Seattle Washington Building Expert Directory

The Brexit Effect on the Construction Industry

June 30, 2016 — Beverley BevenFlorez-CDJ STAFF
Now that the United Kingdom (UK) has voted to leave the European Union (EU)—commonly known as ‘Brexit’—much discussion has arisen on how it will affect the construction industry both in the UK and globally. Brexit could impact the U.S. housing market in various ways, some negative and some positive. For instance, the mortgage refinancing industry is poised to receive a “glut of applications due to low interest rates,” Construction Dive reported. It’s also possible that the U.S. will receive an influx of foreign investors who may perceive the UK as being too isolationist, making the U.S. seem “more open to global business,” according to the Detroit Free Press. They also pointed out that the vote has already impacted the U.S. housing market, since it is most likely the reason the Federal Reserve decided against raising interest rates in June. Furthermore, Construction Dive presented two different views of how home buying may be effected. On the one hand, investors who lost money in the stock market may be less inclined or able to purchase property at this time. But on the other hand, if Brexit causes home prices to decline, it may “be a relief to those homebuyers finding it difficult to come up with a down payment, particularly first-timers who are facing limited starter-home inventory in addition to steep price tags.” Barron’s does not seem to believe that the stock market decline due to Brexit will affect the U.S. building industry. The publication maintained their “relatively favorable view of the home builders” industry for the following reasons: “1) Healthy demand trends seen in our monthly survey of real-estate agents; 2) 100% U.S. exposure and tailwinds from lower mortgage rates; and 3) Generally undemanding valuations. However, we are somewhat balanced by: 1) Rates have already been favorable, limiting incremental buyer urgency; 2) Risk that continued market volatility or broader economic fallout could hurt housing fundamentals; and 3) Industry gross margins face pressure from rising land and labor costs. We forecast accelerating order growth through the fourth quarter, driven by community count growth and easier second-half comps, and think improving trends would be a positive catalyst.” Less positive are the predictions for the UK construction industry. CNBC reported that migrant workers currently make up twelve percent of the UK construction force, and Brexit could cause the labor shortage to worsen. According to Global Construction, Brian Berry, Chief Executive of the Federation of Master Builders agreed that the industry needs migrant workers, however, he also stated that the UK needs to begin investing in their own “home-grown talent” through increasing apprenticeships. Another prediction is that infrastructure projects may be adversely effected. For instance, the Independent reported that an anonymous source alleged that international investors have already begun to delay future infrastructure projects in the UK due to the uncertainty of the UK and the EU parting terms negotiation. Current projects may also be in jeopardy, according to the source, since the projects are often contingent upon existing shipping trade rules—if smaller ships can no longer go straight into Europe, it could be enough to halt these projects. According to the Architects’ Journal, projects will stop—and they have evidence that one already has been halted: “Within minutes of the Brexit news, Daniel Minsky, who works with a boutique investment and development agency in London, was told that a proposed land deal had been pulled. The buyer withdrew at 7.05am this morning because they felt the residential value ‘was too risky.’” The Architects’ Journal also predicted that environmentally friendly projects may decline since many of the green initiatives were governed by the EU under the Energy Performance in Buildings Directive. However, James Shackleton of Eversheds LLP disagreed with the assessment. Shackleton believes that Brexit may not result in less regulation, giving the following examples: “The Construction Design and Management Regulations 2015 which essentially enact EU Directive 1992/57/EEC and require certain minimum health and safety requirements in design and construction, are unlikely to be swept away.” Furthermore, the “Energy Performance of Buildings (Certificates and Inspections) (England and Wales) Regulations 2007 enacting EU Directive 2002/91/EC requiring Energy Performance Certificates for buildings is unlikely to be repealed,” Shackleton claimed. Read the full story, Construction Dive… Read the full story, Detroit Free Press… Read the full story, Barron’s… Read the full story, CNBC… Read the full story, Global Construction… Read the full story, Independent… Read the full story, The Architects’ Journal… Read the full story, Eversheds LLP (Lexology)… Read the court decision
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New York Signs Biggest Offshore Wind Project Deal in the Nation

August 06, 2019 — Will Wade, Chris Martin, & Millicent Dent - Bloomberg
New York has signed the biggest-ever deals for offshore wind power in U.S. history, a key part of the state’s plan to get all of its power from emissions-free sources by 2040. On Thursday, Governor Andrew Cuomo awarded contracts for two projects off Long Island that will total 1,700 megawatts in capacity. Equinor ASA and a joint venture between Denmark’s Orsted A/S and Massachusetts-based Eversource Energy were chosen to build the farms, which will supply enough power to light up a million homes. Cuomo is counting on the wind projects to achieve the most aggressive clean energy goal in the U.S., and signed the state’s 100% renewable energy target into law right after announcing the wind contracts. New York’s ultimate plan is to get enough turbines erected off its shores to generate 9,000 megawatts by 2035. Read the court decision
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Reprinted courtesy of Will Wade, Chris Martin, & Millicent Dent, Bloomberg

Insurer Beware: Failure to Defend Ends with Hefty Verdict

June 01, 2011 — Douglas Reiser, Builders Council Blog

Served with a lawsuit that you turned over to your insurer? Insurer refusing to defend you? Well, find some hope in this news. Washington’s IFCA has the claws to ensure that insurers perform their duties.

Contractors heavily rely on the defense provisions of their Commercial General Liability (CGL) policies. In construction, a legal dispute can easily rear its head when you least expect it. Luckily, Washington registered contractors are required to maintain CGL insurance. That insurance often provides contractors with adequate legal defense in the event that they are sued.

But, what if your insurer turns down the defense request? They might be staring at massive damages. A current Reiser Legal client, Australia Unlimited, Inc., recently won a large verdict against Hartford Insurance, after the insurer unreasonably denied their claim. The firm who represented Australia Unlimited Inc. in that case, Hackett Beecher and Hart, were successful in procuring a $5.43 Million verdict

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Reprinted courtesy of Douglas Reiser of Reiser Legal LLC. Mr. Reiser can be contacted at info@reiserlegal.com

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The G2G Year-End Roundup (2022)

January 04, 2023 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
Our year-end roundup highlights the top-read Gravel2Gavel posts from 2022. Our authors addressed the legal implications for a variety of hot topics and market disruptions, providing deep industry insights that spanned Metaverse real estate investments, economic sanctions in Russia, and cybersecurity for smart buildings.

NFT Use Cases in Real Estate by Megan L. Jones and David W. Wright. The authors discuss how entrepreneurs are searching for new industries to disrupt utilizing the advantages offered by NFTs and blockchain more generally, with many turning their heads towards real estate.
Commercial Real Estate Brokerages in an Uncertain Russian Market by Cait Horner and Adam J. Weaver. The authors discuss how several commercial real estate firms joined the list of companies temporarily suspending—or outright terminating—property and facility management operations in Russia amid economic sanctions and mounting international pressure.

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

Storm Eunice Damage in U.K. Could Top £300 Million

February 28, 2022 — Press Association - Bloomberg
Hundreds of thousands of homes are still without power due after Storm Eunice tore through the country, while insurers have indicated the clean-up could cost more than £300 million. At least four people were killed in the UK and Ireland during one of the worst storms in decades, with a gust of 122mph provisionally recorded at the Needles on the Isle of Wight, which, if verified, would be the highest ever recorded in England. Energy Networks Association (ENA) has said nearly 400,000 homes had no electricity on Friday night, with network providers recording 156,000 disrupted customers for UK Power Networks, 120,000 for Scottish & Southern, 112,000 for Western Power, 6,000 for Northern Power and 260 for Electricity North West. Read the court decision
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All Aboard! COVID-19 Securities Suit Sets Sail, Implicates D&O Insurance

April 27, 2020 — Lorelie S. Masters, Michael S. Levine & Geoffrey B. Fehling - Hunton Insurance Recovery Blog
In a prior post, we predicted that novel coronavirus (COVID-19) risks could implicate D&O and similar management liability coverage arising from so-called “event-driven” litigation, a new kind of securities class action that relies on specific adverse events, rather than fraudulent financial disclosures or accounting issues, as the catalyst for targeting both companies and their directors and officers for the resulting drop in stock price. It appears that ship has sailed, so to speak, as Kevin LaCroix at D&O Diary reported over the weekend that a plaintiff shareholder had filed a securities class action lawsuit against Norwegian Cruise Line Holdings, Ltd. alleging that the company employed misleading sales tactics related to the outbreak. The lawsuit alleges that the cruise line made false and misleading statements or failed to disclose in its securities filings sales tactics by the company that purported to provide customers with unproven or blatantly false statements about COVID-19 to entice customers to purchase cruises. Those allegations rely on two news articles reporting on the company sales practices in the wake of COVID-19: a March 11, 2020 Miami New Times article quoting leaked emails in which a cruise employee reportedly asked sales staff to lie to customers about COVID-19 to protect the company’s bookings; and a March 12, 2020 Washington Post article entitled, “Norwegian Cruise Line Managers Urged Salespeople to Spread Falsehoods about Coronavirus.” The lawsuit alleges that the company’s share price was cut nearly in half following these disclosures. Reprinted courtesy of Hunton Andrews Kurth attorneys Lorelie S. Masters, Michael S. Levine and Geoffrey B. Fehling Ms. Masters may be contacted at lmasters@HuntonAK.com Mr. Levine may be contacted at mlevine@HuntonAK.com Mr. Fehling may be contacted at gfehling@HuntonAK.com Read the court decision
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Crumbling Roadways Add Costs to Economy, White House Says

July 16, 2014 — Roger Runningen – Bloomberg
More than two-thirds of U.S. roadways are in need of repair and the poor condition of the nation’s transportation network results in billions in extra costs, according to a White House report. The report was released today in conjunction with President Barack Obama’s campaign to pressure Congress for a deal to replenish the Highway Trust Fund. The fund, supplied by fuel taxes, is heading toward insolvency as early as next month, jeopardizing jobs and projects during the peak construction season. Crumbling roads and bridges cut into economic growth, by increasing transportation costs and delaying shipments, according to the report. “A well-performing transportation network keeps jobs in America, allows businesses to expand, and lowers prices on household goods to American families,” said a 27-page report by the Council of Economic Advisers and National Economic Council. Read the court decision
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Reprinted courtesy of Roger Runningen, Bloomberg
Mr. Runningen may be contacted at rrunningen@bloomberg.net

NCCER Celebrates Construction Education Programs and Products in 2024

January 07, 2025 — The National Center for Construction Education and Research
ALACHUA, Fla., Dec. 30, 2024 (GLOBE NEWSWIRE) -- The National Center for Construction Education and Research (NCCER) released several new or updated educational products in 2024, serving its ongoing mission to provide workforce development solutions for the construction industry and impacting 330,000 people. NCCER's newest craft training products include a new certification program, multiple curricula updates, new Spanish curriculum translations, and NCCERconnect digital courses and resources. One of the highlights of the year was the launch of the brand-new Construction Foreman Certification Program. Helping to fill a significant gap in formal training for frontline supervisors, the program covers critical areas of field leadership such as people management, communication, quality, safety and productivity. The Construction Foreman Certification Program is the latest offering in NCCER's Construction Leadership Series (CLS), which provides turnkey, self-paced online certification solutions for leadership development. The first title in the CLS, the Construction Superintendent Certification Program, debuted in 2023. About NCCER – The National Center for Construction Education and Research (NCCER) is an independent 501(c)(3) nonprofit education foundation and the leading provider of construction education for industry and career and technical education programs. With flexible workforce development and learning solutions, NCCER's programs provide consistency and quality to ensure craft professionals and learners receive industry-recognized credentials and certifications. To learn more, visit www.nccer.org. Read the court decision
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SEATTLE WASHINGTON BUILDING EXPERT DIRECTORY AND CAPABILITIES