WATCH: 2023 Construction Economic Update and Forecast
January 09, 2023 —
Construction ExecutiveConstruction Executive presented its "2023 Construction Economic Update and Forecast" webinar with
Associated Builders and Contractors Chief Economist Anirban Basu on Dec. 14, sponsored by
Aerotek,
Bluebeam,
CMiC and
Raken.
Basu started by announcing the Federal Reserve’s rate increase of 0.5%, the latest in a series of increases aimed at combating inflation. Calling 2022 a “year of tumult and a year of surprise,” Basu further noted that the Russian invasion of Ukraine surprised many, further disrupting global supply chains and causing a shockwave to ripple through global energy prices.
Citing the U.S. Consumer Price Index, with 7.1% year-over-year inflation in November, Basu believes we’ve “peaked in terms of inflation for this cycle”; while inflation hit higher-than-expected levels throughout 2022, it leveled off at lower-than-expected rates by the end of the year. Basu predicted inflation will continue to be problematic through 2023 as it has shifted from transitory inflation due to supply-chain disruptions in 2020 and 2022 to broader inflation due to the labor market, noting that the worst of the supply-chain issues seem to be over, reaching a high point in late 2021.
Blaming the injection of fiscal stimulus coming from the federal government, monetary stimulus from the Federal Reserve and the fact that inflation has now become ingrained in the economy and in people’s expectations, leading to wage and price increases, Basu calls the economy “overheated.”
Reprinted courtesy of
Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Quick Note: Don’t Forget To Serve The Contractor Final Payment Affidavit
July 30, 2019 —
David Adelstein - Florida Construction Legal UpdatesIf you are a contractor in DIRECT CONTRACT with an owner, serve a contractor final payment affidavit on the owner, as a matter of course, and without any undue delay, particularly if you are owed money and have recorded a construction lien. In numerous circumstances, I like to serve the contractor final payment affidavit with the construction lien.
The contractor final payment affidavit is not a meaningless form. It is a statutory form (set forth in Florida Statute s. 713.06) required to be filled out by a lienor in direct privity of contract with an owner and served on the owner at least 5 days prior to the lienor foreclosing its construction lien. The contractor final payment affidavit serves as a condition precedent to foreclosing a construction lien. Failure to timely serve a contractor final payment affidavit should result in a dismissal of the lien foreclosure lawsuit, presumably by the owner moving for a motion for summary judgment. This should not occur.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Employees in Construction Industry Entitled to Compensation for Time Spent Complying with Employer-Mandated Security Protocols
August 19, 2024 —
Garret Murai - California Construction Law BlogWage and hour laws dictating how employers must compensate their employees for time worked can, given the innumerable ways that employees perform their jobs, raise a number of questions. The next case, Huerta v. CSI Electrical Contractors, 15 Cal.5th 908 (2024) – which I won’t spend a lot of time discussing since I think it applies in somewhat limited situations – addresses whether employees are entitled to be paid while waiting to enter and exit worksites and for meal periods when they are not allowed to exit a worksite.
The Huerta Case
The 9th Circuit Court of Appeals requested that the California Supreme Court address three questions related to whether employees should be compensated under California wage and hour laws for time spent waiting to enter and exit worksites and for meal periods when they are not allowed to exit a worksite:
- Whether employees should be paid for time spent waiting in a personal vehicle to be scanned in and out of a worksite;
- Whether employees should be paid for time spent traveling in a personal vehicle from a security gate to employee parking lots; and
- Whether employees should be paid during meal periods if they are not permitted to leave a worksite.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Ready, Fire, Aim: The Importance of Targeting Your Delay Notices
November 08, 2021 —
Bradley Sands, Jones Walker LLP - ConsensusDocsProviding written notice of delay to subcontractors when a project is behind schedule is a regular part of good project documentation practices. A properly targeted delay notice is an important, project correspondence that is an appropriate response to a subcontractor’s specific delay or ongoing delays. However, when a project falls behind schedule and the project management team is in the fog of war, it could seem like a good idea to start firing off project delay notices to any and every subcontractor. While these delay notices may provide a short term burst of productivity, you could find that those same notices are aimed back at you in a future litigation.
This article identifies two potential unintended consequences of sending delay notices that a contractor should keep in its sights and then provides recommendations for properly calibrating future delay notices in light of these potential consequences.
Acceleration: You Might Get What You Ask For
A delay notice to a subcontractor could be interpreted as—or expressly state—direction to the subcontractor to accelerate its work. When a subcontractor is directed to accelerate its work, it may incur additional costs for premium, extended, or overtime labor, additional crews, increased supervision costs, increased overhead costs, and losses due to productivity impacts from the acceleration (e.g., stacking of trades and fatigue). A subcontractor may be entitled to recover these increased costs that are caused by a direction to accelerate.
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Bradley Sands, Jones Walker LLPMr. Sands may be contacted at
bsands@joneswalker.com
For Breach of Contract Claim, There Needs to be a Breach of a Contractual Duty
November 15, 2022 —
David Adelstein - Florida Construction Legal UpdatesRemember this law (and I mean: remember this law!):
“An essential element of a claim for breach of contract is the existence of a material breach of a contractual duty.” JD Development I, LLC v. ICS Contractors, LLC, 2022 WL 4587083, *3 (Fla. 2d DCA 2022) (citation and quotation omitted).
This law is important because how can another party breach of a contract if there is no contractual duty you claim they breached? This question, and, of course, the answer, should not be overlooked from a strategic standpoint because it may dictate what claims you assert, how you assert those claims, and how you present your case from a theme and evidentiary standpoint.
JD Development provides an example of why this law is important and how this can play out.
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David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
What is Toxic Mold Litigation?
May 30, 2018 —
Vik Nagpal – Bremer Whyte BlogTo understand what Toxic Mold Litigation is, it is important to first identify and understand what toxic mold is. Mold is a fungus which is essentially everywhere, and certain types of mold, known as toxic mold, may cause severe personal injuries and/or property damage. Toxic mold refers to those molds capable of producing mycotoxins which are organic compounds capable of initiating a toxic response in vertebrates. Toxic mold generally occurs because of water intrusion, from sources such as plumbing problems, floods, or roof leaks.
It is this ageless life form that has spawned a new species of toxic tort claims and has had legal and medical experts debating the complex health implications that follow. Here is some information as to what toxic mold litigation is and when you should hire a lawyer for toxic mold.
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Vik Nagpal, Bremer Whyte Brown & O'Meara LLPMr. Nagpal may be contacted at
vnagpal@bremerwhyte.com
Expired Contract Not Revived Due to Sovereign Immunity and the Ex Contractu Clause
September 15, 2016 —
David R. Cook Jr. – AHHC Construction Law BlogA few months ago, a decision by the Supreme Court of Georgia in Georgia Department of Labor v. RTT Associates, Inc. provided a strict rule for contractors who work with state agencies to determine whether a state agency has waived its sovereign immunity. The issue as framed by the Court was “whether an agency’s waiver of immunity from a breach of contract claim as a result of entering into a written contract remains intact in the event the contract is extended without a written document signed by both parties expressly amending the contract, as required by its terms.”
The case involved a contract executed on March 1, 2012, by a contractor, RTT Associates, Inc. (RTT), and the Georgia Department of Labor (DOL), whereby RTT was to develop certain computer software for the DOL by the completion date, June 30, 2012. The contract required that amendments be in writing and fully executed by both parties. Time was of the essence and RTT’s obligation under the contract survived the expiration or termination of the contract.
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David R. Cook Jr., Autry, Hanrahan, Hall & Cook, LLPMr. Cook may be contacted at
cook@ahclaw.com
Construction Defects in Roof May Close School
October 21, 2013 —
CDJ STAFFA school in Wales may have to close due to roof leaks. The school was opened six years ago, but since then the leaks at Ysgol Ffynnonbedr are “leading to the deterioration of the structure and fabric of the school.” The Lampeter city council have budgeted £35,000 (about $56,000) for repairs to the roof.
The leaks have already rendered some of the electrical systems and teaching areas unusable. The city council had been in discussion with the builders, Cowlin Construction, when that firm was bought by Balfour Beatty. Balfour Beatty did not comment to the Cambrian Times about resolving the construction defects.
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