Rise in Home Building Helps Other Job Sectors
December 11, 2013 —
CDJ STAFFWith home building on the rebound, the latest jobs report shows that the construction industry has added 17,000 jobs in the last year. But that’s not the only increase in employment that can be credited to the homebuilding industry.
Most homes are built out of wood. That’s why the timber industry was able to create 2,200 new jobs. According to the Wall Street Journal’s Marketwatch, that’s the biggest jump in 16 years. Moving closer to homes, the makers of wood products have added 600 jobs, with five months of increasing employment.
Finally, someone has to sell those homes. There are 2,100 more people working in real estate. Neal Dutta, head of economics at Renaissance Macro Research notes that “from the production of building materials to the construction of homes to the sales of homes, there was a confirmation of an ongoing housing recovery and all despite a sharp back-up in rates.”
Read the court decisionRead the full story...Reprinted courtesy of
Michigan Court of Appeals Remands Construction Defect Case
February 14, 2022 —
Tred R. Eyerly - Insurance Law HawaiiAfter its prior decision holding there was no coverage for faulty workmanship was remanded by the Michigan Supreme Court, the Court of Appeals remanded to the trial court. Skanska United States Bldg. v. M.A.P. Mech. Contrs., 2021 Mich. App. LEXIS 7336 (Mich. Ct. App. Dec. 28, 2021). The post summarizing the Supreme Court decision is here.
Skanska USA Building was the construction manager on a renovation project at a medical center. Skanska subcontracted the heating and cooling portion of the project to defendant M.A.P. MAP held a CGL policy from Amerisure. Skanska and the medical center were named as additional insureds.
MAP installed a steam boiler and related piping for the heating system. When completed, the heating system did not function properly. MAP installed some of the expansion joints backwards, causing damage to concrete, steel, and the heating system.
Read the court decisionRead the full story...Reprinted courtesy of
Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
WATCH: 2023 Construction Economic Update and Forecast
January 09, 2023 —
Construction ExecutiveConstruction Executive presented its "2023 Construction Economic Update and Forecast" webinar with
Associated Builders and Contractors Chief Economist Anirban Basu on Dec. 14, sponsored by
Aerotek,
Bluebeam,
CMiC and
Raken.
Basu started by announcing the Federal Reserve’s rate increase of 0.5%, the latest in a series of increases aimed at combating inflation. Calling 2022 a “year of tumult and a year of surprise,” Basu further noted that the Russian invasion of Ukraine surprised many, further disrupting global supply chains and causing a shockwave to ripple through global energy prices.
Citing the U.S. Consumer Price Index, with 7.1% year-over-year inflation in November, Basu believes we’ve “peaked in terms of inflation for this cycle”; while inflation hit higher-than-expected levels throughout 2022, it leveled off at lower-than-expected rates by the end of the year. Basu predicted inflation will continue to be problematic through 2023 as it has shifted from transitory inflation due to supply-chain disruptions in 2020 and 2022 to broader inflation due to the labor market, noting that the worst of the supply-chain issues seem to be over, reaching a high point in late 2021.
Blaming the injection of fiscal stimulus coming from the federal government, monetary stimulus from the Federal Reserve and the fact that inflation has now become ingrained in the economy and in people’s expectations, leading to wage and price increases, Basu calls the economy “overheated.”
Reprinted courtesy of
Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Read the court decisionRead the full story...Reprinted courtesy of
You Cannot Always Contract Your Way Out of a Problem (The Case for Dispute Resolution in Mega and Large Complex Construction Projects)
September 16, 2024 —
Lisa D. Love - The Dispute ResolverMost experienced commercial transaction and construction attorneys strive to negotiate a concisely written and well-drafted contract that addresses all scenarios and issues that creative and highly contemplative professionals can conjure. Although contracts are extremely important in construction projects, “you can’t generally contract your way out of a problem,” states Michael Loulakis, a founder of Capital Project Strategies, LLC and a nationally recognized expert on project delivery systems in complex public sector design-build projects and public-private partnership programs. Loulakis adds, “the contract certainly matters. But particularly when the losses are big, litigators prosecuting the contractors often find effective ways to argue that facts and circumstances trump the contract.” However, “the difference between the best construction projects and the worst construction projects is not the written words of the contracts but how the parties have committed to engage collaboratively and with trust to complete the project,” notes Robynn Thaxton, an attorney and consultant with Thaxton Parkinson PLLC and Progressive Design-Build Consulting, LLC and one of the leading experts in construction law and alternative procurement on a national basis.[i]
In large, complex construction projects, the need for parties to collaboratively resolve disputes is highlighted by the judicial acceptance of the “Doctrine of the Contextual Contract”[ii] to interpret construction contracts. “As construction’s increasing technological and managerial complexity came to be recognized, some common law courts began turning away from strict interpretation of language within the four corners of a contract and moving toward recognizing in the enforcement of contracts the construction industry’s own experience, customs, practices and implied conditions and duties and the factual context underlying the contract. Courts [began the journey] along the road from ‘text’ to ‘context.’”[iii] Thus, the precise wording of the contract has become less important and industry practices and other conditions provide insight for resolving disputes. Consequently, despite the specific language of any construction contract and the clear allocation of responsibilities and risks, early dispute evaluation and resolution are critical to a successful project.
Read the court decisionRead the full story...Reprinted courtesy of
Lisa D. Love, JAMS
Haight has been named a Metropolitan Tier 1 and Tier 2 “Best Law Firm” by U.S. News – Best Lawyers® “Best Law Firms” in 2025
November 11, 2024 —
Haight Brown & Bonesteel LLPHaight Brown & Bonesteel LLP is listed in the U.S. News – Best Lawyers® (2025 Edition) “Best Law Firms” list with metro rankings in the following areas:
Los Angeles
- Metropolitan Tier 1
- Product Liability Litigation – Defendants
Orange County
- Metropolitan Tier 1
- Product Liability Litigation – Defendants
Read the court decisionRead the full story...Reprinted courtesy of
Haight Brown & Bonesteel LLP
Can a Lease Force a Tenant's Insurer to Defend the Landlord?
October 10, 2022 —
Kerianne Kane Luckett - Saxe Doernberger & Vita, P.C.Can an indemnification clause in a commercial lease obligate a tenant’s insurer to defend a landlord? Recently, the United States District Court for the Northern District of New York said, “Yes!” On August 9, 2022, the district court issued a decision in ConMed Corp. vs. Federal Insurance Company, holding that the indemnification clause in a policyholder’s lease triggered the insurer’s duty to defend the landlord in an action arising out of the tenant’s negligence.
Facts of the Case
ConMed is a medical technology company that leases warehouse space in Georgia from Breit Industrial Canyon (“the Landlord”) to sterilize its medical equipment. ConMed’s employees filed suit against ConMed and a contractor that performed the sterilization, alleging injuries caused by exposure to excessive amounts of chemicals used in the sterilization process (the “ConMed Action”). Thereafter, ConMed’s employees filed a separate lawsuit against the Landlord, alleging that the Landlord permitted storage of unsafe levels of the chemicals at the warehouse without adequate ventilation (the “Landlord Action”). The lease agreement required ConMed to indemnify the Landlord “except in the event of, and to the extent of, Landlord’s negligence or willful misconduct.”
Read the court decisionRead the full story...Reprinted courtesy of
Kerianne Kane Luckett, Saxe Doernberger & Vita, P.C.Ms. Luckett may be contacted at
KKane@sdvlaw.com
Does “Faulty Workmanship” Constitute An Occurrence Under Your CGL Policy?
January 08, 2024 —
David Adelstein - Florida Construction Legal UpdatesThere is nothing more scintillating than an insurance coverage dispute, right? Well, some folks would agree with this sentiment. Others would spit out their morning coffee in disagreement. Regardless of where you fall in the spectrum, they are always important because maintaining insurance is a NECESSARY part of business, particularly in the construction industry. The ideal is to have insurance that covers risks you are assuming in the performance of your work.
Sometimes, insurance coverage disputes provide valuable insight, even in disputes outside of Florida. Recently, the Western District of Kentucky in Westfield Insurance Co. v. Kentuckiana Commercial Concrete, LLC, 2023 WL 8650791 (W.D.KY 2023), involved such a dispute. While different than how Florida would treat the same issue, it’s still noteworthy because it sheds light into how other jurisdictions determine whether “faulty workmanship” constitutes an “occurrence” under a commercial general liability (CGL) policy.
Read the court decisionRead the full story...Reprinted courtesy of
David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Emerging World Needs $1.5 Trillion for Green Buildings, IFC Says
December 11, 2023 —
Natasha White - BloombergThe International Finance Corporation is looking to develop a guarantee facility for private investors to boost finance for greener construction in emerging markets, as growing populations, urbanization and industrialization are set to spur pollution far beyond safe limits.
IFC, the world’s largest global development institution focused on the private sector in low-income countries, is working with its counterparts in the World Bank Group to “create a one-stop shop for guarantees offered to private investors,” Susan Lund, vice president for economics and private sector development, told Bloomberg in an interview. We have “really high aspirations to scale that up dramatically for climate finance and in particular for green buildings and decarbonizing the construction sector,” she said.
Lund’s comments follow a recent speech given by World Bank President Ajay Banga who said the bank is working to better unify guarantee insurance across the institutions.
Read the court decisionRead the full story...Reprinted courtesy of
Natasha White, Bloomberg