Build, Baby, Build. But Not Like This, Britain.
March 04, 2024 —
Matthew Brooker - BloombergThe UK needs to do a lot more building. A lack of access to physical and digital connections is holding back the economy, the government says. Besides tackling the housing crisis, the country has to construct more roads, railways, wind farms and reservoirs to open up opportunity and drive productivity. The only problem is that Britain is notoriously inept at delivering infrastructure projects on time and within budget.
The advantage of doing things badly is that at least you get to learn from your mistakes — in theory. Updates this month have offered some illuminating insights into two of the biggest civil-engineering undertakings in the country: High-Speed Rail 2, better known as HS2, and Hinkley Point C, which will be Britain’s first new nuclear power station since 1995. Here are five lessons that can be drawn from the issues encountered by two projects with a combined bill that’s likely to exceed £100 billion ($127 billion):
Don't take budgets too seriously — especially at the start. Fixing an initial budget that was too low may have done much to feed later perceptions that HS2’s costs were spiraling out of control. The original estimate for the expanded train network was set too early and based on “very immature data,” Jon Thompson, appointed executive chair of High Speed 2 Ltd. in February last year, told the House of Commons transport committee. Numbers get more accurate and reliable as work progresses and the quality of information improves. What were viewed as cost blowouts partly reflected this process. The effect was unfortunate, undermining political support for HS2 and providing cover for cutbacks that have reduced the network to a single line between London and Birmingham that fails to fulfill most of its original purpose. To avoid this problem: Stick to a range rather than a single figure, and make sure people understand the uncertainties inherent in early-stage estimates.
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Matthew Brooker, Bloomberg
Surge in Home Completions Tamps Down Inflation as Fed Meets
June 17, 2015 —
Carlos Torres – BloombergAmerican builders are tamping down what little inflation there is.
Construction companies completed 392,000 buildings with five or more units at an annualized rate in May, the most since 1988, Commerce Department figures showed Tuesday in Washington.
“The pickup in demand is pushing up rents and also creating more incentive for builders to put up more units,” said Michael Hanson, a senior economist at Bank of America Corp. in New York. The jump in completions “helps offset some of the upward pressure we’ve seen” on rents, said.
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Carlos Torres, Bloomberg
California Committee Hosts a Hearing on Deadly Berkeley Balcony Collapse
April 28, 2016 —
Beverley BevenFlorez-CDJ STAFFAccording to Mercury News, state Senators Jerry Hill and Loni Hancock scheduled the hearing in Sacramento with state and local agencies to discuss their response to the Berkeley, California balcony collapse incident that killed three people and severely injured seven others.
The agencies also testified regarding “best practices and disclosure requirements for licenses.” Hill and Hancock are the sponsors of Senate Bill 465 that “would require companies to report certain settlements to the Contractors State License Board, and in some cases to the public.”
Investigators of the Berkeley balcony incident alleged “that crews applied waterproofing to wet wood during construction. Water was trapped inside, which led to severe dry rot and the catastrophic collapse,” reported Mercury News.
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Remodel Gets Pricey for Town
December 30, 2013 —
CDJ STAFFUsually when home gets remodeled, it’s the homeowners who encounter unexpected expenses, but in Clearwater, Florida, it’s the town. Clearview has spent about $40,000 trying to determine if changes to a home are a “substantial improvement,” and the bill could get bigger, according to TBNweekly.com.
The home in question, that of David and Aileen Blair, is in a flood zone, and city rules would require the alterations to comply with flood drainage-resistance provisions, but only if it is a “substantial improvement.” The Blairs applied for the remodel permit in April 2001, and it was granted more than 10 years later, in July 2011. Work started soon after until the city put a stop to it.
The Blairs sued, claiming that as the city issued the permit, they assumed the plans were approved, and that the partially-completed renovation now diminishes the value of their home. The city has approved an additional $160,000 in outside legal counsel to respond to the Blair’s lawsuit.
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Pollution Exclusion Found Ambiguous
May 23, 2022 —
Tred R. Eyerly - Insurance Law HawaiiThe Mississippi Supreme Court found the pollution exclusion ambiguous under the facts presented. Omega Protein, Inc. v. Evanston Ins. Co., 2022 Miss. LEXIS 90 (Miss. March 31, 2022).
Omega Protein, Inc., entered a contract with Ascu-fab to perform welding and other fabrication work at their facility. Accu-fab was required to have CGL coverage naming Omega as an additional insured. Accu-fab purchased a $1 million primer policy from Colony Insurance Company and a $5 million excess policy issued by Evanston Insurance Company.
Accu-fab performed welding and other fabrication work on a large metal storage tank used for the temporary storage of stickwater, which was a liquid composed of water, fish oil, and fish solids. An explosion occurred at the Omega plant while Accu-fab workers were welding and grinding on a large metal tank that was used for the temporary storage of stickwater. One of Accu-fab's workers , Jerry Lee Tayler, was killed, another was seriously injured, and still others suffered less serous injuries.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Colorado Governor Polis’s Executive Order D 2020 101: Keeping Up with Colorado’s Shifting Eviction Landscape during COVID-19
July 27, 2020 —
Luke Mecklenburg - Snell & Wilmer Real Estate Litigation BlogOn March 5, 2020, Colorado Governor Polis issues executive order D 2020 012, which among other things imposed temporary limitations on evictions, foreclosures, and public utility disconnections. After being amended and extended three times (through April 30, 2020 via D 2020-0131, then for an additional 30 days via D 2020 051, and finally for an additional 15 days from May 29, 2020 via D 2020 088), this executive order expired on Saturday, June 13, 2020.
In its stead, the Governor issued a more limited Executive Order—D 2020 101 (the “Order”)—which is effective through July 13, 2020. Most significantly, this current Order requires landlords to “provide tenants with thirty (30) days’ notice of any default for non payment” before they can initiate or file an eviction action (known as an “action for forcible entry and detainer,” or “FED”) and clarifies that tenants shall have the opportunity to cure any default for nonpayment during this period. The current Order also prohibits landlords and lenders “from charging any late fees or penalties for any breach of the terms of a lease or rental agreement due to non-payment” if the fees were incurred between May 1, 2020 and June 13, 2020.
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Luke Mecklenburg, Snell & WilmerMr. Mecklenburg may be contacted at
lmecklenburg@swlaw.com
New Jersey Construction Company Owner and Employees Arrested for Fraud
December 04, 2013 —
CDJ STAFFFrank Chimento, Jr., the owner of Chimento Construction of Parsippany, New Jersey, and three of his employees, Joseph Carsillo, Frank Chimento III, and Carl J. Corso, were arrested by federal agents. The elder Chimento is accused of falsifying his own income taxes, as well as failing to collect and turn over federal and state payroll taxes. He is additionally charged with falsifying union benefit fund contributions.
The three employees are also accused of filing false income tax statements and also of attempting to defraud the state of New Jersey of unemployment compensation benefits. An additional unnamed conspirator made transactions at multiple financial institutions in order to pay employees directly in cash.
One of the three employees, Mr. Carsillo, worked for the company and received cash payments while maintaining to the New Jersey Department of Labor and Workforce Development that he was unemployed. Mr. Carsillo was receiving $526 per week from the NJDOL-WD in unemployment benefits, starting in 2009. From 2009 through 2011, Mr. Carsillo received $19,988 in unemployment benefits and an additional $351,788 in wages from Chimento.
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Differing Rulings On Construction Defect Claims Leave Unanswered Questions For Builders, and Construction Practice Groups. Impact to CGL Carriers, General Contractors, Builders Remains Unclear
March 07, 2011 —
CDJ STAFFIn the past year a number of state and federal courts have rendered a number of conflicting decisions that promise to alter or perhaps shift entirely the paradigm, of how builders manage risk.
According to a report today by Dave Lenckus in Property Casualty 360 “Nine state and federal courts and one state legislature over the past year have addressed whether a construction defect a defective product or faulty workmanship is fortuitous and therefore an occurrence under the commercial general liability insurance policy. Four jurisdictions determined it is; three said no; two ruled that a construction defect that causes consequential damage to property other than the work product is an occurrence; and one federal court contributed its conflicting case law that has developed in Oregon since its high court ruled in 2000 that a construction defect is not an occurrence”.
The article strongly suggests that in the absence of a clear consensus over what the recent rulings mean for builders and contractors coverage disputes will intensify and continue to proliferate.
Doing this on a state-by-state basis has caused a lot of confusion among buyers and sellers, said Jeffrey A. Segall, a Tampa-based senior vice president and the Florida Construction Practice leader at Willis of Florida, a unit of Willis Group Holdings.
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