Data Is Critical for the Future of Construction
April 19, 2022 —
Raghi Iyengar - Construction ExecutiveAccording to a
recent study, real-time visibility and access to critical data and insights are vital for rapid construction decision-making. Notably, inaccurate and missing data cost the industry almost $2 trillion in 2020. Even more surprising, construction companies often don’t know if they’ve made or lost money until the job is complete or if they’re on schedule until they start falling behind. These findings portray an important reality for the industry: Construction needs to establish and optimize data strategies to ensure it has the visibility control, and transparency needed to improve efficiency and productivity on projects.
Luckily, while historically slow to change, the construction industry has begun to adopt technologies that help firms improve efficiency and productivity on projects. With this technology, contractors can establish and optimize data strategies to ensure they have visibility, control and transparency.
Embracing data is a game changer as the industry continues to expand. In fact, the report from Autodesk and FMI cited above found that the construction companies using data technologies and strategies saw
fewer project delays, less rework and fewer change orders.
Reprinted courtesy of
Raghi Iyengar, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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What to do about California’s Defect-Ridden Board of Equalization Building
October 01, 2014 —
Beverley BevenFlorez-CDJ STAFFJerry Brown recently signed into law a bill requiring the state of California “to assess its properties in the Sacramento area and develop long-term plans for renovating, replacing or selling the most troublesome buildings,” according to SF Gate. Some say the Board of Equalization building, which was built for $80 million and then repaired for $60 million has construction defects, is “jeopardizing the health and safety of public employees.”
Current problems include “[f]looding, mold, falling windows and free-falling elevators,” reported SF Gate. Furthermore, recently, “three employees filed a $75 million lawsuit against the state, alleging toxic mold in the building is causing extreme fatigue, skin rashes, persistent flu-like symptoms, respiratory illnesses, frequent headaches, memory lapses and fears of cancer.”
“This is a disaster,” Assemblyman Roger Dickinson, D-Sacramento, who authored the bill regarding assessing state capitol buildings, told SF Gate. “It endangers the health and safety of employees and the public alike. And it is costing state taxpayers tens of millions of dollars.”
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Where Breach of Contract and Tortious Interference Collide
January 11, 2022 —
Christopher G. Hill - Construction Law MusingsClaims for breach of contract are numerous in the construction law world. Without these claims we construction attorneys would have a hard time keeping the doors open. A 2021 case examined a different sort of claim that could arise (though, “spoiler alert” did not in this case) during the course of a construction project. That type of claim is one for tortious interference with business expectancy.
In Clark Nexsen, Inc. et. al v. Rebkee, the U. S. District Court for the Eastern District of Virginia gave a great explanation of the law of this type of claim in analyzing the following basic facts:
In 2018, Clark Nexsen, Inc. (“Clark”) and MEB General Contractors, Inc. (“MEB”) responded to Henrico County’s (“Henrico”) Request for Proposals (“RFP”) for the design and construction of a sport and convocation center (the “Project”). Henrico initially shortlisted Clark and MEB as a “design-build” team for the Project, but later restarted the search, issuing a second RFP. Clark and MEB submitted a second “design-build” proposal, but Henrico selected Rebkee Co. (“Rebkee”) for certain development aspects of the Project. MEB also submitted proposals to Rebkee, and Rebkee selected MEB as the design-builder for the Project. MEB, at Rebkee’s request, solicited proposals from three design firms and ultimately selected Clark as its design partner. From December 2019 to May 2020, Clark and MEB served as the design-build team to assist Rebkee in developing the Project. In connection therewith, Clark developed proprietary designs, technical drawings, and, with MEB, several cost estimates. In February 2020, MEB submitted a $294,334.50 Pay Application to Rebkee for engineering, design, and Project development work. Rebkee never paid MEB. Henrico paid MEB $50,000.00 as partial payment for MEB’s and Clark’s work. MEB then learned that Rebkee was using Clark’s drawings to solicit design and construction proposals from other companies. On July 23, 2020, Rebkee told MEB that Henrico directed it to cancel the design-build arrangement with MEB and Clark and pursue a different planning method. MEB and Clark sued and Rebkee for, among other claims, tortious interference with a business expectancy. Rebkee moved to dismiss the tortious interference claim.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Veolia Agrees to $25M Settlement in Flint Water Crisis Case
February 19, 2024 —
James Leggate - Engineering News-RecordEngineering firm Veolia North America agreed to a $25-million settlement to resolve a federal class action case related to its work for the city of Flint, Mich., during the city’s lead-in-water crisis, the company and attorneys for the plaintiffs announced Feb. 1. Veolia is the second engineering firm that worked for the city to settle with city residents, and the deal came ahead of a class-action trial scheduled to start later this month.
Reprinted courtesy of
James Leggate, Engineering News-Record
Mr. Leggate may be contacted at leggatej@enr.com
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Reference to "Man Made" Movement of Earth Corrects Ambiguity
December 20, 2012 —
TRED EYERLY, INSURANCE LAW HAWAIIIn
Pioneer Tower Owners Assn. v. State Farm Fire & Cas. Co., 12 NY3d 302 (2009), the New York Court of Appeals found an "earth movement" exclusion was ambiguous when applied to an excavation. The court now considered whether a similar exclusion, expressly made applicable to "man made" movement of earth, eliminated the ambiguity when loss was created by excavation.
Bentoria Holdings, Inc. v. Travelers Indem. Co., 2012 N.Y. LEXIS 3087 (N.Y. Oct. 25, 2012).
Plaintiff's building suffered cracks due to an excavation being conducted on the lot next door. A claim was submitted to Travelers, plaintiff's insurer. Travelers rejected the claim, relying on the earth movement exclusion.
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Tred R. Eyerly, Insurance Law Hawaii.Mr. Eyerly can be contacted at
te@hawaiilawyer.com
Be Proactive, Not Reactive, To Preserve Force Majeure Rights Regarding The Coronavirus
March 30, 2020 —
David Adelstein - Florida Construction Legal UpdatesIf you are involved in construction, NOW is the time to consider the potential force majeure impacts associated with the pandemic Coronavirus. Things are beginning to drastically change on a minute-by-minute basis. From travel restrictions, to the suspension or cancellation of events on an international level, to company-wide policies and restrictions, the global uncertainty has led to the possibility that a force majeure delay will occur. Thinking otherwise is not being proactive. The Coronavirus, and the impacts / delays associated therewith, is beyond anyone’s control. Due to the uncertainty, it is hard to fathom at this time a reasonable challenge to someone’s reaction to this concern or their companywide response to the concern.
If you are a contractor, subcontractor, or even a supplier, my suggestions would be as follows:
- Revisit your contracts and see what type of force majeure language it has – anything relating to delays beyond your control or epidemics;
- Examine to see whether you have a basis for additional compensation AND additional time;
- Examine what type of notice you are required to provide for force majeure events;
- Be proactive – send notice now of the potentiality that this pandemic can impact / delay the job –no one should take offense to this letter as this pandemic has impacted all walks of life;
- If an impact occurs, send follow-up notice accordingly to ensure rights under the contract are preserved; and
- For future contracts, incorporate language that specifically addresses epidemics and pandemics now that the occurrence of this issue has become real.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
New Home Construction Booming in Texas
October 24, 2022 —
Jason Daniel Feld & Ron Raydon - Kahana FeldWith the rapid relocation trends of families moving to Texas, it was reported that new residential construction permits in Texas grew to a total value in excess of $2 billion and over 7,500 new construction permits in September 2022 alone. D.R. Horton lead the way with 1,139 new permits, while Lennar Homes clocked 696 new permits. Other leading homebuilders including KB Homes (239 permits) and Pulte Homes (253 permits) remained active heading into the 4th Quarter of 2022. The following is a breakdown of new permits and average home values in the 4 largest cities in Texas (Houston, Dallas, Austin and San Antonio) for September 2022:
Houston
Last month, there were approximately 340 home builders with new permits on record in the Houston area, and the following ranked as the top five total new permits:
| Builder | Total Permits | Average Value |
|---|
| 1-D.R. Horton |
483 |
$ 129,812.00 |
| 2-Camillo Properties |
190 |
$ 147,790.00 |
| 3-Lennar Homes |
188 |
$ 195,503.00 |
| 4-Meritage Homes |
124 |
$ 248,597.00 |
| 5-Wan Pacific Real Estate Development |
117 |
$ 165,044.00 |
Dallas
In Dallas, there were more than 290 contractors with new residential construction activity on record with HBW last month, and the following ranked as the top five for total new permits:
| Builder | Total Permits | Average Value |
|---|
| 1-D.R. Horton |
555 |
$ 179,430.00 |
| 2-Lennar Homes |
232 |
$ 202,318.00 |
| 3-Trophy Signature Homes |
111 |
$ 274,016.00 |
| 4-Bloomfield Homes |
97 |
$ 405,235.00 |
| 5-Meritage Homes |
92 |
$ 267,425.00 |
Austin
Last month, there were nearly 125 home builders with new construction activity on record in the Austin area, and the following ranked as the top five for total new permits for the one-month period:
| Builder | Total Permits | Average Value |
|---|
| 1-Lennar Homes |
150 |
$ 154,390.00 |
| 2-KB Homes |
147 |
$ 253,606.00 |
| 3-D.R. Horton |
99 |
$ 200,416.00 |
| 4-Taylor Morrison Homes |
79 |
$ 365,183.00 |
| 5-David Weekley Homes |
64 |
$ 436,978.00 |
San Antonio
In San Antonio, there were nearly 120 contractors with new residential construction activity on record last month, and the following ranked as the top five for total new permits:
| Builder | Total Permits | Average Value |
|---|
| 1-Lennar Homes |
126 |
$ 174,315.00 |
| 2-KB Homes |
55 |
$ 254,109.00 |
| 3-Pulte Homes |
52 |
$ 241,012.00 |
| 4-M/I Homes |
51 |
$ 237,283.00 |
| 5-LGI Homes |
30 |
$ 202,760.00 |
The residential construction boom is Texas does not appear to be slowing down anytime soon. With new corporations relocating corporate offices to the Lone Star State each year, we expect this trend to continue for the foreseeable future. And with increased home production, we will closely monitor the increase in construction related litigation over the next five to ten years.
The increase in market activity attracts new or inexperienced builders and tradesman, making the importance of a proactive approach to construction management all the more important. Given the labor shortages and supply chain issues. It is imperative that Texas homebuilders take extra precautions to ensure quality construction practices and oversight to minimize potential litigation.
Reprinted courtesy of Jason Daniel Feld, Kahana Feld and Ron Raydon, Kahana Feld
Mr. Feld may be contacted at jfeld@kahanafeld.com
Mr. Raydon may be contacted at rraydon@kahanafeld.com
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The Legal Landscape
June 17, 2024 —
David McMillin - Construction ExecutiveThe construction industry continues to change as new technologies reshape jobsites and new generations of leaders rethink the way companies should operate. But one piece of the puzzle remains very much the same: Everyone needs a good lawyer.
According to the most recent edition of the Arcadis Construction Disputes Report, the average value of a dispute in the industry has soared to $42.8 million—a 42% year-over-year increase between 2021 and 2022. And based on how busy the attorneys at
Construction Executive’s 2024 Top 50 Construction Law Firmshave been this year, there is no sign of legal issues becoming less important to builders and contractors.
Every construction leader wants to spend more time and energy doing what they do best—building projects safely, efficiently and profitably—and less time thinking about the things that might land them in court. How can you best avoid big disputes bound for mediation, arbitration or litigation? What emerging rules and regulations should be on your radar as you develop strategies for success?
While legal issues will never disappear, listening to what some of the best construction lawyers in the country—all members of 2024 Top 50 Construction Law Firms—are thinking about offers a helpful perspective on future-proofing your business against risk, liability and worse.
Reprinted courtesy of
David McMillin, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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