Increases in U.S. Office Rents Led by San Jose and Dallas
October 01, 2014 —
Hui-yong Yu – BloombergSan Jose, California, and Dallas led the U.S. in office-rent increases in the third quarter as cities benefiting from growth in the technology and energy industries outperformed the gradual national recovery.
Rents after any landlord discounts, known as effective rents, climbed 6.7 percent from a year earlier in San Jose, compared with the U.S. average increase of 2.6 percent, property researcher Reis Inc. (REIS) said. Dallas rents rose 5.2 percent, followed by San Francisco’s 5.1 percent gain, Houston’s 4.4 percent increase and New York’s 3.9 percent advance.
The national sluggishness in the office market’s growth is being bucked by parts of Northern California and Texas, where large bases of technology or energy workers drive demand for space, Reis said. Throughout the U.S., increases in office occupancies show that the market “is in the midst of a recovery,” according to the New York-based company.
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Hui-yong Yu, BloombergHui-yong Yu may be contacted at
hyu@bloomberg.net
Architects Should Not Make Initial Decisions on Construction Disputes
July 05, 2023 —
Bill Wilson - Construction Law ZoneA common provision often deleted from the standard form AIA documents is the provision in the AIA A201 General Conditions requiring an Initial Decision Maker (IDM) for claims between the contractor and owner. In the A201, the contracting parties have the option of naming their own IDM for the project. If an IDM is not selected (which is typically the case) the architect serves this role by default. While it is in all parties’ best interests to resolve disputes quickly and efficiently, using the architect as the IDM is not the best way to achieve such a resolution.
Several reasons work against using the architect as the IDM. Contractors typically don’t trust architects to be impartial in resolving disputes because the architect is paid by the owner. Most architects don’t have the temperament or any training to facilitate dispute resolution. An architect’s “initial decision” could even drive the parties further apart and lead to further issues later in the project. The architect may also be perceived to be part of the problem that led to the dispute in the first place. Also, many architects simply prefer to avoid serving the thankless role of an IDM altogether. Lastly, inserting the architect into the dispute resolution process as a required IDM adds an additional unnecessary step to dispute resolution, which can delay the overall procedure.
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Bill Wilson, Robinson & Cole LLPMr. Wilson may be contacted at
wwilson@rc.com
Cities' Answer to Sprawl? Go Wild.
December 06, 2021 —
Chris Malloy - BloombergIn a neighborhood of right-angled stone, stucco and brick buildings not far from Milan’s central train station, two thin towers stand out. Green and shaggy-edged, they look like they’re made of trees. In fact, they’re merely covered in trees — hundreds of them, growing up from the towers’ staggered balconies, along with 11,000 perennial and covering plants, and roughly 5,000 shrubs.
The greenery-festooned towers, called the Bosco Verticale, or Vertical Forest, are residential buildings in a broader-than-usual sense. The 18- and 26-story structures are “a home for trees that also houses humans and birds,” according to the website of architect Stefano Boeri, who has built tree-covered buildings elsewhere and is working on similar projects in Antwerp, Belgium, and Eindhoven in the Netherlands.
The Bosco Verticale is an example of urban rewilding, the growing global trend of introducing nature back into cities. There are consequences to the pace of today’s urban growth, which is the fastest in human history, including loss of biodiversity, urban heat islands, climate vulnerability, and human psychological changes. The U.S. Forest Service estimates that some 6,000 acres of open, undeveloped space become developed each day. Globally, past urban planning decisions like the prioritization of the car have given rise to cities that, but for scattered parks, tend to be divorced from nature. Rewilding aims to make cities better and more sustainable for people, plants, and animals.
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Chris Malloy, Bloomberg
Safety Versus a False Sense of Security: Challenges to the Use of Construction Cranes
March 18, 2019 —
Christopher Machut - Construction ExecutiveThe history of safety is, in part, the history of resistance to safety. From transportation and travel to sports and entertainment, the safeguards taken for granted were once too allegedly controversial or costly for companies to grant to consumers. Imagine driving a car without a seatbelt or being a passenger in a minivan without side-impact airbags or anti-lock brakes, or playing football without a helmet or riding a roller coaster without a shoulder harness. Imagine, too, pulling out of parking space without a rear-view camera, unable to see passing cars or pedestrians.
Cameras are now as common among compact cars as on the most uncommonly expensive sports cars and sedans.
And yet, the technology that earns drivers a discount on car insurance is the same or mostly similar technology that insurers refuse to cover elsewhere. The technologies that makes parallel parking easier or easing a car into traffic a cinch is considered an extravagance on construction equipment, despite the dangers crane operators face but cannot see, despite what workers on the ground can see but not forecast, despite what cameras can record and capture.
Reprinted courtesy of
Christopher Machut, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Keller Group Fires Two Executives in Suspected Australia Profits Reporting Fraud
February 20, 2023 —
James Leggate - Engineering News-RecordLondon-based geotechnical contracting giant Keller Group's profits from its Australia business unit may have been fraudulently inflated by the U.S. equivalent of as much as $20 million in today’s dollars since 2019, the company has revealed.
Reprinted courtesy of
James Leggate, Engineering News-Record
Mr. Leggate may be contacted at leggatej@enr.com
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The Dangers of an Unlicensed Contractor from Every Angle
January 11, 2021 —
William L. Porter - Porter Law GroupThe State of California requires that contractors in the building trades be licensed. Individuals and business entities obtain their contractors licenses by demonstrating to the California Contractors State License Board that they have the requisite knowledge, skill, and experience to be licensed. The CSLB issues licenses to those meeting requirements. As a construction attorney of longstanding tenure, I have witnessed the impact of unlicensed building contractors from every point of view. If you are considering hiring an unlicensed contractor, acting as an unlicensed contractor or even working for an unlicensed contractor as an employee, please consider the following perils:
To the Owner Considering Hiring an Unlicensed Contractor:
On the positive side for owners considering hiring an unlicensed contractor, the general rule in California is that an owner can escape the obligation to pay an unlicensed contractor for work performed and materials supplied because unlicensed contractors are prohibited from bringing legal actions against owners for payment. The law even goes so far as to allow the Owner to bring a legal action against the unlicensed Contractor for reimbursement of anything the owner paid to the unlicensed contractor. This is done through a “disgorgement” action (see, Business and Professions Code 7031. See also, the following article: Disgorgement Article). Despite this, there are a great many negative potential consequences to be considered by any owner who might consider hiring an unlicensed contractor. Among them are the following:
- If you are considering not paying your unlicensed contractor because Business and Professions Code 7031 allows it, please consider that unlicensed contractors, who have clearly demonstrated a disinclination to follow legal obligations in the first place, may resort to “less than socially acceptable” means of exacting retribution against those who do not pay them or who demand the return of money paid through a disgorgement action I am sorry to say this. Let us leave it at that.
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William L. Porter, Porter Law GroupMr. Porter may be contacted at
bporter@porterlaw.com
Housing Starts Rebound in U.S. as Inflation Eases: Economy
August 20, 2014 —
Lorraine Woellert and Victoria Stilwell – BloombergHome construction rebounded in July and the cost of living rose at a slower pace, showing a strengthening U.S. economy has yet to generate a sustained pickup in inflation.
A 15.7 percent jump took housing starts to a 1.09 million annualized rate, the strongest since November, and halted a two-month slide, the Commerce Department said in Washington. The consumer price index increased 0.1 percent after rising 0.3 percent in June, the Labor Department also reported.
An improving job market and cheaper borrowing costs are helping revive residential real estate, helping boost sales at companies such as Home Depot Inc. (HD) As inflation continues to run below the Federal Reserve’s target, it gives the central bank room to keep interest rates low well after the projected end of its bond-buying program in October.
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Lorraine Woellert and Victoria Stilwell, Bloomberg
Can I Be Required to Mediate, Arbitrate or Litigate a California Construction Dispute in Some Other State?
September 19, 2022 —
William L. Porter - Porter Law GroupIt is not uncommon in the construction industry for an out-of-state general contractor to include a provision in a subcontract requiring a California subcontractor to resolve disputes outside the state of California, even though the work is to be performed within California. Fortunately, most California subcontractors are immune from this tactic. California law generally prohibits clauses requiring subcontractors to travel outside California to resolve construction disputes.
California Code of Civil Procedure Section 410.42, [CCP 410.42 Link] renders “void and unenforceable,” any provision in a contract that “purports to require any dispute to be litigated, arbitrated, or otherwise determined outside this state,” so long as the contract is “between the contractor and a subcontractor with principal offices in the state, for the construction of a public or private work of improvement in this state.” Similarly, this law voids any similar contractual term that might prevent the California subcontractor from commencing an action, obtaining a judgment, or resolving its dispute in the courts of California.
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William L. Porter, Porter Law GroupMr. Porter may be contacted at
bporter@porterlaw.com