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DIRECTORY AND CAPABILITIES

New FAR Rule Mandates the Use of PLAs on Large Construction Projects

October 10, 2022 — Reggie Jones - ConsensusDocs
The Federal Acquisition Regulatory Council recently published a proposed ruled that, once implemented, will require the use of project labor agreements (PLAs) on federal construction projects with a contract value of $35 million or greater. The proposed rule revokes President Obama’s Executive Order 13502 and implements an Executive Order 14063 (E.O. 14063) issued on February 9, 2022. E.O. 14063 addresses the use of PLAs in the government contracts. Under the current Federal Acquisition Regulation (FAR), the use of PLAs on “large-scale construction projects” is discretionary. The new rule proposed by the Department of Defense (DOD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA) revises the FAR contract clauses making the use of PLAs mandatory. Under the proposed rule, contractors performing “large-scale construction projects” will be required to “negotiate or become a party to a [PLA] with one or more appropriate labor organizations.” FAR 52.222-33. A PLA is in essence a collective bargaining agreement between a local trade union and contractor that governs employment terms, including wages and benefits, for union and non-union workers. Although the PLA mandate only applies to large-scale construction projects with the contract value of $35 million and more, under the proposed rule, agencies have the option to include the PLA requirement for construction projects that are under the $35 million threshold. The proposed rule also sets out a flow-down requirement, which means that subcontractors working on a large-scale project must likewise be familiar with and comply with terms of the PLA negotiated by a prime contractor. Read the court decision
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Reprinted courtesy of Reggie Jones, Fox Rothschild LLP (ConsensusDocs)
Mr. Jones may be contacted at rjones@foxrothschild.com

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Toolbox Talk Series Recap – Arbitration Motion Practice

August 07, 2023 — Michael Zehner - The Dispute Resolver
In the June 22, 2023 edition of the Toolbox Talk Series, Adrian Bastianelli, Peckar & Abramson, P.C., and Brian Cashmere, Williams Mullen, moderated by Jennifer Millender of the American Arbitration Association (“AAA”), discussed motion practice in arbitration. Specifically, they offered advice on how to choose the right issue for a motion, how to get approval for a motion, how to write the motion, and how to get the arbitrator to grant it. They also discussed the pros and cons of motion writing in arbitration settings. 1. How to choose the “right issue” for a motion in arbitration The panel discussed what type of issues can, or should, be brought up in a motion in arbitration. Cashmere stated that a clear and concise issue is best for this type of review. For example, statute of limitations, notice, or contract interpretation issues may make great summary judgment or partial summary judgment motions. Essentially, an issue that the arbitrator may resolve via primarily a question of law is more likely to succeed. Bastianelli warned against submitting just any “available” motion, as the practice may turn the arbitrator against you. Both panelists mentioned the need to consider strategy before filing a motion—ask, “how will filing this motion help or hurt reachingArbi final resolution.” Cashmere noted that sometimes the threat of bringing the issue to a hearing can put pressure on the adverse party in a way that is favorable to your client’s goals; possibly even more so than actually submitting the issue. Read the court decision
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Reprinted courtesy of Michael Zehner, BBG Construction Law
Mr. Zehner may be contacted at mzehner@bbglaw.com

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Deadline Nears for “Green Performance Bond” Implementation

December 03, 2024 — Christopher G. Hill - Construction Law Musings
For this weeks Guest Post Friday at Musings, we welcome Surety Bonds.com, a leading online surety provider. SuretyBonds.com specializes in educating current and prospective business owners about local surety requirements. To keep up with surety bond trends, follow and Surety Bonds Insider blog and @suretybond on Twitter. Professionals who work in the construction industry know the laws that regulate the market change constantly. Unfortunately, even government agencies are flawed, which means they sometimes establish nonsensical, arbitrary regulations that leave construction professionals even more confused as to how they’re expected to do their jobs. Read the court decision
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Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

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Homebuilders Call for Housing Tax Incentives

May 10, 2013 — CDJ STAFF
The National Association of Home Builders has asked Congress to support tax incentives for home buyers and renters, including the Low Income Housing Tax Credit and the mortgage interest deduction. Robert Dietz, an economist at the NAHB, noted that in 2009, 35 million home owners were able to claim the mortgage deduction. Dietz responded to arguments that the deduction simply lead to people buying bigger homes by saying that “the need for a larger home created the higher loan deduction, not the other way around.” The NAHB notes that one hundred new single-family homes creates more than 300 jobs and generates substantial tax revenues. “Housing provides the momentum behind an economic recovery because home building and associated businesses employ such a wide range of workers” said Dietz. Read the court decision
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Manhattan Condo Lists for Record $150 Million

February 18, 2015 — Oshrat Carmiel – Bloomberg
(Bloomberg) -- Manhattan’s ultra-luxury condo market has a new high-water mark: $150 million. That’s the price set by developer Chetrit Group for a 21,500-square-foot (2,000-square-meter) triplex at the former Sony Building in Midtown, according to documents filed with the New York State attorney general’s office. It would be a record for a residential listing, topping a $130 million offering planned at Zeckendorf Development Co.’s 520 Park Ave. As luxury apartments proliferate in Manhattan, builders are offering their premier units at ever-higher prices as a way of standing out from the crowd, said Jonathan Miller, president of New York appraiser Miller Samuel Inc. So far, the highest price ever paid for a condominium in the city is $100.5 million, a deal completed in December for a duplex penthouse at the One57 tower. Read the court decision
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Reprinted courtesy of Oshrat Carmiel, Bloomberg
Ms. Carmiel may be contacted at ocarmiel1@bloomberg.net

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How Mansions Can Intensify Wildfires

May 30, 2022 — Todd Woody - Bloomberg
A neighborhood of $4 million homes that burned Wednesday in a Southern California wildfire highlights the vulnerability of large suburban dwellings to climate-driven blazes, according to fire experts. The Coastal Fire destroyed at least 20 homes in a gated community in Laguna Niguel, a wealthy Orange County enclave near Laguna Beach. Houses in the Coronado Pointe development line a ridge overlooking the Pacific Ocean. Homes in the neighborhood are palatial, ranging in size from about 4,000 square feet to 10,000 square feet, and sit on large lots with room for swimming pools with coastal views. But the mansions are wedged together with relatively little space between buildings. When a fire broke out near a wastewater treatment plant on Wednesday, it raced up a chaparral-covered hillside until it encountered an explosive source of fuel – Coronado Pointe. Read the court decision
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Reprinted courtesy of Todd Woody, Bloomberg

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Green Buildings Could Lead to Liabilities

March 28, 2012 — CDJ STAFF

Attempts to build “green,” reducing energy costs and increasing the use of sustainable building materials, may lead to more lawsuits, according to a report issued by the British Columbia Construction Association. The report warned those who were going to build green look into the implications. The report looked at the result of green building practices and requirements adopted in the United States.



The report warns that “the use of novel, less harmful building material or new construction techniques may give rise to liability due to: contractor inexperience with installation; lack of long-term evaluation of green materials; lack of understanding of how new building materials may impact existing traditional building systems; or warranties provided unintentionally about the durability or effectiveness of unproven materials or techniques.”



Manley McLachlan, president of the BCAA noted that they are aware of “legal action around the performance of the buildings,” noting that while fast-growing trees help toward LEED certification, their wood is more prone to mold. He also felt that low-VOC paints needed more testing to prove their durability as exterior finishes.

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Manhattan’s Property Boom Pushes Landlords to Sell Early

August 26, 2015 — Sarah Mulholland – Bloomberg
Manhattan property owners are cashing out ahead of schedule. With New York real estate values and rents surging, owners of commercial properties acquired as recently as a year ago are already seeking buyers. In the case of one Midtown site, the developer scrapped construction plans to sell an empty plot of land. There’s so much buyer demand that in some situations it’s more opportune for landlords to sell rather than follow through on plans for redevelopment or filling buildings with new tenants. A record $29.4 billion of Manhattan property deals were completed in the first half of 2015, according to brokerage Jones Lang LaSalle Inc., part of a five-year real estate rally that’s pushed prices to new highs in big U.S. cities. Read the court decision
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Reprinted courtesy of Sarah Mulholland, Bloomberg

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