Pennsylvania Supreme Court Rules in Builder’s Implied Warranty of Habitability Case
September 03, 2014 —
Beverley BevenFlorez-CDJ STAFFAccording to an article in JD Supra Business Advisor (written by Mark S. DePillis, Carl G. Roberts, Benjamin M. Schmidt, and Matthew White of Ballard Spahr LLP), “The Pennsylvania Supreme Court ruled that a builder’s implied warranty of habitability extends only to the initial buyer of a home, and not to subsequent purchasers.” This reversed an earlier ruling in Conway v. The Cutler Group, Inc. “that created more expansive liability for home builders.”
DePillis, Roberts, Schmidt, and White suggested that “builders should monitor possible future legislation addressing the public policy issues that the Supreme Court identified as falling squarely within the legislature’s domain.”
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Cutting the Salt Out: Tips for Avoiding Union Salting Charges
January 10, 2018 —
Wally Zimolong - Zimolong LLCThe strategy to avoid union salts is rather simple. But, simplicity does not mean easy. The process requires discipline. A salt is a paid union organizer that attempts to gain employment with a non-union employer for the purpose of either (a) organizing the employers workforce or (b) bringing a costly unfair labor practice charge for discriminatory hiring practices.
A “covert salt” is someone who conceals his union affiliation in order to gain employment with a non-union employer for the purpose of starting a union organizing campaign. Actually, conceal is an understatement. Covert salts actively lie to gain employment with a non-union employer. Covert salts apply for jobs under false names, social security numbers, and use bogus resumes.
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Wally Zimolong, Zimolong LLCMr. Zimolong may be contacted at
wally@zimolonglaw.com
Factories Boost U.S. Output as Builders Gain Confidence: Economy
June 18, 2014 —
Victoria Stilwell – BloombergAmerican manufacturers are churning out more goods and homebuilders are regaining confidence as evidence mounts that the world’s largest economy is making a comeback after a slow start to 2014.
Output at factories, mines and utilities rose 0.6 percent in May, reflecting gains at makers of automobiles, business equipment and construction supplies, according to Federal Reserve data today in Washington. Builder sentiment this month jumped by the most in almost a year, another report showed.
Improving consumer and business spending means assembly lines will probably remain busy in the second half of the year, giving growth a boost after the expansion sputtered in the first quarter. The reports, which came as the International Monetary Fund cut its 2014 forecast for the U.S., give Fed policy makers meeting this week reason to continue trimming stimulus at a measured pace to ensure the rebound is sustained.
“We’re back on track,” said Michael Feroli, chief U.S. economist at JPMorgan Chase & Co. in New York, and the second-best production forecaster over the last two years, according to data compiled by Bloomberg. “Everything is growing at a pretty good clip.”
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Victoria Stilwell, BloombergMs. Stilwell may be contacted at
vstilwell1@bloomberg.net
Build Me A Building As Fast As You Can
March 15, 2021 —
Jodi Stein & Jennifer Dickson - Sheppard Mullin Construction & Infrastructure Law BlogNot your average game of patty-cake! Earlier this week, New York’s First Department, Appellate Division issued its decision related to 200 Amsterdam,[1] overturning the lower court’s decision which would have required 200 Amsterdam to remove several floors of its building in order to comply with zoning. The lower court determined that the NYC Zoning Resolution did not permit a developer to utilize a portion of a tax lot to merge with a neighboring zoning lot.
Known as the “gerrymandered zoning lot,” the developer of 200 Amsterdam included portions of neighboring tax lots in its zoning lot in order to transfer air rights from those portions of tax lots to be utilized in 200 Amsterdam’s 55-story development. The inclusion of partial tax lots in a zoning lot is not expressly discussed in the NYC Zoning Resolution, but was permitted by a 1978 Department of Buildings memo. While challenges to 200 Amsterdam started in 2017, the developer moved forward with the construction of its development under lawfully issued building permits.
Reprinted courtesy of
Jodi Stein, Sheppard Mullin and
Jennifer Dickson, Sheppard Mullin
Ms. Stein may be contacted at jstein@sheppardmullin.com
Ms. Dickson may be contacted at jdickson@sheppardmullin.com
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Embracing Generative Risk Mitigation in Construction
February 12, 2024 —
Georgia Stillwell - Construction ExecutiveProject delays have long plagued the construction industry, with risk often identified as the primary culprit. However, finding effective solutions to mitigate risk on complex projects has remained daunting. Traditional methods for simulating risk primarily focus on extending project timelines, overlooking the diverse range of opportunities available for risk mitigation. With the construction industry’s digital transformation, generative methodologies have emerged to handle complex decision-making in uncertain situations. This article aims to shed light on the limitations of existing risk modeling and introduce a novel approach known as generative risk mitigation to enhance decision-making under deep uncertainty.
According to McKinsey, 98% of megaprojects experience cost overruns exceeding 30%. Project delays have become so pervasive that the industry has grown accustomed to them. For example, in 2022, the UK government issued ‘
The Green Book,’ which requires contingency funds in projects, such as a 44% contingency budget for standard civil projects. This implies that for a $100 million project, you should allocate $144 million to manage expected risks. There is no denying significant academic literature on the root cause of these delays: it is ‘risk,’ and there is an entire industry based on it.
Conversations with project directors and risk experts reveal the same issue, different project. And that issue is that we cannot easily forecast risk, qualify the impacts or fully understand the opportunities that exist to mitigate risks and make timely decisions. A method that will finally help us overcome this has emerged within the industry.
Reprinted courtesy of
Georgia Stillwell, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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California Senator Proposes Bill to Require Contractors to Report Construction Defect Cases
January 04, 2018 —
David Suggs - Bert L. Howe & Associates, Inc.According to Renne Schiavone’s of Patch.com in her article “Sen. Hill Wants Contractors to Report Construction Defect Cases”, Senator Jerry Hill of San Mateo County proposed a bill on December 21st, 2017 requiring construction defect settlements to be reported by contractors to the licensing board. This proposal comes after the tragic incident that took place back on June 16, 2015 during which a balcony on the fifth floor of a Berkeley apartment complex collapsed. This resulted in the death of six students and serious injuries for an additional seven individuals.
An investigation revealed that three years prior to the balcony collapse, Segue Construction, who built the apartment complex, had paid $26.5 million in construction defect lawsuit settlements. Since the law doesn’t require these settlements to be reported by contractors, the Contractors State License Board (CSLB) wasn’t aware of the case.
"Working together we can take even stronger steps to protect the public by ensuring that this critically important data is accessible to the Contractors State License Board," said Senator Hill. Senate Bill 465 will aim to protect consumers with more regulation and transparency. Senator Hill is also working on Senate Bill 721 which would require periodic condo and apartment building inspections of exterior elevated walking surfaces, stairwells, and balconies.
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Hail Drives Construction Spending in Amarillo
October 25, 2013 —
CDJ STAFFAmarillo had a hailstorm in May and it’s still having an effect on the construction industry there. Prior to the May 28 hailstorm, the city issued 223 permits for roofing projects, worth a total of $1.9 million. But in the four months after the hailstorm, the city issued 13,696 roofing permits worth about $151.4. During the same nine months of 2012, the total was only $6.9 million.
The Amarillo Globe-News reports that there has been a slowing of residential roof work, but the commercial roofing is still going strong. Scott McDonald, an Amarillo building official told the paper that a commercial roof can exceed a million dollars. “The commercial aspect is much more complicated, and we’re just now getting started,” said Mr. McDonald.
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S&P 500 Little Changed on Home Sales Amid Quarterly Rally
July 01, 2014 —
Lu Wang and Jacob Barach – BloombergJune 30 (Bloomberg) --The Standard & Poor’s 500 Index was little changed, capping the longest string of quarterly gains since 1998, as a jump in pending home sales offset weaker-than-forecast manufacturing data.
D.R. Horton Inc. rallied 3.2 percent, leading gains among homebuilders. Yahoo! Inc. (YHOO) rose 2.6 percent after Piper Jaffray Cos. recommended buying the stock. MannKind Corp. jumped 9.6 percent as the maker of diabetes drugs rebounded from its worst week in two months. Allergan Inc. declined 2.7 percent following regulatory decisions on its drugs.
The S&P 500 fell less than 0.1 percent to 1,960.23 at 4 p.m. in New York. The equity benchmark gauge rose 4.7 percent for the quarter, a sixth consecutive advance. The Dow Jones Industrial Average lost 25.24 points, or 0.2 percent, to 16,826.60 today, trimming its quarterly advance to 2.2 percent. The Nasdaq Composite Index rose 0.2 percent, giving it a 5 percent increase for the three months.
Ms. Wang may be contacted at lwang8@bloomberg.net; Mr. Barach may be contacted at jbarach1@bloomberg.net
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Lu Wang and Jacob Barach, Bloomberg