Construction Activity on the Upswing
October 25, 2013 —
CDJ STAFFConstruction industry experts are now predicting that not only will 2013 be a growth year for construction, but that the industry will continue to grow through 2015. Predictions at the recent webinar, “The 2014 Outlook: Emerging Opportunities for Construction,” included that growth in the housing market will endure, commercial construction will improve, and that overall construction spending will increase.
This is in the face of what Bernard Markstein, the chief economist at Reed Construction Data, calls “barely acceptable” economic growth. Mr. Markstein also feels that the government shutdown will have an effect on growth of the gross domestic product.
One area of construction that is not expected to do well in the short term is retail. The economists noted that more shoppers are turning to online buying. Need for office space is also shrinking. Despite this, the group projected “high-single-digit growth” through 2014.
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Infrastructure Money Comes With Labor Law Strings Attached
July 25, 2022 —
Cheryl Behymer, Patrick M. Dalin & Collin Cook - Construction ExecutiveThe federal government has committed to spending $1 trillion under the Infrastructure Investment and Jobs Act on nationwide construction, alteration and repair projects. Billions of dollars have already been deployed on projects to improve highways, bridges, airports, electrical infrastructure and drinking water distribution, and the government is poised to spend the remaining funds on a massive infrastructure build-out over the next five years. While federal government contracts may provide a lucrative and reliable stream of revenue for construction companies, contractors must be prepared to comply with special requirements, particularly under the labor and employment laws enforced by the U.S. Department of Labor (USDOL).
1. The Davis Bacon Act Requires Payment of Prevailing Wages and Fringe Benefits
The Davis Bacon Act (DBA) applies to most federally funded and federally assisted projects for construction, alteration or repair work. This law requires all contractors and subcontractors on a covered project to pay all “laborers or mechanics” the wages and fringe benefits that “prevail” in the locality where the work is being performed. The USDOL determines what the prevailing wages and fringe benefits are for each trade and publishes them in wage determinations that should be issued to all contractors on the project.
Reprinted courtesy of
Cheryl Behymer, Patrick M. Dalin & Collin Cook, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Modernist Houses Galore! [visual candy for architects]
February 25, 2014 —
Melissa Dewey Brumback – Construction Law in North CarolinaDo you like modern architecture? Is Frank Lloyd Wright someone you wish you could have met?
If so, then you’ll want to check out the new “Masters Gallery” of the North Carolina Modernist Houses (NCMH) group. With changes and additions announced this week, it’s Gallery is America’s largest open digital archive of Modernist houses, as well as the internationally known Modernist architects who designed them.
Currently, the Gallery showcases over 30 architects with extensive house histories and over 10,000 photos. The Gallery is extensive and searchable and includes, among many other notables, Frank Gehry and, of course, Frank Lloyd Wright.
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Melissa Dewey Brumback, Construction Law in North CarolinaMs. Brumback can be contacted at
mbrumback@rl-law.com
Texas Supreme Court Holds Anadarko’s $100M Deepwater Horizon Defense Costs Are Not Subject To Joint Venture Liability Limits
February 27, 2019 —
Sergio F. Oehninger & Michael S. Levine - Hunton Andrews KurthReversing a Texas Court of Appeals decision that allowed Anadarko’s Lloyd’s of London excess insurers to escape coverage for more than $100 million in defense costs incurred in connection with claims from the Deepwater Horizon well blowout, the Supreme Court of Texas held that the insurers’ obligations to pay defense costs under an “energy package” liability policy are not capped by a joint venture coverage limit for “liability” insured. Anadarko Petroleum Corp. et al. v. Houston Casualty Co. et al., No. 16-1013 (Tex. Jan. 25, 2019).
While the Lloyd’s of London insurers had agreed to pay Anadarko $37.5 million for damages, they declined to cover $100 million-plus in defense fees, arguing that both Anadarko’s liability and defense expenses are subject to the $37.5 million joint venture limit for “liability” insured. Anadarko asserted that only amounts paid as damages to third parties are subject to that limit. Defense costs, however, are not amounts paid as damages to a third party and, thus, are not a “liability.” Those amounts, therefore, are not subject to the joint venture limit and are instead subject to the policy’s $150 million coverage limit.
Reprinted courtesy of
Sergio F. Oehninger, Hunton Andrews Kurth and
Michael S. Levine, Hunton Andrews Kurth
Mr. Oehninger may be contacted at soehninger@HuntonAK.com
Mr. Levine may be contacted at mlevine@HuntonAK.com
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Payment Bond Surety Entitled to Award of Attorneys’ Fees Although Defended by Principal
February 01, 2023 —
Garret Murai - California Construction Law BlogFor contractors involved in California public works projects the scenario is not uncommon: The general contractor awarded the public works project is required to obtain a payment bond for the benefit of subcontractors and suppliers and the payment bond surety issuing the payment bond requires the general contractor to defend and indemnify the surety from and against any claims against the payment bond.
In
Cell-Crete Corporation v. Federal Insurance Company, 82 Cal.App.5th 1090 (2022), the 4th District Court of Appeal examined whether a payment bond surety, who prevails in a claim against the payment bond, is entitled to statutory attorneys’ fees when the party actually incurring the attorneys’ fees was the general contractor, pursuant to its defense and indemnity obligations, as opposed to the surety itself.
The Cell-Crete Case
General contractor Granite Construction Company was awarded a public works contract issued by the City of Thermal known as the Airport Boulevard at Grapefruit Boulevard and Union Pacific Railroad Grade Separation Project. We’ll just call it the “Project.” Subcontractor Cell-Crete Corporation entered into a subcontract with Granite for lightweight concrete and related work.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Lake Texoma, Texas Condo Case may go to Trial
February 05, 2014 —
Beverley BevenFlorez-CDJ STAFFA lawsuit that’s created a “four-year legal battle” over alleged construction defects at the Diamond Pointe Condominium Tower in Lake Texoma, Texas may soon be going to trial, according to KTEN News. A lawyer representing the Diamond Pointe condominiums stated that “he has 15 witnesses lined up for a two-week trial.”
KTEN News reported that according to court papers, “the Association alleges issues with the elevator, doors not opening properly, cracks, water leaks, and septic containment system leaks over the past decade.” Furthermore, the Association president Dan Baucum said to KTEN, “There were some foundation repairs that we needed to do and there are some problems with the building. It was not built to the specifications, at least that's what we're alleging, and that has allowed some water seepage in certain areas.”
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President Trump’s Infrastructure Plan Requires a Viable Statutory Framework (PPP Statutes)[i]
April 13, 2017 —
John P. Ahlers - Ahlers & Cressman PLLCAlthough we live in a politically-divided nation, there is one issue on which there seems widespread agreement: our country requires a massive upgrade to its infrastructure. Rundown airports, crumbling highways, obsolete ports, and dangerous bridges are now endemic across the United States. By contrast, Asian airports and elegant European bridges and rails show that our country needs an upgrade, the cost of which will be enormous.
President Trump promised to revitalize America’s aging roads, bridges, railways, and airports. He chose Wilbur Ross for Commerce Secretary and professor of Conservative Economics and Public Policy, Peter Navarro, to formulate an infrastructure plan. Navarro and Ross recommended that the government allocate $137 billion in tax credits for private investors who underwrite infrastructure projects. They estimate that over the next ten years, the credits could spur $1 trillion in investments. That is how much President Trump promised to spend on infrastructure, a key part of his job-creation plan.
His plan involves building the infrastructure with private-money financing. Public Private Partnerships (“PPP”) are not a new concept and have been successful in Canada, Europe, and various U.S. states who have pioneered this method of procurement. Federal tax credits have been used to spur private investment in housing, resulting in tens of thousands of low-income housing developments over the years. The credits are sold to private entities such as banks and equity firms that invest anywhere from $.70 to $1.10 in housing developments for every dollar they receive in credits, a ratio that fluctuates with economic conditions.
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John P. Ahlers, Ahlers & Cressman PLLCMr. Ahlers may be contacted at
jahlers@ac-lawyers.com
Amendments to Federal Rule of Evidence 702 – Expert Testimony
October 30, 2023 —
William L. Doerler - The Subrogation StrategistIn April, the Supreme Court sent a list of proposed amendments to Congress that amend the Federal Rules of Evidence. Absent action by Congress, the rules go into effect December 1, 2023. The proposed amendments affect Rules 106, 615 and, relevant to this article, 702.
Rule 702 addresses testimony by an expert witness. The proposed rule reads as follows (new material is underlined; matters omitted are lined through):
A witness who is qualified as an expert by knowledge, skill, experience, training, or education may testify in the form of an opinion or otherwise if the proponent demonstrates to the court that it is more likely than not that:
- the expert’s scientific, technical, or other specialized knowledge will help the trier of fact to understand the evidence or to determine a fact in issue;
- the testimony is based on sufficient facts or data;
- the testimony is the product of reliable principles and methods; and
- the expert has reliably applied expert’s opinion reflects a reliable application of the principles and methods to the facts of the case.
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William L. Doerler, White and Williams LLPMr. Doerler may be contacted at
doerlerw@whiteandwilliams.com