Real Estate & Construction News Round-Up (06/29/22)
July 11, 2022 —
Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law BlogHousing market activity is on the downtick, the Partnership for Global Infrastructure and Investment launches, the SEC proposes a climate rule that signals a new era for real estate, and more.
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Pillsbury's Construction & Real Estate Law Team
Do Not Pass Go! Duty to Defend in a Professional Services Agreement (law note)
April 03, 2019 —
Melissa Dewey Brumback - Construction Law in North CarolinaRecently a client asked me to review a contract for his Firm. The Owner, who had prepared the draft, had inserted a rather stringent “duty to defend” clause.
As I told my client, a duty to defend clause is not a good idea for a couple of reasons. First, if you agree to provide a defense, what that means is that you are footing the bill for the Owner if the Owner is sued by another party. Think about that for a minute. You are paying legal fees for someone else’s legal defense. You may or may not be able to direct the litigation or have a say in who is hired. Can you say open check book?
Secondly, and more importantly, the duty to defend is almost never insurable. What that means is that your professional liability carrier will not be footing the bill—your Firm will be doing it. This is not a case of adding the Owner as an additional insured, so do not confuse the two. Agreeing to a duty to defend is an extremely burdensome, and potentially costly, mistake.
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Melissa Dewey Brumback, Ragsdale Liggett PLLCMs. Brumback may be contacted at
mbrumback@rl-law.com
ACEC Statement on Negotiated Bipartisan Debt Limit Compromise
June 05, 2023 —
The American Council of Engineering CompaniesWashington, D.C. – The American Council of Engineering Companies (ACEC) released the following statement applauding the negotiated bipartisan compromise to raise the debt limit ahead of the scheduled House vote tonight:
"The American Council of Engineering Companies (ACEC) applauds President Biden and Speaker McCarthy for negotiating a bipartisan compromise to raise the debt limit and avoid a catastrophic default. We are particularly pleased that the bipartisan deal protects the critical funds provided under the Infrastructure Investment and Jobs Act (IIJA) and does not include any changes to the Inflation Reduction Act's (IRA) climate and clean energy provisions, which the engineering industry is working hard to deliver successfully. ACEC also strongly supports the provisions in the deal to reform the federal permitting process. These commonsense measures to modernize the National Environmental Policy Act (NEPA), particularly through the use of digital technologies, will improve interagency collaboration and allow engineering firms to help their clients deliver project benefits more efficiently while ensuring strong environmental protections and opportunities for community and stakeholder engagement."
The American Council of Engineering Companies (ACEC) is the business association of the nation's engineering industry. Founded in 1909, ACEC is a national federation of 51 state and regional organizations representing more than 5,500 engineering firms and 600,000+ engineers, surveyors, architects, and other specialists nationwide. ACEC member firms drive the design of America's infrastructure and the built environment.
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Federal Miller Act Payment Bond Claim: Who Gets Paid and Who Does Not? What Are the Deadlines?
September 16, 2019 —
William L. Porter - Porter Law GroupWhen working on federal public works construction projects there are no Stop Payment Notice or Mechanics Lien remedies available to protect subcontractors’ and suppliers’ right to payment. Instead, unpaid subcontractors and suppliers must resort to making a claim for payment under a federal law known as the AMiller Act@ (40 USCS 3131 et seq.). Many claimants however, do not realize that the right to make a Miller Act claim is not available to all subcontractors and suppliers. Before committing to performing work on a federal project it is important for subcontractors and suppliers to understand whether or not a Miller Act claim will be available. For those who have no Miller Act rights, careful consideration must be given to whether it is worth the risk to take on the project. For those who have valid Miller Act claim rights, important deadlines must be considered.
Who Gets Paid Under a Miller Act and Who Does Not
For federal projects in excess of $100,000, contractors who have a contract directly with the Federal Government must obtain Miller Act Payment Bond intended for the protection of Subcontractors, laborers and material suppliers to the project.
As a general rule, every subcontractor, laborer, or material supplier who deals directly with the prime contractor and is unpaid may bring a lawsuit for payment against the Miller Act Payment Bond. Further, every unpaid subcontractor, laborer, or material supplier who has a direct contractual relationship with a first-tier subcontractor may bring such an action. The deadlines for these claims are described below.
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William L. Porter, Porter Law GroupMr. Porter may be contacted at
bporter@porterlaw.com
24th Annual West Coast Casualty Construction Defect Seminar A Success
June 05, 2017 —
Margaret Graham - CDJ STAFFThe 24th Annual West Coast Casualty Construction Defect seminar was once again, a huge success . On May 18-19, 2017 attendees from the legal, insurance, builder, contractor, subcontractor and numerous other industries came from across the United States and several foreign countries to the 24th Annual West Coast Casualty Construction Defect Seminar.
Caryn Siebert, Vice President and Chief Claims Officer of The Knight Insurance Group was awarded The Jerrold S. Oliver Award of Excellence. This award recognizes a person who has contributed to the betterment of the construction defect community. For more information on the Oliver Award of Excellence, please visit: http://www.westcoastcasualty.com/seminar/ollie-award-voting/
Bert L. Howe & Associates, Inc.’s golf challenge raised $2,225.00 for the National Coalition for Homeless Veterans and $1,900 for Final Salute.
The grand total for all charitable contributions raised this year at the seminar was $45,300.00.
For more information on the National Coalition for Homeless Vets, please visit: http://nchv.org/
To learn more about how Final Salute provides homeless women Veterans with safe and suitable housing, please visit: http://www.finalsaluteinc.org/
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A Networked World of Buildings
November 21, 2022 —
Pieter Pauwels - AEC BusinessBuildings are living things. Buildings change shape every day and every minute. They are used by plenty of people, endlessly. Buildings shape our context and environment, and they impact our well-being to a large extent. Buildings constantly change their behavior under the influence of external conditions and occupants. We have an interest in engineering these buildings and making them as comfortable and pleasant as possible. Instead of treating buildings as static monuments that happen to be in our environment, it makes sense to treat them as living things that change incessantly, with streams of people, streams of materials and goods, and as ever-changing ecosystems of living beings.
And so, we must engineer the knowledge and information of our buildings! We need to provide our buildings with a set of brains, brains that evolve and continuously track the state of the facility and all of its internals: systems, materials, demountable elements, furniture, and people. The brains hold a snapshot of the building at any moment and allow us to ensure that this living building responds in a useful and likable manner (comfort). And this needs efforts from us human beings, and not only from ‘the AI.’
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Pieter Pauwels, AEC BusinessMr. Pauwels may be contacted at
p.pauwels@tue.nl
American Arbitration Association Revises Construction Industry Rules and Mediation Procedures
April 08, 2024 —
Dennis Cavanaugh & Larry Grijalva - Construction Law ZoneThe American Arbitration Association (AAA), one of the longest-standing and experienced alternative dispute resolution (ADR) administrators, has unveiled a significant update to its Construction Industry Rules and Mediation procedures. This update, last revised in 2015, became effective March 1, 2024. Changes to the AAA Construction Industry Rules are significant as these rules are incorporated by default in American Institute of Architects standard construction forms, which are widely used in the industry.
Advancements in remote access technology drive a substantial number of new changes. Others are designed to streamline the arbitrator appointment process and certain prehearing procedures and to make arbitration more cost-efficient by enhancing the arbitrator’s case management authority. Some of the more notable changes are:
Fast Track
F-1: The limit for cases eligible for AAA’s Fast Track Procedures has been increased from $100,000 to $150,000 so long as no claim or counterclaim exceeds that amount.
Reprinted courtesy of
Dennis Cavanaugh, Robinson & Cole and
Larry Grijalva, Robinson & Cole
Mr. Cavanaugh may be contacted at dcavanaugh@rc.com
Mr. Grijalva may be contacted at lgrijalva@rc.com
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Did You Get a Notice of Mechanic’s Lien after Project Completion? Don’t Panic!
October 20, 2016 —
Christopher G. Hill – Construction Law MusingsSo, you own a piece of property. You decided to have some work done and after what you thought was proper due diligence, you hire a general contractor to build a great office building on the property. Your architect designs the space, you sign the construction contract for a price you find fair and that the bank approves. Construction starts and with a few minor hiccups, a couple of written changes and one minor but slightly annoying change required by the local building inspector, completes relatively on schedule. You write the final check to the general contractor for its final draw and start the process of leasing the space out. All is right with the world as best you can tell.
A month later, you walk to your mailbox and lo and behold, you have a certified mailing containing a notice that the plumbing subcontractor has recorded a mechanic’s lien on your property. After counting to 10 to let the various emotions pass, you call the general contractor to see what is going on. You’re told that there is a dispute regarding a change order about which you knew nothing and that the general contractor feels it is in the right and should not have to pay the money represented in the memorandum of lien so it won’t be paying the subcontractor unless and until it is told to do so by a court or an arbitrator.
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Christopher G. Hill, The Law Office of Christopher G. Hill, PCMr. Hill may be contacted at
chrisghill@constructionlawva.com