
The CDC Order is effective through December 31, 2020.
Applicability of the CDC Order. The CDC Order does not apply in jurisdictions that have a moratorium on residential evictions in effect that provides the same or greater level of protection than the CDC Order, and the CDC Order permits local jurisdictions to continue to pass more restrictive eviction moratoriums. To invoke the protection provided by the CDC Order, a landlord’s tenants must deliver an executed declaration (a “CDC Declaration”) form to the landlord that includes the following statements: (i) the tenant has used best efforts to obtain all available government assistance for rent or housing; (ii) expects to earn no more than $99,000 in annual income in 2020 (or $198,000 if filing joint tax returns), was not required to report income in 2019, or received an Economic Impact Payment under the CARES Act; (iii) the tenant is unable to pay the full rent due to substantial loss of household income, loss of work or wages, or extraordinary out-of-pocket medical expenses; (iv) the tenant is using best efforts to make partial payments that are as close to the full rental payments as the tenant’s circumstances permit; and (v) the eviction would likely render the individual homeless or force the individual to move into and live in close quarters or shared living space.
Effect of the CDC Order The CDC Order prevents landlords from evicting tenants for the non-payment of rent or similar housing-related payments that have sent their landlord a CDC Declaration. The CDC Order does not relieve tenants of the obligation to pay rent or other charges owed under their leases and does not preclude a landlord from charging late fees, penalties, or interest for missed payments.
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Colton Addy, Snell & WilmerMr. Addy may be contacted at
caddy@swlaw.com
Oregon Courthouse Reopening after Four Years Repairing Defects
April 01, 2014 —
Beverley BevenFlorez-CDJ STAFFThe Courthouse Square in Marion County, Oregon is due to reopen after four years and nearly $23 million of repair costs to fix structural defects, according to the Statesman Journal. The square includes a courthouse building and bus mall, and is jointly owned by the county and transit district.
Two years after the Courthouse Square had been built, cracks were observed “in the building’s walls” and “paving stones on the bus mall shifted and settled.” A construction defect suit was filed in 2006.
However, the situation worsened in July of 2010 when “engineers determined that the entire complex was dangerous,” according to the Statesman Journal. “Building safety officials gave Courthouse Square’s occupants 60 days to move out, forcing county and transit district operations into temporary leased space.”
Now that the structural repairs have been completed, Dave Clark, project manager with Structural Preservation Systems LLC (the company awarded the repair contract), stated that the building’s structure is now stronger than most buildings. “If there’s an earthquake, come to this building,” Clark said.
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Corps Spells Out Billions in Infrastructure Act Allocations
February 14, 2022 —
Tom Ichniowski - Engineering News-RecordThe Army Corps of Engineers has
released a detailed project-by-project breakdown outlining how it plans to spend the 2022 portion of the $17.1-billion infusion provided for its civil works program in the Infrastructure Investment and Jobs Act (IIJA).
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Tom Ichniowski, Engineering News-Record
Mr. Ichniowski may be contacted at ichniowskit@enr.com
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The Risks and Rewards of Sustainable Building Design
July 25, 2021 —
Caroline A. Harcourt & Adam Weaver - Gravel2GavelThe shift towards a “greener” environment has resulted in cities and states implementing electrification mandates, which will have a major impact on both current and future building design. Currently, most commercial and residential end users are already all-electric. However, there are some exceptions, such as space and water heating, that use a significant amount of energy. Several states, including California and New York, have cities that have introduced legislation requiring new construction to be all-electric. This means, for example, using electricity for heating rather than fossil fuels such as natural gas. Mandate or not, building owners and developers should consider the risks and rewards of an all-electric design.
General Rewards
- Reaching Climate Goals: As part of the Clean Energy Plan, as described in a previous post, President Biden has created a goal for the United States of achieving a carbon pollution-free American utility sector by 2035. Because residential and commercial building account for 40 percent of energy consumption in the United States, all-electric building designs will help governments and businesses reach the ambitious climate goals that have been set for the coming years.
Reprinted courtesy of
Caroline A. Harcourt, Pillsbury and
Adam Weaver, Pillsbury
Ms. Harcourt may be contacted at caroline.harcourt@pillsburylaw.com
Mr. Weaver may be contacted at adam.weaver@pillsburylaw.com
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