Unintended Consequences of New Building Products and Services
April 19, 2022 —
David S. Jaffe – National Association of Home BuildersAs home builders throughout the United States are grappling with building material price surges, and shortages or delays for certain orders, many are exploring alternatives products to complete or start projects. For example, according to a recent article, some builders are constructing homes from natural materials such as rammed earth, adobe brick, and volcanic rock. In addition to being readily available on site there may be heating and cooling benefits due to the natural insulation provided by these materials. The article cautions, however, that using these alternative materials may come with added challenges such as higher costs due to a need for skilled labor, delays by home inspectors who may be unfamiliar with the techniques and methods of construction, and energy consultants who might have difficulty calculating the value of homes with these materials. See Home Builders Are Turning to Natural Materials to Get Around Supply Chain Problems; There are advantages to buying homes made with natural materials, but expect to pay a premium, Alanna Schubach, Mansion Global (March 25, 2022).
Another caution, not addressed in the article, however, but one that should be heeded by builders considering alternative materials, is the unintended consequences that might result from using alternative products, whether they are natural products or any others. The long-term effects of material use should not be ignored.
For instance, it has been reported that earthen materials are known to contain numerous organic substances and can also harbor mold. It was not too long ago that mold was a high liability issue for builders and property owners. Similarly, the use of rapidly renewable materials - products that can be produced naturally and quickly from nature - is a key component of green building. They are also cellulose or carbohydrate-based products and as such are typically optimal food sources for mold in the presence of moisture.
To avoid mold, it is important to understand the relationship between construction materials and their susceptibility to mold in the presence of moisture. “Buildings will never be designed, built, maintained, or utilized perfectly; and weather and natural disasters cannot be predicted. The one thing we can have complete control over, the materials within the building, should be selected wisely.” See Mold Susceptibility of Rapidly Renewable Building Materials Used in Wall Construction, AM Cooper, Master's thesis, Texas A&M University (2007) (Samples of wool, cork, straw, and cotton-- rapidly renewable materials used as exterior wall insulation products--were exposed to different moisture amounts in an encapsulated environment, representing the environment within a wall cavity when exposed to water from pipes, leaks, condensation and absorption, or from initial construction. The samples were monitored over time for mold growth).
Mold-related issues are just one example of the potential for unintended consequences from the use of alternative materials. Carefully reviewing building material choices in advance may help eliminate non-conforming building materials, returns and possibly disputes. NAHB has developed a guide,
Assessing Building Materials, for builders who may not have their own review process for gathering information from manufacturers and distributors when considering the selection of new building materials.
The guide is intended to arm members with the most important factor when evaluating new materials or products: information. Use the guide to step through the information collection process to make an informed decision on deploying new products or materials. The guide is not intended to be exhaustive or all-inclusive, but it will help builders ask the right questions and seek the most relevant information.
Copyright © 2022 by the National Association of Home Builders of the United States. All rights reserved.
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David S. Jaffe, NAHBMr. Jaffe may be contacted at
DJaffe@nahb.org
Avoiding 'E-trouble' in Construction Litigation
September 10, 2018 —
Judah Lifschitz - Construction ExecutiveDuring the 2016 presidential election, the FBI subpoenaed Hillary Clinton's emails after she used a private email server during her time as Secretary of State. Separately, the more recent investigation into Donald Trump’s campaign policy adviser, George Papadopoulos, resulted in scrutiny over both his email and social media.
As shown the above examples, there are damaging effects of electronically stored information in politics, but how does it impact the construction industry?
If not used carefully and properly, emails will serve as “truth serum” in court. Attorneys can simply read an email to know employees’ thoughts or actions, meaning an impulsive email or social media post will most likely come back to haunt the company. Requests for ESI are inevitable in litigation today and the production of inappropriate emails and other ESI open the door for an opposing attorney to argue that a company fosters a culture of uncouth, unprofessional and unfocused project management.
Reprinted courtesy of
Judah Lifschitz, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Mr. Lifschitz may be contacted at
lifschitz@slslaw.com
Invest In America Act Offers 494 Billion In Funding to U.S. Infrastructure and Millions of New Jobs
July 20, 2020 —
Stefanie A. Salomon - Peckar & AbramsonThe Investing in a New Vision for the Environment and Surface Transportation in America (INVEST in America) Act was approved by the House Transportation and Infrastructure Committee on June 18, 2020 and is making its way up to Congress. The bill will create millions of jobs and provide substantial investment in the nation’s deteriorating highways, bridges and public transit systems. The bill also endeavors to leave behind a smaller carbon footprint, a major improvement for the nation’s biggest source of carbon pollution.
Investing in a New Vision for the Environment and Surface Transportation in America Act
According to the American Society of Civil Engineers, the current condition of the nation’s infrastructure earns a grade of D+, and there exists an estimated $2 trillion funding gap to bring it into a state of good repair by 2025. While Americans have benefited from a century of infrastructure building, neglect has befallen our once greatest achievements – the roadways and arteries that led to the explosive growth of our nation. In the 1930s, 4.2 percent of the country’s GDP was spent on infrastructure investment. Unfortunately, by 2016 that number fell to 1.5 percent resulting in the substandard conditions that now confront us. Stated more bluntly, our nation’s infrastructure is crumbling and immediate investment in required to bring it up to par. The INVEST in America Act is our “immediate” opportunity to start replacing the outdated systems of the past with smarter, safer, and more resilient infrastructure.
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Stefanie A. Salomon, Peckar & AbramsonMs. Salomon may be contacted at
ssalomon@pecklaw.com
Updated 3/13/20: Coronavirus is Here: What Does That Mean for Your Project and Your Business?
March 16, 2020 —
Alexander Gorelik, Joshua E. Holt, Brian N. Krulick, Shoshana E. Rothman, A. Michelle West, & Brian S. Wood - Smith CurrieThe outbreak of COVID-19 (“coronavirus”) has wreaked a considerable human toll of death, physical suffering, fear, and anxiety internationally. Much of the fear and anxiety results from a lack of information or a full understanding about the spread of the disease, protection against infection, and treatment. At Smith, Currie & Hancock, we urge our clients, friends, and colleagues to take seriously, but calmly and prudently, the threat of this disease to protect yourselves, your loved ones, and your businesses. The first step in that process is to inform yourselves with reliable information. Toward that end, we direct your attention to the Centers for Disease Control and Prevention’s Coronavirus Disease 2019 website: https://www.cdc.gov/coronavirus/2019-ncov/index.html
In addition to the human toll, coronavirus has caused substantial disruptions to economies worldwide. In that regard, the adage “a picture is worth a thousand words,” is particularly foreboding. Satellite images taken by the U.S. National Aeronautics and Space Administration (NASA) of China at the outset of the coronavirus outbreak and approximately a month later show a dramatic decline in air pollution, signifying and illustrating a sharp decline in industrial activity and transportation caused by the disease.
Reprinted courtesy of Smith Currie attorneys
Alexander Gorelik,
Joshua E. Holt,
Brian N. Krulick,
Shoshana E. Rothman,
A. Michelle West, and
Brian S. Wood
Mr. Gorelik may be contacted at agorelik@smithcurrie.com
Mr. Holt may be contacted at jeholt@smithcurrie.com
Mr. Brian may be contacted at bnkrulick@smithcurrie.com
Ms. Shoshana may be contacted at serothman@smithcurrie.com
Ms. West may be contacted at amwest@smithcurrie.com
Mr. Wood may be contacted at bswood@smithcurrie.com
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If You Purchase a House at an HOA Lien Foreclosure, Are You Entitled to Excess Sale Proceeds?
February 03, 2020 —
Ben Reeves - Snell & Wilmer Real Estate Litigation BlogThat pesky excess sale proceeds statute, A.R.S. § 33-727, is making waves again. We previously blogged about this statute here. In the prior post, we explained that excess sale proceeds (i.e., a foreclosure sale price greater than the lien being foreclosed) must be used to pay other lien creditors, in full, before the owner receives anything. Recently, the Arizona Court of Appeals held that creditors also take excess sale proceeds before the person who purchased the property at foreclosure. The case, Vista Santa Fe Homeowners Association v. Millan, No. 1 CA-CV 18-0609 (Ct. App. Oct. 15, 2019), is discussed below.
The Facts
In Vista Santa Fe, an individual bought a home secured by a first and second deed and trust. The homeowner defaulted on assessments owed to the Vista Santa Fe Homeowners Association (the “HOA”), and the HOA commenced an action to foreclose the resulting assessment lien. At the time, the HOA was owed approximately $14,000.
Patterson Commercial Land Acquisition & Development, LLC (“Patterson”) purchased the property at the HOA’s sheriff’s sale for $42,000. After satisfying the HOA’s lien, the sheriff deposited the excess sale proceeds, in the amount of approximately $28,000, with the clerk of the court.
Both Patterson and the second deed of trust holder, Bank of New York Mellon (“Bank”), submitted claims for the excess sale proceeds.[1] The trial court awarded the money to the Bank, and Patterson appealed.
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Ben Reeves, Snell & Wilmer
Smart Cities Offer New Ideas for Connectivity
April 05, 2017 —
Jennifer Seward - Engineering News-RecordInnovative, technology-driven communities are being designed and constructed for the next generation—and beyond. Although each of them is uniquely planned, experts say the central theme of connectivity is the key to turning concepts into reality.
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Jennifer Seward, ENRENR may be contacted at
ENR.com@bnpmedia.com
Green Home Predictions That Are Best Poised to Come True in 2014 and Beyond (guest post)
July 16, 2014 —
Melissa Dewey Brumback – Construction Law in North CarolinaToday, a guest post on the green design issues that are becoming realities from Penny Olmos, who is associated with Holloway Houston, Inc. a leading industrial lifting equipment manufacturing company. Welcome, Penny!
The scorching heat singed us and the winter wave chilled us — more than ever before. What are we heading to? Earthquakes, volcanoes, tsunamis, tornadoes and extreme temperatures? Mother Nature is warning us in myriad ways. And the good news is that we are heeding her calls after long. Saving our natural resources and going green has found many takers. We have seen many eco-friendly homes and buildings designed and created in the last decade. Green homes are here to stay. We look at the popular green home design and construction trends in 2014 that are about to transform the landscape of green realty.
Rise of Net Zero Energy Homes
It seemed impossible until a couple of years ago but 2014 will witness a rise in net zero energy homes. These are homes with zero net energy consumption. The total amount of energy used by these buildings annually equals the amount of renewable energy created on the property. This is the greenest and the most energy efficient house you can possess. And you do not need to cut down on any of your comforts. There are heating, cooling, entertainment and utility appliances functioning in the house like they would in any other home.
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Melissa Dewey Brumback, Construction Law in North CarolinaMs. Brumback may be contacted at
mbrumback@rl-law.com
Loss Caused by Theft, Continuous Water Discharge Not Covered
September 17, 2015 —
Tred R. Eyerly – Insurance Law HawaiiThe insured's claim for loss based on theft and water leaks was not covered under the property policy. SJP Props. v. Mount Vernon Fire Ins. Co., 2015 U.S. Dist. LEXIS 97216 (E.D. Mo. July 27, 2015).
SJP Properties bought and sold foreclosed properties. On July 13, 2006, it purchased at a foreclosure sale a property in St. Louis. The property was not inspected before or after the purchase, and sat vacant for more than two years. No one checked regularly on the property.
The property was insured under a commercial property policy issued by Mount Vernon, effective from March 8, 2006 to March 8, 2009. The policy covered vandalism, but excluded loss caused by theft. An exception for the exclusion provided coverage for "building damage caused by the breaking in or exiting of burglars." The policy also excluded loss or damage caused by fungus, wet rot, dry rot and bacteria or water leaks for a period of 14 days or more.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
