MTA’S New Debarment Powers Pose an Existential Risk
July 15, 2019 —
Steven M. Charney, Gregory H. Chertoff & Paul Monte - Peckar & Abramson, P.C.The normal project and contractual risks faced by contractors, consultants and suppliers to the Metropolitan Transportation Authority are considerable. A new law and regulations mandating that the MTA debar contractors, consultants and suppliers for unexcused schedule and cost overruns creates a new and unfair existential risk.
The new law, Public Authorities Law Section 1279-h, slipped into the New York State budget bill and passed without public comment, was enacted on April 12, 2019. Implementing regulations were issued on June 5, 2019, and mandate that the MTA debar contractors (defined to include consultants, vendors and suppliers) if they: (1) fail to achieve substantial completion of their contractual obligations within 10% of the adjusted contract time; or (2) present claims for additional compensation that are denied in an amount that exceeds the total adjusted contract amount by 10% or more.[1]
To say that your business and your livelihood are at risk is not an overstatement. The MTA umbrella includes the New York City Transit Authority, MTA Capital Construction, Bridges & Tunnels, Long Island Railroad and Metro North, among others. A debarment by one of these authorities will lead to a debarment by all of them, and then to a debarment by all New York State agencies and authorities,[2] and possibly debarment across state lines. Public and major private owners, as part of their RFP and procurement processes, routinely inquire regarding a bidding contractor’s debarment history.
The risk is to new contracts and, because the MTA has decided to give retroactive effect to the law and regulations, to contracts that are already ongoing (even though these risks could not have been considered, priced or agreed to by contractors or their sureties).
Reprinted courtesy of Peckar & Abramson, P.C. attorneys
Steven M. Charney,
Gregory H. Chertoff and
Paul Monte
Mr. Charney may be contacted at scharney@pecklaw.com
Mr. Chertoff may be contacted at gchertoff@pecklaw.com
Mr. Monte may be contacted at pmonte@pecklaw.com
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Newmeyer Dillion Announces Jason Moberly Caruso As Its Newest Partner
February 01, 2021 —
Newmeyer DillionProminent business and real estate law firm Newmeyer Dillion is pleased to announce that Newport Beach attorney
Jason Moberly Caruso has been elected to partnership.
"Jason has continually shown himself to be a gifted attorney, both in his ability to expand the firm's offerings in land use, environmental law, and the firm's growing appellate practice, as well as in his exceptional approach to client service," said the firm's Managing Partner, Paul Tetzloff. "His positive presence is felt wherever he goes, and we're honored to have him join the firm's partnership."
Caruso focuses his practice on various aspects of "contaminated sites" environmental legal work, complex litigation, and appellate matters. He counsels and represents current and former facility owners and operators in state and federal proceedings, administrative actions, cost recovery cases, and non-litigation site remediation situations. The litigated matters frequently involve the federal Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) and its parallel California Hazardous Substances Account Act (HSSA). When clients must go to court, Caruso applies his significant experience in complex state and federal litigation over a broad range of substantive areas, including environmental, business, real estate, construction, and products liability. His experience extends from pre-litigation through trial and post-trial proceedings.
Caruso's practice also includes a special emphasis on appellate matters. Caruso has briefed and argued multiple appeals in the state and federal courts, obtaining victories for clients in general appellate and extraordinary writ proceedings. Caruso has prosecuted and defended appeals involving the firm's existing cases and clients, but has also been engaged by outside clients after the conclusion of trial court proceedings.
An active member of the community, Caruso serves as a mock trial attorney coach for University High School through the Constitutional Rights Foundation Orange County (CRF-OC) and as a member of CRF-OC's Board of Directors. He also serves as a member and secretary of the Orange County Bar Association's Professionalism & Ethics Committee, and is a member of the executive committee of the William P. Gray Legion Lex Inn of Court. Caruso is also committed to pro bono work, endeavoring always to be representing at least one pro bono client via Orange County's Public Law Center.
Caruso earned his B.A., cum laude, from the University of Southern California, and his J.D., cum laude, from the University of California, Hastings College of Law.
About Newmeyer Dillion
For 35 years, Newmeyer Dillion has delivered creative and outstanding legal solutions and trial results that achieve client objectives in diverse industries. With over 65 attorneys working as a cohesive team to represent clients in all aspects of business, employment, real estate, environmental/land use, privacy & data security and insurance law, Newmeyer Dillion delivers holistic and integrated legal services tailored to propel each client's operations, growth, and profits. Headquartered in Newport Beach, California, with offices in Walnut Creek, California and Las Vegas, Nevada, Newmeyer Dillion attorneys are recognized by The Best Lawyers in America©, and Super Lawyers as top tier and some of the best lawyers in California and Nevada, and have been given Martindale-Hubbell Peer Review's AV Preeminent® highest rating. For additional information, call 949.854.7000 or visit www.newmeyerdillion.com.
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Developer Sues TVA After It Halts Nuke Site Sale
December 19, 2018 —
Mary B. Powers - Engineering News-RecordThe multibillion-dollar completion of a nuclear unit at the Tennessee Valley Authority’s unfinished 1,260-MW Bellefonte plant in Alabama is in limbo after the federal power producer refused to complete its sale to Nuclear Development LLC, which has since filed a breach of contract complaint in federal district court.
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Mary B. Powers, ENRENR may be contacted at
ENR.com@bnpmedia.com
Residential Construction: Shrinking Now, Growing Later?
August 17, 2011 —
CDJ STAFFJim Haugey, the Chief Economist for Reed Construction Data noted that new residential construction spending fell 0.2% in June and a slightly larger drop of 0.5% in residential remodeling. While economic growth is still low, Haugey states that homebuilders have “record low inventories.” He forecasts a shrinkage of 1.5% in 2011, followed by about 20% growth in 2012.
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Colorado Defective Construction is Not Considered "Property Damage"
September 12, 2022 —
Saxe Doernberger & Vita, P.C.In the July 5, 2022, case of Indian Harbor Ins. Co. v. Houston Casualty Co., the United States District Court for Colorado addressed the issue of whether damage to defectively installed balconies is considered “property damage” under Colorado law, requiring payment by a commercial general liability policy.
Facts of the Case
The case stems from a construction project where a subcontractor improperly installed balconies on an apartment complex. The owner of the project secured commercial general liability (CGL) coverage through an OCIP insured by Houston Casualty Company (HHC). The OCIP insured the general contractor and subcontractors. The general contractor also purchased a subcontractor default insurance policy insured by Indian Harbor.
All parties agreed that the subcontractor improperly installed portions of various balconies, including flashing, water-proof sealing, and water-resistant barriers, among other defects with the installation process. The parties also agreed that other portions of the balconies were properly installed. However, in order to repair the defects in the installations, every bit of each balcony had to be torn off and re-constructed.
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Saxe Doernberger & Vita, P.C.
Home Sales and Stock Price Up for D. R. Horton
February 04, 2013 —
CDJ STAFFThey call themselves "America's Builder," and in the last three months of 2013, D. R. Horton exceeded the market's predictions of how many of the homes they built would translate into sales. At the end of 2011, they had $27.7 million in earnings. At the end of last year, they saw $66.3 million in earnings. The 2011 earnings work out to 9 cents per share. Analysts were expecting 14 cents per share, but D. R. Horton delivered 20 cents per share.
The stock market responded with a 3.7% increase in the home builder's stock price, upping it by 79 cents to $22.10.
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'Major' Mass. Gas Leak Follows Feds Call For Regulation Changes One Year After Deadly Gas Explosions
October 21, 2019 —
Johanna Knapschaefer - Engineering News-RecordA natural gas leak in explosive range forced Lawrence, Mass. residents to evacuate their homes early on Sept. 27, according to electric utility National Grid, which cut power to more than 1,300 customers to avoid another disaster like last year's natural gas explosions and fires in Lawrence and two other towns north of Boston. The leak came just days after federal officials called for changes to national pipeline regulations as they released a final report on the causes of the Sept. 13, 2018, disaster.
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Johanna Knapschaefer, ENRENR may be contacted at
ENR.com@bnpmedia.com
Cincinnati Goes Green
May 10, 2013 —
CDJ STAFFColumbus Dispatch reports that under a program in Cincinnati, homeowners can receive tax breaks that eliminate their property taxes for up to fifteen years. As a result, while about 100 single-family homes in Cincinnati are LEED-certified, Columbus can claim only one. The rest of the state also lags behind, with only eighteen percent of LEED-certified homes outside Cincinnati.
Jim Weiker reports that energy efficiency is at the top of homebuyers’ wants, even beating out granite countertops. But although green certification seems to support a four percent increase in price, builders aren’t rushing to follow LEED standards.
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