Building Resiliency: Withstanding Wildfires and Other Natural Disasters
September 25, 2023 —
Bill Creedon - Construction ExecutiveAccording to the National Fire Protection Association, between 2016 and 2020 an estimated average of 4,300 fires per year plagued structures under construction, adding up to about $376 million in annual property damage. More recently, the National Centers for Environmental Information reported that wildfires accounted for more than $3.2 billion in damages across the United States. These figures alone point to the heightened awareness that all companies—particularly construction companies—should maintain surrounding the unique challenges and risks that wildfires can present and how they could potentially impact the integrity of projects and the associated safety of their workers.
As North America grapples with the increasing frequency and severity of wildfires, hurricanes and additional severe weather events, numerous industries have had to adapt and implement proactive measures to minimize their risks and associated exposures. The impact of these natural disasters on the construction industry is indisputable, necessitating proactive measures that construction companies should seriously consider adopting to effectively mitigate those risks, efficiently navigate insurance complexities and seamlessly integrate data-driven solutions alongside modern tools like AI and predictive modeling.
Reprinted courtesy of
Bill Creedon, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Read the court decisionRead the full story...Reprinted courtesy of
Mr. Creedon may be contacted at
bill.creedon@wtwco.com
Insurer’s Attempt to Shift Cost of Defense to Another Insurer Found Void as to Public Policy
June 09, 2016 —
Garret Murai – California Construction Law BlogWhile construction can sometimes be risky, construction litigation is almost always expensive. This volatile mix of risk and expense has made risk shifting, through indemnity and insurance, a primary goal and concern of project owners, contractors and suppliers alike. Construction insurers know this all too well and insurers, even between themselves, seek to shift risk.
As one primary insurer found, however, risk shifting provisions in their policies – specifically, one which sought to shift the cost of defense to another insurer – is not without its limitations.
Read the court decisionRead the full story...Reprinted courtesy of
Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
Why Federal and State Agencies are Considering Converting from a “Gallons Consumed” to a “Road Usage” Tax – And What are the Risks to the Consumer?
August 26, 2015 —
Roger Hughes – California Construction Law Blog“‘We’re going to have to find another way to finance the upkeep of the roads,’ Gov. Jerry Brown said earlier this year in rolling out his 2015 budget. Governor Brown gave no specifics, but last fall he signed a law that set up a commission to study a ‘road usage charge’ with a call to ‘establish a pilot program by Jan. 1, 2017…'” – San Jose Mercury News, January 27, 2015
This Change, It’s a Coming (Maybe)
Many states and the federal government are seriously considering converting from a “gallons consumed” tax levy to a “miles driven” program for determining gasoline tax. There are several compelling reasons for such a change. First, our roads are falling apart while revenue from current highway taxes fall woefully short of our current and projected needs. In the meantime, the number of miles driven by all-electric cars that pay no gas tax, is increasing rapidly; and by hybrids that pay substantially reduced tax; and worse for the taxing authorities, by increasingly efficient gas-powered cars. All of this means rapidly dropping gas tax revenues. Seeing this trend, local, state and the federal governments are making a major push to convert from a consumption based tax to a “miles driven” tax. This a good thing for those of us that believe increased investment in our transportation infrastructure is of high national concern.
Read the court decisionRead the full story...Reprinted courtesy of
Roger Hughes, Wendel Rosen Black & Dean LLPMr. Hughes may be contacted at
rhughes@wendel.com
Colorado’s Abbreviated Legislative Session Offers Builders a Reprieve
October 26, 2020 —
David M. McLain – Colorado Construction LitigationWould you believe me if I told you that this year could have been worse for builders? Had COVID-19 not hit, the Colorado Legislature may have passed bills that would have had a severely negative impact on the home building industry. In response to the COVID-19 pandemic, the Legislature temporarily adjourned in mid-March, 67 days into the 120-day legislative session. After a two-month recess, the Legislature returned for approximately one month to pass critical bills including the state budget, the school finance act and what to do with the money from the federal CARES Act. Of the bills on the calendar when the Legislature temporarily adjourned, legislators focused on those that were “fast, free, and friendly,” and let the others fall by the wayside.
Bills that died included SB 20-138, which would have extended Colorado’s statute of repose for construction defect claims from six plus two years to 10 plus two years. The bill also contained a number of accrual and tolling provisions, which would have made it harder for builders to convince tribunals that claims were untimely. This bill died on the Senate floor, for lack of support. We will see whether plaintiffs’ attorneys will revive this effort next year.
SB 20-093, while not an outright ban on arbitration or a legislative overturning of the Vallagio decision, would have made it harder to administer and more difficult to get cases into arbitration. The bill died under the “fast, free, and friendly” test, i.e., it faced too much opposition. I expect to see this bill again next year, in some form.
Read the court decisionRead the full story...Reprinted courtesy of
David McLain, Higgins, Hopkins, McLain & RoswellMr. McLain may be contacted at
mclain@hhmrlaw.com
COVID-19 Impacts on Subcontractor Default Insurance and Ripple Effects
April 20, 2020 —
Smith CurrieSubcontractor default insurance (“SDI”) may be described as an alternative to bonding subcontractors. SDI is first-party insurance that compensates the general contractor insured in the event a covered subcontractor fails to fulfill its contractual obligations. Under SDI policies, general contractor insureds are obligated to develop and implement rigorous subcontractor prequalification procedures.
Basic questions and answers about how SDI might come into play and impact the construction industry in response to COVID-19 follow:
Who may make a claim on an SDI policy?
The general contractor may make a claim. An Owner may make a claim if the general contractor becomes insolvent in many cases. Subcontractors may not make claims on SDI policies.
Read the court decisionRead the full story...Reprinted courtesy of
Smith CurrieThe Smith Currie firm may be contacted at
info@smithcurrie.com
A Property Boom Is Coming to China's Smaller Cities
May 01, 2019 —
Bloomberg NewsProperty developers that focus on smaller cities in China are set to be the beneficiaries of a reform last week that could encourage 100 million rural citizens to move to urban areas.
Policy makers said cities with an urban population of 1 million to 3 million should scrap the residency registration system this year, a move that is seen boosting housing demand in lower-tier cities. Developers with higher land reserves or housing inventories in those cities, especially growing areas such as the Yangtze River Delta and Greater Bay Area are among the winners from the policy, analysts say.
“The speed of urbanization should accelerate, which is constructive for real estate developers, especially those focused on lower tier cities where we can expect stronger demand for residential properties,” said Ken Hu, chief investment officer for Asia Pacific fixed income at Invesco Hong Kong Ltd.
Read the court decisionRead the full story...Reprinted courtesy of
Bloomberg
Contract’s Definition of “Substantial Completion” Does Not Apply to Third Party for Purposes of SOL, Holds Court of Appeal
June 15, 2020 —
Garret Murai - California Construction Law BlogThose of you in the construction industry know that the two primary statutes of limitation are the 4-year year statute of limitations for patent defects and 10-year statute of limitations for latent defects. Both statutes begin to run on “substantial completion.”
In Hensel Phelps Construction Co. v. Superior Court of San Diego, Case No. D076264 (January 22, 2020), the 4th District Court of Appeal examined whether the term “substantial completion,” as used in Civil Code section 941, which applies to residential construction, can be defined by the parties’ contract and applied to third-parties.
The Hensel Phelps Case
Hensel Phelps Construction Co. entered into a prime construction contract with the owner and developer of a mixed-use project in San Diego. Hensel Phelps was the general contractor on the project. The project included a residential condominium tower which would eventually be managed and maintained by Smart Corner Owners Association. Smart Corners was not a party to the contract.
Read the court decisionRead the full story...Reprinted courtesy of
Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
The Four Forces That Will Take on Concrete and Make Construction Smart
September 17, 2018 —
Massimiliano Moruzzi - Construction ExecutiveWhen it comes to building a bridge, what prevents it from having the most enduring and sustainable life span? What is its worst enemy? The answer is, simply, the bridge itself—its own weight.
Built with today’s construction processes, bridges and buildings are so overly massed with energy and material that they’re inherently unsustainable.
While concrete is quite literally one of the foundations of modern construction, it’s not the best building material. It’s sensitive to pollution. It cracks, stainsand collapses in reaction to rain and carbon dioxide. It’s a dead weight: Take San Francisco’s sinking, leaning Millennium Tower as an example.
Reprinted courtesy of
Massimiliano Moruzzi, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Read the court decisionRead the full story...Reprinted courtesy of