Survey Finds Tough Labor Market Top-of-mind for Busy Georgia Contractors
July 30, 2019 —
Scott Hazy - Construction ExecutiveIn February 2019, the results of the third Annual Georgia Construction Outlook Survey were released. The survey respondents includes general contractors (44%), specialty contractors (53%) and heavy contractors (3%) with gross revenue size that ranged from in excess of $1 billion to less than $5 million. Three-quarters of respondents reported revenues of less than $25 million. Here’s what they had to say about the state of construction in Georgia.
Financial Performance and 2019 Outlook
It was no surprise to see the majority of respondents reporting increased revenues and margins in 2018. Average gross margins from all respondents increased to 11.3%, up from 9.33% in the prior year. Overall, 72% of respondents saw their gross margins increase and/or remain the same. The largest decrease in margins was seen in the heavy contractor sector, with 33% of respondents reporting a decrease in margins. When it comes to backlog, Georgia is seeing a record number of months in the pipeline and 57% of respondents reported higher backlogs than in the previous year. The increase in backlog helps explain why 84% of respondents are expecting increase in revenues in 2019 over 2018. Interestingly, of those expecting increase in revenue, 40% are anticipating an increase of more than 10% from the prior year. So, the overall financial health of Georgia contractors looks to remain strong at least through 2019.
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Scott Hazy, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Mr. Hazy may be contacted at
scott.hazy@btcpa.net
Seven Former North San Diego County Landfills are Leaking Contaminants
April 07, 2011 —
Beverley BevenFlorez CDJ STAFFDeborah Sullivan Brennan of the North County Times reported that seven former dumps in San Diego are leaking contaminants into the surrounding groundwater. John R. Odermatt, a senior engineering geologist for the California Regional Water Quality Control Board s San Diego region, told the North County Times, “the risk to most county residents is very small or negligible, while local water supplies located in more rural areas may be at a somewhat elevated but unquantified level of risk.”
This issue is causing heavy scrutiny of a new proposed landfill in Gregory Canyon. The landfill would be located on 308 acres of undeveloped land near Pala, alongside the San Luis Rey River. The group “Save Gregory Canyon” has been speaking out against the landfill, stating that “the project threatens major detrimental impacts to both surface and groundwater, as well as a potential compromise of the two major San Diego Water Authority pipelines nearby.” Richard Felago, a Gregory Canyon Ltd. Consultant, told the North County Times that the 8-foot-thick liner, composed of layers of gravel and synthetic material, would not leak.
The appeal hearing is being rescheduled later this month after one of the three panelists recused himself due to having a competing interest in the property, according to the article by Gary Warth in the North County Times.
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Contractor Sentenced to Seven Years for Embezzling $3 Million
July 20, 2020 —
Garret Murai - California Construction Law BlogMichael Medeiros was not a good guy. Ok, on a scale of 1 to 10, maybe not a 9 or 10 (when you’re including guys like Charles Manson), but a solid 6 or 7 at least.
The next case, People v. Medeiros, Case No. A155648, 1st District Court of Appeals (March 26, 2020), is less important for its legal holding than as a reminder that while most legal disputes on construction projects end up with one party owing the other party money, sometimes, when a party’s conduct has been really bad, it can end in a loss of liberty (i.e., jail time) as well.
People v. Medeiros
Medeiros was a painting contractor operating under the name Professional Painting Company, Inc. In the early 1990s, Medeiros met Susan Lambert, who served as the property manager for a homeowners’ association, Woodlake Association, in Hayward, California.
Lambert was an alcoholic. Following a series of surgeries in 2005 and 2007 she became addicted to opiates as well. She also had a gambling problem. As a result, Lambert regularly found herself in financial difficulty.
And this is where Lambert and Medeiros found that they shared common ground. At some point, Medeiros confided to Lambert that he was having cash flow and tax problems.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Robots on Construction Sites Are Raising Legal Questions
September 18, 2023 —
Peter Sheridan - Construction ExecutiveMark Twain said that “good decisions come from experience. Experience comes from making bad decisions.” Aesop warns “be careful what you wish for….” But is there a good decision to be made now to employ robots on your next project? There is not a lot of experience to help us make that decision, and the robotic laborer that does not tire or need breaks or desire a raise or promotion looks like an option we might all wish for when planning our next project.
Are there pitfalls, traps for the unwary? Always. Spotting them is the trick. After a brief glimpse into the past for appropriate context, there are a few traps that need to be considered.
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Peter Sheridan, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Homebuyers Get Break as Loan Rates Defy Fed Tapering: Mortgages
February 14, 2014 —
Kathleen M. Howley – BloombergAshley Underwood is taking advantage of the unexpected drop in mortgage rates by rushing to buy her first home before they go up again.
“I’m ready to cancel plans at a moment’s notice to go look at a house,” said Underwood, 27, who lives in Indianapolis, Indiana. “I didn’t expect to see rates falling again, and I want to lock in something before I lose out.”
The drop in the last month proved forecasters wrong, said Douglas Duncan, chief economist of Fannie Mae in Washington. After the Federal Reserve announced in December that it would begin tapering purchases of mortgage-backed securities, all the major housing forecasters said rates would jump this quarter. Economists didn’t foresee that investors would react to the Fed’s retreat by moving money from emerging markets into U.S. Treasuries, driving down home-loan rates.
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Kathleen M. Howley, BloombergMs. Howley may be contacted at
kmhowley@bloomberg.net
Wood Wizardry in Oregon: Innovation Raises the Roof for PDX Terminal
April 15, 2024 —
Aileen Cho - Engineering News-RecordDrones, self-propelled modular transporters and a curtain wall that really does hang off the roof like a curtain are all notable technologies that made installing an 18-million-lb timber roof possible at Portland International Airport. Of equal weight is the emphasis on full-scale sourcing of the timber and representing the Pacific Northwest’s residents, history and geography.
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Aileen Cho, Engineering News-Record
Ms. Cho may be contacted at choa@enr.com
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Montrose Language Interpreted: How Many Policies Are Implicated By A Construction Defect That Later Causes a Flood?
March 17, 2011 —
Shaun McParland BaldwinThe Court of Appeals of Indiana recently addressed the “Montrose” language added to the CGL ISO form in 2001 in the context of a construction defect claim where a fractured storm drain caused significant flooding a year after the drain was damaged. The insuring agreement requires that “bodily injury” or “property damage” be caused by an “occurrence” and that the “bodily injury” or “property damage” occur during the policy period. The Montrose language adds that the insurance applies only if, prior to the policy period, no insured knew that the “bodily injury” or “property damage” had occurred in whole or in part. Significantly, it also states that any “bodily injury“ or “property damage” which occurs during the policy period and was not, prior to the policy period known to have occurred, includes a continuation, change or resumption of that “bodily injury” or “property damage” after the end of the policy period.
In Grange Mutual Cas. Co. v. West Bend Mut. Ins. Co., No. 29D04-0706-PL-1112 (Ct. App. IN March 15, 2011), http://www.ai.org/judiciary/opinions/pdf/03151109ehf.pdf, Sullivan was the General Contractor for a school construction project. Its subcontractor, McCurdy, installed the storm drain pipes. One of the storm pipes was fractured in 2005 while McCurdy was doing its installation work. More than a year later, the school experienced significant water damage due to flooding. It was later discovered that the flooding was due to the fractured storm drain. Sullivan’s insurer paid $146,403 for the water damage. That insurer brought a subrogation claim against McCurdy and its two insurers: West Bend and Grange. West Bend had issued CGL coverage to McCurdy while the construction was ongoing , including the date in which the storm pipe was fractured. Grange issued CGL coverage to McCurdy at the time of the flooding. Those two carriers jointly settled the subrogation claim and then litigated which insurer actually owed coverage for the loss. Significantly, the loss that was paid included only damages from the flooding, not any damages for the cost of repairing the pipe.
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Reprinted courtesy of Shaun McParland Baldwin of Tressler LLP. Ms Baldwin can be contacted at sbaldwin@tresslerllp.com
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The Colorado Construction Defect Reform Act Explained
December 11, 2013 —
CDJ STAFFColorado passed its Construction Action Defect Reform Act twelve years ago, but as Anne K. McMichael of Zupkus & Angell, PC, points out, “while portions of this act are reasonably straightforward, several of the sections are subject to ongoing debate as to how these concepts should be applied to achieve fair and unbiased results.” The process for a construction defect claim under the CDARA starts with filing a notice of defects, after which the construction professional is permitted to inspect the alleged defect. The construction professional can then offer to repair or settle.
The law offers protections for construction professionals who follow through with the process. But, as Ms. McMichael notes, these are denied to construction professionals who do not make offers, fail to meet settlement agreements, or offers a settlement that is insufficient for repairs.
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