Fairfield Connecticut Building Expert Directory

Deescalating Hyper Escalation

July 05, 2023 — Paul F. Williamson - Construction Executive
Recent years have seen the construction industry get hit by a perfect storm of rising costs, workforce shortages, delivery delays, supply-chain issues, inflation, interest-rate hikes and materials price escalation. The cost of construction has become more expensive, leaving all parties to grapple with the sufficiency of their risk-management strategies and the ramifications of contracts that are ill-equipped to deal with unprecedented cost increases. Of particular concern to industry participants are the volatile price fluctuations that construction materials have undergone and how to appropriately mitigate the risks they present. Although owners, general contractors and subcontractors may seek to mitigate future risks, many who are party to an existing contract all too often must scramble to divine how to absorb significantly more financial risk than they expected pre-pandemic. Contracts that were bid and entered into prior to the pandemic may have seen, in some instances, double- and triple-digit percent increases in prices due to hyper escalation, with little recourse to address such situations. While parties to private contracts are free to mitigate their risk through contract negotiations, parties to federal or state public procurements are somewhat more constrained. Reprinted courtesy of Paul F. Williamson, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Steel Component Plant Linked to West Virginia Governor Signs $1M Pollution Pact

January 04, 2023 — Mary B. Powers - Engineering News-Record
Bluestone Coke, a 100-year old Birmingham. Ala. factory that produces a key component in steelmaking and is partially owned by West Virginia Gov. Jim Justice, must pay nearly $1 million under a Dec. 9 state consent decree for violating federal clean air rules by releasing toxic emissions from coke ovens. Reprinted courtesy of Mary B. Powers, Engineering News-Record ENR may be contacted at enr@enr.com Read the full story... Read the court decision
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Pennsylvania Reconstruction Project Beset by Problems

October 15, 2014 — Beverley BevenFlorez-CDJ STAFF
The Pittsburgh Post-Gazette reported that “[t]he Penn Avenue reconstruction project in Garfield, described as ‘a comedy of errors’ by one neighborhood leader, remains months behind schedule and has gone well over budget.” The $4.7 million construction budget has increased “by at least $800,000,” according to the Pittsburgh post-Gazette. Problems included the underground utilities not on maps or mapped inaccurately, water lines breaking, and old streetcar tracks were discovered to have contaminated soil. Rick Swartz, executive director of the Bloomfield-Garfield Corp., told the Gazette that the project has been “plagued with problems and poor communication from the very start.” Read the court decision
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California Booms With FivePoint New Schools: Real Estate

May 13, 2014 — John Gittelsohn – Bloomberg
FivePoint Communities Management Inc. is already constructing a school at its Great Park Neighborhoods project in Irvine, California, for 1,000 elementary and middle school students even as it’s still building the first 700 homes. “We build the schools ahead of time,” said Emile Haddad, chief executive officer of Aliso Viejo, California-based FivePoint, which has permits for about 10,000 homes at Great Park. “That way we always have them ready.” Local schools, along with parks and recreation facilities, have long been draws for buyers in new communities. Now, as school districts face tight construction budgets and homebuilders compete to attract families able to qualify for mortgages, developers are taking the lead on school construction instead of waiting for local governments to do the job. Read the court decision
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Reprinted courtesy of John Gittelsohn, Bloomberg
Mr. Gittelsohn may be contacted at johngitt@bloomberg.net

Competitive Bidding Statute: When it Applies and When it Does Not

April 15, 2024 — Mason Fletcher - Ahlers Cressman & Sleight PLLC
The University of Washington (UW), a public university, aimed to secure a real estate developer for a new building on its campus. The proposal involved an 80-year ground lease (the “Lease”), and developers submitted bids. The selected developer would demolish an existing building, construct a new one, own it during the Lease at its own cost, and UW would lease back a portion, with ownership reverting to UW at the Lease’s end. Alexandria Real Equities, Inc. (ARE) was a finalist but ultimately was not selected, and the Lease was awarded to Wexford Science and Technology, LLC (Wexford). As a result, ARE filed suit against UW asserting three claims: 1) UW lacked authority to execute the Lease, 2) UW didn’t follow required competitive bidding procedures, and 3) UW’s developer selection process was arbitrary and capricious. None of these claims were successful and ARE appealed. Division II of the Washington Court of Appeals affirmed in Alexandria Real Estate Equities Inc. v. Univ. of Wash., __ Wn. App. __, 539 P.3d 54 (2023), a published decision. The Court concluded, based on the facts in that case, that because construction was not publicly funded, UW did not have to follow competitive bidding requirements that were laid out in a statute relevant to state universities. Still, the Court applied the “bright-line cutoff point” that prohibits disappointed bidders from challenging an award once a contract has been executed. See Dick Enterprises, Inc. v. Metro. King County, 83 Wn. App. 566, 572, 922 P.2d 184 (1996). Read the court decision
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Reprinted courtesy of Mason Fletcher, Ahlers Cressman & Sleight PLLC
Mr. Fletcher may be contacted at mason.fletcher@acslawyers.com

Atlanta Hawks Billionaire Owner Plans $5 Billion Downtown Transformation

May 01, 2023 — Brett Pulley & Eliza Ronalds-Hannon - Bloomberg
Tony Ressler, the billionaire co-founder of Ares Management and Atlanta Hawks owner, said he’s undeterred by the recent property downturn and is moving forward with his partners to transform downtown Atlanta by turning a vacant railyard into a $5 billion mix of hotels, restaurants and offices. Fears about the stability of commercial real estate aren’t affecting development of Centennial Yards, a 50-acre, gritty subterranean swath of land now under development by CIM Group, in which Ressler is an investor, he said in an interview. “We’re not worried about any of that,” Ressler said. “Higher or lower interest rates may change your rate of return but will not determine the success or failure of a project. For us, the project is funded and we’re full steam ahead.” Reprinted courtesy of Brett Pulley, Bloomberg and Eliza Ronalds-Hannon, Bloomberg Read the court decision
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Unlicensed Contractor Shoots for the Stars . . . Sputters on Takeoff

September 20, 2017 — Garret Murai - California Construction Law Blog
Elon Musk . . . Eccentric engineer. Technology billionaire. And, now, litigation bad ass. Frequent readers of the California Construction Law Blog know that we’ve talked about the importance of being properly licensed when doing construction work and the risks to you if you don’t. One California contractor recently found this out the hard way. In Phoenix Mechanical Pipeline, Inc. v. Space Exploration Technologies Corp., California Court of Appeals for the Second District, Case No. B269186 (June 13, 2017), contractor Phoenix Mechanical Pipeline, Inc. (Phoenix) lost its boosters . . . err britches . . when it sued Elon Musk’s Space Exploration Technologies Corp. (Space X) due to its failure to have a California contractor’s license. Read the court decision
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Reprinted courtesy of Garret Murai, Wendel Rosen Black & Dean LLP
Mr. Murai may be contacted at gmurai@wendel.com

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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