California Attempts to Tackle Housing Affordability Crisis
December 22, 2019 —
Garret Murai - California Construction Law BlogIt’s a bit too early yet for our 2020 Construction Law Update but here’s a preview of some of the new laws taking effect next year. Earlier this month, Governor Gavin Newsom signed a slate of 18 bills to boost housing production in an effort to tackle the state’s housing affordability crisis.
First, a bit of background.
California currently ranks 49th among the states in housing units per resident. Experts say that the state needs to double its current rate of housing production of 85,000 unit per year just to keep up with population growth and four times the current rate to reduce housing costs. Anecdotally, here in the San Francisco Bay Area, the median rent for a one-bedroom apartments in San Francisco is currently $3,690 per month or $44,280 per year. However, as of May 2018, according to the U.S. Bureau of Statistics, the annual mean wage of a teller is just $32,840, for farmworkers $34,700, and for teachers $48,250. And that’s before taxes. Let that sink in for a moment.
The result is one in five Californians live in poverty, the highest rate in the nation, when factoring in the cost of living.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Harmon Hotel Construction Defect Update
July 18, 2011 —
CDJ STAFFCoverage of the ongoing litigation concerning the Harmon Hotel continues to proliferate. Architectural Record and a number of other news outlets continue to provide additional details and coverage of the matter. Chief among the conditions alleged are improperly installed reinforcing steel inside link beams on 15 floors. MGM Claims that the conditions amount to hundreds of millions of dollars in damages, while Perini (the builder) indicated in a July 12th statement that the buildings problems are related to the design, and the they are “fixable.”
There is significant speculation that MGM Resorts International isn’t interested in repairing the hotel due to a glut of hotel rooms attendant to the troubled economy. In a statement Tuesday Perini reportedly stated that “Repairing and opening the Harmon would only create a greater glut of unused hotel rooms for MGM,” “If market conditions were better and MGM found that demand existed for the Harmon hotel rooms, MGM would not be claiming that the Harmon is unstable.”
MGM asserts that Perini failed to ”properly construct” the project. Clark County’s Department of Development Services has reportedly asked MGM to provide a plan to fix the project by August 15th.
The Harmon is part of the $8.5 billion CityCenter project that opened in the fourth quarter of 2009 and is jointly owned by MGM Resorts and Dubai World.
Prior reports indicated that the owner (MGM) had considered razing the entire project. The future of the project remains uncertain.
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Toll Plans to Boost New York Sales With Pricing, Incentives
December 10, 2015 —
Prashant Gopal – BloombergToll Brothers Inc. plans to use competitive pricing and offer buyers incentives to speed up sales at some of its New York City condominium projects.
“There are certain units in certain locations within a building that are hot, and then there are other units that may be in a dark, cold corner that you have to incentivize a bit more,” Chief Executive Officer Douglas Yearley said on the company’s earnings conference call Tuesday. While Toll “will not fire-sale it to move” units, “we will price to the market.”
Incentives would be offered for certain units at Pierhouse at Brooklyn Bridge Park and 400 Park Ave. South and 1110 Park Ave. in Manhattan, Yearley said. While the supply in New York City has grown most for condos selling for more than $7.5 million, most of Toll’s units are less expensive, he said.
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Prashant Gopal, Bloomberg
Is a Text a Writing?
June 10, 2024 —
Michael Yelle - Ahlers Cressman & Sleight PLLCIs a text message a writing? Project communication is constantly evolving, and text messages are an increasingly common way teams share pictures, video, and provide project updates. When texting is part of the communication flow on a project, contractors and owners might text approvals for extra work, notices of changed conditions, or other information that could be a basis for a change order.
In a text exchange about a compensable event, the notice, reply, and approval are all saved on the phone. But contracts often contain specific requirements for a contractor or subcontractor to request changes and authorization to proceed may be specifically required in writing.
For example, the Associated General Contractors of Washington – 2018 Standard Subcontract says the “Subcontractor shall make no claims for extras unless the same shall be agreed upon
in writing by Contractor prior to performance of any such extra work.” (emphasis added).
The AGC subcontract doesn’t define “writing,” so the subcontractor and contractor might wonder if a text message exchange about a potentially compensable event was an “agreement in writing.”
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Michael Yelle, Ahlers Cressman & Sleight PLLCMr. Yelle may be contacted at
michael.yelle@acslawyers.com
Understanding the Details: Suing Architects and Engineers Can Get Technical
November 02, 2017 —
Steven M. Cvitanovic & Stephen M. Tye - Haight Brown & Bonesteel LLPBefore suing an architect or engineer for professional negligence, a plaintiff must obtain a “certificate of merit” (“Certificate”) under Code of Civil Procedure section 411.35. Boiled down to the basics, the Certificate declares that the attorney consulted with and received an opinion from an expert that a reasonable and meritorious case exists against said design professional. The Certificate must be filed before serving the complaint on any defendant, but can be filed within 60 days under certain circumstances. This rule was recently analyzed against another long-standing rule in California, known as the “relation-back doctrine.” Under the relation-back doctrine, a court will deem a later-filed pleading, such as an amended complaint, to be deemed filed at the time of an earlier complaint.
In Curtis Engineering Corp. v. Superior Court of San Diego County, No. D072046, (Cal. Ct. App. 10/23/17), the Fourth Appellate Court considered the interplay between section 411.35 and the relation-back doctrine, holding that a Certificate filed more than 60 days after filing the original pleading does not relate back to the filing of the original pleading.
Reprinted courtesy of
Steven Cvitanovic, Haight Brown & Bonesteel LLP and
Stephen Tye, Haight Brown & Bonesteel LLP
Mr. Cvitanovic may be contacted at scvitanovic@hbblaw.com
Mr. Tye may be contacted at stye@hbblaw.com
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Construction Contractors Must Understand Retainage In 2021
May 24, 2021 —
Ed Williams - Construction ExecutiveRetainage has become a vital part of the contracting and construction process. If defined precisely, retainage is a practice of withholding a particular percentage of the payment until the project is delivered.
However, the practice can turn to be a challenge for small contractors, as it is laid over a lack of trust in the potential and abilities of a contractor, which might cause financial downtime at the later stages of the project when contractors need to pay bills.
Since 2020 proved to be a tough year for the entire construction industry, project owners, general contractors and construction firms new to the industry must understand what exactly retainage is. It is equally important for small contractors and subcontractors to understand the right way to manage the retainage.
Reprinted courtesy of
Ed Williams, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Design-Assist, an Ambiguous Term Causing Conflict in the Construction Industry[1]
December 02, 2019 —
John P. Ahlers - Ahlers Cressman & Sleight PLLC“Design-Assist” is one of the recent cost-saving trends being touted for construction projects and, in particular, construction projects utilizing alternative procurement methods. If an internet search for the term, “design-assist” is made, the result will be numerous construction industry articles and white papers lauding “design-assist” as a recent cost-saving trend in construction procurement. From a legal perspective, however, the term “design-assist” is notably absent from court opinions and most state licensing laws. With the exception of the ConsensusDocs, few standard form contracts even include the term “design-assist” in their text.
The ConsensusDocs agreement provides examples of the Constructor’s obligations to perform “assisting activities” (the term “design-assist” is not used) and states that, notwithstanding the performance of such “assisting activities” by the Constructor, the responsibility of the design remains with the Designer unless otherwise stated in the Contract:
- Article 4.5 DESIGN PROFESSIONAL’S RESPONSIBIITIES The Designer shall furnish or provide all design and engineering services necessary to design the Project in accordance with the Owner’s objectives … the Designer shall draw upon the assistance of Constructor and others in developing the design, but the Designer shall retain overall responsibility for all design decisions….
- Article 4.6 CONSTRUCTOR’S RESPONSIBILITIES [T]he Constructor shall assist the Designer in the development of the Project Plan and Project Design but shall not provide professional services which constitute the practice of architecture or engineering unless the Constructor needs to provide such services in order to carry out its responsibilities … or unless specifically called for by the Contract Documents.
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John P. Ahlers, Ahlers Cressman & Sleight PLLCMr. Ahlers may be contacted at
john.ahlers@acslawyers.com
Baltimore Project Pushes To Meet Federal Deadline
July 22, 2019 —
Justin Rice - Engineering News-RecordTwo giant anaerobic digesters shaped like Faberge eggs have for years served as landmarks for commuters traveling on Interstate-695 east of downtown Baltimore. And cranes, recently removed, signaled the location of one of the latest projects in a years-long, $1.6-billion construction program to upgrade the 100-year-old Back River Wastewater Treatment Plant. “You probably won’t see a collection of this many ‘sticks’ anywhere else in the city,” Shane Lippert noted back in October.
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Justin Rice, ENRMr. Rice may be contacted at
ricej@enr.com