Broken Buildings: Legal Rights and Remedies in the Wake of a Collapse
October 11, 2021 —
David J. Pfeffer - Construction ExecutiveA tragedy transpired on June 24 in Surfside, Florida, when the Champlain Towers South suddenly fell, becoming one of the country’s most deadly unintentional building collapses. It is imperative that construction industry professionals be aware of the legal issues that are raised by such ill-fated events.
Who Is Held Responsible?
Who can be held responsible for such disasters lies among several possible parties:
- The building’s design professionals, particularly its architects and structural engineers. They are charged with ensuring that the building’s design is safe. They must take many factors into account, including, but not limited to, the materials that are used, the foundation, the weight and the height.
- General contractors and the subcontractors. General contractors implement the design created by the architects and engineers and are responsible for appropriate materials. The general contractor also supervises the subcontractors aiding with multiple areas of the building’s construction and which also share the responsibility of executing the design and maintaining the building’s structural integrity.
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David J. Pfeffer, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Mr. Pfeffer may be contacted at
dpfeffer@tarterkrinsky.com
DC Circuit Approves, with Some Misgivings, FERC’s Approval of the Atlantic Sunrise Natural Gas Pipeline Extension
December 02, 2019 —
Anthony B. Cavender - Gravel2GavelThe U.S. Court of Appeals for the DC Circuit decided the case of Allegheny Defense Project, et al. v. Federal Energy Regulatory Commission on August 2, 2019. In a Per Curiam opinion, the court denied petitions challenging the Commission’s orders permitting the Transcontinental Gas Pipe Line Company’s expansion of an existing natural gas pipeline which extends from northern Pennsylvania across the Carolinas into Alabama. The expansion is called the “Atlantic Sunrise Project.” In February 2017, FERC approved the expansion, and denied various petitions, filed by environmental organizations and affected landowners, who then challenged the decision in the DC Circuit. However, the court concluded, on the basis of the administrative record, that these challenges “cannot surmount the deferential standards of agency review and binding DC Circuit precedent.” Under the law, the Commission must consider whether the projected pipeline project meets a market need, and whether the public benefits outweigh the harms. If both criteria are satisfied, FERC will, as in this instance, issue a certificate authorizing the pipeline’s construction, and that certificate also empowers the certificate holder to exercise eminent domain authority under to the Natural Gas Act when necessary. It was the latter consequence of the FERC’s determinations that caused several Pennsylvania landowners to file their objections with the Commission and seek to stay construction.
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Anthony B. Cavender, PillsburyMr. Cavender may be contacted at
anthony.cavender@pillsburylaw.com
Infrastructure Money Comes With Labor Law Strings Attached
July 25, 2022 —
Cheryl Behymer, Patrick M. Dalin & Collin Cook - Construction ExecutiveThe federal government has committed to spending $1 trillion under the Infrastructure Investment and Jobs Act on nationwide construction, alteration and repair projects. Billions of dollars have already been deployed on projects to improve highways, bridges, airports, electrical infrastructure and drinking water distribution, and the government is poised to spend the remaining funds on a massive infrastructure build-out over the next five years. While federal government contracts may provide a lucrative and reliable stream of revenue for construction companies, contractors must be prepared to comply with special requirements, particularly under the labor and employment laws enforced by the U.S. Department of Labor (USDOL).
1. The Davis Bacon Act Requires Payment of Prevailing Wages and Fringe Benefits
The Davis Bacon Act (DBA) applies to most federally funded and federally assisted projects for construction, alteration or repair work. This law requires all contractors and subcontractors on a covered project to pay all “laborers or mechanics” the wages and fringe benefits that “prevail” in the locality where the work is being performed. The USDOL determines what the prevailing wages and fringe benefits are for each trade and publishes them in wage determinations that should be issued to all contractors on the project.
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Cheryl Behymer, Patrick M. Dalin & Collin Cook, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Joint Venture Dispute Over Profits
January 27, 2020 —
David R. Cook - AHC Construction and Procurement BlogA recent Georgia Court of Appeals case demonstrates the risk of joint ventures failing to carefully define accounting rules in their joint venture agreement. Two trade contractors teamed up to accomplish certain tasks on a job at a wastewater lift station at Fort Gordon. A joint venture agreement provided for an equal split of the profits and losses. Unfortunately, the parties did not define “profit,” and particularly did not define what cost would be deducted in calculating profit. They disputed in particular whether certain large payments to individuals and 15% overhead charges should be deducted in calculating profits.
One party presented the expert testimony of an accountant while the other did not. The party presenting expert testimony asked the court to dismiss the other party’s claim because it was not supported by expert testimony of an accountant. The trial court granted the motion and dismissed the claim.
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David R. Cook, Autry, Hall & Cook, LLPMr. Cook may be contacted at
cook@ahclaw.com
Deadlines. . . They’re Important. Project Owner Risks Losing Claim By Failing to Timely Identify “Doe” Defendant
December 21, 2020 —
Garret Murai - California Construction Law BlogEarlier this year I filed a complaint in a court which I won’t identify other than to say that it wasn’t the San Francisco Superior Court. Immediately upon filing the complaint the Court gave notice of a trial date. As counsel for the party bringing the action, I appreciate this, as it eliminates the back and forth jostling that can sometimes occur when trying to get a trial date.
Here’s the kicker though. While I appreciate getting a trial date straight out of the gate. The date I got was . . . wait for it . . . not until 2022!
Those who litigate in California state courts know that the courts are understaffed and overworked. But you’ve got to give this un-named court credit for being upfront. Forget the “well, let’s see where this goes” niceties. Trial within a year? Fugetaboutit. Trial within a year and a half. Don’t even think about it. Trial within two years. It’s about as good as you’re going to get.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Appraisal Process Analyzed
August 19, 2015 —
Tred R. Eyerly – Insurance Law HawaiiThe California Court of Appeal offered a primer in the appraisal process in reversing the trial court's confirmation of the appraisal award. Lee v. California Capital Ins. Co., 2015 Cal. App. LEXIS 530 (Cal. Ct. App. June 18, 2015).
A fire damaged an apartment building owned by the insured. The fire started in unit 3 on the ground floor. The insurer argued the fire did not extend beyond unit 3. The insured claimed that the fire damaged six of the 12 apartments with fire or smoke.
The insured's public adjuster submitted a claim to the insurer that exceeded $800,000. The statement of loss included costs for cleaning, asbestos abatement, reconstruction of affected apartments, and loss of rent. The public adjuster said the loss consisted of burn damage to unit 3 and some damage to the "common" walls located between the apartments on the two floors above unit 3. All of the interior rooms of five apartments other than unit 3 would need to be completely dismantled and then replaced.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Good News on Prices for Some Construction Materials
June 28, 2021 —
ABC - Construction ExecutiveThe elevated price of softwood lumber, a major talking point during much of the pandemic, appears to have peaked in early May at more than $1,700 per thousand board feet. As of June 23, the price has fallen below $900 per board feet, down about 49% in less than two months.
That’s still an unusually lofty price by historic standards—prices remain almost twice as high as in February 2020—but the trend is very much in the right direction. Builders that had been hoarding lumber have now begun to sell from their own inventory, other builders have delayed lumber purchases in anticipation of lower prices and sawmill operators have been adding shifts, as well as expanding capacity, all of which puts downward pressure on prices.
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ABC, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Neighbors Fight to Halt Construction after Asbestos found on Property
October 15, 2014 —
Beverley BevenFlorez-CDJ STAFFSI Live reported that residents spoke out at the Staten Island, New York community board meeting to try to halt “construction taking place at former Mount Manresa Jesuit Retreat House property in Fort Wadsworth.” Barbara Sanchez, secretary of the Committee to Save Mount Manresa, stated that halting the construction is urgent now that asbestos has been discovered on the property.
"We want a full stop-work order ... Everything being done around those buildings is being blown into our homes,” Sanchez said in the meeting, according to SI Live. “So I want testing for ... everything touched by the asbestos -- and our homes, before the work continues at Mount Manresa!"
Jeanna Massimi, a resident of Fort Wadsworth, stated that people in the community are already dealing with health problems due to the construction work: “A lot of people where I live [are having] X-rays and are being tested for asbestos exposure. They can't have their bedroom windows open anymore. The dust is like soot -- it's thick. It's everywhere in the home. People are coughing, wheezing and hoarse. You end up feeling lethargic.”
Mike Gilsenan, assistant deputy commissioner at the Department of Environmental Protection, said it was “highly unlikely any dust or fibers migrated off that site. That is the best I can tell you.” But SI Live reported that he added “that the process is ‘not foolproof.’”
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