Preventing Acts of God: Construction Accidents Caused by Outside Factors
September 20, 2017 —
Christopher G. Hill - Construction Law MusingsFor this week’s Guest Post Friday here at Musings, we welcome back Seth Smiley. Seth, a native of Baton Rouge, is the owner of Smiley Law Firm. He is admitted to practice in all state and federal courts in Louisiana and California. Seth Smiley is the son of a general contractor, and acquired valuable work experience in the construction industry prior to entering law school. He earned his J.D. from Loyola, New Orleans in 2009. In his practice, Seth handles all aspects of construction cases, from initial contracting all the way to final payment once work is complete. Other areas of focus include commercial lease disputes, personal injury, business formation, and insurance property damage claims. Seth loves to fight insurance companies. Seth is currently the primary author of the Smiley Law Blog. The blogs primary focus is to provide value for current and prospective clients regarding trending legal issues in which the attorneys at Smiley Law Firm cover.
There are several factors a construction team can control on a job site. The foreman can ensure scaffolding is secure and that all employees are properly trained, and all workers can take steps to ensure a reasonably safe work site. Accidents can and will happen despite the best efforts of those involved.
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Christopher G. Hill, The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
California Courts Call a “Time Out” During COVID-19 –New Emergency Court Rules on Civil Litigation
May 04, 2020 —
Tara C. Dudum - Newmeyer Dillion“We are at this point truly with no guidance in history, law, or precedent. To say that there is no playbook is a gross understatement of the situation.”
-Chief Justice and Chair of the California Judicial Council, Tani G. Cantil-Sakauye
Seeking to sustain essential court services while balancing weighty considerations, including litigants’ due process rights, access to justice, and stringent health and safety orders, the California Judicial Council has adopted Emergency Rules in response to the ongoing coronavirus pandemic (COVID-19).
While many of the Emergency Rules focus on criminal and juvenile dependency matters, this update highlights the Emergency Rules immediately impacting civil litigation in California state courts. The following Emergency Rules remain in effect until 90 days after the Governor lifts the state of emergency or the rule is amended or repealed by the Judicial Council:
Tolling of Statutes of Limitation in Civil Actions
Effective April 6, 2020, the statutes of limitation (the time period in which to bring a claim) for all civil causes of action is tolled until such time as the rule is no longer in effect. The impact of this rule is that it provides plaintiffs with more time to bring claims and extends the time period that defendants may face legal action for alleged violations of the law.
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Tara C. Dudum, Newmeyer DillionMs. Dudum may be contacted at
tara.dudum@ndlf.com
KB Home Names New President of its D.C. Metro Division
November 05, 2014 —
Beverley BevenFlorez-CDJ STAFFThe Washington Business Journal reported that Jon Adler has been named president of Los Angeles-based KB Home's D.C. Metro division. Adler "most recently a partner with The Georgelas Group in McLean, and served as president and CEO of its Bryton Homes division. Prior to that, he held executive roles at Reston-based NVR Inc."
KB Home, since 1957, "has built more than half of a million homes," according to the Washington Business Journal. "It currently builds in 10 states."
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Labor Shortages In Construction
December 04, 2023 —
Jason Feld & Chris Bates - Kahana FeldSimilar to other industries, the ongoing labor shortage crisis in the United States is detrimentally impacting construction activities in both the residential and commercial sector. According to the Bureau of Labor Statistics, the turnover rate for the construction industry since 2021 has risen to 56%. And while the national unemployment rate ranges between 0.4% to 7.5%, the unemployment rate for construction is roughly four times the national average (See, Associated Builders and Contractors, Markenstein Advisors Report dated July 28, 2023). 73% of workers preferred to stay in a remote work environment, and another 40% of the global workforce has elected to voluntarily remove themselves from the workplace. (See, 2021 Microsoft Work Index). In particular with the construction industry, employment rates have returned to pre-pandemic levels hovering around 12% unemployment in 2020 to 6% in 2022. (See, Joint Center for Housing Studies at Harvard University, Carlos Martin).
So where did all the workers go? During the height of the 2020 Covid-19 Pandemic and for the next few years, the county experienced what most people are calling “The Great Resignation”. May people took jobs with better pay and better alignment with their values. Approximately 40% stated a new business. Many elected to become stay-at-home parents forgoing a paycheck to raise their families while the other spouse works, especially due to the rising costs of childcare. About 1 in every 4 baby-boomers retired. Others took part-time employment, entered military service or left the workforce due to disability or injury. (See, Bloomberg Businessweek).
Reprinted courtesy of
Jason Feld, Kahana Feld and
Chris Bates, Kahana Feld
Mr. Feld may be contacted at jfeld@kahanafeld.com
Mr. Bates may be contacted at cbates@kahanafeld.com
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Commercial Construction Lenders Rejoice: The Pennsylvania Legislature Provides a Statutory fix for the “Kessler” Decision
July 16, 2014 —
Thomas C. Rogers – White and Williams LLPIn May 2012, the Pennsylvania Superior Court rendered its now infamous “Kessler” decision. The Kessler decision resulted in fundamental changes in the operation of the Pennsylvania Mechanics Lien Act as it applied to construction loans where the visible commencement of work on the project commenced before the recordation of the construction loan’s open-end mortgage.
Essentially, the Kessler decision held that if the visible commence of work on the project began prior to the recording of the open-end mortgage and any loan advances were made other than for what are commonly considered “hard construction” costs, then any unpaid contractors and subcontractors who later filed mechanics’ liens would have their liens take priority over the lien of all of the construction loan advances.
Subsequent to the Kessler decision, both the lending and title insurance communities in Pennsylvania have struggled mightily to structure deals around the problems created by Kessler and to provide lenders with title insurance coverage for construction loans when work commenced before the recordation of the open-end mortgage.
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Thomas C. Rogers, White and Williams LLPMr. Rogers may be contacted at
rogerst@whiteandwilliams.com
Town Sues over Defective Work on Sewer Lines
January 13, 2014 —
CDJ STAFFThe Handy Sanitary District in North Carolina has filed a lawsuit against one of the subcontractors on the Badin Lake Sewer Project, which the Lexington Dispatch describes as “delay riddled.” The town claims that the materials used by Hobbs, Upchurch and Associates “were not adequate for the project.” Additionally, the town claims that valves were improperly installed or damaged, and that pipes were of the incorrect type and improperly connected.
The Sanitary District Board of Commissioners has additionally settled a lawsuit over non-payment for work on the sewer project. The Handy Sanitary District has settled claims brought by Monroe Roadways Contractors and Young Construction with a payment of $250,000.
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Is It Time to Get Rid of Retainage?
June 15, 2020 —
David K. Taylor - Construction ExecutiveMany debate the pros, cons and claims of retainage—when one party to a construction contract withholds a percentage (typically 5%-10%) from an otherwise approved contractor pay application, and which typically is not paid until a project is substantially complete. If an owner withholds retainage from a prime contractor, typically the contractor will in turn withhold retainage from its subcontractors.
While retainage has been part of the construction industry for decades, its concept, use (and abuse) have been under more discussion during the past 10 years.
Based on heavy lobbying from primary subcontractor groups, state legislatures have passed laws to regulate retainage in commercial projects. Lenders have become more careful about loans and are frequently involved in retainage discussions. Bonded projects are subject to criticism when a surety does not step in and, like the mythical insurance company, write a check.
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David K. Taylor, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Mr. Taylor may be contacted at
dtaylor@bradley.com
Busting Major Alternative-Lending Myths
July 22, 2024 —
Warren Miller - Construction ExecutiveAlternative capital is a broad term for financing provided by institutions or firms that typically fall outside of the purview of the larger, regulated institutions (i.e., not traditional banks). While these funding sources may not always be the first option for many businesses, alternative lending is a perfect option for many small and mid-sized capital-intensive companies, like construction companies, which often require fast access to capital that is incompatible with the stringent and laborious processes imposed by traditional banks.
Construction companies should take a closer look at alternative financing, understand its benefits, and evaluate its usefulness for achieving their unique funding requirements.
REALITY 1: ALTERNATIVE LENDING IS SAFE AND PROVEN
Private lending has been around for a long time, and has become increasingly common since the 1990s, when major consolidation took place in the banking industry. As the large, consolidated banks set their sights on providing loans to large enterprises, they left a gap in the small and mid-size market that was filled by alternative lenders. By 2000, alternative lenders had overtaken traditional banks for the majority of corporate loans. Stricter regulation of banks following the Global Financial Crisis of 2007 intensified underwriting standards for bank loans and further diminished banks’ appetites for SMB lending.
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Warren Miller, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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