Women Make Their Mark on Construction Leadership
April 22, 2019 —
Annalisa Enrile & Oliver Ritchie - Construction ExecutiveIn the era of the Lean In movement and the Women’s March, women are finding their voices and using them. In politics, in the classroom and even on the playing field, women’s participation and leadership are breaking records. However, this is not the case in the board room—especialy in the C-suite. The Russell 3000 Index, a market index that benchmarks the U.S. Stock Market, found that only 9 percent of top executive positions were filled by women. The construction industry reflects this low participation of female executives. Women in construction only number 9 percent across the board of the industry.
Seven percent of all construction executives are women and only 3 percent of the Fortune 500 construction companies have a female construction manager. Most are in sales and office roles (about 45 percent). Russell 3000 also found that women who are in the C-suite usually fill more HR- or administrative-related positions with very few in COO or CEO positions. Women in leadership need to have real decision making power to progress further. On the upside, women in construction tend to have less of a pay gap than other industries—about 5 percent compared to 20 percent.
Though she be but little, She is Fierce
Despite their small numbers, women executives in construction are paving the way for others to access leadership. In 1984, 11 women created Women Construction Owners and Executives, an organization for support and professional development. Their purpose is to promote women into leadership, assist women in executive positions and encourage more women to join the industry. The National Association of Women in Construction and Women in Construction Operations are also resources and networks with thousands of members.
Reprinted courtesy of
Annalisa Enrile & Oliver Ritchie, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Subcontractor Strength Will Drive Industry’s Ability to Meet Demand, Overcome Challenges
October 10, 2022 —
Anwar Ghauche - Construction ExecutiveOwners, developers and general contractors get a lot of notoriety for construction projects, especially in these infrastructure-focused times. However, the subcontractor is truly the one under the microscope, as this group requires the most care and attention to ensure the owners and operators are able to meet accelerating demand and public expectations.
The challenges in the current environment are many. Inflation and supply chain disruptions are highly detrimental to specialty trades in the mechanical, electrical, plumbing, drywall and other areas. Reports show that the construction industry, in particular, has seen an
increase of over 20% in the cost of supplies and building materials in the last year alone and, in some cases, over
90% since the start of the pandemic. While these costs are passed along to the owner, the subcontractor still retains significant cash flow risk. This truth is amplified in a volatile market. As if the cost was not enough, equipment and material shortages coupled with rising interest rates only compound the problem—and tenfold for small businesses.
Subcontractors are likely to feel the greatest pressure from supply-related issues. Inflation combined with supply chain shortages require subcontractors to prepare earlier for projects and, when possible, purchase materials upfront. However, the consequence of this preliminary preparation equates to further strains on cash flow. In an effort to remain aligned on schedules and budgets, subcontractors frequently buy all of a project’s materials as soon as a contract is signed—if not before.
Reprinted courtesy of
Anwar Ghauche, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Port Authority Reaches Deal on Silverstein 3 World Trade
June 26, 2014 —
David M. Levitt – BloombergThe Port Authority of New York and New Jersey approved a financing agreement for Larry Silverstein’s 3 World Trade Center that allows him to use $159 million of insurance proceeds to expedite construction.
The agreement, which alters a 2010 deal on the project, follows about a year of negotiations and provides Silverstein with far less than the $1.2 billion of loan guarantees he sought under a previous plan that had been opposed by some board members. Silverstein plans to seek private financing to complete construction on the tower, which is stalled at eight floors.
The Port Authority, which owns the Trade Center site, unanimously approved the alterations to the agreement at a meeting today. The new deal meets the criteria of not creating additional debt for the agency, said Commissioner Kenneth Lipper, who led opposition to the loan guarantee, viewing it as too risky and a threat to the authority’s credit rating.
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David M. Levitt, BloombergMr. Levitt may be contacted at
dlevitt@bloomberg.net
Insurance Law Client Alert: California FAIR Plan Limited to Coverage Provided by Statutory Fire Insurance Policy
February 07, 2014 —
Valerie A. Moore and Chris Kendrick - Haight Brown & Bonesteel, LLPIn St. Cyr v. California Fair Plan Association (No. B243159, filed 1/31/14), a California appeals court held that the state's high risk property insurance plan is not obligated to provide any greater coverage than that mandated for the state's statutory fire insurance policy.
The plaintiff-policyholders lived in high fire risk areas and were insured under the California FAIR Plan, which provides property insurance to the otherwise uninsurable. Following loss of their homes and other property in wildfires, the policyholders were paid the full amount of their policy limits, but contended that they were entitled to additional payments. Specifically, the policyholders alleged that the FAIR plan provided less protection than statutorily mandated by Insurance Code sections 10090 through 10100.2, which spells out the "Basic Property Insurance Inspection and Placement Plan" of the FAIR program.
The policyholders contended that FAIR was required to issue a policy not only in accordance with the standard form fire insurance policy set forth in Insurance Code section 2071, but also the "'Basic Property Insurance' written in the normal market . . . known as the 'HO-3'," referring to the copywrited homeowners policy form promulgated by the Insurance Services Office (ISO).
Reprinted Courtesy of Valerie A. Moore, Haight Brown & Bonesteel, LLP and
Chris Kendrick, Haight Brown & Bonesteel, LLP
Ms. Moore may be contacted at vmoore@hbblaw.com and Mr. Kendrick may be contacted at ckendrick@hbblaw.com.
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Evolving Climate Patterns and Extreme Weather Demand New Building Methods
May 22, 2023 —
Annette Rubin - Construction ExecutiveCompared to the rest of the world, most buildings in the United States are relatively young. But most residential and commercial properties could use a makeover. Buildings constructed over twenty, fifty and one hundred years ago are, unsurprisingly, not as energy-efficient or as safe as new builds following modern methods—especially when considering the effects of climate change and more frequent extreme weather events on the integrity of that infrastructure.
According to the National Association of Home Builders, over 90% of new homes built in the United States today are wood-framed. These homes are incapable of withstanding a tornado or hurricane, yet they are still being built directly in the path of storms. Even buildings constructed in some of the most earthquake-prone areas of the U.S. may contain design flaws that make them susceptible to damage because they are built using a non-ductile concrete method, which experts say has an inadequate configuration of steel reinforcing bars—making the building vulnerable when shaken. While this building method was banned for new construction, it is not yet required to retrofit older construction to improve safety and structural integrity.
Reprinted courtesy of
Annette Rubin, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Indemnity: What You Don’t Know Can Hurt You!
September 19, 2022 —
Caitlin Kicklighter & Bill Shaughnessy - ConsensusDocsRisk allocation between the parties is a critical component of any construction contract. Indemnity obligations can be some of the important risk-shifting provisions of any design or construction contract. Indemnity provisions typically require one party, the Indemnitor, to agree to “hold harmless,” and/or reimburse another party, the indemnitee, from claims and liability arising out of the party’s work. Considering the financial consequences that an indemnity provision can have on a construction project, it is critical that all parties to a construction contract know the legal implications of the contract indemnity provisions and understand any limitations in enforcing the indemnity provisions depending on the controlling jurisdiction. While most indemnity clauses and obligations are enforceable, many states have enacted anti-indemnity statutes prohibiting or restricting specific indemnification provisions. These anti-indemnity statutes afford protection to contractors and subcontractors not generally in a position to protect themselves from overly extensive indemnity obligations.
This article highlights several examples of indemnity provisions typically seen in construction contracts, the measures are taken by a growing number of states to protect parties with less bargaining power in the form of anti-indemnity statutes, and offers practical considerations when negotiating or drafting indemnity provisions.
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Reprinted courtesy of
Caitlin Kicklighter, Emory Law Student (2024 Graduate), (ConsensusDocs) and
Bill Shaughnessy, Jones Walker LLP (ConsensusDocs)
Mr. Shaughnessy may be contacted at bshaughnessy@joneswalker.com
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Georgia Legislature Passes Additional Procurement Rules
May 30, 2018 —
David R. Cook Jr. - Autry, Hall & Cook, LLPOn May 3, 2018, Governor Nathan Deal signed HB 899 into law, officially making it Act 389. Act 389 modifies O.C.G.A. § 13-10-4 and § 36-91-23 relating to public works bidding and contracts of state and local governments, respectively. Both sections are modified in the same bill because they contain the same language. The bill prohibits the disqualification of bidders based upon lack of previous experience with the project’s desired construction delivery method.
Before the modifications, the code protected a contractor from disqualification only for lack of previous experience on a job of comparable size. After the modification, the law expands to prohibit disqualification based on lack of previous experience with comparable job size and lack of previous experience with the construction delivery method.
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David R. Cook Jr., Autry, Hall & Cook, LLPMr. Cook may be contacted at
cook@ahclaw.com
Construction Warranties and the Statute of Repose – Southern States Chemical, Inc v. Tampa Tank & Welding Inc.
January 20, 2020 —
David R. Cook - AHC Construction and Procurement BlogIn a recent holding by the Georgia Court of Appeals, the court held that Georgia’s eight-year statute of repose applied to bar the project owner’s warranty claims. The renovation work by the contractor on the owner’s chemical tank constituted an improvement of real property, and thus, the statute of repose bared any claims eight years after substantial completion thereof. In addition, the court rejected the project owner’s claim that it qualified as a third-party beneficiary of an extended warranty contained in a report given by a subcontractor to the contractor.
Factual Background
In 2000, Southern States Phosphate and Fertilizer Company (“Southern States”) hired Tampa Tank & Welding, Inc (“Tampa Tank”) to renovate a tank to hold sulfuric acid. The parties’ written contract contained an express one-year warranty for material and workmanship from the date of completion. Two years later, in January 2002, the tank renovation was completed. Tampa Tank contracted with Corrosion Control Inc. (“CCI”) to design, assist with, and test the cathodic corrosion system. CCI provided only consultation and did not provide any onsite installation. Upon completion of installation, CCI supplied a report to Tampa Tank that the system was properly installed and fully functioning. Additionally, a post–installation report from CCI to Tampa Tank calculated an estimated life expectancy of forty-three to forty-five years.
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David R. Cook, Autry, Hall & Cook, LLPMr. Cook may be contacted at
cook@ahclaw.com
