Ackman Group Pays $91.5 Million for Condo at NYC’s One57
April 15, 2015 —
David M. Levitt and Oshrat Carmiel – BloombergA group including billionaire investor Bill Ackman paid $91.5 million for a duplex penthouse at Extell Development Co.’s One57 condominium tower, one of New York City’s most expensive home purchases ever.
The purchase of unit 75 in the luxury skyscraper overlooking Central Park closed on March 27, according to property records filed Thursday. The buyer was listed as 57157 Co. LLC, a single-purpose entity that Ackman controls.
The 13,554-square-foot (1,259-square-meter), six-bedroom home spans the 75th and 76th floors of the 90-story skyscraper. Ackman last year told the New York Times it was “the Mona Lisa of apartments.” Monthly common charges on the unit were estimated at $23,595, according to documents Extell filed with the state attorney general’s office.
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David M. Levitt, Bloomberg and
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The Word “Estimate” in a Contract Matters as to a Completion Date
February 12, 2024 —
David Adelstein - Florida Construction Legal UpdatesLanguage in a contract matters. The word “estimates” or “estimated” matters particularly when it comes to a date certain such as a substantial completion or completion date. Remember this.
Here is an example.
In Parque Towers Developers, LLC v. Pilac Management, Ltd., 49 Fla.L.Weekly D190a (Fla. 3d DCA 2024), a trial court held that the developer did not complete the construction of five condominium units by the date in the purchase agreements. The developer appealed because “[t]he agreements contain no date certain for the completion of the units, but rather include a clause that ‘Seller estimates it will substantially complete construction of the Unit, in the manner specified in this Agreement, by December 31, 2017, subject to extensions resulting from ‘Force Majeure (the ‘Outside Date’).’” Parque Towers, supra. Another provision in the purchase agreements stated, “[w]henver this Agreement requires Seller to complete or substantially complete any item of construction, that item will be understood to be complete or substantially complete when so completed or substantially completed in Seller’s opinion. Id.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Bad Welds Doom Art Installation at Central Park
October 30, 2013 —
CDJ STAFFLast year, the sculpture “How I Roll” was supposed to be doing its rolling at Central Park from June through August of last year, but the exhibit was taken down a month early, over concerns that the welding had rendered the moving piece “structurally unsound and unsafe.” Now the Public Art Fund is suing the company hired to do the welding.
Titon Builders of Lake Park, Florida was supposed to do the welding, but they subcontracted the work to Tru-Steel Corp. of Fort Pierce, Florida. The Public Art Fund is claiming that Titon’s contract obligated them to do the fabrication, not subcontract it. Jeffrey Klein, a lawyer for the Public Art Fund, said, “it’s sad that it had to be taken down because of shoddy workmanship.”
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Notice and Claims Provisions In Contracts Matter…A Lot
February 27, 2023 —
David Adelstein - Florida Construction Legal UpdatesTechnical contractual provisions in contracts can carry the day. Whether you like it or not, and whether you appreciate the significance of the provisions, they matter. Notice provisions in a contract mean something. Following the claims procedure in a contract means something. The moment you think they don’t mean anything is the moment they will be thrown in your face and used as a basis to deny your position for additional money or time. You may think these provisions are being used as a “gotcha” tactic. They very well might be. But these are provisions included in the contract you agreed to so you know this risk before any basis for additional money or time even arises.
The recent bench trial opinion in Metalizing Technical Services, LLC v. Berkshire Hathaway Specialty Ins. Co., 2023 WL 385413 (S.D.Fla. 2023) illustrates the reality of not properly complying with such provisions. The keys when dealing with any notice or claims provision, or really any technical provision in your contract, is to (a) negotiate the risk before you sign the contract, (b) chart the provisions so your team know how to ensure compliance, and (c) make sure you comply with them. Period!
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Tall Mass Timber Buildings Now Possible Under 2021 IBC Code Changes
February 03, 2020 —
Kenneth Bland - Construction ExecutiveThe International Code Council (ICC) has approved 17 changes to the 2021 editions of the International Building Code (IBC) and International Fire Code, allowing for mass timber buildings up to 18 stories. With the addition of three new mass timber construction types (Type IV-A, IV-B, and IV-C), this is the first time in the history of the modern building code that significantly new construction types have been added to the code.
Building Materials
The primary building material that makes tall mass timber (TMT) buildings possible is cross-laminated timber (CLT). CLT is manufactured from dimension lumber (nominal 2x lumber) laid side-by-side or mass plywood panels of a specified width. Laminations of lumber are typically laid perpendicular to each other to form panels of various thicknesses that are bonded together using heat resistant adhesives that cure in large hydraulic presses. CLT commonly consists of an odd number of laminations.
These solid wood panels can be anywhere from 6 inches to 20 inches nominal thickness and 60 feet long. Typical CLT panels will be 6 inches to 14 inches nominal thickness. The panels are fabricated off site, transported onto the construction site and assembled in a manner that is efficient and remarkably fast. CLT panels can be used as floor, wall, or roof building elements supported by glued-laminated beams and columns.
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Kenneth Bland, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Construction Executives Should Be Dusting Off Employee Handbooks
January 03, 2022 —
Adam E. Richards & Andrew Zelman - Construction ExecutiveFor most businesses—large and small—the importance of maintaining and updating an employee handbook that sets forth a uniform set of company policies cannot be understated. The construction industry, which is seemingly plagued by a never-ending labor shortage, necessitating construction executives having to grapple with pandemic-related workplace issues and challenges, is not exempt from the benefits of a thorough, well-formed handbook.
The employee handbook should be a window into the soul of a business. Even though annual updates are appropriate, they seldom occur. To say a lot has happened over the last few years barely begins to scratch the surface. Particularly, during the COVID-19 pandemic, construction executives and human resources professionals within construction-related businesses throughout the country have been forced to evaluate business models, values and cultures in furtherance of deciding where and how to evolve.
Once those decisions are made, the employee handbook is deserving of time and attention. Reflecting the evolution of your construction business is only part of the overall plan; however, demonstrating compliance with new laws is equally important.
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Adam E. Richards & Andrew Zelman, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Harmon Hotel Construction Defect Update
July 18, 2011 —
CDJ STAFFCoverage of the ongoing litigation concerning the Harmon Hotel continues to proliferate. Architectural Record and a number of other news outlets continue to provide additional details and coverage of the matter. Chief among the conditions alleged are improperly installed reinforcing steel inside link beams on 15 floors. MGM Claims that the conditions amount to hundreds of millions of dollars in damages, while Perini (the builder) indicated in a July 12th statement that the buildings problems are related to the design, and the they are “fixable.”
There is significant speculation that MGM Resorts International isn’t interested in repairing the hotel due to a glut of hotel rooms attendant to the troubled economy. In a statement Tuesday Perini reportedly stated that “Repairing and opening the Harmon would only create a greater glut of unused hotel rooms for MGM,” “If market conditions were better and MGM found that demand existed for the Harmon hotel rooms, MGM would not be claiming that the Harmon is unstable.”
MGM asserts that Perini failed to ”properly construct” the project. Clark County’s Department of Development Services has reportedly asked MGM to provide a plan to fix the project by August 15th.
The Harmon is part of the $8.5 billion CityCenter project that opened in the fourth quarter of 2009 and is jointly owned by MGM Resorts and Dubai World.
Prior reports indicated that the owner (MGM) had considered razing the entire project. The future of the project remains uncertain.
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“A No-Lose Proposition?”
October 07, 2024 —
Daniel Lund III - LexologyA Miller Act payment bond surety and its principal general contractor both sued in federal court in New Orleans by a project subcontractor sought to compel arbitration the claims against both contractor and surety based on an indisputably enforceable arbitration clause in the subcontract. This was urged to avoid separate actions against the contractor (arbitration) and its surety (litigation), even though the surety was not a party to the subcontract and, therefore, not a party to the arbitration clause.
In the face of the lack of an express agreement to arbitrate, the contractor and contractor argued that “no federal statute or policy prohibits all of Plaintiff’s claims from proceeding to arbitration….” Additionally, those parties urged that the surety should be allowed to affirmatively compel arbitration because the surety “would otherwise have the ability to assert the right to compel arbitration as a defense….”
The New Orleans federal district court was unpersuaded:
“[D]istrict courts within this circuit have recognized that ‘Miller Act claims by a subcontractor for unpaid labor and materials are separate and distinct from those for general breach of contract… [and] arbitration and Miller Act suits, are not, per se, inconsistent with one another.’…[A]bsent express contractual intent to subject Miller Act claims to arbitration, the court [will] not force the parties to arbitrate claims against nonparties to the contract at issue…. [C]laims against a surety, which was a non-signatory to the contract, would not be subject to arbitration without any contractual basis to do so.”
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Daniel Lund III, PhelpsMr. Lund may be contacted at
daniel.lund@phelps.com