Slowing Home Sales Show U.S. Market Lacks Momentum: Economy
August 27, 2014 —
Lorraine Woellert – BloombergThe pace of new-home sales fell to the slowest in four months in July, signaling U.S. real estate lacks the vigor to propel faster growth in the economy.
Purchases unexpectedly declined 2.4 percent to a 412,000 annualized pace, weaker than the lowest estimate of economists surveyed by Bloomberg, Commerce Department data showed today in Washington. June purchases were revised up to a 422,000 rate after a May gain that was also bigger than previously estimated.
Housing has advanced in fits and starts this year as tight credit and slow wage growth kept some prospective buyers from taking advantage of historically low borrowing costs. Bigger job and income gains, along with a further slowdown in price appreciation, would help make properties more affordable.
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Lorraine Woellert, BloombergMs. Woellert may be contacted at
lwoellert@bloomberg.net
How BIM Helps Make Buildings Safer
July 01, 2019 —
Aarni Heiskanen - AEC BusinessThere are many uses for building information models that are yet to be discovered. One Finnish team collaborated with a city and fire & rescue authority to explore how BIM would help make buildings safer.
“Imagine a fire inspector in a building with an AR headset. He can retrieve data from the building’s digital model and hence get an x-ray view of the pipes and cables behind the lowered ceiling.”
That’s a scenario that Timo Lehtoviita pictured when we discussed the experimentation project which he led at Saimia, Saimaa University of Applied Sciences.
Saimia, the city of Lappeenranta and their real estate company LATO, and the Rescue Department of South Karelia partnered in 2018 to explore the possibilities of using BIM to make buildings safer. The project, titled “Enhancing building safety using information models,” formed part of the national KIRA-digi built environment digitalization program.
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi
AB 3018: Amendments to the Skilled and Trained Workforce Requirements on California Public Projects
February 18, 2019 —
Alex R. Bagdassarian & Nathan A. Cohen - Peckar & AbramsonWhat California Contractors Need To Know About AB 3018
California contractors used to face limited consequences for non-compliance with the state’s skilled and trained workforce requirements on public works projects. A sea-change to the statutory landscape went into effect on January 1, 2019 as a result of Assembly Bill No. 3018 (“AB 3018”).1 The Code re-defines what constitutes a skilled/trained workforce by eliminating existing exemptions, strengthens monthly reporting guidelines and agency oversight, and empowers the Labor Commissioner and public agencies with enforcement tools that include monetary penalties and debarment. Contractors who fail to institute a program to comply with AB 3018’s reporting requirements do so at their peril.
What Does The 30% Requirement Mean?
Previously, in order to comply with the skilled workforce requirements2, 30% of skilled journeypersons had to be graduates of an apprenticeship program, except for certain listed trades which were exempt from the apprenticeship percentage requirement3. AB 3018 eliminates this exception for the listed occupations and requires 30% of all trades to be comprised of apprenticeship program graduates.
Reprinted courtesy of
Alex R. Baghdassarian, Peckar & Abramson and
Nathan A. Cohen, Peckar & Abramson
Mr. Baghdassarian may be contacted at Abaghdassarian@pecklaw.com
Mr. Cohen may be contacted at ncohen@pecklaw.com
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Digitalizing Cross-Laminated Timber Construction
August 28, 2018 —
Aarni Heiskanen - AEC BusinessA Finnish experimentation project has made cross-laminated timber construction more productive and creative by using digital modeling.
The office of &’ [Emmi Keskisarja & Janne Teräsvirta & Company Architects Ltd] looks rather like a prototype workshop. Intriguing scale models, a 3D printer, and a small CNC machine all give clues about the architects’ current project. They’re determined to make wood construction more collaborative and creative using digital technologies and cross-laminated timber (CLT).
Plenty of Room for Improvement
“I’m going to present our KIRA-digi project at WDBE 2018 in September. Incidentally, our wooden installation will be on display during Helsinki Design Week,” says Keskisarja. “We want to communicate with the public, not just within our professional circles, as architects typically do. The theme of the week is trust, something that’s missing in today’s construction.”
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi
Nevada’s Home Building Industry can Breathe Easier: No Action on SB250 Leaves Current Attorney’s Fees Provision Intact
June 21, 2017 —
Aaron Lovaas – Newmeyer & Dillion LLPConstruction and design professionals in Nevada’s home building industry breathed a collective sigh of relief on June 5, 2017 when the 79th Session of the Nevada Legislature adjourned without entertaining Senate Bill 250, which sought to reinstate homeowner plaintiffs’ nearly automatic right to recover attorneys’ fees, expert costs, and costs of investigation when bringing suit for alleged constructional defects.
Until 2015, homeowners’ recovery of such damages was the reality of the construction defect landscape in Nevada. While Chapter 40 of the Nevada Revised Statutes specifically allowed for recovery of “reasonable” attorneys’ fees, expert costs, and costs of investigation, the trend in Nevada was that plaintiffs were all but guaranteed awards of all such sums. Of course, this environment incentivized plaintiffs’ lawyers to bring claims of questionable or little repair value in cases where the attorney’s fees and expert costs often far exceeded the costs of repair.
HOW AB125 CHANGED THE LANDSCAPE
Such was the reality in Nevada until 2015 and the passage of Assembly Bill 125, which eliminated the nearly automatic award of attorneys’ fees and expert costs and overhauled Chapter 40 in many other respects. AB125 made over portions of Chapter 40 by:
- Placing awards of attorneys’ fees into the framework of offers of judgment, utilized extensively in other fields of civil litigation and available equally to homeowner plaintiffs as well as construction industry defendants; and
- Reworking expert costs and costs of investigation to allow for the award of those items only in the case of proven defects and only as to those costs directly related to the investigation and proof of those defects.
INTRODUCING SB250
The 2017 Legislative Session saw efforts to return Chapter 40 to its pre-2015 version through the introduction of SB250. Fortunately for construction and design professionals in the home building industry in Nevada, the State Senate Judiciary Committee did not act upon the bill and the effort died having never made it to a floor vote. Considering that Nevada’s Legislature meets biannually, the current framework of Chapter 40 is intact until at least 2019. The 2017 Legislative Session, however, is an illustration to how quickly those of the construction defect plaintiffs’ bar can move to initiate efforts to turn back the clock to a much riskier time for construction and design professionals.
Those in the industry should remain vigilant and monitor future legislative efforts to reinstate such awards or other clearly anti-builder measures. Such measures simply drive-up the overall cost and expense of home construction and, in turn, home ownership, which it is often said, is one of the cornerstones of the American dream.
Aaron Lovaas is a partner in the Las Vegas office of Newmeyer & Dillion. As a transactional attorney and business litigator, Aaron has the ability to evaluate legal issues from both points of view and help his clients understand their best option. He can be reached at aaron.lovaas@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 www.ndlf.com.
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The Role of Code Officials in the Design-Build Process
November 16, 2023 —
Grace Calengor - Construction ExecutiveBuilding codes are an integral part of the design-build process, but what role do building code professionals play throughout that process? Kevin McOsker, vice president of technology services for the government relations department at the International Code Council, breaks it down, from basic design to groundbreaking ideas to incorporating new technology and retrofitting older builds.
McOsker, whose experience includes serving as building official for the city of Las Vegas, is no stranger to striking architecture and the safety protocols that go along with it. He believes that safety protocol starts before the contractors begin building and that contractors should be involved throughout the entire journey.
Reprinted courtesy of
Grace Calengor, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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No Coverage for Roof Collapse During Hurricane
January 29, 2024 —
Tred R. Eyerly - Insurance Law HawaiiThe Fifth Circuit affirmed the district court's determination that the insured's roof collapse was not covered. Exclusive Real Estate Inv., L.L.C. v. S.G.L. No. 1, Ltd., 2023 U.S. App. LEXIS 29368 (5th Cir. Nov. 3, 2023).
A building owned by Exclusive Real Estate partially collapsed during a rain-storm. The insurer, SGL, inspected the roof and determined that there was no coverage. Exclusive sued SGL for breach of contract and bad faith. SGL moved for summary judgment, which was granted by the district court. Exclusive appealed.
The poicy covered "direct physical loss to the property" caused by windstorms. Exclusions, however, precluded coverage for losses "caused by rain, snow, sleet, sand or dust unless the direct force of wind or hail damages the building causing an opening in a roof or wall and the rain, snow, sleet, sand or dust enters through this opening."
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Pending Sales of U.S. Existing Homes Rise Most in Four Years
July 01, 2014 —
Jeanna Smialek – BloombergThe number of contracts to purchase previously owned U.S. homes jumped in May by the most in more than four years, a sign the residential-real estate market is rebounding after a slow start to the year.
The pending home sales index climbed 6.1 percent, the biggest advance since April 2010, after a revised 0.5 percent increase in April, the National Association of Realtors said today in Washington. The gain exceeded the most optimistic estimate in a Bloomberg survey of economists, whose median forecast called for a 1.5 percent gain.
Housing demand is benefiting from cheaper borrowing costs, a stronger employment outlook and easier access to credit for some households. At the same time, higher prices and limited income gains are keeping the improvement in the residential real estate from becoming more broad-based.
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Jeanna Smialek, BloombergMs. Smialek may be contacted at
jsmialek1@bloomberg.net