Hail Drives Construction Spending in Amarillo
October 25, 2013 —
CDJ STAFFAmarillo had a hailstorm in May and it’s still having an effect on the construction industry there. Prior to the May 28 hailstorm, the city issued 223 permits for roofing projects, worth a total of $1.9 million. But in the four months after the hailstorm, the city issued 13,696 roofing permits worth about $151.4. During the same nine months of 2012, the total was only $6.9 million.
The Amarillo Globe-News reports that there has been a slowing of residential roof work, but the commercial roofing is still going strong. Scott McDonald, an Amarillo building official told the paper that a commercial roof can exceed a million dollars. “The commercial aspect is much more complicated, and we’re just now getting started,” said Mr. McDonald.
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U.S. Building Permits Soared to Their Highest Level in Nearly Eight Years
June 17, 2015 —
Michelle Jamrisko – BloombergThrough all its ups and downs, the U.S. homebuilding industry is making slow progress.
While housing starts declined 11.1 percent in May to a 1.04 million annualized rate, it followed a revised 1.17 million pace the prior month to cap the best back-to-back readings since late 2007, Commerce Department data showed Tuesday in Washington. Permits for future projects climbed to the highest level in almost eight years.
The stop-and-go nature of the rebound, which has been exacerbated by the inclement weather that brought construction to a near standstill at the start of the year, masks a steady recovery in the industry at the center of the past recession. While residential real estate has yet to fulfill its typical role as a pillar of this economic expansion, gains in hiring and bigger paychecks are brightening Americans’ moods and could lift home purchases in the second half of 2015.
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Michelle Jamrisko, Bloomberg
Planes, Trains and Prevailing Wages. Ok, No Planes, But Trains and Prevailing Wages Yes
October 25, 2021 —
Garret Murai - California Construction Law BlogThe California Supreme Court doesn’t often delve into construction-related issues, but this year we’ve got two cases, both related to the payment of prevailing wages on California public works projects.
The first, Mendoza v. Fonseca McElroy Grinding Co., Inc. (2021) 11 Cal.5th 1118 which we discussed in our last blog post, concerned whether mobilization work qualifies as a “public work” and in turn requires the payment of prevailing wages. On the same day that the Supreme Court issued its decision in Mendoza, it issued a decision in Busker v. Wabtec Corporation, et al. , Case No. S251135 (August 16, 2021). This is the equivalent of being struck by lightning twice.
In Busker, the California Supreme Court considered whether on a public transportation project “field work” (e.g., building and outfitting radio towers on land adjacent to train tracks) and “onboard work” (e.g., installing electronic components on train cars and locomotives”) requires the payment of prevailing wage.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Only Two Weeks Until BHA’s Texas MCLE Seminar in San Antonio
April 28, 2014 —
Beverley BevenFlorez-CDJ STAFFThere are just two weeks remaining to sign up for Bert L. Howe & Associate’s inaugural Texas MCLE seminar, “THE RESIDENTIAL CONSTRUCTION PROCESS & CONSTRUCTION DEFECT LITIGATION.” This activity will be presented on Friday, May 9th at noon in BHA’s San Antonio offices, located at 17806 IH 10, Suite 300, San Antonio, TX 78256. There is no cost for attendance at this seminar and lunch will be provided.
This course has been approved for Minimum Continuing Legal Education credit by the State Bar of Texas Committee on MCLE in the amount of 1.0 credit hours, of which 0.0 credit hours will apply to legal ethics/professional responsibility credit. The seminar will be presented by Don MacGregor, general contractor and project manager.
Water intrusion through doors, windows and roofing systems, as well as soil and foundation-related movement, and the resultant damage associated therewith, are the triggering effects for the vast majority of homeowner complaints today and serve as the basis for most residential construction defect litigation. The graphic and animation-supported workshop/lecture activity will focus on the residential construction process from site preparation through occupancy, an examination of associated damages most often encountered when investigating construction defect claims, and the inter-relationships between the developer, general contractor, sub trades and design professionals. Typical plaintiff homeowner/HOA expert allegations will be examined in connection with those building components most frequently associated with construction defect and claims litigation.
The workshop will examine:
* Typical construction materials, and terminology associated with residential construction
* The installation process and sequencing of major construction elements, including interrelationship with other building assemblies
* The parties (subcontractors) typically associated with major construction assemblies and components
* An analysis of exposure/allocation to responsible parties.
Attendance at THE RESIDENTIAL CONSTRUCTION PROCESS & CONSTRUCTION DEFECT LITIGATION seminar will provide the attendee with:
* A greater understanding of the terms and conditions encountered when dealing with common construction defect issues
* A greater understanding of contractual scopes of work encountered when reviewing construction contract documents
* The ability to identify, both quickly and accurately, potentially responsible parties
* An understanding of damages most often associated with construction defects, as well as a greater ability to identify conditions triggering coverage
Course #: 901290467 / Sponsor #: 14152.
To register for the event, please email Don MacGregor at dmac@berthowe.com. If you have any questions, please feel free to contact Don at (210) 540-9017 (office) or (714) 713-4956 (cell).
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Bright-Line Changes: Prompt Payment Act Trends
September 16, 2024 —
Stephanie L. Cooksey - Peckar & Abramson, P.C.Untimely payment by the owner for contract work and additional work on construction projects can place an unfair financial burden on contractors and subcontractors. Most states have attempted to eliminate or mitigate this inequity in construction contracting through Prompt Payment Acts that govern payment deadlines and provide remedies for untimely payment. This article addresses the legislative trends aimed at minimizing the risk of non-payment, overdue payment, and withholding retainage in favor of downstream parties to a construction contract.
Fortifying Contractor Protections with “Bright-Line” Language
Over the last decade, states have been tightening prompt payment laws by replacing broad, general statutory language with bright-line rules. What is a bright-line rule? A specific or definite figure, a quantifiable marker—i.e., something owners, contractors, subcontractors, and suppliers should be aware of. Practically speaking, the more bright-line a prompt payment statute is, the greater the likelihood it will affect a construction project in your state.
A standard form construction contract, if not reviewed carefully, can create conflicts or confusion if it gives a party more leeway on payment deadlines than the applicable Prompt Payment Act. For example, consider an owner-issued Construction Change Directive (“CCD”) that requires a contractor to commence additional work immediately while a formal change order is negotiated. Consequently, a CCD can push financial burdens downstream, whether inadvertently or not, and may conflict with statutory payment deadlines. Nevertheless, an owner can be justified in its utilization of a CCD to maintain the project schedule. How should the parties competing interests be resolved?
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Peckar & Abramson, P.C.
Pallonji Mistry, Indian Billionaire Caught in Tata Feud, Dies at 93
August 15, 2022 —
Bhuma Shrivastava - BloombergPallonji Mistry, the Indian-born billionaire whose engineering empire built luxury hotels, stadiums, palaces and factories across Asia and whose family’s epic showdown with the Tata Group sparked India’s biggest corporate feud, has passed away in Mumbai. He was 93.
A company spokesperson confirmed the death of the Indian tycoon after social media posts on the news spread.
Mistry and his family control the Shapoorji Pallonji Group, which started more than 150 years ago and today employs more than 50,000 people in over 50 countries, according to its website. Its landmark projects include the Reserve Bank of India and the Oberoi Hotel in Mumbai and the blue-and-gold Al Alam palace for the Sultan of Oman.
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Bhuma Shrivastava, Bloomberg
Chicago Makes First Major Update to City's Building Code in 70 Years
August 06, 2019 —
Engineering News-RecordThe City Council recently voted to adopt a major update to the Chicago Building Code, its first in 70 years, that will better align it with the International Code Council’s International Building Code. Mayor Rahm Emanuel (D) said the new code will spur and enhance building projects by adding more flexibility and options for construction materials.
Engineering News-Record
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Deescalating Hyper Escalation
July 05, 2023 —
Paul F. Williamson - Construction Executive Recent years have seen the construction industry get hit by a perfect storm of rising costs, workforce shortages, delivery delays, supply-chain issues, inflation, interest-rate hikes and materials price escalation. The cost of construction has become more expensive, leaving all parties to grapple with the sufficiency of their risk-management strategies and the ramifications of contracts that are ill-equipped to deal with unprecedented cost increases. Of particular concern to industry participants are the volatile price fluctuations that construction materials have undergone and how to appropriately mitigate the risks they present.
Although owners, general contractors and subcontractors may seek to mitigate future risks, many who are party to an existing contract all too often must scramble to divine how to absorb significantly more financial risk than they expected pre-pandemic. Contracts that were bid and entered into prior to the pandemic may have seen, in some instances, double- and triple-digit percent increases in prices due to hyper escalation, with little recourse to address such situations. While parties to private contracts are free to mitigate their risk through contract negotiations, parties to federal or state public procurements are somewhat more constrained.
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Paul F. Williamson, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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