You Cannot Always Contract Your Way Out of a Problem (The Case for Dispute Resolution in Mega and Large Complex Construction Projects)
September 16, 2024 —
Lisa D. Love - The Dispute ResolverMost experienced commercial transaction and construction attorneys strive to negotiate a concisely written and well-drafted contract that addresses all scenarios and issues that creative and highly contemplative professionals can conjure. Although contracts are extremely important in construction projects, “you can’t generally contract your way out of a problem,” states Michael Loulakis, a founder of Capital Project Strategies, LLC and a nationally recognized expert on project delivery systems in complex public sector design-build projects and public-private partnership programs. Loulakis adds, “the contract certainly matters. But particularly when the losses are big, litigators prosecuting the contractors often find effective ways to argue that facts and circumstances trump the contract.” However, “the difference between the best construction projects and the worst construction projects is not the written words of the contracts but how the parties have committed to engage collaboratively and with trust to complete the project,” notes Robynn Thaxton, an attorney and consultant with Thaxton Parkinson PLLC and Progressive Design-Build Consulting, LLC and one of the leading experts in construction law and alternative procurement on a national basis.[i]
In large, complex construction projects, the need for parties to collaboratively resolve disputes is highlighted by the judicial acceptance of the “Doctrine of the Contextual Contract”[ii] to interpret construction contracts. “As construction’s increasing technological and managerial complexity came to be recognized, some common law courts began turning away from strict interpretation of language within the four corners of a contract and moving toward recognizing in the enforcement of contracts the construction industry’s own experience, customs, practices and implied conditions and duties and the factual context underlying the contract. Courts [began the journey] along the road from ‘text’ to ‘context.’”[iii] Thus, the precise wording of the contract has become less important and industry practices and other conditions provide insight for resolving disputes. Consequently, despite the specific language of any construction contract and the clear allocation of responsibilities and risks, early dispute evaluation and resolution are critical to a successful project.
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Lisa D. Love, JAMS
The G2G Year in Review: 2020
January 18, 2021 —
Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law BlogAs we say goodbye to 2020, we wanted to share our top five most-read articles of 2020 from Gravel2Gavel. The most-read blog posts covered real estate and construction industry trends ranging from proptech trends like blockchain tokenization to COVID-specific rent carveouts and management disclosures to trends and market updates. Our posts provided deep industry insight and summarized hot topics that addressed the legal implications and disruptions that affected the market. Our 2020 roundup:
- Blockchain-Based Tokenization of Commercial Real Estate by Josh Morton and Matt Olhausen. Josh and Matt discuss the increasing interest in technology applications for real estate assets, or “Proptech,” and tokenization’s potential.
- Real Estate Trends: Looking Ahead to 2021 by Adam Weaver. Adam discussed the pandemic’s influence and future trends for the real estate market.
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Pillsbury's Construction & Real Estate Law Team
A Riveting (or at Least Insightful) Explanation of the Privette Doctrine
May 02, 2022 —
Garret Murai - California Construction Law Blog“The wheels of justice turn slowly, but grind exceedingly fine” – Plutarch
And grind they do . . . slowly. For long time readers of the California Construction Law Blog you may recall a case we reported on over three years ago in 2018 – Sandoval v. Qualcomm Incorporated – a rather sad case about a severely injured employee of an electrical subcontractor with an even more surprisingly ending.
In Sandoval, the 4th District Court of Appeals affirmed a $7 million judgment against project owner Qualcomm Incorporated in which a jury found that Qualcomm was liable under the Privette doctrine for injuries sustained by the employee who was severely burned over one third of his body by an “arc flash” from a live circuit breaker. The Court of Appeals, in a surprising decision, upheld the verdict holding that Qualcomm was liable even through: (1) Qualcomm had informed the electrical subcontractor that certain live circuit breakers were energized; (2) Qualcomm had not authorized the lower-tiered contractor to remove a panel that resulted in the arc flash; and (3) employees of Qualcomm were not in the room when the accident happened.
Fast forward three years to September 2021. Qualcomm attorneys petition the California Supreme Court for review of the Court of Appeal’s decision. And the Supreme Court granted review.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Orlando Commercial Construction Permits Double in Value
October 01, 2013 —
CDJ STAFFThis August, permits were taken out for $102.3 million of commercial construction projects, a 95% increase over last August’s $52.4 million. Meanwhile, residential construction was up by a third, jumping from $205.6 million to $274.1 million. Overall that sent construction up by 46% in the Orlando area.
The construction industry is a major one in the Orlando area and its recovery provides some hope for the region.
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Climate-Proofing Your Home: Upgrades to Weather a Drought
January 03, 2022 —
Todd Woody - BloombergClimate-driven drought is making the once unthinkable foreseeable. Amid water shortages, your faucets could run dry, as has been a possibility in Marin County, California. Violate mandatory water restrictions and you might face steep fines or even a cutoff of service.
With the western United States in the grip of an extreme drought, rivers and reservoirs are at record lows and some water utility districts in California have asked residents to curtail consumption by as much as 40%. A 2019 study found regions across the nation could face water shortages in the coming decades in part due to climate change.
That puts a premium on making homes more resilient to drought by maximizing efficiency and minimizing waste through technologies that monitor consumption and recycle and capture water that would otherwise be lost.
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Todd Woody, Bloomberg
Los Angeles Considering Census of Seismically Unstable Buildings
August 27, 2013 —
CDJ STAFFIn 1994, after the Northridge earthquake lead to the deaths of 57 people and $2 billion in damage, the Los Angeles City Council considered making a list of buildings that were vulnerable to failure in earthquakes and mandating that they be made seismically sound. The measure did not come to pass.
Tom LaBonge, a member of the council, is seeking to finally get that inventory done. According to the Los Angeles Times, thousands of buildings in Los Angeles were constructed with a ground floor level that is insufficient to support the rest of the building in the event of an earthquake. These “soft-story” buildings can be reinforced to better resist earthquakes, but first they need to be identified.
Owners of apartment buildings worry about the cost of the retrofits, suggesting that if the city is going to come up with mandatory retrofits, they should also “help property owners pay for it,” as Beverly Kenworthy, the executive director of the Los Angeles division of the California Apartment Association told the Times.
San Francisco recently did require retrofits, finding about 3,000 apartment buildings that were at seismic risk. Still, San Francisco doesn’t seem to have moved any faster than Los Angeles, as they were responding to the Loma Prieta earthquake of 1989, seven years before the Northridge quake.
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AEM Pursuing ISO Standard for Earthmoving Grade-Control Data
March 09, 2020 —
Jeff Rubenstone - Engineering News-RecordCiting the growing and increasingly crowded field of grade-control systems and site-layout technology, the Association of Equipment Manufacturers (AEM) announced on Feb. 18 that it is working with the International Organization for Standardization (ISO) on a common standard for grade-control data sharing.
Jeff Rubenstone, Engineering News-Record
Mr. Rubenstone may be contacted at rubenstonej@enr.com
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Golf Resorts Offering Yoga, Hovercraft Rides to the Green
June 18, 2014 —
Nadja Brandt – BloombergFlorida’s Woodmont Country Club, which once boasted 1,200 members, has been hit hard in the past decade as hurricanes and then the recession kept golfers away. Now the club’s owner is adding conference space, stores, restaurants, a spa and a hotel as part of a planned revival.
About $100 million will be spent on the revamp of the property in Tamarac, about 14 miles (23 kilometers) northwest of Fort Lauderdale, owner Mark Schmidt said. After years of negotiations with local authorities, he expects to receive approval this month for the planned Woodmont improvements.
While tennis courts and swimming pools have long had a place at golf clubs, a growing number of course owners are embracing mixed-use real estate, a concept more often used in urban developments to hedge risk and diversify returns. Property investors are adding everything from medical facilities to amphitheaters and hovercraft operations to increase revenue.
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Nadja Brandt, BloombergMs. Brandt may be contacted at
nbrandt@bloomberg.net