Construction Is Holding Back the Economy
February 28, 2018 —
Noah Smith - BloombergChanges in contracts and rules could make the sector a lot more efficient.
The question of whether to
prioritize jobs or economic efficiency is always difficult. Nowhere is this more of a dilemma than in the construction industry.
In a world of rapid technological disruption, construction is a rock of solidity to which many blue-collar workers can cling. The industry still employs about 7 million workers in the U.S.
The job doesn’t change that much from decade to decade. It’s a big broad occupation, unlike social-media marketing or other new niche jobs, so it allows working-class people to minimize the time and effort they spend building for a career. And workers get trained on the job, without years of college.
What’s more, construction workers are
mostly male. To the degree this is a result of sexism, that’s bad. But it also means that the construction industry employs lots of men, at a time when they haven’t been doing so well in the jobs department.
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Noah Smith, Bloomberg
Federal District Court Issues Preliminary Injunction Against Implementation of the Fair Pay and Safe Workplaces Final Rule
November 03, 2016 —
Patrick J. Greene, Jr. & Lori Ann Lange – Peckar & Abramson, P.C. Client AlertOn July 31, 2014, President Barack Obama issued Executive Order 13673. As subsequently amended, the Executive Order purports to “increase efficiency and cost savings in the work performed by parties who contract with the Federal Government by ensuring that they understand and comply with labor laws.” On August 25, 2016 the Federal Acquisition Regulation (“FAR”) Council published the final FAR Rule and the United States Department of Labor (“DOL”) published its Guidance further implementing the Executive Order. The FAR final rule was scheduled to go into effect in stages, starting with solicitations with an estimated value of $50 million or more on October 25, 2016. The potential effect of these new regulations on government contractors has been the subject of prior alerts from this office and much ongoing discussion.
Reprinted courtesy of
Patrick J. Greene, Jr., Peckar & Abramson, P.C. and
Lori Ann Lange, Peckar & Abramson, P.C.
Mr. Greene may be contacted at pgreene@pecklaw.com
Ms. Lange may be contacted at llange@pecklaw.com
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As Climate Changes, 'Underwater Mortgage' May Take on New Meaning
August 20, 2014 —
James Tarmy – BloombergLooking to buy a house? That’s great, unless you’re in your 20s and 30s and regularly read climate reports. They tend to project dramatic changes to the climate over the next 50 years, and given that current life expectancy is hovering around 80, we’ll likely be around to see it.
So. If you’re looking to settle down for the long haul, where’s the best place to do it?
Great Plains? You're looking at higher temperatures and more demand for water and energy.
The Southeast, perhaps? The region may suffer from (at least) 60 days with 95-plus degree weather by 2070, according to the 2014 National Climate Assessment.
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James Tarmy, Bloomberg
Eastern District of Pennsylvania Denies Bad Faith Claim in HO Policy Dispute
September 24, 2014 —
Beverley BevenFlorez-CDJ STAFFAccording to Patrick Nugent of Saul Ewing LLP’s article in JD Supra Business Advisor, the Eastern District of Pennsylvania entered a summary judgment for the insurer on a statutory bad faith claim in a coverage dispute under a homeowner’s policy.
The coverage dispute was over “the collapse of a wall in the plaintiffs’ home.” The Plaintiffs alleged that “the collapse resulted from excessive rainfall during a storm in March 2011.” However, Metropolitan Direct Property and Casualty Insurance Company’s engineer concluded that the collapse “resulted from long-term and on-going water infiltration attributable to poor maintenance.” Water damage had occurred a year prior to the collapse, but had not been repaired.
In response, “Plaintiffs filed a complaint in Pennsylvania state court alleging breach of contract and statutory bad faith.” The court “determined that Metropolitan’s denial of benefits ‘was not only reasonable, but correct under the Policy language,’” and “ruled that the plaintiffs could not demonstrate that Metropolitan lacked a reasonable basis for denying their claim and entered summary judgment for Metropolitan on the plaintiffs’ bad faith claim.”
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Delaware State Court Holds that Defective Workmanship Claims do not Trigger Coverage by a Builder’s Commercial General Liability Policy
April 15, 2015 —
Marc S. Casarino – White and Williams LLPGuided by federal case law, on March 31, 2015 a Delaware state court held for the first time in Westfield Ins. Co. v. Miranda & Hardt Contracting and Building Services LLC that a builder’s poor workmanship is not an occurrence for which the builder’s insurance policy affords coverage. In the underlying case giving rise to the coverage dispute, a homeowner alleged that a builder deviated from approved building plans, used inadequate materials, improperly installed materials, violated building codes, and fraudulently represented that a home was properly constructed. The homeowner sued the builder under theories of negligence, negligence per se, and fraud. The insurer denied the builder’s request for defense and indemnification for the homeowner’s claims, citing in part that the allegations of defective workmanship did not qualify as an “occurrence” as defined by the builder’s insurance policy.
The builder did not dispute that the underlying complaint alleged defective workmanship. However, the builder asserted that because it had not yet been proven that its work was defective, the insurer had prematurely denied coverage. The court properly rejected the builder’s argument, and reiterated that under Delaware law the court must compare the allegations of the complaint to the insurance policy terms to make a coverage determination. Whether the complaint’s allegations are ultimately meritorious is irrelevant to the initial coverage determination according to the court.
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Marc S. Casarino, White and Williams LLPMr. Casarino may be contacted at
casarinom@whiteandwilliams.com
Real Estate & Construction News Round-Up (05/11/22)
May 30, 2022 —
Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law BlogThe supply of homes for sale is on the uptick, the White House releases a plan to improve the permitting process for infrastructure projects, cryptocurrency opens the door to a new class of property owners, and more.
- Though the number of active listings is still down 67% from pre-pandemic levels, the supply of homes for sale is finally showing signs of improvement. (Diana Olick, CNBC)
- Large corporations and institutional investors are flocking to buy digital real estate, with parcels being bought faster than they can be created. (Dan Patterson, CBS News)
- London-based company, Admix, has been purchasing real estate in various Metaverse platforms and leasing them to companies interested in becoming involved in the online virtual space. (Nate Berg, Fast Company)
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Pillsbury's Construction & Real Estate Law Team
Protecting Expert Opinions: Lessons Regarding Attorney-Client Privilege and Expert Retention in Construction Litigation
August 19, 2024 —
David McLain - Higgins, Hopkins, McLain & Roswell, LLCThe Hill Hotel Owner LLC v. Hanover Insurance Company case has garnered attention due to its implications on the scope of attorney-client privilege in construction litigation. This blog post delves into the project’s background, the ensuing litigation, and the intricate work undertaken by attorneys and experts, highlighting the potential pitfalls associated with assumptions about privilege protections.
Background of the Project
Hill Hotel Owner LLC initiated a construction project in Boulder, Colorado, which included building a basement-level parking garage with an 18” thick concrete slab floor. The project utilized “void form,” a cardboard underlayment intended to create a gap between the foundation and the underlying soil. Unfortunately, the void form became wet and collapsed under the weight of the fresh concrete, causing considerable damage, and necessitating millions of dollars in remediation costs.
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David McLain, Higgins, Hopkins, McLain & Roswell, LLCMr. McLain may be contacted at
mclain@hhmrlaw.com
Colorado Senate Bill 15-177: This Year’s Attempt at Reasonable Construction Defect Reform
February 18, 2015 —
Zach McLeroy – Colorado Construction LitigationOn February 10, 2015, Senators Scheffer and Ulibarri introduced Senate Bill 15-177, which is sponsored in the House by Representatives DelGrosso and Singer. SB 15-177 amends the prerequisites, found in the Colorado Common Interest Ownership Act (“CCIOA”), for an association to file a construction defect action. The bill has been assigned to the Senate Committee on Business, Labor, and Technology but not yet scheduled for hearing.
The major points of the bill include: 1) enforcement of a mediation or arbitration provision contained in the original governing documents of a common interest community, even if subsequently amended or removed; 2) the addition of a requirement that mediation take place before a construction defect action can be filed; 3) heightened requirements that an association board provide advanced notice to all unit owners, together with a disclosure of projected costs, duration, and financial impact of the construction defect claim; 4) the addition of a requirement that the board obtain the written consent of a majority of the owners of units, and; 5) a requirement that prior to the purchase and sale of a property in a common interest community, the purchaser receive notice that binding arbitration may be required for certain disputes.
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Zach McLeroy, Higgins, Hopkins, McLain & Roswell, LLCMr. McLeroy may be contacted at
mcleroy@hhmrlaw.com