Kiewit-Turner Stops Work on VA Project—Now What?
December 31, 2014 —
Craig Martin – Construction Contractor AdvisorThe Kiewit-Turner joint venture created to build the VA’s hospital near Denver stopped work on December 10 after the Civilian Board of Contract Appeals ruled that the VA breached the contract. Kiewit-Turner claims that the VA owes it over $100 million on the project. And, given the appeals board’s recent ruling entirely against the VA, the claim may get some traction.
This project has been plagued with problems from the beginning. One strange aspect of the project is the VA’s apparent unwillingness to incorporate value engineering or require the architects to redesign the project to fit within the budget. The latest budget was $582M, while the latest projections show that the project will cost more than $1 billion to complete.
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Craig Martin, Lamson, Dugan and Murray, LLPMr. Martin may be contacted at
cmartin@ldmlaw.com
When a Construction Lender Steps into the Shoes of the Developer, the Door is Open for Claims by the General Contractor
February 18, 2015 —
Kevin Brodehl – California Construction Law BlogThank you to my partner Garret Murai for giving me the opportunity to post again on his excellent California Construction Law Blog. I am the author/editor of the Money and Dirt Blog, where I focus on issues relating to real estate investment, development, and secured lending.
On the
Money and Dirt Blog, I recently posted an
article on an interesting new secured lending opinion from the California Court of Appeal (Fourth District in Riverside), California Bank & Trust v. Del Ponti. That blog post focused on guaranty liability, and the court’s holding that there are limits to the defenses that a guarantor can lawfully waive.
But that same decision also highlights valuable lessons regarding the relationship between construction lenders and general contractors in distressed projects, which I’ll cover here. In short, the court held that when a construction lender “steps into the shoes” of the developer to manage a distressed project, the lender might open the door to liability to the general contractor under theories of breach of contract and promissory estoppel.
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Kevin Brodehl, Wendel Rosen Black & Dean LLPMr. Bordehl may be contacted at
kbrodehl@wendel.com
What Construction Firm Employers Should Do Right Now to Minimize Legal Risk of Discrimination and Harassment Lawsuits
October 07, 2024 —
Anthony LaPlaca, Dawn Solowey, Andrew Scroggins & Adrienne LeeSeyfarth Synopsis: In June 2024, Seyfarth published a blog article warning construction industry employers of recent anti-harassment guidelines issued by the EEOC. We predicted that the EEOC has “put the construction industry squarely in its sights.”[1] In this follow-up Alert, we discuss recent cases confirming the renewed regulatory focus on the construction sector, which demonstrate the need to put in place sound practices for non-discriminatory recruitment, hiring, and training of the work force in order to be prepared for this heightened risk of government scrutiny.
Recent EEOC Settlements
The U.S. Equal Employment Opportunity Commission (EEOC) has indicated, in no uncertain terms, that over the next five years it intends to prioritize the mitigation of systemic workplace problems and the historical underrepresentation of women and workers of color in the construction sector.[2] Two recent cases confirm that the EEOC is true to its word when it comes to tackling racial and gender disparities in the construction work force.
In August 2024, the EEOC secured two consent decrees with two separate construction firms in Florida, totaling nearly $3 million.
Reprinted courtesy of
Anthony LaPlaca, Seyfarth,
Dawn Solowey, Seyfarth,
Andrew Scroggins, Seyfarth and
Adrienne Lee, Seyfarth
Mr. LaPlaca may be contacted at alaplaca@seyfarth.com
Ms. Solowey may be contacted at dsolowey@seyfarth.com
Mr. Scroggins may be contacted at ascroggins@seyfarth.com
Ms. Lee may be contacted at aclee@seyfarth.com
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Aging-in-Place Features Becoming Essential for Many Home Buyers
March 12, 2014 —
Beverley BevenFlorez-CDJ STAFFWith the rising number of Americans over the age of sixty-five, there is an “upswing” in demand of “aging-in-place home features,” according to Big Builder.
Big Builder also noted seven accessible features that homebuyers identified when surveyed by The National Association of Home Builders (NAHB). A couple of the features listed were “doorways at least three feet wide” and “non-slip floors.” The survey results were reported in What Home Buyers Really Want, released in May 2013 by the NAHB.
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Connecting Construction Project Information: Open Technology Databases Improve Project Communication, Collaboration and Visibility
March 14, 2018 —
Andy Kayhanfar - InEightThe construction industry has been plagued for decades with projects coming in over budget and behind schedule. There are many reasons this happens, but it ultimately comes down to just one thing – a lack of connected information.
Today, gigabytes and even terabytes of data are generated on a project and housed in different systems that do not talk or share information, which creates a closed approach and inhibits collaboration. Data is siloed and only accessible to certain companies, departments or disciplines, which gives each project stakeholder a very limited view into the status of the project as they are making decisions.
To be successful, the construction industry needs to free project data from closed systems. There must be a way to give all project stakeholders access to accurate information within the context of how it applies to the overall project that will empower everyone from owners to engineers to contractors to make timely, fully informed decisions that bring projects in on time and within budget.
INTRODUCING THE OPEN TECHNOLOGY DATABASE
The need for deep visibility into project information across systems and stakeholders has given rise in the construction industry to the open technology database. This approach enables project stakeholders to link the data in their existing software systems and connect that information into one centralized location. Project stakeholders can continue to use and maintain the data in their own systems while still feeding the information to the shared environment, which brings together critical project details, provides context for decisions and makes it easier for all parties to collaborate.
Project stakeholders are now able to connect business data related to estimating, cost control, scheduling, contracts, purchasing, accounting and more. This creates a common data set across the project that can be quickly accessed and can easily be put in the hands of project decision makers.
Innovative companies are taking this connectivity to a new level. They see the potential to use 3D models beyond simply the design aspects of a project and bring them into the activities of construction. Innovators are taking all the project information available in the shared environment and connecting it to the 3D model to create a comprehensive view of the project.
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Andy Kayhanfar, Construction Executive, a Publication of Associated Builders and Contractors. All Rights Reserved
Defenses Raised Three-Years Too Late Estop Insurer’s Coverage Denial
February 21, 2022 —
Michael S. Levine & Yaniel Abreu - Hunton Insurance Recovery BlogLiability insurance typically affords broad defense coverage. But insurers sometimes reserve their right to challenge the insured’s right to a defense, or even outright terminate the defense. When this occurs after the insurer has been in exclusive control of the defense, some courts recognize that the consequences can be catastrophic for the insured defendant. Insurers, therefore, may be estopped from denying coverage where doing so will prejudice the insured. This is exactly what transpired in RLI Ins. Co. v. AST Engineering Corp., No. 20-214 (2d Cir. Jan. 12, 2022), where the Second Circuit affirmed the district court’s decision that an insurer’s attempt to withdraw the defense it had provided to its insured for three years would prejudice the insured.
In AST Engineering, RLI sought a declaration that it did not have to defend the insured, AST, in two underlying cases in which AST was sued as a third-party defendant. The underlying cases concerned a construction project in New York City for which AST provided engineering drawings on October 28, 2012.
Reprinted courtesy of
Michael S. Levine, Hunton Andrews Kurth and
Yaniel Abreu, Hunton Andrews Kurth
Mr. Levine may be contacted at mlevine@HuntonAK.com
Mr. Abreu may be contacted at yabreu@HuntonAK.com
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National Lobbying Firm Opens Colorado Office, Strengthening Construction Defect Efforts
January 05, 2017 —
Beverley BevenFlorez-CDJ STAFFMichael Best Strategies, a national law and lobbying firm, has recently opened an office in Colorado. According to the Denver Business Journal, the firm “has recruited several big-name associates — a move that could give business leaders even more clout with the Legislature on issues such as construction-defects reform.”
One of the firm’s recruits, Jeff Thormodsgaard, the lead lobbyist in the recent movement to make it harder to sue condominium builders, told the Denver Business Journal, “The only change [in the construction-defects reform effort] is that we’re going to be adding more feet and more boots on the ground and more gravitas.”
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John Paulson’s $1 Billion Caribbean Empire Faces Betrayal
November 27, 2023 —
Jim Wyss & Tom Maloney - BloombergIn the decade since hedge fund billionaire John Paulson took a grand gamble on Puerto Rico, he’s faced the wrath of the markets and mother nature.
He’s navigated hurricanes, earthquakes, the pandemic and the largest municipal bankruptcy in US history to amass a portfolio of luxury hotels and resorts, high-end office blocks, and auto dealerships catering to the island’s rich.
Now, just a few months after breaking ground on one of San Juan’s tallest and most exclusive residential towers, Paulson is facing a new wave of threats: lawsuits that strike at the heart of his Caribbean empire.
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Jim Wyss, Bloomberg and
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