Infrastructure Money Comes With Labor Law Strings Attached
July 25, 2022 —
Cheryl Behymer, Patrick M. Dalin & Collin Cook - Construction ExecutiveThe federal government has committed to spending $1 trillion under the Infrastructure Investment and Jobs Act on nationwide construction, alteration and repair projects. Billions of dollars have already been deployed on projects to improve highways, bridges, airports, electrical infrastructure and drinking water distribution, and the government is poised to spend the remaining funds on a massive infrastructure build-out over the next five years. While federal government contracts may provide a lucrative and reliable stream of revenue for construction companies, contractors must be prepared to comply with special requirements, particularly under the labor and employment laws enforced by the U.S. Department of Labor (USDOL).
1. The Davis Bacon Act Requires Payment of Prevailing Wages and Fringe Benefits
The Davis Bacon Act (DBA) applies to most federally funded and federally assisted projects for construction, alteration or repair work. This law requires all contractors and subcontractors on a covered project to pay all “laborers or mechanics” the wages and fringe benefits that “prevail” in the locality where the work is being performed. The USDOL determines what the prevailing wages and fringe benefits are for each trade and publishes them in wage determinations that should be issued to all contractors on the project.
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Cheryl Behymer, Patrick M. Dalin & Collin Cook, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Contractor Manslaughter? Safety Shortcuts Are Not Worth It
August 11, 2011 —
Douglas Reiser, Builders Council BlogIt’s been a while since I discussed the importance of safety. But, a recent article on ENR.com compelled this brief article. Don’t shortcut safety — you could be facing serious criminal repercussions.
A New York crane company owner and one of his employees are each facing a second-degree manslaughter charge for the death of two construction workers.  The charges stem from the collapse of a crane in New York City. The district attorney determined that the crane owner cut a few corners to reduce its operation costs, significantly sacrificing safety.
Another example was the 2010 trial of another New York crane operator who was charged with manslaughter. In that case, the criminal charges failed to stick, but an administrative judge found that the contractor used a damaged sling to support the steel collar binding the tower-crane mast to the 18th floor of a high-rise building being constructed. The company also used four slings instead of the eight, as specified by the crane manufacturer; improperly attached the slings and failed to pad or soften them.
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Reprinted courtesy of Douglas Reiser of Reiser Legal LLC. Mr. Reiser can be contacted at info@reiserlegal.com
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The “Climate 21 Project” Prepared for the New Administration
December 21, 2020 —
Anthony B. Cavender - Gravel2GavelThis is a brief review of the recently released “Climate 21 Project” policy memo. It is the work of many former members of the Obama Administration who are deeply concerned about climate change and what steps the new administration can take in the first 100 days to confront a problem. Offering “actionable advice” rather than a policy agenda, the group recognizes that Congress must do its part by providing new statutory authorities within the early days of the new administration, and the President must be prepared to aggressively exercise the powers of his office. As the members of the Group see it, there are four interlocking crises facing the President: (a) the COVID-19 pandemic; (b) the economic devastation visited upon many people by the pandemic; (c) racial injustice; and (d) accelerating threats posed by climate change.
Accordingly:
1. The Executive Office of the President must take stronger steps to reduce greenhouse gas emissions through domestic investment, rulemakings, policy changes, and international diplomacy. A new Special Assistant for Climate Change must be created to take charge of these climate change initiatives. There should also be established in the Executive Office of the President a National Climate Change Council. All agencies must be advised of the urgency of this problem. The paper seems to envision a substantial growth in the White Hose staff.
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Anthony B. Cavender, PillsburyMr. Cavender may be contacted at
anthony.cavender@pillsburylaw.com
One Way Arbitration Provisions are Enforceable in Virginia
October 07, 2019 —
Christopher G. Hill - Construction Law MusingsHere at Construction Law Musings, I’ve discussed arbitration clauses (pros and cons) as well as the fact that in our fair Commonwealth, contracts are enforced as written (for better or worse). A case out of the Eastern District of Virginia takes both of these observations and uses them to make it’s decision.
In United States ex rel. Harbor Constr. Co. v. T.H.R. Enters., the Newport News Division of the Eastern District of Virginia federal court considered the following provision and it’s enforceability:
At CONTRACTOR’s sole election, any and all disputes arising in any way or related in any way or manner to this Agreement may be decided by mediation, arbitration or other alternative dispute resolution proceedings as chosen by CONTRACTOR…. The remedy shall be SUBCONTRACTOR’s sole and exclusive remedy in lieu of any claim against CONTRACTOR’s bonding company pursuant to the terms of any bond or any other procedure or law, regardless of the outcome of the claim. The parties further agree that all disputes under this Subcontract shall be determined and interpreted pursuant to the laws of the Commonwealth of Virginia….
This provision was the crux of the argument made by T. H. R., the Defendant, in making a motion to dismiss or stay the lawsuit for payment filed by Harbor Construction. As background, Harbor Construction contracted with T. H. R. to perform work at Langley Air Force Base. Alleging non-payment of approximately $250,000.00, Harbor filed a complaint with three counts, one under the Federal Miller Act, one for breach of contract, and a third for unjust enrichment.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Boston Nonprofit Wants to Put Grown-Ups in Dorms
March 19, 2015 —
Patrick Clark – BloombergHere's a broad summary of millennials' housing problems: Stagnant wages and heavy debt loads have made it hard to afford a house, while high demand for rental units in the most happening cities allow landlords to raise rents, making it even harder to save for a down payment.
In Boston, where these forces are particularly acute, urban policy wonks are offering a new solution: Put the young people in pens.
OK, not quite. The authors of a new report from the Boston Foundation, a philanthropic organization that funds local nonprofits, prefer the phrase "millennial villages," dorm-like developments that maximize space by combining smaller living spaces with lots of common areas. Specifically, the report suggests building 10,000 units that make up for cramped living quarters by including shared lounges, health clubs, and shared areas for study, music practice, or launching a technology startup. For young tenants really interested in cutting costs, some could be built with shared kitchens.
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Patrick Clark, BloombergMr. Clark may be contacted at
jclark185@bloomberg.net
Summary Judgment for Insurer on Construction Defect Claim Reversed
January 07, 2025 —
Tred R. Eyerly - Insurance Law HawaiiThe Fifth Circuit reversed the district court's granting of summary judgment to the insurer on a construction defect claim asserted against the insured. TIG Ins. Co. v. Woodsboro Farmers Cooperative, 2024 U.S. App. LEXIS 24003 (5th Cir. Sept. 20, 2024).
In March 2013, Woodsboro Farmers Cooperative contracted with E.F. Erwin, Inc. to construct two Brock 105' diameter grain silos. Erwin hired subcontract AJ Constructors, Inc. (AJC) to construct the silos. Erwin was responsible for supervising the work.
Brock silos were kits shipped by the manufacturer and then assembled according to the manufacturer's manuals and specifications. The silos are constructed section by section. AJC began erecting the silos in May 2013 and completed its work in June or early July. Erwin occasionally inspected the work and found the silos were structurally sound and not defective. AJC left the job site after completing the assembly.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Adobe Opens New Office Tower and Pledges No Companywide Layoffs in 2023
April 18, 2023 —
Edward Ludlow & Brody Ford - BloombergAdobe Inc., breaking ranks with an industry cutting costs and laying off workers, has opened a new office tower in its home city, adding new capacity for staff and pledging no companywide job cuts in 2023.
The Founders Tower is an 18-story, 1.25 million-square-foot shimmering glass addition to San Jose, California, a city Adobe has called home since the early ’90s. The software company’s fourth tower has capacity for 3,000 employee workstations, Adobe said Wednesday in a statement. Despite opening a new office with amenities, the company remains supportive of hybrid and flexible work arrangements.
“We’re actually committed to continuing to grow here,” Adobe Chief People Officer Gloria Chen said in an interview with Bloomberg Television to air Wednesday. “We are committed to not having companywide layoffs.”
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Edward Ludlow, Bloomberg and
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Port Authority Reaches Deal on Silverstein 3 World Trade
June 26, 2014 —
David M. Levitt – BloombergThe Port Authority of New York and New Jersey approved a financing agreement for Larry Silverstein’s 3 World Trade Center that allows him to use $159 million of insurance proceeds to expedite construction.
The agreement, which alters a 2010 deal on the project, follows about a year of negotiations and provides Silverstein with far less than the $1.2 billion of loan guarantees he sought under a previous plan that had been opposed by some board members. Silverstein plans to seek private financing to complete construction on the tower, which is stalled at eight floors.
The Port Authority, which owns the Trade Center site, unanimously approved the alterations to the agreement at a meeting today. The new deal meets the criteria of not creating additional debt for the agency, said Commissioner Kenneth Lipper, who led opposition to the loan guarantee, viewing it as too risky and a threat to the authority’s credit rating.
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David M. Levitt, BloombergMr. Levitt may be contacted at
dlevitt@bloomberg.net