FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Citigroup Pays Record $697 Million for Hong Kong Office Tower

June 18, 2014 — Michelle Yun – Bloomberg
Citigroup Inc. (C) paid a record HK$5.4 billion ($697 million) to a unit of Wheelock & Co. for a Hong Kong office tower that will bring most of its 5,000 employees under one roof. The price for the 512,000 square-foot property in Kowloon is the largest ever office transaction in Hong Kong, the New York-based bank said in a statement yesterday. The tower, scheduled for completion by the end of 2015, will be used to house staff currently spread out across offices in the city, said Weber Lo, the bank’s chief executive officer for Hong Kong and Macau. Citigroup joins banks and insurers in buying buildings in the city as falling vacancies pose a challenge for companies looking for large office spaces, realtor CBRE Group Inc., which advised the deal, said in a first-quarter review report. Read the court decision
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Reprinted courtesy of Michelle Yun, Bloomberg
Ms. Yun may be contacted at myun11@bloomberg.net

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The Unwavering Un-waivable Implied Warranty of Workmanship and Habitability in Arizona

January 23, 2023 — Robert A. Henry & Emily R. Parker - Snell & Wilmer Real Estate Litigation Blog
The Arizona Supreme Court recently issued an opinion on the scope of the implied warranty of workmanship and habitability (the “implied warranty”) in contracts between homebuyers and builder/vendors that provides clear guidance of the law in this area, specifically on the issue of whether the implied warranty can be waived or disclaimed. It is also an interesting and helpful read for those who engage in new home residential sales and real estate transactions generally. The case: Zambrano v. M & RC, II LLC, 254 Ariz. 53 (2022). The takeaway holding: the implied warranty of workmanship and habitability cannot, under any circumstances, be disclaimed or waived. From a practice perspective, the foregoing is likely all one needs to ultimately know. However, the majority opinion (authored by Justice Timmer) and the dissent (authored by Justice King, and joined by Justice Bolick) are in these authors’ opinions worth a read for those who want a better understanding of the contours of how “public policy” plays into the analysis of the enforceability of contract terms, especially in the real estate context and even more particularly in connection with contracts for the sale of new homes. The careful analysis of both the majority opinion and the dissent provides an excellent history of the implied warranty, the public policy behind it, and its scope and application in the context of competing public policies, most notably the freedom to contract. Reprinted courtesy of Robert A. Henry, Snell & Wilmer and Emily R. Parker, Snell & Wilmer Mr. Henry may be contacted at bhenry@swlaw.com Ms. Parker may be contacted at eparker@swlaw.com Read the court decision
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Land a Cause of Home Building Shortage?

June 17, 2015 — Beverley BevenFlorez-CDJ STAFF
Diana Olick of CNBC reported that builders are not keeping up with the housing demand due to a lack of supply of developed lots as well as the increasing price of available land. "You have to find the land, you've got to be able to buy it and you've got to persuade someone to let you develop it. The one you hear the most about is the last one," Paul Emrath, vice president of survey and housing policy research at the National Association of Home Builders (NAHB), told CNBC. Olick wrote that “[l]and prices have actually surpassed their peak values in many markets where builders are particularly active, especially in Texas.” Read the court decision
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New Households Moving to Apartments

December 20, 2012 — CDJ STAFF
The New York Times reports that multifamily construction—apartment buildings—is leading the recovery in construction. Construction of single-family homes is only a third of the way up from its fall from its earlier heights, while multifamily construction has recovered two-thirds of its peak. Young adults are moving out of their parents’ homes, but instead of buying homes, they’re renting apartments. Houston is adding thousands of new units, leading to a fear of overbuilding. Rents have been rising, but as the supply of apartment units rises, higher rents may be unsustainable. However, during the recession, young adults did not move out of their parents’ homes, leading to about two million doubled-up households. David Crowe, the chief economist of the National Association of Home Builders, noted that “all of the net addition to households since 2004 has been in rentals.” Read the court decision
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How Contractors Can Prevent Fraud in Their Workforce

August 13, 2019 — Sarah Hofmann - Construction Executive
The word fraud might conjure up images of Wall Street executives led out to police cars in cuffs, or sleazy conmen with slicked-back hair. While these ideas might be popular in movies and TV, and often in the news, many small and large businesses fall victim to fraud. Whether it’s a trusted site manager who needed a little extra cash to cover an unexpected bill or the accountant who’s been on board for years and has been slowly siphoning an extra paycheck through a ghost employee each month, fraud might be hitting businesses without them even knowing it. The construction industry is hardly immune to such schemes. According to the ACFE’s 2018 Report to the Nations on Occupational Fraud and Abuse, organizations lose an estimated 5% of their revenue each year to fraud. The median amount lost per instance of fraud was $130,000 across all industries, but fraud cases in the construction industry cost almost twice that much at $227,000 per fraud. They also last longer on average: fraud schemes in the construction industry continue for 24 months before being detected versus the overall median average of 16 months. The more time a scheme continues, the more money is lost for organizations. What types of fraud schemes are most common in the construction industry? The construction industry is more susceptible to certain types of fraud than other industries due to the nature of the work. The companies may be smaller in size leading to fewer resources to combat fraud and more trust among employees. Also, construction companies inherently deal with many vendors, subcontractors, bidding organizations and other various third parties, which can all pose fraud risks. Reprinted courtesy of Sarah Hofmann, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Pennsylvania Supreme Court Reaffirms Validity of Statutory Employer Defense

March 31, 2014 — Michelle Coburn and Michael Jervis – White and Williams LLP
In Patton v. Worthington Associates, Inc., the Pennsylvania Supreme Court reaffirmed the continuing validity of the longstanding statutory employer doctrine and related five-part test of McDonald v. Levinson Steel Co. In doing so, the court overruled the Superior Court and held that Worthington was immune from tort liability as the statutory employer of plaintiff Earl Patton. Worthington was the general contractor for a project to construct an addition to a church. Worthington subcontracted with Patton Construction, Inc. to perform carpentry work. Earl Patton was an employee and the sole owner of Patton Construction, Inc. He was injured in a scissor lift accident while performing work on the church. Patton sued Worthington alleging failure to maintain safe conditions at the worksite. After a trial, a jury awarded Patton and his wife a little more than $1.5 million in damages. Before trial, Worthington had moved for summary judgment arguing that it was Patton’s statutory employer and thus immune from tort liability under Pennsylvania’s Workers’ Compensation Act. Under that law, general contractors are secondarily liable for payment of workers’ compensation benefits to employees of subcontractors. Like traditional employers, statutory employers are immune from tort liability for work-related injuries in situations where they are secondarily liable for workers’ compensation payments. Reprinted courtesy of Michelle Coburn, White and Williams LLP and Michael Jervis, White and Williams LLP Ms. Coburn may be contacted at coburnm@whiteandwilliams.com; Mr. Jervis may be contacted at jervism@whiteandwilliams.com Read the court decision
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Three Reasons Lean Construction Principles Are Still Valid

February 27, 2019 — Kevin Clary - Construction Executive
When lean principles were first introduced to the construction industry five years ago, project managers raced to implement the production method. The internet was rife with content about how to easily overhaul a jobsite and transform it into the picture of efficiency. However, the number of lean construction critics have multiplied significantly in recent months. They claim concepts are near impossible to implement or, even worse, automation eliminates the need for deliberate human processes. These ideas are misleading. Lean principles are still valid for a few key reasons. 1. Lean involves seeing things from the customer’s point of view One of the defining principles of lean construction is understanding value from the customer’s point of view. The concept encourages stakeholders, including the owner, contractor and supplier, to come together during the early planning stage of the project. The significant level of trust created from this exercise can’t be replicated by machinery. It involves compassion, collaboration and a sense of creativity that artificial intelligence is yet to possess. Moreover, the rapport gained through this service-oriented exercise is worth the time investment. Reprinted courtesy of Kevin Clary, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Real Estate & Construction News Round-Up (09/21/22) – 3D Printing, Sustainable Design, and the Housing Market Correction

October 17, 2022 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
The first 3D-printed home is under construction, construction contractors could face liability for not securing employee data, the housing market correction continues, and more.

• Sustainable home design has become key focus of builders and homeowners, helping reduce carbon emissions and other environmental impacts. (Kristi Waterworth, U.S.News)
• Construction contractors could face legal consequences for failing to manage employee data correctly. (Robyn Griggs Lawrence, Construction Dive)
• The home price correction continues to spread across the U.S., with an interactive map showcasing local housing markets that have been impacted. (Lance Lambert, Fortune)

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Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team

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