FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

MTA’S New Debarment Powers Pose an Existential Risk

July 15, 2019 — Steven M. Charney, Gregory H. Chertoff & Paul Monte - Peckar & Abramson, P.C.
The normal project and contractual risks faced by contractors, consultants and suppliers to the Metropolitan Transportation Authority are considerable. A new law and regulations mandating that the MTA debar contractors, consultants and suppliers for unexcused schedule and cost overruns creates a new and unfair existential risk. The new law, Public Authorities Law Section 1279-h, slipped into the New York State budget bill and passed without public comment, was enacted on April 12, 2019. Implementing regulations were issued on June 5, 2019, and mandate that the MTA debar contractors (defined to include consultants, vendors and suppliers) if they: (1) fail to achieve substantial completion of their contractual obligations within 10% of the adjusted contract time; or (2) present claims for additional compensation that are denied in an amount that exceeds the total adjusted contract amount by 10% or more.[1] To say that your business and your livelihood are at risk is not an overstatement. The MTA umbrella includes the New York City Transit Authority, MTA Capital Construction, Bridges & Tunnels, Long Island Railroad and Metro North, among others. A debarment by one of these authorities will lead to a debarment by all of them, and then to a debarment by all New York State agencies and authorities,[2] and possibly debarment across state lines. Public and major private owners, as part of their RFP and procurement processes, routinely inquire regarding a bidding contractor’s debarment history. The risk is to new contracts and, because the MTA has decided to give retroactive effect to the law and regulations, to contracts that are already ongoing (even though these risks could not have been considered, priced or agreed to by contractors or their sureties). Reprinted courtesy of Peckar & Abramson, P.C. attorneys Steven M. Charney, Gregory H. Chertoff and Paul Monte Mr. Charney may be contacted at scharney@pecklaw.com Mr. Chertoff may be contacted at gchertoff@pecklaw.com Mr. Monte may be contacted at pmonte@pecklaw.com Read the court decision
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As Some States Use the Clean Water Act to Delay Energy Projects, EPA Issues New CWA 401 Guidance

August 26, 2019 — Anthony B. Cavender - Gravel2Gavel
In just the past few weeks, three states have used their Clean Water Act 401 authority to delay, for an indefinite period, FERC-authorized pipeline expansion projects. On May 6, 2019, the Oregon Department of Environmental Quality denied, without prejudice, Jordan Cove’s application for a Section 401 water quality certification. Jordan Cove plans to build an LNG export terminal at Coos Bay, Oregon, if it can obtain the necessary federal and permits. Under Section 401(a) of the Clean Water Act, any applicant for a federal permit to conduct any activity, including the operation of facilities which may result in any discharge into the navigable waters, shall provide the permitting agency a certification from the State in which the discharge may originate that any such discharge will comply with the applicable provisions of the Clean Water Act, including effluent limitations and state water quality standards. The States have a “reasonable time”—which shall not exceed one year after the receipt of the 401 application—in which to act, or the state’s authority may be waived by this inaction. The Oregon DEQ concluded that Jordan Cove has not demonstrated that its project, as presently configured, will satisfy state water quality standards. The 401 applications submitted by Transcontinental Gas Pipe Line Co. (Transco) to the New Jersey Department of Environmental Protection and the New York State Department of Environmental Protection were similarly rejected without prejudice on May 15, 2019 (New York) and June 5, 2019 (New Jersey). This use of the states’ 401 authority has frustrated plans to build and operate LNG pipelines around the country. Read the court decision
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Reprinted courtesy of Anthony B. Cavender, Pillsbury
Mr. Cavender may be contacted at anthony.cavender@pillsburylaw.com

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Chinese Telecommunications Ban to Expand to Federally Funded Contracts Effective November 12, 2020

September 21, 2020 — Lori Ann Lange & Sabah Petrov - Peckar & Abramson
In our previous alert, we discussed the Federal Government’s Ban (the “Ban”) on certain Chinese covered telecommunications and video surveillance equipment and services in federal government contracts. The ban prohibits government contractors and subcontractors from supplying to the Federal Government or using in their own internal operations certain telecommunications or video surveillance equipment or services produced by Huawei Technologies Company, ZTE Corporation, Hytera Communications Corporation, Hangzhou Hikvision Digital Technology Company, and Dahua Technology Company, as well as their subsidiaries and affiliates. The Ban currently applies to companies contracting directly with the Federal Government. Soon, however, the Ban – at least in part – will expand to contractors and subcontractors who are awarded certain federally assisted contracts and subcontracts. On August 13, 2020, the Office of Management and Budget (“OMB”) published Final Guidance revising its grants and agreements regulations (2 CFR Part 200) to prohibit recipients and subrecipients from using loan or grant funds to purchase or obtain covered telecommunications and video surveillance equipment or services. Effective November 12, 2020, recipients and subrecipients are prohibited from obligating or expending loan or grant funds to:

1. Procure or obtain;
2. Extend or renew a contract to procure or obtain; or
3. Enter into a contract (or extend or renew a contract) to procure or obtain equipment, services, or systems that use covered telecommunications equipment or services as a substantial or essential component of any system, or as critical technology as part of any system.

Reprinted courtesy of Lori Ann Lange, Peckar & Abramson and Sabah Petrov, Peckar & Abramson Ms. Lange may be contacted at llange@pecklaw.com Ms. Petrov may be contacted at spetrov@pecklaw.com Read the court decision
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CDJ’s #2 Topic of the Year: Ewing Constr. Co., Inc. v. Amerisure Ins. Co., 2014 Tex. LEXIS 39 (Tex. Jan.17, 2014)

December 31, 2014 — Beverley BevenFlorez-CDJ STAFF
Ewing received quite a bit of attention around the blogosphere, and Tred R. Eyerly of Damon Key Leong Kupchak Hastert wrote a nicely succinct case summary on his blog, Insurance Law Hawaii: “In a much anticipated decision, the Texas Supreme Court ruled that a general contractor who agrees to perform its work in a good and workmanlike manner does not "assume liability" for damages arising out of its defective work so as to trigger the Contractual Liability Exclusion.” Read the court decision
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Commercial Construction in the Golden State is Looking Pretty Golden

August 26, 2015 — Garret Murai – California Construction Law Blog
If the $2.1 trillion erased from the U.S. stock market over the last week has you white knuckled, you might consider commercial construction in the Golden State, where things are looking . . . well . . . pretty golden. According to the Summer/Fall 2015 Commercial Real Estate Survey jointly published by Allen Matkins and the UCLA Anderson School of Management, commercial construction in California has risen to its highest level since 2001. The survey, conducted of commercial real estate developers and financiers and their outlook for seven metropolitan regions in California including the East Bay, the Inland Empire, Los Angeles, Orange County, San Diego, San Francisco and Silicon Valley, found that all respondents expressed optimism (characterized as an optimism sentiment above 50) that office, multifamily, industrial and retail construction would grow over the next three-years although it varied depending on the region and sentiment was at times lower than when the survey was last taken last year. 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

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General Release of Contractor Upheld Despite Knowledge of Construction Defects

February 27, 2019 — Garret Murai - California Construction Law Blog
Ah, the elusive Lepus Cornutus, commonly known as the Jackalope. Rarely seen, we may have one in SI 59 LLC v. Variel Warner Ventures, LLC, Court of Appeals for the Second District, Case No. B285086 (November 15, 2018), an interesting case involving a developer, a contractor, a general release, and Civil Code section 1688. SI 59 LLC v. Variel Warner Ventures, LLC In 2005, Variel Warner Ventures, LLC (Variel Warner) entered into a construction contract with Verdugo Management & Investment, Inc. (Verdugo) to construct improvements at an 85 unit apartment complex. Under the terms of the contract, Verdugo agreed to construction the improvements in a good and workmanlike manner in strict compliance with all drawings and specifications and to comply with all laws. It didn’t. The work was defectively flashed, counterflashed, and waterproofed. Read the court decision
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Reprinted courtesy of Garret Murai, Wendel Rosen
Mr. Murai may be contacted at gmurai@wendel.com

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Apartment Boom in Denver a Shortcut Around Condo Construction Defect Suits?

September 24, 2013 — CDJ STAFF
For every condo currently being built in Denver, there are 40 apartment units. And there are some who think that this is being done to evade construction defect lawsuits. At issue is the statute of limitations for construction defects. Under Colorado law, condominium buyers have six years after the completion of constrution to sue for construction defects, unless the defect isn’t discovered until the fifth or six year, in which case they are given until the eighth year. But what if someone built an apartment building, rented out the units for six years, and then converted the whole thing to condominiums? Some think that the construction defect clock would be reset. Amie Mayhew, the CEO of the Colorado Association of Home Builders noted that if this is the case, “you’d be back at square one.” But Doug Benson, a construction defect attorney, thinks that if a builder did this, and didn’t make any further construction, no one would be able to sue for construction defects, even if the condo owners found them. Mr. Benson, who represents homeowners, said that “they’re apartment homes and that’s just to avoid liability.” Mike Gifford, the president of the Associated General Contractors of Colorado, noted that insurance companies were already wary of apartment complexes, fearing that they would be turned into condos. Whatever the cause, Denver seems to have a shortage of condos. But, they’re going to have a lot of apartments available. Read the court decision
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Structure of Champlain Towers North Appears Healthy

August 04, 2021 — Nadine M. Post - Engineering News-Record
There is good news for the residents of the occupied Champlain Towers North, the 12-story residential condominium in Surfside, Fla., located a short distance up Collins Avenue from its near-twin Champlain Towers South, which failed unexpectedly June 24. The unstable remaining wing of the Champlain Towers South concrete structure was imploded July 4, after the partial progressive collapse that killed at least 94 people and left another 22 still missing. Reprinted courtesy of Nadine M. Post, Engineering News-Record Ms. Post may be contacted at postn@enr.com Read the full story... Read the court decision
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