Wilke Fleury Celebrates the Addition of Two New Partners
February 18, 2019 —
Wilke FleuryWilke Fleury celebrates the addition of two new partners – Shannon Smith-Crowley and Daniel J. Foster – who complement the firm’s shifting generations of leadership. Shannon and Danny bring unique perspective and excellent capability to Wilke Fleury’s partnership effective January 1, 2019.
Shannon has been a registered lobbyist in California for 20 years. After a career in managed care, she started lobbying with the California Medical Association before founding her own firm, Partners In Advocacy to specialize in medical and reproductive health advocacy. At Wilke Fleury, her areas of practice include health care, women’s equity, life sciences, the biomedical industry, new family formation and emerging technologies in green energy. After a four year tenure with the firm, she has been elevated to the partnership.
Click here to read more about Shannon Smith-Crowley.
Daniel Foster’s litigation practice is composed of matters involving complex construction defect litigation, mechanics liens claims, stop notice actions and Miller Act claims. He represents clients before the Contractors State License Board and handles matters involving breach of warranty, the Song-Beverly Consumer Warranty Act, indemnity agreements and liability insurance coverage.
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Wilke Fleury
Why Clinton and Trump’s Infrastructure Plans Leave Us Wanting More
September 15, 2016 —
Garret Murai – California Construction Law BlogIt’s hard not to pick up your newspaper (or, more likely, your smart phone) and not get caught up reading about Donald Trump’s latest “did he really say that” statement or about the “less than personal” personal email account of Hillary Clinton.
But which candidate is better suited to bridge America’s nearly $1.5 trillion infrastructure gap? Clinton the veteran politician? Or Trump the veteran developer?
Despite being on opposite sides on nearly every issue from abortion, to taxes, to . . . well, maybe immigration . . . both Clinton and Trump agree that the U.S. needs to invest more in its aging infrastructure. But that’s a little like saying we should take better care of ourselves and exercise more. Of course we should. The question is how.
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Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
SFAA Commends U.S. House for Passage of Historic Bipartisan Infrastructure Bill
November 15, 2021 —
The Surety & Fidelity Association of AmericaNovember 8, 2021 (WASHINGTON, DC) – The Surety & Fidelity Association of America (SFAA), a nonprofit, nonpartisan trade association representing all segments of the surety and fidelity industry, commends the U.S. House for passing the historic, bipartisan Infrastructure Investment and Jobs Act (IIJA). The $1.2 trillion deal will lay the foundation for extensive improvements in the nation’s roadways, bridges, railways, waterways and broadband.
“Both sides of the aisle understand the importance of investing in our country’s aging infrastructure. The passage of this historic bill provides the most significant resources in more than 50 years to address the current and future needs of our country’s infrastructure, while creating millions of jobs and growing our national and local economies,” said SFAA president and CEO, Lee Covington.
SFAA also commends President Joe Biden, House Speaker Nancy Pelosi (D-Calif.), House Majority Leader Steny Hoyer (D-Md.), Senate Majority Leader Chuck Schumer (D-N.Y.), Senate Minority Leader Mitch McConnell (R-Ky.), Sen. Tom Carper (D-Del.), Sen. Shelley Moore Capito (R-W.Va.), Sen. Kyrsten Sinema (D-Ariz.), Sen. Rob Portman (R-Ohio), and Rep. Peter DeFazio (D-Ore.) for their leadership on this bill, and members of the House who voted in favor.
The Surety & Fidelity Association of America (SFAA) is a nonprofit, nonpartisan trade association representing all segments of the surety and fidelity industry. Based in Washington, D.C., SFAA works to promote the value of surety and fidelity bonding by proactively advocating on behalf of its members and stakeholders. The association’s more than 450 member companies write 98 percent of surety and fidelity bonds in the U.S. For more information visit www.surety.org.
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Best U.S. Home Sales Since 2007 Show Momentum in Housing Market
August 26, 2015 —
Sho Chandra – BloombergAmerica’s housing market has been heating up this summer.
Purchases of previously owned homes unexpectedly rose in July for a third straight month to reach the highest level since February 2007, figures from the National Association of Realtors showed Thursday. The gain was driven by stronger sales of single-family houses even as the share of first-time buyers shrank.
A limited number of available properties is keeping prices elevated, giving homeowners the financial flexibility to trade up as their housing equity improves. The data and a recent report showing the strongest rate of residential construction since 2007 are consistent with the Federal Reserve’s view that the industry is making progress.
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Sho Chandra, Bloomberg
General Contractor Supporting a Subcontractor’s Change Order Only for Owner to Reject the Change
December 09, 2019 —
David Adelstein - Florida Construction Legal UpdatesThe opinion in Westchester Fire Ins. Co, LLC v. Kesoki Painting, LLC, 260 So.3d 546 (Fla. 3d DCA 2018) leads to a worthy discussion because it involves a common scope of work occurrence on construction projects involving a general contractor and subcontractor. The contractor submits a subcontractor’s change order request to the owner and the owner rejects the change order. What happens next is a scope of work payment dispute between the general contractor and subcontractor. Yep, a common occurrence.
In this case, a general contractor hired a subcontractor to perform waterproofing and painting. A scope of work issue arose because the specifications did not address how the window gaskets should be cut and then sealed. The owner wanted the window gaskets cut at a 45-degree angle and the subcontractor claimed this resulted in increased extra work. The general contractor agreed and submitted a change order to the owner to cover these costs. The owner rejected the change order claiming it was part of the general contractor’s scope of work even though the cutting of window gaskets at a 45-degree angle was not detailed in the specifications.
After the subcontractor filed a suit against the general contractor’s payment bond surety, the project architect further rejected the change order because gasket cutting was part of the specification requirements. (Duh! What else was the architect going to say? It was not going to concede there was an omission that resulted in a change order to the owner, right?)
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Harmon Towers Demolition Still Uncertain
January 23, 2013 —
CDJ STAFFIt would be a "gift" to MGM Resorts if they were able to tear down the Harmon Tower, according to an article in the New York Times, as analysts are cited that a hotel would "struggle during this economic downturn." Further, William Robinson, a professor of economics at the University of Nevada, Las Vegas, noted that "MGM has tried to cut back on the whole project," adding that "if you are a conspiracy theorist, you thin they are just looking for a way to get out of it." Professor Robinson thinks they would be unlikely to rebuild if allowed to tear down the building.
MGM Resorts has a different take on the matter. Alan M. Feldman, MGM's senior vice president for public affairs, told the New York Times that MGM "had a contract with Perini that we would pay them to give us a certain kind of building type — in this case a luxury hotel." Mr. Feldman contends that Perini had not "kept up their part of the bargain." Perini has stated that the fault was due to the designers and did not comment to the Times.
The claims of design and construction defects have left the building unfinished, with only twenty-six of the planned forty-nine floors constructed. Perini contends the building can still be repaired. MGM that its remediation plan is "to take the building down."
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Opoplan Introduces Generative AI Tools for Home-Building
February 06, 2023 —
Aarni Heiskanen - AEC BusinessOpoplan introduces its suite of generative AI architectural tools for builders and real estate brokers. The initiative intends to bridge the technological gap in custom home planning and building.
The tools introduced by the company also aim to reduce the overdependence on manual efforts and limited design options when it comes to lot analysis, design briefing, design planning, and many other pre-build tasks.
Through its AI-powered tools, Opoplan assists builders and home designers in saving time, money, and energy and more successfully close contracts, managing plans, and delivering single-family homes.
A series of tools for the home-building industry
Opoplan is headquartered in Dublin, Ireland, with a new US office in Raleigh, North Carolina, and was established in 2019. They provide pre-build house planning and design tools for custom builders, real estate brokers, and house designers.
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi
3 Common Cash Flow Issues That Plague The Construction Industry
August 20, 2019 —
Patrick Hogan, HandleThe construction industry has its fair share of serious cash flow problems. The nature of the industry with long periods between billing and collection, the unpredictability of some business factors, and even the day-to-day decisions of stakeholders have a huge effect on cash reserves.
So how can you protect your business from these cash flow problems? Having a greater awareness of the most common cash flow problems is the key to maintaining your financial stability. Here are some of the top cash flow issues that construction companies need to watch out for.
1. Uncontrolled business growth
The growth of a business as a cash flow problem sounds unintuitive. It is supposed to be a positive thing. So how could it hurt your construction business? When it goes out of control.
During the growth phase, the company will need to expand its operations to meet the increasing demand. This means renting a larger office space, hiring more staff, and buying more inventory, all of which can burn through the company’s cash quickly. The more substantial the level of your growth is, the more your cash flow is affected.
Growth is a good thing, but it is important to be aware of the pitfalls that you could encounter that can lead to cash flow problems. If you are dealing with a volatile growth instead of a stable one, you have to think twice before expanding your operations. A quarter with a large number of construction project deals does not guarantee the same happening in a subsequent quarter.
2. Change of scope or scope creep
The scope, or the statement of work, is the foundation that guides a construction project from start to finish. It specifies all the deliverables needed by the project as agreed by all stakeholders. When the existing requirements are altered, new features are added, or project goals are changed uncontrollably, what happens is scope creep and it can hurt a company’s cash flow.
Construction projects can take a long time before they are finished. A lot of factors can result in changes in the scope. There may be changes in the market strategy, market demand, and other unpredictable variables that make changes in the project requirements a necessity. These changes build up and the project may shift away from what was intended, causing delays, loss of quality, and the rise of planned costs.
One way to prevent scope creep from affecting cash flow significantly is charging a fee for variations of the scope of work. However, having a solid and clear scope baseline is still the best way to combat scope creep. Reminding clients of what you signed up for by referring to the baseline is a good strategy to deal with pushy clients.
3. Payment delays and nonpayment
As previously mentioned, the construction industry tends to have a lengthy period between sending an invoice and collecting payments. And if you are too passive in your collection, clients are more likely to extend pay periods and delay paying you.
Unexpected delays in payment and other payment issues can have a devastating effect on companies that have little to no cash reserves. Without a cash cushion to fall back on, payment issues can threaten the existence of the business itself. If you are unable to manage your receivables, you will not have enough cash to pay the bills, pay employees, and fund your growth.
Payment delays and nonpayment can happen for several reasons. They can be simple like mistakes in the invoicing or the person needed to approve the invoice is unavailable. More serious reasons like a client unsatisfied with your service or, worse, trying to scam you are also possibilities. For these reasons, it is crucial to communicate with clients properly and see if you can agree with a payment structure or pursue legal action.
The construction industry operates slightly differently from other industries. Different projects produce different cash flow issues and require different strategies. By being aware of the top cash flow problems that can hurt your construction business, you will be better equipped in dealing with them in case they happen.
About the Author:
Patrick Hogan is the CEO of Handle, where they build software that helps contractors, subcontractors, and material suppliers secure their lien rights and get paid faster by automating the collection process for unpaid construction invoices. Read the court decisionRead the full story...Reprinted courtesy of
Patrick Hogan, CEO, Handle
