SE 2050 Is In Quixotic Pursuit of Eliminating Embodied Carbon in Building Structures
January 23, 2023 —
Nadine M. Post - Engineering News-RecordWalking to work one November morning, structural engineer Chris Jeseritz was buoyed by a Nelson Mandela quotation on a digital sign on the side of a Seattle office tower: “A winner is a dreamer who never gives up.”
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Nadine M. Post - Engineering News-Record
Ms. Post may be contacted at postn@enr.com
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Depreciating Labor Costs May be Factor in Actual Cash Value
April 20, 2016 —
Tred R. Eyerly – Insurance Law HawaiiThe Minnesota Supreme Court considered a certified question from the the U.S. District Court regarding consideration of depreciating labor costs in determining the actual cash value of a loss. Wilcox v. State Farm Fire & Cas. Co., 2016 Min. LEXIS 50 (Minn. Feb. 10, 2016).
The insureds' home was damaged by hail. State Farm provided a written estimate that calculated the actual cash value of the loss. To estimate the actual cash value of the damaged property, State Farm first calculated the replacement costs of individual items, such as roof flashing, siding, fascia, gutters, and window screens. Next, State Farm subtracted the pre-loss depreciation of some, but not all, individual items. For example, State Farm depreciated the cost of removing and replacing certain materials, such as siding. State Farm did not depreciate the cost of the new siding separately from the cost of the labor required to install the new siding on the home. Instead, State Farm calculated the removal and replacement of the siding as a single cost, then depreciated the removal-and-replacement cost as a whole. The cost of labor to repair or replace the damaged property was referred to by the court as "embedded labor costs."
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Subcontractor Strength Will Drive Industry’s Ability to Meet Demand, Overcome Challenges
October 10, 2022 —
Anwar Ghauche - Construction ExecutiveOwners, developers and general contractors get a lot of notoriety for construction projects, especially in these infrastructure-focused times. However, the subcontractor is truly the one under the microscope, as this group requires the most care and attention to ensure the owners and operators are able to meet accelerating demand and public expectations.
The challenges in the current environment are many. Inflation and supply chain disruptions are highly detrimental to specialty trades in the mechanical, electrical, plumbing, drywall and other areas. Reports show that the construction industry, in particular, has seen an
increase of over 20% in the cost of supplies and building materials in the last year alone and, in some cases, over
90% since the start of the pandemic. While these costs are passed along to the owner, the subcontractor still retains significant cash flow risk. This truth is amplified in a volatile market. As if the cost was not enough, equipment and material shortages coupled with rising interest rates only compound the problem—and tenfold for small businesses.
Subcontractors are likely to feel the greatest pressure from supply-related issues. Inflation combined with supply chain shortages require subcontractors to prepare earlier for projects and, when possible, purchase materials upfront. However, the consequence of this preliminary preparation equates to further strains on cash flow. In an effort to remain aligned on schedules and budgets, subcontractors frequently buy all of a project’s materials as soon as a contract is signed—if not before.
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Anwar Ghauche, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Housing Starts in U.S. Beat 1 Million Pace for Second Month
June 18, 2014 —
Shobhana Chandra – BloombergBuilders broke ground on 1 million U.S. homes in May, indicating the industry is picking up this quarter after a weather-induced slump to start the year.
The number of housing starts last month was in line with the median forecast of economists surveyed by Bloomberg and followed April’s 1.07 million annualized rate that was the most since November, a Commerce Department report showed today in Washington. Permits, a proxy for future construction, decreased, reflecting a decline in the volatile multi family category.
A strengthening job market and a retreat in mortgage costs in recent weeks is helping support residential real-estate following a lull in building in early 2014. Faster sales will prompt developers to step up construction, given supplies of homes on the market remain lean and property values are rising.
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Shobhana Chandra, BloombergMs. Chandra may be contacted at
schandra1@bloomberg.net
ICYMI: Highlights From ABC Convention 2024
May 06, 2024 —
Grace Calengor - Construction ExecutiveIn case you missed ABC Convention 2024 in Kissimmee, Florida, last month, here are key highlights from the week of competitions, exhibitions, speakers, performances and more.
WINNERS AND HONOREES
Contractor of the Year
- Kwest Group was announced as ABC’s 2024 Contractor of the Year. Read CE's full story here.
Careers in Construction Awards
- A total of 25 teams comprising undergraduate students from colleges across the country competed in ABC's 2024 Construction Management Competition, developing proposals for a project that included renovation and new construction at the Fort Lauderdale Aquatic Center. The overall winner was the team from Clemson University, a member of ABC of the Carolinas. For a full list of winners in all categories, visit here.
- In the 35th year of ABC's National Craft Championships, nearly 200 skilled trades workers displayed their craft in the exhibit hall—taking home bronze, silver and gold as well as recognition for safety in 16 categories. For a full list of winners, visit here.
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Grace Calengor, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Texas Walks the Line on When the Duty to Preserve Evidence at a Fire Scene Arises
October 14, 2019 —
Lian Skaf - The Subrogation StrategistThe extent to which a loss scene can be altered before adversaries can legitimately cry spoliation has long been a mysterious battleground in the world of subrogation. In the case of In re Xterra Constr., LLC, No. 10-16-00420-CV, 2019 Tex. App. LEXIS 3927 (Tex. App. – Waco, May 15, 2019), the Court of Appeals of Texas, Tenth District, addressed the question of when a party has a duty to preserve evidence. The court found that the trial court abused its discretion in imposing sanctions on the defendants for the spoliation of evidence as the evidence at issue was already gone by the time the defendants knew or reasonably should have known there was a substantial chance a claim would be filed against them.
In this matter, Xterra Construction, LLC, Venturi Capital, Inc. d/b/a Artisan Cabinets and Keith D. Richbourg (collectively, Xterra) leased a commercial space from building owners Daniel Hull and William H. Beazley, Jr. (collectively, Hull) to be used as a woodworking and cabinet making warehouse. On October 18, 2014, there was a fire at the warehouse. By October 20, 2014, Xterra informed its insurance carrier, Cincinnati Insurances Companies (“Cincinnati”) of the loss and Cincinnati’s adjuster, Leann Williams (Williams), met with Keith D. Richbourg (Richbourg) at the site. Williams also hired expert Jim Reil (Reil) to inspect the fire scene to perform a cause and origin investigation. The next day, Williams informed Hull’s attorney that Reil would inspect the scene on October 23, 2014. Hulls attorney, however, did not send anyone to the scene to participate in the inspection.
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Lian Skaf, White and Williams LLPMr. Skaf may be contacted at
skafl@whiteandwilliams.com
Reminder: Your MLA Notice Must Have Your License Number
November 26, 2014 —
Christopher G. Hill – Construction Law MusingsRemember a couple of years ago when the Virginia mechanic’s lien rules changed to require inclusion of a claimant’s contractor’s license number (where a license is required)? If not, then this is a reminder of that particular wrinkle in the strictly interpreted mechanic’s lien statute. This requirement applies to all mechanic’s lien memoranda and, like all parts of this crazy statute, will invalidate a lien if not met. Well, another change to the statute happened with a bit less fanfare.
The change back in 2013 that came along with the license number requirement for a lien memorandum is a change in the mechanic’s lien agent notice requirement that applies to residential construction. The basic requirement, namely that those performing residential construction must notify any mechanic’s lien agent (“MLA”) listed on a building permit within 30 days of starting work that they are on the job and could file a lien, has not changed. What the amendments to the lien statutes in 2013 added was a requirement that the notice, like a lien memorandum, must include the contractor’s or subcontractor’s license number.
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Christopher G. Hill, Law Office of Christopher G. Hill, PCMr. Hill may be contacted at
chrisghill@constructionlawva.com
Subcontractor Not Liable for Defending Contractor in Construction Defect Case
February 10, 2012 —
CDJ STAFFThe California Court of Appeals has ruled on January 9, 2012 in Hensel Phelps Construction Company v. Urata & Sons Cement, upholding the judgment of the lower court.
Hensel Phelps was the general contractor for a high-rise in Sacramento. They were sued by the owners of the building after problems were discovered in the concrete slabs of the building’s parking garage. Instead of welded steel wire mesh, the slabs had been constructed with fiber mesh. Hensel Phelps filed a cross-complaint against Urata Cement, the subcontractor that had performed the cement work. Urata refused to defend Hensel Phelps. The owners’ case was subsequently dismissed due to the statute of limitations.
Although the original case was over, Hensel Phelps continued in their claims against Urata. “Urata argued that a handwritten interlineation required Hensel Phelps to prove Urata was at fault for the injury alleged in the building owners’ complaint before Urata was obliged to defend Hensel Phelps in that action.”
The lower court concluded that Urata would have been obligated to defend Hensel Phelps if the owners’ lawsuit had alleged that the damage was due to the subcontractor’s work or if evidence at trial established this. The lower court found neither of these true. Instead, the use of the fiber mesh was a design issue and “that decision was outside the scope of the subcontractor’s work.”
During the trial, Hensel Phelps conceded that Urata was not at fault. The appeals court could find no reading of the contract that would cause Urata to be obligated to defend Hensel Phelps, calling Hensel Phelps’s reading of the contact as “grammatically infeasible.”
Judges Nicholson, Raye, and Butz upheld the decision of the lower court and awarded costs on appeal to Urata.
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