Skilled Labor Shortage Implications for Construction Companies
July 15, 2019 —
Tony James & Keith Maciejewski - Construction ExecutiveThe construction industry is facing one of the most significant labor shortages it has ever seen. This labor shortage has far-reaching implications for worker safety and construction quality—both of which could adversely impact a company’s bottom line if investments are not made to address the issue.
What’s causing the labor gap?
There are two underlying trends driving this phenomenon:
- More experienced workers have either not returned to the industry after the Great Recession or are now retiring as they’ve concluded their careers.
- The construction industry has long struggled to attract new, younger workers to the industry, and this problem has only worsened as the broader economy boomed. As a result, construction firms must compete with other industries, such as health care, technology and engineering, for young talent.
Reprinted courtesy of
Tony James & Keith Maciejewski, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Construction Defect Specialist Joins Kansas City Firm
January 13, 2014 —
CDJ STAFFDavid Schatz, whose practice specializes in construction disputes and defects, has joined the Kansas City, Missouri firm Spencer Fane Britt & Brown LLP in their litigation practice group. Mr. Schatz’s expertise also includes banking and finance, banking litigation, commercial disputes, insurance, surety, employment, contract claims, and personal injury.
Pat Whalen, Chairman of Spencer Fane Britt & Brown, said that Schatz “brings great experience across a range of industries, but many of us in Kansas City are particularly pleased by his construction and general litigation credentials, which will fit will with the resources we’re building in those areas.”
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Preparing Your Business For Internal Transition
October 14, 2019 —
Stephen P. Katz, Esq. - ConsensusDocsWhen is it right to start thinking about succession planning and preparing a construction company for transition? Many would agree – in concept, at least – that serious thought regarding succession and transition planning should begin at a company’s inception and be revisited throughout its lifecycle, but as a practical matter, it is frequently not part of the mindset when growing a business. This article explores issues that construction company owners should consider in order to achieve smooth transition of ownership and control. We will address three critical questions:
- What happens to the business when an owner retires;
- In the event an owner(s) become disabled; and,
- Unplanned exit/owner pre-deceases her/his exit from the company
Owners who do not plan carefully for transition are often faced with the less than appealing option of liquidating their business for much less than its value, or by closing the business with no return upon that event. However, those who plan carefully can realize the value of their life’s work, pass the business to the next generation and see their legacy continue.
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Stephen P. Katz, Esq., Peckar & Abramson, P.C.Mr. Katz may be contacted at
skatz@pecklaw.com
The Heat Is On
June 13, 2022 —
Christopher Durso - Construction ExecutiveEvery year, NASA and the National Oceanic and Atmospheric Administration (NOAA) team up to assess global temperatures and climate trends. (Yes, that NASA. A big part of the space agency’s mission is focused on Earth science, with the goal of better understanding the planet’s interconnected systems.) The two groups released their findings for 2021 this past January, with several predictably alarming highlights:
- 2021 was the sixth-warmest year on record, with the average global surface temperature about 1.5°F over the 20th-century baseline periods that the agencies use for comparison and nearly 2°F higher than in the late-19th century.
- The surface temperature in the Northern Hemisphere was also the sixth-highest on record, at nearly 2°F over baseline, with the land temperature exceeding the baseline by 2.8°F.
- Extreme climate events included an above-average Atlantic hurricane season, with 21 storms, and a severe heat wave in the northwestern United States and western Canada in June during which Canada recorded its highest temperature ever, at 121°F.
Reprinted courtesy of
Christopher Durso, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Economic Damages and the Right to Repair Act: You Can’t Have it Both Ways
March 16, 2017 —
Garret Murai – California Construction Law BlogIn 2002, the California State Legislature passed Senate Bill 800 also known as the Right to Repair Act (Civil Code Sections 895 et seq.) in an effort to stem a then rising tide in residential construction defect litigation.
SB 800, which applies to newly constructed residential units including single-family homes and condominiums (but not condominium conversions) sold after January 1, 2003, was intended to curb residential construction defect lawsuits by giving developers and others in the construction chain an opportunity to repair construction defects before being sued in court. SB 800 also provides minimum construction standards and limits the time in which a homeowner can bring a claim for construction defects.
In Acqua Vista Homeowners Association v. MWI, Case No. D068406 (January 26, 2017), the California Court of Appeals for the Fourth District examined the circumstances in which homeowners can sue a material supplier under the Right to Repair Act.
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Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
One-Upmanship by Contractors In Prevailing Wage Decision Leads to a Bad Result for All . . . Perhaps
July 19, 2021 —
Garret Murai - California Construction Law BlogFights between contractors can be a bit like Mad magazine’s “Spy vs. Spy” with each side trying to out outwit and one-up one another. The next case, Division of Labor Standards Enforcement v. Built Pacific, Inc., Case No. D076601 (March 15, 2021), is a case in point.
The Built Pacific Case
Built Pacific, Inc. was a subcontractor to Austin Sundt Joint Venture on a public works project known as the San Diego Regional Airport Authority Project.
In 2015, following an investigation by the California Division of Labor Standards Enforcement (DLSE), the DLSE issued a Civil Wage Penalty Assessment of $119,319.76 based on Built Pacific’s failure to pay prevailing wages. The DLSE also named Austin Sundt in the Civil Wage Assessment pursuant to Labor Code 1743 which makes contractors and subcontractors jointly and severally liable for wage violations. As a result of the Civil Wage Assessment, Austin Sundt withheld approximately $70,000 in retention from Built Pacific.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Meet Your Future Team Members: AI Agents
December 10, 2024 —
Aarni Heiskanen - AEC BusinessIf you’ve been following the discussion around AI, you’re familiar with the concept of AI agents.
AI agents can be understood as intelligent automation that operates independently, monitoring its environment and taking action without constant human input. Unlike traditional software requiring specific inputs to produce predictable outputs, AI agents can adapt to varying conditions and user needs.
AI agents can be based on various technologies, including Large Language Models. They can also be constructed using other AI technologies, such as rule-based systems, machine learning algorithms, and specialized models tailored to specific tasks.
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi
No Indemnity Coverage Where Insured Suffers No Loss
November 05, 2014 —
Tred R. Eyerly - Insurance Law HawaiiThe insured subcontractor sought coverage under its Builder's Risk policy for loss despite already being paid under contract the amount sought under the policy. MKB Constr. v. Am Zurich Ins. Co., 2014 U.S. Dist. LEXIS 136096 (W.D. Wash. Sept. 24, 2014).
MKB contracted with the Lower Yukon School District (LYSD) to place gravel fill for a new building pad upon which a school building would be placed in Emmonak, Alaska. The project site was built on tundra that melted in the summer, becoming marshy and pocketed by pools of standing water. LYSD provided the bidding contractors with information stating that settlements of 3 to 9 inches could be expected in areas with 30 inches of fill.
The contract was awarded to MKB, who subsequently realized it had under bid the amount of gravel fill that would be required. The estimated difference in the amount bid and the amount that would be needed was 6,583 cubic yards. LYSD refused to increase the contract price.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com