Lower Manhattan Condos Rival Midtown’s Luxury Skyscrapers
April 09, 2014 —
Oshrat Carmiel – BloombergManhattan developer Bill Rudin hadn’t planned to start selling apartments at his Greenwich Village project until the end of this year. He began rethinking that strategy after getting cornered at a cocktail party.
“People came up to me and said, ‘We want to buy, we want to buy. When can we buy?’” Rudin said in an interview.
He opened a sales office in October for the Greenwich Lane, a complex under construction at the site of the shuttered St. Vincent’s Hospital, after an online sign-up list of would-be buyers for the 200 condominiums drew 1,100 names. More than half of the units at the development, still largely a field of dirt and skeletal towers, have sold at prices averaging $3,500 a square foot, in line with other projects downtown and a new luxury benchmark for the area.
While Midtown skyscrapers fringing Central Park are setting sales records and attracting international investors, downtown Manhattan’s new condos are breaking their own price barriers with a focus on local buyers. From the cobblestone streets of Tribeca to the low-rise landmarks of Greenwich Village, builders are accelerating projects with features and costs that rival high-end offerings farther north.
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Oshrat Carmiel, BloombergMs. Carmiel may be contacted at
ocarmiel1@bloomberg.net
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.
Reprinted courtesy of
Cheryl Behymer, Patrick M. Dalin & Collin Cook, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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The California Legislature Passes SB 496 Limiting Design Professional Defense and Indemnity Obligations
June 15, 2017 —
Mark Himmelstein & Jenny Guzman – Newmeyer & Dillion LLPSince 2008 when the California legislature limited subcontractor indemnity obligations, the design professional community has been shouting “what about us?” Well, the legislature finally responded and a new law that limits design professional’s defense and indemnity obligations to their percentage of fault goes into effect on January 1, 2018.
THE NEW LAW – SB 496
SB 496 amends California Civil Code section 2782.8 and states that indemnity agreements must be limited to the negligence, recklessness or willful misconduct of the indemnitee (i.e. no more Type I indemnity with design professionals). The amendment also provides that “in no event shall the cost to defend charged to the design professional exceed the design professional’s proportionate percentage of fault”, with a limited opportunity for reallocation in the event another defendant is judgment proof.
However, the duty to defend still remains and still arises at the time of the tender of the defense (both issues that were unsuccessfully targeted by the design professional lobbyists).
WHAT CAN BE DONE NOW?
Developers and Owners should strongly consider reviewing and revising the indemnity provisions in their consultant contracts to comply with the new legislation before the first of the year. This includes master agreements because project addenda entered into after January 1 are subject to the new law. The statute does not apply to current contracts, so these do not need to be amended.
Questions? Newmeyer & Dillion is happy to assist in navigating the process to ensure you are compliant prior to January’s deadline. Please let us know how we can help.
Mark Himmelstein is a partner focused in the areas of construction, real estate, business and insurance litigation. He has an in-depth experience in drafting and negotiating construction and real estate contracts. You can reach him at mark.himmelstein@ndlf.com.
Jenny Guzman is a litigation associate in the Newport Beach office, focusing her practice in the areas of business and real estate litigation and transactions. You can reach her at jenny.guzman@ndlf.com.
About Newmeyer & Dillion
For more than 30 years, Newmeyer & Dillion has delivered creative and outstanding legal solutions and trial results for a wide array of clients. With over 70 attorneys practicing in all aspects of business, employment, real estate, construction and insurance law, Newmeyer & Dillion delivers legal services tailored to meet each client’s needs. Headquartered in Newport Beach, California, with offices in Walnut Creek, California and Las Vegas, Nevada, Newmeyer & Dillion attorneys are recognized by The Best Lawyers in America©, and Super Lawyers as top tier and some of the best lawyers in California, and have been given Martindale-Hubbell Peer Review's AV Preeminent® highest rating. For additional information, call 949-854-7000 or visit http://newmeyeranddillion.com/
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Connecticut Civil Engineers Give the State's Infrastructure a "C" Grade
October 10, 2022 —
The American Society of Civil EngineersWATERBURY, CT. — The Connecticut Section of the American Society of Civil Engineers (ASCE) released the 2022 Report Card for Connecticut's Infrastructure today, with five categories of infrastructure receiving an overall grade of a 'C'. That means Connecticut's infrastructure is in mediocre condition, an improvement over the 'C-' grade issued in the 2018 report card. The bump is thanks in large part to improved condition of assets across several categories and additional funding allocated for roads, bridges and rail. Connecticut is also set to receive more than $5 billion from the federal bipartisan infrastructure bill, which was passed in late 2021. However, these improvements are threatened by Connecticut's aging infrastructure – one of the oldest infrastructure networks in the U.S. – and the recent suspension of the state's already-insufficient gas tax. Civil engineers graded bridges (C), drinking water (C), rail (B), roads (D+), and wastewater (C-).
"This Infrastructure Report Card shows that while Connecticut has made great progress, much more needs to be done to rebuild our state's roads and bridges and deliver essential services like clean drinking water," said U.S. Senator Richard Blumenthal. "President Biden's historic Bipartisan Infrastructure Law is expected to invest more than $5 billion in Connecticut's infrastructure and create thousands of good paying jobs for the workforce. These federal funds, along with critically increased job training resources, will help address the challenges outlined in the Report Card. I thank the Connecticut Society of Civil Engineers for their commitment to designing and building our infrastructure, as well as all of the workers who innovate and advance the systems and structures we rely on every day."
To view the report card and all five categories, visit https://infrastructurereportcard.org/state-item/connecticut/.
ABOUT THE AMERICAN SOCIETY OF CIVIL ENGINEERS
Founded in 1852, the American Society of Civil Engineers represents more than 150,000 civil engineers worldwide and is America's oldest national engineering society. ASCE works to raise awareness of the need to maintain and modernize the nation's infrastructure using sustainable and resilient practices, advocates for increasing and optimizing investment in infrastructure, and improve engineering knowledge and competency. For more information, visit www.asce.org or www.infrastructurereportcard.org and follow us on Twitter, @ASCETweets and @ASCEGovRel.
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Largest Dam Removal Program in US History Reaches Milestone
December 11, 2023 —
Mary K. Miller - Engineering News-RecordAll work associated with removal of the first of four hydroelectric dams slated for demolition on the Klamath River completed in early November, according to the dam owner, Klamath River Renewal Corp. Demolition of the four dams on the Klamath River that flows through parts of Oregon and California is the largest dam removal project in U.S. history.
Reprinted courtesy of
Mary K. Miller, Engineering News-Record
ENR may be contacted at enr@enr.com
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Risk Management for Condominium Conversions
July 31, 2013 —
David McLain, Higgings, Hopkins, McLain & Roswell, LLCOne of the bright spots in the Colorado construction industry over the last few years has been the construction of for-rent apartments. It seems as though apartments are going up everywhere you look along the Front Range. As market forces change, it will be interesting to see whether these units will remain apartments or whether they will be converted into for-sale condominiums or townhouses. One of the risk management strategies we have recently discussed with our general contractor clients who have been asked to build apartments is to ensure that the project remains a for-rent apartment project through the applicable statute of repose, conservatively assumed to be eight years. Unfortunately this is not always feasible, usually because the owner and/or lender are not interested in encumbering the property for such a long period of time, and want to retain the ability to convert the project if and when market forces allow, even if that is before the running of the statute of repose. The purpose of this article is to discuss the insurance and risk management ramifications of converting a project too early.
I have recently heard from several sources in the insurance industry that there are owners and contractors who are currently building apartments with the idea that they will be held as apartments for two to three years and then converted to for-sale condominiums or townhomes. While this strategy may have great appeal from a business point of view, it has a very serious risk management downside. Apparently, these owners and contractors are operating under the mistaken belief that they will have no liability exposure to the ultimate purchasers of the converted units or to the homeowners association for construction defects. This is an incorrect belief.
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David M. McLainDavid M. McLain can be contacted at
mclain@hhmrlaw.com
Wall Failure Due to Construction Defect Says Insurer
October 09, 2013 —
CDJ STAFFA wall built by J. F. Smith Construction collapsed during Hurricane Isaac, and Bankers Insurance Group is blaming the builder not the hurricane. The insurer claims that if the wall had been built properly it would have withstood the storm. The suit is being filed in the Louisiana courts. Bankers Insurance is seeking $49,625.25 in damages.
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Discussing Parametric Design with Shajay Bhooshan of Zaha Hadid Architects
May 10, 2017 —
Aarni Heiskanen - AEC Businessobotics, 3D printing, and digital fabrication—these evolving technologies are changing how we design and construct. Looking into the future can surprisingly cause us to rediscover history, as I learned when discussing parametric design with Shajay Bhooshan.
During the AEC Hackathon Munich in April 2017, I became acquainted with Shajay Bhooshan, associate at Zaha Hadid Architects. Shajay showed me designs that were intriguingly reminiscent of natural forms but completely modern in expression. He explained how these lightweight structures had been digitally designed and constructed with minimal use of material. One of the examples he shared was a large shell structure that consisted of aluminium elements that could be assembled and dismantled easily.
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
info@aepartners.fi
