Residential Construction Surges in Durham
October 30, 2013 —
CDJ STAFFThird quarter residential construction permits in Durham, North Carolina were up 72% over the third quarter of last year, for a total of 1,770 new residential units. There was a large increase in the value of the construction contracts as well, with construction contracts reaching $151.3 million, more than $42 million over the same period in 2012.
Ted Conner of the Greater Durham Chamber of Commerce said that he didn’t “think we’re going to continue to see that frenetic, high level of activity, but it’s still very active.” One reason for increased residential construction is a lack of available apartment spaces, which is also sending rents up in the area. Although much of the new construction will be middle- to upper-end, the greater availability should help all renters.
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Construction May Begin with Documents, but It Shouldn’t End That Way
March 02, 2020 —
Christopher G. Hill - Construction Law MusingsFor this week’s Guest Post Friday here at Musings, we welcome back Rob Mathewson. In his role as CEO, Rob handles strategy and partnerships for Geedra in addition to overseeing technology architecture and implementation. He has spent twenty years in sales and marketing management roles with experience in industrial, consumer and construction markets. Rob believes the construction industry is ripe for innovation, based on its massive size, yet low productivity. Even with such inefficiencies, a building still rises from the ground. Rob’s goal with Geedra is to leverage technology to increase transparency and communication so that projects can be completed with less risk, effort and cost. Prior to founding Geedra, Rob was the Chief Marketing Officer for Construction Documentation Services, where he was responsible for sales, marketing and business development. He spent 15 years in the chemical distribution business, including eleven years as the Northwest Branch Manager of a $50 million distributor. Rob was the founder and CEO for On The Spot Games, a board game startup. He is currently in the midst of a streak of over 2,900 consecutive days without a bad hair day.
An avid mentor himself, his own business inspirations come from problem solvers like Dean Kamon, innovative communicators like Seth Godin, fierce competitors like Lance Armstrong and global gurus like Thomas Friedman. When he’s not creating innovations in the construction industry, his passions include bike riding, throwing the ball around with his kids, and cooking. He is an accomplished public speaker and is a past president of Emerald City Toastmasters. Rob holds a B.S. in Manufacturing Engineering from Boston University and a MBA from Seattle University.
Construction folks are a focused bunch. Once a contractor signs a deal for a project, its team will immediately get to work generating and then executing a construction document set. For the entire duration of the schedule to follow, the construction team eats, sleeps and dreams about those documents. Their monomaniacal efforts continue until a building rises up from a patch of dirt in a matter of months.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Stormy Seas Ahead: 5th Circuit to Review Whether Maritime Law Applies to Offshore Service Contract
July 26, 2017 —
Richard W. Brown & Afua S. Akoto - Saxe Doernberger & Vita, P.C.Earlier this year, the 5th Circuit applied the Davis factors to determine the validity of an indemnity clause in a Master Services Contract. In Larry Doiron Inc. et al., v. Specialty Rental Tool & Supply LLP et al., the court affirmed the notion that if a contract provides services on navigable waters aboard a vessel, a maritime contract exists, even if the contract calls for incidental or insubstantial work unrelated to the use of a vessel. With this decision, plaintiffs were granted indemnification for a crane injury and all was well on the open seas.
The 5th Circuit made waves, however, on July 7, 2017, when it agreed to rehear the case en banc. In its petition for rehearing, defendant STS argued that: (1) the original opinion conflicted with Supreme Court precedent by applying tort law principles to a contract case; (2) the court misapplied the Davis factors and the decision was contrary to Davis because the historical treatment of specialty well service work has been established as non-maritime; (3) the court needed to address whether a contract is subject to maritime or land-based law in the context of offshore mineral exploration.
Reprinted courtesy of
Richard W. Brown, Saxe Doernberger & Vita, P.C. and
Afua S. Akoto, Saxe Doernberger & Vita, P.C.
Mr. Brown may be contacted at rwb@sdvlaw.com
Ms. Akoto may be contacted at asa@sdvlaw.com
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Assessing Defective Design Liability on Federal Design-Build Projects
March 22, 2021 —
Dirk Haire, Adam Hamilton & Dana Molinari - ConsensusDocsA common misconception by many government officials is that a design-builder is always responsible for every design error or omission on a design-build project. This article examines the actual liability standard applied by the courts and boards of contract appeals when a design defect arises on a federal design-build project.
Background: Design-Build Contracts and the Spearin Doctrine
Design-build contracts combine the design and construction elements of a construction project into one contract. Design-build contracts often include two types of specifications: design and performance. Design specifications may set forth various parameters, such as precise measurements, tolerances, and materials. In doing so, the specifications create a fixed “roadmap” governing a contractor’s performance of the project. Performance specifications, on the other hand, set forth “operational characteristics” to achieve a particular objective or standard, but generally leave the details to the contractor.
Reprinted courtesy of
Dirk Haire, Fox Rothschild LLP,
Adam Hamilton, Fox Rothschild LLP and
Dana Molinari, Fox Rothschild LLP
Mr. Haire may be contacted at dhaire@foxrothschild.com
Mr. Hamilton may be contacted at ahamilton@foxrothschild.com
Ms. Molinari may be contacted at dmolinari@foxrothschild.com
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Water Damage: Construction’s Often Unnoticed Threat
November 02, 2020 —
Yaron Dycian - Construction ExecutiveFire damage to commercial buildings might get headlines, but water damage, whether to projects under construction or completed buildings, delivers massive financial blows to owners, developers and contractors. The impact is massive, reaching many billions of dollars per year. One water leak on the 19th floor at a construction site of a high-end apartment building in New York City resulted in $30 million in property damage and millions in delayed delivery penalties.
Imagine this all-too-typical scenario: A 20-story building has thousands of pipe connections and many tens of thousands throughout the entire building. It only takes one of those joints failing, perhaps due to human oversight. Early on a Saturday morning when no one is onsite, one of the connections inside a wall begins to leak, slowly at first. In a couple hours the connection fails completely, sending a cascade of water into the building. The site is located next to a highway, so the security guards don’t hear the water flowing.
The leak goes undetected until crews come back onsite on Monday morning. By that point, lower levels of the building have been inundated with thousands of gallons of water that has destroyed construction material, carpeting and electrical switchgear. It’s flowed into the elevator pits and mechanical room.
Reprinted courtesy of
Yaron Dycian, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Mr. Dycian may be contacted at
yaron@wint.ai
Domtar Update
June 11, 2014 —
Robert M. Caplan – White and Williams LLPOn May 29, 2014, the Pennsylvania Supreme Court granted allocatur—i.e., the permission to appeal—in the controversial subrogation case, Liberty Mutual Ins. Co. v. Domtar Paper Co., 77 A.3d 1282 (Pa. Super. Ct. 2013). In its order granting the relief to Liberty Mutual, a workers’ compensation insurer, the Supreme Court set forth the narrow issue to be decided on appeal: “Does Section 319 of the Pennsylvania Workers’ Compensation Act, 77 P.S. § 671, allow the employer/insurer to step into the shoes of the insured employee to subrogate against the tortfeasor?”
In Domtar, Liberty Mutual was caused to incur approximately $35,000 in compensation benefits which it paid on behalf of George Lawrence, an employee of Liberty Mutual’s insured, for injuries he sustained in a work-related accident. Mr. Lawrence chose not to file an independent personal injury lawsuit. As a result, in order to recover its lien interests, Liberty Mutual sued the third parties responsible for causing Mr. Lawrence’s work-related injuries directly, having become subrogated to the rights of Mr. Lawrence by virtue of Liberty Mutual’s workers’ compensation expenditure on his behalf.
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Robert M. Caplan, White and Williams LLPMr. Caplan may be contacted at
caplanr@whiteandwilliams.com
Manhattan to Add Most Office Space Since ’90 Over 3 Years
June 18, 2014 —
Jonathan LaMantia – BloombergManhattan is poised to add the most office space in any three-year period since 1990 as projects including buildings at Hudson Yards and the World Trade Center site are completed, the New York Building Congress said.
The borough, home to the largest U.S. office market, probably will add 9 million square feet (836,000 square meters) of office space at nine development sites from last year through 2015, according to the organization, which promotes construction in the New York City area. An additional 10 million square feet at six buildings is likely to become available from 2016 through 2018, the group said in a statement today.
“It’s a vote of confidence in the market, which we think is long overdue,” Richard T. Anderson, president of the New York Building Congress, said in a telephone interview. “As a global center of finance and office-related functions, the city needs to regenerate its office space.”
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Jonathan LaMantia, BloombergMr. LaMantia may be contacted at
jlamantia1@bloomberg.net
The Reptile Theory in Practice
September 06, 2021 —
Nicholas P. Hurzeler - Lewis BrisboisThe “Reptile Theory” is a trial strategy that attempts to use fear and anger to make the jury dislike the defendant so strongly they will award a plaintiff a grossly excessive amount of damages. The plaintiff’s attorney will seek to activate the jurors’ “survival mode” instincts by presenting the defendant’s conduct as highly dangerous and worthy of punishment. The defendant’s conduct will be portrayed as a threat to the safety of the general public, and the award as a deterrent needed to protect the community at large. The Reptile Theory appeals to the jurors’ emotions in place of any rational, impartial evaluation of the evidence.
The term “Reptile Theory” originated in the writings of nuero-physiologist Paul D. MacLean in the 1950s, who suggested that one major part of the brain consisted of a “reptilian complex” that controlled instinctive behaviors involved in aggression, dominance, and territoriality. Then in the 2009 publication “Manual of the Plaintiff’s Revolution” by David Ball and Don Keenan, the authors first described the “Reptile Theory” in the context of litigation. Since then it has become a hot topic in litigation as defense counsel develop methods to combat “Reptile” tactics resulting in runaway jury awards.
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Nicholas P. Hurzeler, Lewis BrisboisMr. Hurzeler may be contacted at
Nicholas.Hurzeler@lewisbrisbois.com