Build, Baby, Build. But Not Like This, Britain.
March 04, 2024 —
Matthew Brooker - BloombergThe UK needs to do a lot more building. A lack of access to physical and digital connections is holding back the economy, the government says. Besides tackling the housing crisis, the country has to construct more roads, railways, wind farms and reservoirs to open up opportunity and drive productivity. The only problem is that Britain is notoriously inept at delivering infrastructure projects on time and within budget.
The advantage of doing things badly is that at least you get to learn from your mistakes — in theory. Updates this month have offered some illuminating insights into two of the biggest civil-engineering undertakings in the country: High-Speed Rail 2, better known as HS2, and Hinkley Point C, which will be Britain’s first new nuclear power station since 1995. Here are five lessons that can be drawn from the issues encountered by two projects with a combined bill that’s likely to exceed £100 billion ($127 billion):
Don't take budgets too seriously — especially at the start. Fixing an initial budget that was too low may have done much to feed later perceptions that HS2’s costs were spiraling out of control. The original estimate for the expanded train network was set too early and based on “very immature data,” Jon Thompson, appointed executive chair of High Speed 2 Ltd. in February last year, told the House of Commons transport committee. Numbers get more accurate and reliable as work progresses and the quality of information improves. What were viewed as cost blowouts partly reflected this process. The effect was unfortunate, undermining political support for HS2 and providing cover for cutbacks that have reduced the network to a single line between London and Birmingham that fails to fulfill most of its original purpose. To avoid this problem: Stick to a range rather than a single figure, and make sure people understand the uncertainties inherent in early-stage estimates.
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Matthew Brooker, Bloomberg
Colorado Supreme Court Weighs in on Timeliness of Claims Against Subcontractors in Construction Defect Actions
March 16, 2017 —
Jean Meyer - Colorado Construction LitigationOn February 27, 2017, the Colorado Supreme Court announced its decision in the Goodman v. Heritage Builders, No. 16SA193, 2017 CO 13 (Colo. February 27, 2017) case. In ten short pages, the Colorado Supreme Court completely reshuffled Colorado construction law with respect to application of the statutes of limitation and repose on third-party claims in construction defect cases. Specifically, the Colorado Supreme Court overruled a series of earlier Court of Appeals' decisions that found C.R.S. § 13-80-104(1)(b)(II) (“104(1)(b)(II)”) had no effect on the six-year statute of repose. For context, 104(1)(b)(II) permitted third-party actions for indemnity and contribution to toll until ninety days after the claims in the underlying action were resolved by settlement or judgment. In the construction context, 104(1)(b)(II) was intended to allow a general contractor’s claims against liable subcontractors to toll for the statutorily defined period. This allowed the general contractor to first focus its attention on defending the claims against and thereafter to pursue its claims against the subcontractors.
However, beginning in 2008, in the Thermo Dev., Inc. v. Cent. Masonry Corp., 195 P.3d 1166 (Colo. App. 2008) case, the Colorado Court of Appeals began chipping away at the force of 104(1)(b)(II). This trend continued in the Shaw Constr., LLC v. United Builder Servs., Inc., 2012 COA 24, 296 P.3d 145 decision, the Sierra Pac. Indus., v. Bradbury, 2016 COA 132, _ P.3d_ decision, and culminating in the Sopris Lodging, LLC v. Schofield Excavation, Inc., 2016 COA 158, reh'g denied (Nov. 23, 2016) decision. Effectively, in these decisions, the Colorado Court of Appeals determined that third-party claims could not be brought beyond Colorado’s six-year statute of repose, regardless if they were brought within the ninety day tolling provision set forth in 104(1)(b)(II).
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Jean Meyer, Higgins, Hopkins, McLain & Roswell, LLCMr. Meyer may be contacted at
meyer@hhmrlaw.com
Study Finds Mansion Tax Reduced Sales in New York and New Jersey
May 13, 2014 —
Beverley BevenFlorez-CDJ STAFFA study by two Columbia University economists demonstrated that “the extra 1% ‘mansion’ tax New York state and New Jersey impose on home sales above $1 million actually reduce[d] the number of total real estate transactions, in addition” it pushed “home sales that might have taken place for above $1 million to below that threshold,” Forbes reported.
The “mansion” tax only occurs when the residential sale is above $1 million, “meaning a buyer who pays $999,999 for a house, condo or coop would owe no mansion tax.”
The study showed a “dramatic” gap “in sales of homes for between $1 million and $1,040,000 (with more sales missing in that range than bunched just below $1 million).” The economists’ concluded that “the mansion tax causes an ‘unraveling’ effect, actually disrupting some sales of properties that would otherwise have taken place.”
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Employees in Construction Industry Entitled to Compensation for Time Spent Complying with Employer-Mandated Security Protocols
August 19, 2024 —
Garret Murai - California Construction Law BlogWage and hour laws dictating how employers must compensate their employees for time worked can, given the innumerable ways that employees perform their jobs, raise a number of questions. The next case, Huerta v. CSI Electrical Contractors, 15 Cal.5th 908 (2024) – which I won’t spend a lot of time discussing since I think it applies in somewhat limited situations – addresses whether employees are entitled to be paid while waiting to enter and exit worksites and for meal periods when they are not allowed to exit a worksite.
The Huerta Case
The 9th Circuit Court of Appeals requested that the California Supreme Court address three questions related to whether employees should be compensated under California wage and hour laws for time spent waiting to enter and exit worksites and for meal periods when they are not allowed to exit a worksite:
- Whether employees should be paid for time spent waiting in a personal vehicle to be scanned in and out of a worksite;
- Whether employees should be paid for time spent traveling in a personal vehicle from a security gate to employee parking lots; and
- Whether employees should be paid during meal periods if they are not permitted to leave a worksite.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Builder’s Be Wary of Insurance Policies that Provide No Coverage for Building: Mt. Hawley Ins. Co v. Creek Side at Parker HOA
July 31, 2013 —
Brady Iandiorio, Higgins, Hopkins, McLain & Roswell, LLCOn the heels of a recent order regarding coverage under a Comprehensive General Insurance policy issued by Mt. Hawley Insurance Company (“Mt. Hawley”), builders should be very wary of CGL policies providing no coverage for property damage.
On January 8, 2013, District Court Judge R. Brooke Jackson granted a motion for declaratory judgment filed by Mt. Hawley. The order states that the subject insurance policies issued by Mt. Hawley to Mountain View Homes II, LLC (“MV Homes”), the builder developer of the Creek Side at Parker development (the “Project”), did not provide coverage for any of the work performed by MV Homes or its subcontractors on the Project.
MV Homes originally began construction on the Project in 2002 and completed construction in 2005. MV Homes was insured by National Fire and Marine Insurance Company (“National Fire”) and Mt. Hawley. In December 2008, Creek Side at Parker Homeowners Association, Inc. (“the HOA”) served notice on MV Homes. The HOA then instituted a construction defect lawsuit on June 1, 2009 against MV Homes and others. MV Homes initially demanded a defense and indemnity from National Fire, which provided a defense. Then, after two years, MV Homes demanded a defense and indemnity from Mt. Hawley in July 2011. Mt. Hawley denied coverage and did not provide a defense. The case was settled soon after, and National Fire reserved or assigned claims against Mt. Hawley.
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Brady IandiorioBrady Iandiorio can be contacted at
Iandiorio@hhmrlaw.com
Minimum Wage on Federal Construction Projects is $10.10
November 26, 2014 —
Craig Martin – Construction Contractor AdvisorThe Department of Labor issued its final regulations to implement President Obama’s Executive Order raising the minimum wage to $10.10 per hour for workers on federal construction projects. The new minimum wage will not be effective until January 1, 2015, and will apply to most workers and most federal projects.
Covered Contracts
Executive Order 13658 applies to four major categories of contractual agreements:
- procurement contracts for construction covered by the Davis-Bacon Act (DBA) that exceed $2,000;
- service contracts covered by the Service Contract Act (SCA) that exceed $2,500;
- concessions contracts, including any concessions contract excluded from the SCA by the Department of Labor’s regulations at 29 CFR 4.133(b); and
- contracts in connection with Federal property or lands and related to offering services for Federal employees, their dependents, or the general public.
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Craig Martin, Lamson, Dugan and Murray, LLPMr. Martin may be contacted at
cmartin@ldmlaw.com
Idaho Construction Executive Found Guilty of Fraud and Tax Evasion
October 01, 2013 —
CDJ STAFFA former president of the Associated General Contractors in Idaho has been found guilty of attempting to defraud the U.S. Government. Elaine Martin filed false income taxes, allowing her to participate in a program that helped economically and socially disadvantaged businesses. Ms. Martin has convicted on both the fraud tax evasion charges.
Ms. Martin’s business partner, Darrell Swigert, has also been convicted. He was found guilty of obstruction of justice. Mr. Swigert helped Ms. Martin conceal the extent of her income.
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The National Building Museum’s A-Mazing Showpiece
July 09, 2014 —
Beverley BevenFlorez-CDJ STAFFThe “massive maze” designed by the Bjarke Ingels Group (BIG) is now open at the National Building Museum in Washington D.C., reported Architect Magazine. The roughly 60-foot square maze reaches about 18 feet, but the “walls slope in toward the center, allowing visitors to see more of the maze as they move through it.” When you reach the center, you get a complete overview of the maze.
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