Canada Cooler Housing Market Boosts Poloz’s Soft Landing
April 15, 2014 —
Greg Quinn – BloombergDeclines in housing starts and building permits data suggest Canada is headed for the soft landing in real estate that policy makers have forecast, damping concern that a rapid fall in home prices could hobble the world’s 11th-largest economy.
Home construction dropped 18 percent in March to the lowest annual pace since the 2009 recession, Canada Mortgage & Housing Corp. said from Ottawa today. Residential building permits also dropped 21 percent in February from January’s record high, Statistics Canada said in a separate report.
Bank of Canada Governor Stephen Poloz has said the housing market is heading for a “soft landing” with consumer debts as a share of income stabilizing around record highs. The International Monetary Fund said today that house prices and household finances remain a “key vulnerability” for Canada.
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Greg Quinn, BloombergMr. Quinn may be contacted at
gquinn1@bloomberg.net
New Defendant Added to Morrison Bridge Decking Lawsuit
March 26, 2014 —
Beverley BevenFlorez-CDJ STAFFThe Morrison Bridge in Multnomah County, Oregon, has added a new company to their lawsuit regarding problems with the slip-resistant FRP decking, according to The Oregonian. The county has already named the installer, the supplier, and the manufacturer. Now, they have added Hardesty & Hanover, LLP, the company “that contracted with the decking manufacturer to provide engineering and design for the project.”
The Oregonian reported that “the county has identified a construction design professional who can testify that Hardesty & Hanover made errors that contributed to the Morrison Bridge's damage,” according to the amended complaint.
First, Conway construction (the deck installer) filed suit against the decking manufacturer and supplier. Then, the “county inserted itself into the suit last fall,” stated The Oregonian, and “is seeking more than $2 million to repair or replace the decking, plus damages.” A trial is scheduled for February 2015.
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Disruption: When Did It Start and Where Will It End?
June 25, 2019 —
Brian Gallagher - Construction ExecutiveIf change is the only constant—as was famously observed by a Greek philosopher circa 500 B.C.—then why single out some changes as “disruption”?
Disruption is about more than just technology; it’s about more, even, than the rapid rollout and development of technology in the past couple of decades. The word disruption refers to processes or products that are fundamentally different from what is currently in use and that render unforeseen, large-scale changes. Early discussions of disruption (the term was coined by Harvard Business School professor Clayton M. Christensen in a 1995 Harvard Business Review article) compared incremental change in existing systems, which are usually supported by established corporations, to innovations that start out as something completely fresh, limited in their appeal and flawed in initial iterations.
The construction industry was—and still is—late to adopt most technologies and late in experiencing overall disruption. It also lags behind other industries when it comes to efficiency and productivity. McKinsey reported that construction is one of the “least digitized industries in the world,” despite employing approximately 7% of the world’s working-age population and representing one of the world economy’s largest sectors. Disruption is likely to be fast approaching now, even for the construction industry. But its delay may confer the benefit of allowing construction companies to learn from other industries’ mistakes.
Reprinted courtesy of
Brian Gallagher, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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How to Drop a New Building on Top of an Old One
December 05, 2022 —
Kriston Capps - BloombergFaçadectomy. That’s the tongue-in-cheek term for a widely unloved architectural compromise that developers sometimes strike: saving the historic veneer of an existing building while demolishing and replacing its internal structure. Façade preservation is especially popular in Washington, DC, where a federal cap on the height of buildings and the strength of the preservationist cause locally makes the case for adapting existing structures, even at great expense.
Façadism is rarer where cheaper tear-downs are possible, but over the last 40 years, this trend hit its stride on the East Coast. Prominent examples include the Spanish Embassy in DC and the Penn Mutual tower in Philadelphia.
A new condo tower in Boston’s South End isn’t a typical façadectomy. The development at 100 Shawmut Avenue looks as if a glassy modern building had been plopped down on top of an old warehouse. According to Tom Schultz, associate for The Architectural Team, the Boston-area firm behind the project, the case for incorporating a six-story warehouse into a new residential project wasn’t merely aesthetic. The site and structure lent itself to building up.
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Kriston Capps, Bloomberg
Daily Reports – The Swiss Army Knife of Project Documentation
June 08, 2020 —
Christopher A. Henry - ConsensusDocsProject “Daily Reports” are some of the most important, yet overlooked aspects of a construction project. These reports serve many beneficial roles such as holding parties accountable to their obligations, providing the basis for an as-built schedule, recording manpower, documenting site conditions, and recording any other important and relevant information that happened on the job site that day. Daily reports can also provide information to help with claims or disputes that may arise in the future, such as noting weather delays, providing backup for future delay claims, and providing information to dispute claims made against your company. Finally, daily reports also serve as a useful communication tool during the project and a source of real time information for parties that want to know how the work is commencing on a day to day basis. Because daily reports are the “Swiss army knife” of project documentation, it is extremely important that a contractor puts for its best effort when creating them.
It is no secret that a construction project can become more chaotic as the schedule progresses. Unfortunately, when that is the case, the effort put into creating these reports drops off and sometimes the responsibility of creating such reports is thrown aside altogether. I can speak from experience. Prior to entering the practice of law, I was a project engineer for a general contractor in Atlanta. As an engineer in the field, one of my many responsibilities was to enter the daily reports. Based off this experience, below are some thoughts on how to prepare useful daily reports.
1. Check the contract. The contract you entered may set forth specific requirements for the daily reports, such as where to file them, the required format, and specific information that must be included. Complying with contractual requirements is necessary for a successful project. One word of caution for subcontractors, a subcontract will often incorporate the prime contract. If that is the case, be sure to check the prime contract for any specific language relating to daily reports.
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Christopher A. Henry, Jones Walker LLP Mr. Henry may be contacted at
chenry@joneswalker.com
Supreme Court of Idaho Rules That Substantial Compliance With the Notice and Opportunity to Repair Act Suffices to Bring Suit
July 31, 2018 —
Lian Skaf - The Subrogation StrategistIn Davison v. Debest Plumbing, Inc., 416 P.3d 943 (Ida. 2018), the Supreme Court of Idaho addressed the issue of whether plaintiffs who provided actual notice of a defective condition, but not written notice as stated in the Notice and Opportunity to Repair Act (NORA), Idaho Code §§ 6-2501 to 6-2504, et. seq., substantially complied with the act and if the plaintiffs’ notice was sufficient to bring suit. Section 6-2503 of the NORA states that, “[p]rior to commencing an action against a construction professional for a construction defect, the claimant shall serve written notice of claim on the construction professional. The notice of claim shall state that the claimant asserts a construction defect claim against the construction professional and shall describe the claim in reasonable detail sufficient to determine the general nature of the defect.” Any action not complying with this requirement should be dismissed without prejudice. The court held that the defendant’s actual notice of the defect was sufficient to satisfy the objectives of the NORA and, thus, the plaintiffs’ action complied with the NORA.
In Davison, Scott and Anne Davison hired general contractor Gould Custom Builders (Gould) to remodel a vacation home in McCall, Idaho. Gould subcontracted out the plumbing work to Debest Plumbing (Debest). This work included installing a bathtub. When the Davisons arrived at their home for the first time on July 25, 2013, they noticed a leak from the subject bathtub. The Davisons contacted Gould and, the next morning, Gil Gould arrived with a Debest employee to inspect the home. In addition to inspecting the home, the Debest employee repaired the leak and helped Gould remove some water-damaged material.
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Lian Skaf, White and Williams, LLPMr. Skaf may be contacted at
skafl@whiteandwilliams.com
Can I Record a Lis Pendens in Arizona if the Lawsuit is filed Another Jurisdiction?
September 26, 2022 —
Ben Reeves - Snell & Wilmer Real Estate Litigation BlogRecent research I did on a case led me to the conclusion that Arizona law recognizes foreign litigation (i.e., a lawsuit filed outside of Arizona) as a justification for the recording of a lis pendens against real property located within Arizona. See
TWE Retirement Fund Trust v. Ream, 198 Ariz. 268 (Ct. App. 2000). Apparently, there’s some debate about whether foreign litigation can support a local lis pendens. See
Boca Petroco, Inc. v. Petroleum Realty II, 285 Ga. 487 (Ga. 2009). As noted in the TWE case, Arizona’s lis pendens statute
(A.R.S. 12-1191) does not discriminate between local or foreign “actions.” As such, if litigation is pending anywhere that affects Arizona real property, a lis pendens can (and probably should) be filed.
Reprinted courtesy of
Ben Reeves, Snell & Wilmer
Mr. Reeves may be contacted at breeves@swlaw.com
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Standard of Care
December 16, 2019 —
Jay Gregory - Gordon & Rees Construction Law BlogOne of the key concepts at the heart of Board complaints and civil claims against a design professional is whether or not that design professional complied with the applicable standard of care. In order to prevail on such a claim, the claimant must establish (typically with the aid of expert testimony) that the design professional deviated from the standard of care. On the other side of the coin, to defend a design professional against a professional malpractice claim, defense counsel attempts to establish that – contrary to the claimant’s allegations – the design professional, in fact, complied with the standard of care. Obviously, it becomes very important in such a claim situation to determine what the standard of care is that applies to the conduct of the defendant design professional. Often, this is easier said than done. There is no dictionary definition or handy guidebook that identifies the precise standard of care that applies in any given situation. The “standard of care” is a concept and, as such, is flexible and open to interpretation. Traditionally, the standard of care is expressed as being that level of service or competence generally employed by average or prudent practitioners under the same or similar circumstances at the same time and in the same locale. In other words, to meet the standard of care a design professional must generally follow the pack; he or she need not be perfect, exemplary, outstanding, or even superior – it is sufficient merely for the designer to do that which a reasonably prudent practitioner would do under similar circumstances. The negative or reverse definition also applies, to meet the standard of care, a practitioner must refrain from doing what a reasonably prudent practitioner would have refrained from doing.
Although we have this ready definition of the standard of care, in any given dispute it is practically inevitable that the parties will have markedly different opinions as to: (1) what the standard of care required of the designer; and (2) whether the defendant design professional complied with that requirement. The claimant bringing a claim against a design professional typically will be able to find an expert reasonably qualified (at least on paper) who will offer an opinion that the defendant failed to comply with the standard of care. It is just as likely that the counsel for the defendant design professional will be able to find his or her own expert who will counter the opinion of the claimant’s expert and maintain that the defendant design professional, in fact, complied with the standard of care. What’s a jury to think?
The concept of standard of care is intertwined with the legal concept of negligence. In the vast majority of law suits against design professionals, a claimant (known as the plaintiff) will assert a claim for negligence against the design professional now known as the defendant.1 As every first year law student learns while studying the field of “Torts,” negligence has four subparts. In order for a defendant to be found negligent, the claimant must establish four elements: (1) duty; (2) breach; (3) causation; and (4) damages. In other words, to establish a claim against a defendant design professional, a plaintiff must demonstrate that the defendant owed the plaintiff a duty of care but breached that duty and, as a result, caused the plaintiff to suffer damages.
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Jay Gregory, Gordon & Rees Scully MansukhaniMr. Gregory may be contacted at
jgregory@grsm.com