FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Ensuring Arbitration in Construction Defect Claims

February 04, 2013 — CDJ STAFF
Jared E. Berg and John W. Mill of Sherman & Howard note that developers and general contractors would prefer that construction defect claims against them go to arbitration, instead of ending up in front of a jury. They say “there is a way to do this.” For the developer and general contractor, arbitration is “typically less costly and time consuming than litigation.” On the other side, home owner associations “tend to prefer litigation because the up-front costs of arbitration are greater and they would rather have their cases tried to a jury than a panel of arbitrators in the belief juries offer greater potential for high damage awards. In order to avoid arbitration, “HOAs have taken advantage of their statutory rights to amend declarations by instructing their members to approve amendments removing arbitration clauses. However, in a recent Colorado case, the developer had taken a precaution of including in the arbitration clauses that “they could not be removed from the declarations by amendment with the developer’s and general contractor’s consent.” The homeowners association had voted to remove these clauses, but the judge found that they could not do so. Berg and Mill give the advice to “include in the declaration’s arbitration clause a provision making your consent required to amend or nullify the arbitration provision,” adding that “courts will enforce this kind of consent provision.” Read the court decision
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Use of Dispute Review Boards in the Construction Process

December 27, 2021 — Sarah B. Biser - ConsensusDocs
Dispute Review Boards: Overview Problems, disagreements and claims arise in most large and complex construction projects regardless of the project delivery method. These disputes can and do delay and significantly increase the cost of the project. Dispute Review Boards, also known as Dispute Resolution Board, Dispute Board, Dispute Avoidance Board or DRB, are often found in large construction projects to assist the parties to minimize, resolve or avoid disputes and mitigate adverse impacts to projects. To date, over $270 billion worth of construction projects have used the dispute review board process to avoid numerous disputes and achieve significant savings.[1] Unlike mediation and arbitration, a DRB is convened at the very beginning of the project and conducts regular meetings and visits at the project site throughout, allowing the DRB to discuss, observe and monitor construction, progress and potential disputes. At these meetings, DRB members become familiar with many of the facts and acquaint themselves with the job site personnel. If a dispute is submitted to them, the panelists have a great deal of knowledge about the circumstances of the problem to aid them in reaching their recommendations or conclusions. DRBs also encourage open and honest communications among or between the parties during the project, which in turn, encourages avoidance or resolution of disputes before they become formal claims. In short, the DRP process involves real-time discussion of the dispute with highly qualified people who know the particular project from day one and can provide recommendations on how to resolve disputes. Read the court decision
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Reprinted courtesy of Sarah B. Biser, Fox Rothschild LLP
Ms. Biser may be contacted at sbiser@foxrothschild.com

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Don't Count On a Housing Slowdown to Improve Affordability

June 13, 2022 — Conor Sen - Bloomberg
As mortgage rates continue to rise, all eyes are fixed on the housing market for signs of a potential slowdown. But any slowdown that does materialize won't affect the industry equally because it isn't going to be about fundamental problems with the housing market. Rather, it will be the result of the Federal Reserve intentionally increasing borrowing costs to cool off inflation. The Fed's efforts are happening in the context of a supply-constrained market where homebuilders have been struggling to complete as many homes as they would like. Any negative impact of rising mortgage rates would be felt disproportionately where affordability problems already are the worst — high-cost coastal markets — and then in materials for the early part of the construction cycle, such as lumber. Understanding the nature of the housing challenge is important so that you aren’t tempted to compare the situation with past downturns. For now, at least, there is no broad industry downturn as we’ve seen before in oil and gas or the technology sector that would lead to the housing market suffering in places like Houston or the San Francisco Bay Area. Homeowners haven't taken on too much debt, and there's no inventory glut — quite the opposite, in fact — that would lead to a broad-based downturn. Read the court decision
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Reprinted courtesy of Conor Sen, Bloomberg

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Real Estate & Construction News Roundup (7/31/24) – International Homebuying Shrinks Commercial Real Estate Focus on Sustainability, and U.S. Banks Boost Provisions for Credit Losses

September 09, 2024 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
In our latest roundup, mortgage rates drop to lowest levels since March, hotel construction activity highest since February 2023, Biden administration calls for legislation regarding property owners, and more!

• International buyers bought 54,300 existing homes from April 2023 to March 2024 – a 36% drop from the year before. (Diana Olick, CNBC)
• The Biden administration called on Congress to pass legislation penalizing property owners for rent increases above a certain level as part of its plan to lower housing costs through a series of administrative actions. (Mary Salmonsen, Multifamily Dive)
• U.S. banks have boosted their provisions for credit losses as deteriorating commercial real estate (CRE) loans and high interest rates fuel fears of defaults. (Manya Saini, Niket Nishant and Matt Tracy, Reuters)

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Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team

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SFAA Commends U.S. Senate for Historic Bipartisan Infrastructure Bill

August 16, 2021 — The Surety & Fidelity Association of America
August 10, 2021 (WASHINGTON, DC) – The Surety & Fidelity Association of America (SFAA) commends the U.S. Senate for passing the historic, bipartisan Infrastructure Investment and Jobs Act. The $1.2 trillion deal will lay the foundation for extensive improvements in the nation’s roadways, bridges, railways, waterways and broadband access. “Investing in infrastructure will create millions of jobs across the country, growing our national and local economies in both the short and long term,” said SFAA president and CEO, Lee Covington. “The surety industry fully supports this investment and will continue to provide the essential protections necessary to support our country’s infrastructure needs through our suite of products and services.” SFAA also commends the inclusion of the Van Hollen 2354 amendment to the bill, accepted by a unanimous vote of 97-0. The amendment requires payment and performance bonds on all federally-financed infrastructure projects receiving loans and grants under the Transportation Infrastructure Finance and Innovation Act (TIFIA), protecting taxpayers’ dollars, ensuring project completion, protecting local small business contractors and workers, and promoting economic growth. The Surety & Fidelity Association of America (SFAA) is a trade association of more than 425 insurance companies that write 98 percent of surety and fidelity bonds in the U.S. SFAA is licensed as a rating or advisory organization in all states and it has been designated by state insurance departments as a statistical agent for the reporting of fidelity and surety experience. https://www.surety.org/ Read the court decision
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Seventh Circuit Remands “Waters of the United States” Case to Corps of Engineers to Determine Whether there is a “Significant Nexus”

July 10, 2018 — Anthony B. Cavender - Gravel2Gavel Construction & Real Estate Law Blog
On June 27, the U.S. Court of Appeals for the Seventh Circuit decided the case of Orchard Hill Building Co. v. U.S. Army Corps of Engineers. The Court of Appeals vacated the decision of the District Court granting the U.S. Army Corps of Engineers’ (Corps) motion for summary judgment dismissing the Orchard Hill Building Company’s (Orchard) complaint that the Corps’ jurisdictional determination erroneously found that the waters at issue were “jurisdictional waters” under the Clean Water Act (CWA) subject to the Corps’ jurisdiction. Acknowledging that the Corps and EPA had promulgated a new rule re-defining “waters of the United States” in 2015—which is now being challenged in the courts—the Court of Appeals noted that this case is controlled by the pre-2015 definition of “waters of the United States.” The Court of Appeals remanded the case to the Corps, directing it to determine if there was a significant nexus, as required. Read the court decision
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Reprinted courtesy of Anthony B. Cavender, Pillsbury Winthrop Shaw Pittman LLP
Mr. Cavender may be contacted at anthony.cavender@pillsburylaw.com

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North Miami Beach Rejects as Incomplete 2nd Engineering Inspection Report From Evacuated Condo

July 25, 2021 — Richard Korman - Engineering News-Record
North Miami Beach has rejected a new engineering inspection report provided by the Crestview Towers condominium association, keeping about 300 evacuated residents from returning to their apartments and raising new questions about engineering inspection reports in the aftermath of the Champlain Towers South collapse. Reprinted courtesy of Richard Korman, Engineering News-Record Mr. Korman may be contacted at kormanr@enr.com Read the full story... Read the court decision
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The Show Must Go On: Shuttered Venues Operators Grant Provides Lifeline for Live Music and Theater Venues

March 29, 2021 — David Rao - Snell & Wilmer Real Estate Litigation Blog
Although it’s been a tough twelve months for many live music venues, movie theaters, and performing arts organizations, help may finally be around the corner. On December 27, 2020, the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act was signed into law, creating a $15 billion fund for grants to shuttered venues to be administered by the Small Business Administration’s (“SBA”) Office of Disaster Assistance. The law states that Shuttered Venues Operator Grants (“SVOGs”) will be made available to the following entities and individuals:

1. Live venue operators or promoters;
2. Theatrical producers;
3. Live performing arts organization operators;
4. Relevant museum operators, zoos, and aquariums which meet specific criteria;
5. Movie theater operators;
6. Talent representatives; and
7. Each business entity owned by an eligible entity that also meets the eligibility requirements.

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Reprinted courtesy of David Rao, Snell & Wilmer
Mr. Rao may be contacted at drao@swlaw.com

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