Build, Baby, Build. But Not Like This, Britain.
March 04, 2024 —
Matthew Brooker - BloombergThe UK needs to do a lot more building. A lack of access to physical and digital connections is holding back the economy, the government says. Besides tackling the housing crisis, the country has to construct more roads, railways, wind farms and reservoirs to open up opportunity and drive productivity. The only problem is that Britain is notoriously inept at delivering infrastructure projects on time and within budget.
The advantage of doing things badly is that at least you get to learn from your mistakes — in theory. Updates this month have offered some illuminating insights into two of the biggest civil-engineering undertakings in the country: High-Speed Rail 2, better known as HS2, and Hinkley Point C, which will be Britain’s first new nuclear power station since 1995. Here are five lessons that can be drawn from the issues encountered by two projects with a combined bill that’s likely to exceed £100 billion ($127 billion):
Don't take budgets too seriously — especially at the start. Fixing an initial budget that was too low may have done much to feed later perceptions that HS2’s costs were spiraling out of control. The original estimate for the expanded train network was set too early and based on “very immature data,” Jon Thompson, appointed executive chair of High Speed 2 Ltd. in February last year, told the House of Commons transport committee. Numbers get more accurate and reliable as work progresses and the quality of information improves. What were viewed as cost blowouts partly reflected this process. The effect was unfortunate, undermining political support for HS2 and providing cover for cutbacks that have reduced the network to a single line between London and Birmingham that fails to fulfill most of its original purpose. To avoid this problem: Stick to a range rather than a single figure, and make sure people understand the uncertainties inherent in early-stage estimates.
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Matthew Brooker, Bloomberg
Business Interruption Claim Upheld
April 01, 2015 —
Tred R. Eyerly – Insurance Law HawaiiA business interruption claim survived an appeal after it was determined the claim was satisfactorily presented to the trial court. Citadel Broadcasting Corp. v. Axis U.S. Ins. Co., 2015 La. App. LEXIS 274 (La. Ct. App. Feb. 11, 2015).
When Hurricane Katrina hit on August 29, 2005, the insured owned three radio stations that broadcast in and around New Orleans. All three stations suffered property damage and were off the air for varying periods of time.
The insured's policy with Axis covered both physical damage and business interruption (BI) losses. The policy also insured contingent business interruption income (CBI). Both ordinary BI and CBI losses were covered under a 365 day extended period of indemnity (EPI).
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Insured Under Property Insurance Policy Should Comply With Post-Loss Policy Conditions
June 10, 2019 —
David Adelstein - Florida Construction Legal UpdatesYour property insurance policy will contain post-loss policy conditions. Examples include submitting a sworn statement in proof of loss, providing documentation to your insurer, and sitting for an examination under oath. Insurers will require you, as the insured, to comply with post-loss policy conditions unless they elect to promptly deny coverage. If you do not comply with such post-loss policy conditions you can forfeit coverage under the policy and/or give the insurer the argument that any lawsuit you filed against the property insurer is premature. Thus, there really is no upside in refusing to comply with the post-loss policy conditions, which should be done in consult with an attorney or, as the case may be, a public adjuster.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
The ‘Sole Option’ Arbitration Provision in Construction Contracts
July 16, 2014 —
Beverley BevenFlorez-CDJ STAFFOn his Best Practices Construction Law blog, Matthew Devries discussed how the “at its sole option…has the right to demand arbitration” can “be a good provision if you are the party who has that option.”
For instance, Devries cites the case Archer Western Contractors, LLC v Holder Construction Company, where “the Georgia Court of Appeals recently affirmed the trial court’s decision to grant a contractor’s motion to compel arbitration with a ‘sole option’ provision.”
Devries stated that “it is important to review carefully the disputes clause in your construction contract to fully understand who has the right to demand arbitration and what rules will apply.”
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Phillips & Jordan Awarded $176M Everglades Restoration Contract
March 01, 2021 —
Thomas F. Armistead - Engineering News-RecordConstruction of the next major project for the Everglades Agricultural Area Reservoir south of Lake Okeechobee is set to begin in April following the South Florida Water Management District's award of a $175.8-million lump-sum contract to Phillips and Jordan Inc.
Reprinted courtesy of
Thomas F. Armistead, Engineering News-Record
ENR may be contacted at ENR.com@bnpmedia.com
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Work without Permits may lead to Problems Later
September 10, 2014 —
Beverley BevenFlorez-CDJ STAFFAccording to the Los Angeles Register, “Southern California homeowners often have repairs or improvements done to their property without getting the required building permits,” which sometimes, may be fine, but other times it leads to disastrous problems.
The Register used an example of a San Clemente couple who had issues selling their home when a building inspector found that weep screeds were covered up by a cement deck installed by a contractor. The contractor also failed to get building permits for the work that was done. The buyer stated that repairs needed to be done prior to the sale.
According to Mac MacKenzie, an agent at Coldwell Banker in Irvine, the situation is not uncommon: “We’ve had (permit problems) kill deals before, and we’ve had them almost kill deals. If it’s serious enough, it can stop a transaction from closing.”
Permits are generally required “for any alteration, major repairs or new construction,” according to the Register, while they are not necessary “for minor repairs, such as fixing leaky pipes, painting, new carpeting or new kitchen countertops.”
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Beyond the Disneyland Resort: World Class Shopping Experiences
May 03, 2018 —
Beverley BevenFlorez-CDJ STAFFIf you don’t want to venture far from the Disneyland Resort, consider heading to
the Outlets at Orange. Formerly known as the Block of Orange, this open air shopping center features outlet stores such as Neiman Marcus Last Call, Nordstrom Rack, and Sax Fifth Avenue’s Off Fifth, as well as an AMC movie theater, restaurants, Lucky Strike Bowling Alley, and Dave and Buster’s.
For another local option, head to
the Brea Mall, where you can find department stores such as Macy’s and Nordstrom’s and a host of other stores like Apple, Guess, and Tommy Bahama.
For a more exclusive shopping experience, travel to south Orange County's
Fashion Island of Newport Beach. Their department stores include Bloomingdale’s, Macy’s, Neiman Marcus’s, and Nordstroms, and the shopping center also contains many boutique shops and eateries.
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While Construction Permits Slowly Rise, Construction Starts and Completions in California Are Stagnant
December 05, 2022 —
John Kazanovicz & Jason Feld - Kahana FeldThere is an interesting phenomenon happening in the California construction market since the Summer of 2022. There is a steady but slow rise in the construction building permits being issued throughout California. According to the U.S. Census and the U.S. Department of Housing and Urban Development’s joint announcement (https://www.census.gov/construction/nrc/pdf/newresconst.pdf) of new residential construction statistics for September 2022, privately‐owned housing units authorized by building permits in September were at a seasonally adjusted annual rate of 1,564,000. This is 1.4 percent above the revised August rate of 1,542,000. While this is slightly lower than a year ago (3.2 percent below the September 2021 rate of 1,615,000), the trend for obtaining new home permits was reportedly ahead of the projected rates given the market conditions and inflation throughout the country. Interestingly, single‐family authorizations in September were at a rate of 872,000 which was also 3.1 percent below the revised August 2022 figure of 900,000. Authorizations of units in buildings with five units or more were at a rate of 644,000 in September. Overall, while slowly recovering from the record lows during the height of the pandemic, the economic forecast for new home construction in California is positive, but cautious.
The flip side of this coin is the construction starts in California, which continue to remain stagnant despite additional building permits being issued. Privately‐owned housing starts in September were at a seasonally adjusted annual rate of 1,439,000. This is 8.1 percent (±14.9 percent) below the revised August estimate of 1,566,000 and is 7.7 percent (±11.5 percent) below the September 2021 rate of 1,559,000. Single‐family housing starts in September were at a rate of 892,000; this is 4.7 percent (±10.7 percent) below the revised August figure of 936,000. The September rate for units in buildings with five units or more was 530,000.
Reprinted courtesy of
John Kazanovicz, Kahana Feld and
Jason Feld, Kahana Feld
Mr. Kazanovicz may be contacted at jkazanovicz@kahanafeld.com
Mr. Feld may be contacted at jfeld@kahanafeld.com
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