Fairfield Connecticut Building Expert Directory

MTA’S New Debarment Powers Pose an Existential Risk

July 15, 2019 — Steven M. Charney, Gregory H. Chertoff & Paul Monte - Peckar & Abramson, P.C.
The normal project and contractual risks faced by contractors, consultants and suppliers to the Metropolitan Transportation Authority are considerable. A new law and regulations mandating that the MTA debar contractors, consultants and suppliers for unexcused schedule and cost overruns creates a new and unfair existential risk. The new law, Public Authorities Law Section 1279-h, slipped into the New York State budget bill and passed without public comment, was enacted on April 12, 2019. Implementing regulations were issued on June 5, 2019, and mandate that the MTA debar contractors (defined to include consultants, vendors and suppliers) if they: (1) fail to achieve substantial completion of their contractual obligations within 10% of the adjusted contract time; or (2) present claims for additional compensation that are denied in an amount that exceeds the total adjusted contract amount by 10% or more.[1] To say that your business and your livelihood are at risk is not an overstatement. The MTA umbrella includes the New York City Transit Authority, MTA Capital Construction, Bridges & Tunnels, Long Island Railroad and Metro North, among others. A debarment by one of these authorities will lead to a debarment by all of them, and then to a debarment by all New York State agencies and authorities,[2] and possibly debarment across state lines. Public and major private owners, as part of their RFP and procurement processes, routinely inquire regarding a bidding contractor’s debarment history. The risk is to new contracts and, because the MTA has decided to give retroactive effect to the law and regulations, to contracts that are already ongoing (even though these risks could not have been considered, priced or agreed to by contractors or their sureties). Reprinted courtesy of Peckar & Abramson, P.C. attorneys Steven M. Charney, Gregory H. Chertoff and Paul Monte Mr. Charney may be contacted at scharney@pecklaw.com Mr. Chertoff may be contacted at gchertoff@pecklaw.com Mr. Monte may be contacted at pmonte@pecklaw.com Read the court decision
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'Major' Mass. Gas Leak Follows Feds Call For Regulation Changes One Year After Deadly Gas Explosions

October 21, 2019 — Johanna Knapschaefer - Engineering News-Record
A natural gas leak in explosive range forced Lawrence, Mass. residents to evacuate their homes early on Sept. 27, according to electric utility National Grid, which cut power to more than 1,300 customers to avoid another disaster like last year's natural gas explosions and fires in Lawrence and two other towns north of Boston. The leak came just days after federal officials called for changes to national pipeline regulations as they released a final report on the causes of the Sept. 13, 2018, disaster. Read the court decision
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Reprinted courtesy of Johanna Knapschaefer, ENR
ENR may be contacted at ENR.com@bnpmedia.com

Proposed Legislation for Losses from COVID-19 and Limitations on the Retroactive Impairment of Contracts

July 27, 2020 — Shaia Araghi - Newmeyer Dillion
The COVID-19 pandemic has caused most businesses to temporarily close and, as a result, sustain significant losses. Various states are contemplating the passage of legislation to require carriers to cover claims arising from COVID-19, but case law regarding the constitutionality of such legislation is conflicting. Depending on the facts surrounding retroactive legislation, states may be able to pass an enforceable law leading to coverage. Pennsylvania’s Proposed Legislation for Business Interruption Losses Pennsylvania is one of many states that has proposed legislation to override language in business interruption policies and require coverage from insurance carriers. Pennsylvania House Bill 2372 proposes that any insurance policy that covers loss or property damage, including loss of use and business interruption, must cover the policyholder’s losses from the COVID-19 pandemic.1 It applies to insureds with fewer than 100 employees.2 To enhance its chances to pass constitutional challenges, the House Bill also provides for potential relief and reimbursement through the state’s commissioner.3 Pennsylvania Senate Bill 1127 is broader than House Bill 2372 and most bills proposed in other states and would require indemnification for nearly all insureds.4 The Senate Bill makes important legislative findings and notes that insurance is a regulated industry.5 It essentially provides that an insurance policy insuring against a loss relating to property damage, including business interruption, shall be construed to cover loss or property damage due to COVID-19 or due to a civil authority order resulting from COVID-19.1 The proposed bill redefines “property damage” to include: (1) the presence of a person positively identified as having been infected with COVID-19; (2) the presence of at least one person positively identified as having been infected with COVID-19 in the same municipality where the property is located; or (3) the presence of COVID-19 having otherwise been detected in Pennsylvania. Read the court decision
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Reprinted courtesy of Shaia Araghi, Newmeyer Dillion
Ms. Araghi may be contacted at shaia.araghi@ndlf.com

Real Estate & Construction News Roundup (08/30/23) – AI Predicts Home Prices, Construction’s Effect on the Economy, and Could Streamline Communications for Developers

October 17, 2023 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
In our latest roundup, SV invests in a new green “mega-city” outside San Francisco, refunds are given to investors in fraudulent real estate deal, homebuyers are losing purchasing power, and more!

With major tech companies like Google and Amazon laying off workers, those with computer science and related degrees are looking to construction as a place to start or restart their careers. (Zachary Phillips, Construction Dive)
Although Silicon Valley is the haven for most tech startups, Israel has become a place where those in construction innovation can find support and funding. (Matthew Thibault, Construction Dive)
For those who may be concerned about the future price of their home, it may be possible for AI to look at a house and predict its price with “striking accuracy.” (Jacob Zinkula, Business Insider)

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Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team

Gary Bague Elected Chairman of ALFA International’s Board of Directors

November 17, 2016 — Gary A. Bague – Haight Brown & Bonesteel LLP
During ALFA International’s (ALFA) Annual Business Meeting on October 28, the membership elected Gary Bague to serve as the Chairman of the Board of Directors. Gary’s term as Chairman will run through October 2018. After he completes his term as Chairman, Gary will continue to serve on the Board of Directors as Chair Emeritus for two years. The Board of Directors is responsible for establishing all policies relative to accomplishing the purposes of ALFA, recommending the Corporation’s budget to the Membership, approving applications for membership, supervising the work of the Chief Executive Officer, and otherwise managing the business and affairs of ALFA. As Chairman of the Board, Gary will preside over all meetings of the Executive Committee, Board of Directors, and Membership. He will also serve as an ex officio member of all committees, and will have the duties of a president of the Corporation. Read the court decision
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Reprinted courtesy of Gary A. Bague, Haight Brown & Bonesteel LLP
Mr. Bague may be contacted at gbague@hbblaw.com

Tightest Credit Market in 16 Years Rejects Bernanke’s Bid

October 08, 2014 — Prashant Gopal – Bloomberg
James Bregenzer, a 31-year-old marketing strategist in Chicago, was rejected for a mortgage in May after successfully financing two previous home purchases. The hitch this time: his monthly payment would have been $100 more than the lender was willing to approve. Bregenzer is in good company. Standards in the U.S. are so high and inflexible that former Federal Reserve Chairman Ben S. Bernanke, now a Brookings Institute fellow-in-residence with a net worth of at least $1.1 million, said at a conference last week that he couldn’t refinance his house in Washington. Even some doctors struggle to get home loans if they’re self-employed. “We asked if we could go over by $100 and were told that’s just not going to work,” said Bregenzer, who bought his first home before getting married in 2008. “The process of buying a home used to be stupid easy. Now, my wife and I were buying a home with two salaries, we make a heck of a lot more than I used to, and I have to go into great and terrible detail to show documentation.” Read the court decision
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Reprinted courtesy of Prashant Gopal, Bloomberg
Mr. Gopal may be contacted at pgopal2@bloomberg.net

Why Construction Firms Should Think Differently on the Issue of Sustainability

May 25, 2020 — Chris Batterson - Construction Executive
How does a construction company differentiate itself from the competition? If the company owner don’t know the answer to this question, or if the first thought that popped into his or her mind was a generic answer along the lines of customer service, keep reading. While all businesses should strive to deliver better results for their customers, if a construction firm is looking to stand out from the crowd, putting sustainability at the very center of everything it does will be a clear difference maker. Finding ways to divert construction and demolition (C&D) waste materials away from landfills and into recycling streams is a must. Keeping track of and measuring your C&D recycling rates on a per-project basis, and also company-wide, can be the difference between winning and losing a contract. Reprinted courtesy of Chris Batterson, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Mr. Batterson may be contacted at chris.batterson@rubiconglobal.com

Short-Term Rental Legislation & Litigation On the Way!

November 18, 2019 — Patrick J. Paul - Snell & Wilmer Real Estate Litigation Blog
The advent of the shared economy in the real estate context has provided homeowners and investors alike with expanded opportunities to generate revenue from the use of their real estate. Airbnb and VRBO are two of the most popular companies facilitating short-term rental availability. The rapid growth in this shared real estate economy has served as a disruptor of sorts to the traditional hotel and hospitality industry, causing that industry to revisit its own models in order to better compete. The popularity of short-term rental use, however, has created a whole new set of problems about which property owners, state and local governments, renters, and those impacted by the explosion of short-term rentals should be aware. Among other things, without more, most traditional homeowners’ policies will not cover the insured property’s use for commercial purposes – a problem similar to the early rideshare providers. Full and part-time resident owners who previously enjoyed a greater certainty with respect to their neighbors are today frustrated by the revolving door of vacationers, revelers, wedding attendees and similar nontraditional uses of neighborhood residential property. Read the court decision
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Reprinted courtesy of Patrick J. Paul, Snell & Wilmer
Mr. Paul may be contacted at ppaul@swlaw.com

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