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DIRECTORY AND CAPABILITIES

ADP Says Payrolls at Companies in U.S. Increase 200,000

October 02, 2015 — Sho Chandra – Bloomberg
Companies stepped up hiring in September, indicating the U.S. job market is standing firm in the face of weaker global demand, according to a private report based on payrolls. A 200,000 increase in employment followed a revised 186,000 rise in the prior month, figures from the ADP Research Institute showed Wednesday. The median projection of economists surveyed by Bloomberg called for an advance of 190,000. The additions to company headcounts are consistent with resilient demand in the U.S. even as some industries face challenges of weaker overseas sales. Labor Department data on Friday are projected to show payroll gains accelerated this month compared with August. “The U.S. job machine continues to produce jobs at a strong and consistent pace,” Mark Zandi, chief economist at Moody’s Analytics Inc. in West Chester, Pennsylvania, said in a statement. Moody’s produces the figures with ADP. “Despite job losses in the energy and manufacturing industries, the economy is creating close to 200,000 jobs per month. At this pace, full employment is fast approaching.” Estimates in the Bloomberg survey ranged from gains of 120,000 to 215,000 after a previously reported August advance of 190,000. Goods Producers Goods-producing industries, which include manufacturers and builders, increased headcounts by 12,000, the ADP report showed. Hiring in construction climbed by 35,000, almost twice the 18,000 gain a month earlier. Factories cut 15,000 jobs in September, which was the biggest decline since December 2010. Payrolls at service providers increased by 188,000. Read the court decision
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Reprinted courtesy of Sho Chandra, Bloomberg

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The Enforceability of “Pay-If-Paid” Provisions Affirmed in New Jersey

January 04, 2023 — Levi W. Barrett, Michael S. Zicherman & Brian Glicos - Peckar & Abramson, P.C.
On December 7, 2022, the Appellate Division affirmed the New Jersey Superior Court decision in Jersey Precast v. Tricon Enterprises, Inc. et al., finding that the “pay-if-paid” clause in a material supplier’s purchase order with a general contractor was binding and enforceable. While clauses conditioning a general contractor’s obligation to pay its subcontractors on the general contractor’s receipt of payment from the project owner are not unique – this is the first time that a court in New Jersey has affirmed this practice in a published opinion. [1] Background The general contractor, Tricon, sent Jersey Precast its standard form purchase order for the supply of prestressed box beams to fulfill a public improvement contract with Union County. The reverse side of the form purchase order contained standard terms and conditions, and included a pay-if-paid clause drafted by Michael Zicherman, a partner of Peckar & Abramson, P.C. While Jersey Precast provided some draft revisions to the terms and conditions, Tricon never signed the purchase order and the proposed revisions were never accepted. Significantly, Jersey Precast did not attempt to modify the pay-if-paid provision. It later developed that the construction of the project became impossible, and the beams fabricated by Jersey Precast were not used. Tricon invoiced Union County for the cost of the beams, but the County failed to make payment and refused to accept delivery of the beams. Reprinted courtesy of Levi W. Barrett, Peckar & Abramson, P.C., Michael S. Zicherman, Peckar & Abramson, P.C. and Brian Glicos, Peckar & Abramson, P.C. Mr. Barrett may be contacted at lbarrett@pecklaw.com Mr. Zicherman may be contacted at mzicherman@pecklaw.com Mr. Glicos may be contacted at bglicos@pecklaw.com Read the court decision
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Is the Sky Actually Falling (on Green Building)?

November 03, 2016 — Christopher G. Hill – Construction Law Musings
I have spoken on many occasions here at Construction Law Musings and elsewhere about the risks and rewards for contractors found in sustainable construction. The rewards were fairly apparent. New markets, government incentives and the desires of owners to be “green” clearly point toward a need for contractors to get into the sustainable building game. However, when I was first writing my Eeyore like thoughts most of the thoughts of all us construction attorneys were speculative. Whether because wholesale “green” construction was relatively new or because the court process was relatively slow, there were not many ways to test if our, shall we say “less optimistic,” predictions were going to come to pass. For better or worse, several of the more dire predictions have come true. One major green construction debacle is the Destiny USA litigation. I cannot possibly set out all of the various issues as well as my friend and colleague Chris Cheatham does in his e-book about the project and its aftermath. I highly recommend this e-book and the posts found at Chris’ Green Building Law Update blog for those of you interested in how the IRS, the USGBC and the Green Bonds Program interact to cause many a pitfall for construction and design professionals. Read the court decision
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Reprinted courtesy of Christopher G. Hill, The Law Office of Christopher G. Hill, PC
Mr. Hill may be contacted at chrisghill@constructionlawva.com

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Supreme Court Upholds Prevailing Wage Statute

August 19, 2024 — Ahlers Cressman & Sleight PLLC
Historically, the prevailing wage was calculated by averaging the wages within a certain industry and county. However, in 2018 the Washington Legislature amended the statute so that the prevailing wage would be assessed based on the highest wage set by collective bargaining agreements in the county. The amendment (RCW 39.12.015(3)) reads as follows: (3)(a)…the industrial statistician shall establish the prevailing rate of wage by adopting the hourly wage, usual benefits, and overtime paid for the geographic jurisdiction established in collective bargaining agreements… (b) For trades and occupations in which there are no collective bargaining agreements in the county, the industrial statistician shall establish the prevailing rate of wage by…conducting wage and hour surveys. So, for example, if union engineers bargain for a wage, that is the wage all engineers in the county must be paid on public projects. The legislature passed this law for the sake of efficiency because it took significant resources for the Industrial Statistician to compute the prevailing wage for every trade and every county, but the law has significant knock-on effects. Read the court decision
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Reprinted courtesy of Ahlers Cressman & Sleight PLLC

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2018 Super Bowl US. Bank Stadium in Minneapolis

February 07, 2018 — Dave Suggs - CDJ STAFF
After the collapse of the Viking’s previous stadium due to snow in 2010, it was clear that a new facility was needed to endure the Minnesota weather. The new U.S. Bank Stadium was built to withstand the harshest of weather conditions while also saving energy according to Marlene Cimons’ article “Cutting-Edge Design on Display at Super Bowl LII” featured on Nexus Media website. The stadium’s roof melts snow quickly by deflecting sunlight and because of its sharp pitch the snow slides easily into a big gutter. The roof also lets in sunlight which saves electricity and creates the feeling of being outdoors. Solar heating is used to recirculate warm air from above down to spectators below. “It is also the first NFL stadium to be built with LED lighting, which uses 75 percent less electricity than metal halide lighting typically deployed in stadiums.” The stadium is dedicated to becoming a zero-waste facility and currently saves water by using low-flow faucets. Sport and Sustainability chairman Allen Hershkowitz said of the stadium, “as one of the most visible sporting events in the world, the Super Bowl has a unique opportunity to promote environmental literacy and reduce cultural polarization related to climate change.” Read the court decision
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Another Colorado City Passes Construction Defects Ordinance

February 18, 2015 — Beverley BevenFlorez-CDJ STAFF
Lone Tree, Colorado’s City Council passed an ordinance to distinguish its construction defect laws from the state’s, according to the Denver Business Journal. The city of Lakewood passed a similar ordinance last October. The Denver Business Journal reported that the new “ordinance makes changes such as establishing time frames for notifying the builder of a construction defect, allowing the builder to inspect the property and allowing the builder to repair the problem, with the homeowners' agreement.” Read the court decision
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Real Estate & Construction News Roundup (5/29/24) – Megaprojects on the Rise, Agency Guidance for CRE, and an Upbeat Forecast for Commercial Real Estate Investment

June 21, 2024 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
In our latest roundup, summer travelers seek alternative lodging options, purpose-built wellness real estate investments grow, bonds backed by CRE debt hit are hit with losses, and more!

• Across all property types, purpose-built wellness real estate investment has grown dramatically in recent years, including properties with wellness features as a focus. (Mary Salmonsen, Multifamily Dive)
• The travelers on the road this summer will have different demographics, budgets and reasons for travel and different preferences on accommodations, with more travelers opting for alternative housing options. (Noelle Mateer, Hotel Dive)
• Megaprojects are on the rise, with massive projects, from rail tunnels to computer chip factories, having myriad stakeholders and lengthy timelines that span political administrations. (Julie Strupp, Construction Dive)

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Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team

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A Court-Side Seat: An End-of-Year Environmental Update

January 09, 2023 — Anthony B. Cavender - Gravel2Gavel
As 2022 draws to a close, here is a brief description of recent environmental and regulatory law rulings, as well as new federal rulemaking proceedings. United States Tax Court

Green Valley Investors, LLC et al, v. Commissioner of Internal Revenue On November 9, 2022, the Tax Court agreed with the taxpayers that the IRS’s use of administrative Notice 2017-10 to impose substantial tax liabilities violated the Administrative Procedure Act (APA). The notice was the agency’s response to a provision in the American Jobs Creation Act of 2004 which increased the penalties for engaging in a reportable transaction understatement. Here, at issue was the value of charitable deductions generated by the creation of environmental easements made in connection with land transactions. These claimed deductions amounted to more than $60 million. The petitioners argued that IRS Notice 2017-10, which authorized such large penalties, was in fact a “legislative rule” whose promulgation should have complied with the notice and comment requirements of the APA. The agency contended that the Congress, by implication, absolved the IRS from the notice and comment requirements. The court agreed with the petitioners and set aside Notice 2017-10 and the imposition of penalties under Section 6662A of the Jobs Creation Act. On December 8, 2022, the IRS published a notice of proposed rulemaking that would correct the APA deficiencies noted by the courts. (See 87 FR 75185.)

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Reprinted courtesy of Anthony B. Cavender, Pillsbury
Mr. Cavender may be contacted at anthony.cavender@pillsburylaw.com

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