Construction Industry Outlook: Building a Better Tomorrow
July 25, 2021 —
Michael Alberico - Construction ExecutiveCOVID-19 plunged the business world into one of the most challenging times not seen since the Great Depression. The construction industry, deemed an essential business, had to quickly innovate to find new ways of working to weather this storm. Several of these seemingly temporary solutions have spawned positive trends that are here to stay.
Not Just Green, But Healthy Too
The safety culture that exists on today’s jobsites helped contractors stay productive through the pandemic. However, because of the pandemic, project owners and construction firms are evaluating their sites from a new perspective. In a recent meeting, the construction head for a healthcare system stated he knows a safe jobsite but doesn’t know what he doesn’t know about a healthy site.
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Michael Alberico, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Mr. Alberico may be contacted at
malberico@assuranceagency.com
Recording a Lis Pendens Is Crucial
January 04, 2023 —
David Adelstein - Florida Construction Legal UpdatesIf you are in a construction dispute where you are pursuing a construction lien foreclosure action, recording a lis pendens is crucial. Did I say crucial? “[O]ne purpose of a notice of lis pendens is to alert all others that title to the property is involved in litigation and that ‘future purchasers or encumbrancers of that property’ are at risk of being bound by an adverse judgment.” Henry v. AIM Industries, LLC, 47 Fla.L.Weekly D653b (Fla. 2d DCA 2022). There really is never a reason not to record a
lis pendens when pursing a construction lien foreclosure. Please remember that – don’t forget to record the lis pendens!
There are times a lis pendens is recorded when the lis pendens is NOT based on a duly recorded instrument (e.g., construction lien or mortgage). A
lis pendens, however, is recorded because the dispute is tied to the property in which the lis pendens is being recorded. The lis pendens is recorded to best safeguard the plaintiff’s interest in the real property without fear that the real property will be sold impacting the purpose (and, of course, security) of the lawsuit.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.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
When a Request for Equitable Adjustment Should Be Treated as a Claim Under the Contract Disputes Act
August 29, 2022 —
David Adelstein - Florida Construction Legal UpdatesIn federal contracting, contractors are sometimes torn about submitting a request for equitable adjustment (known as an “REA” under 48 C.F.R. 252.243-7002) or submitting a formal claim under the Contract Disputes Act (41 U.S.C. s. 7103), the latter requiring a final decision by the contracting officer and starts the clock with respect to interest and preserving rights. It is also sometimes not easy for the contracting officer receiving an REA to determine whether the REA is actually a claim under the Contract Disputes Act requiring more immediate action. This recent take by the United States Court of Appeals for the Federal Circuit hits the nail on the head:
We recognize that contracting officers will sometimes face the difficult challenge of determining whether a request for equitable adjustment is also a claim. Contractors must choose between submitting a claim—which starts the interest clock but requires the contracting officer to issue a final decision within 60 days—and submitting a mere request for equitable adjustment—which does not start the interest clock but gives the contractor more time to negotiate a settlement and possibly avoid hefty legal fees. The overlap between these two types of documents might create room for gamesmanship. For example, a contractor could submit a document that is a claim—starting the interest clock—but appears to be a mere request for equitable adjustment—causing the contracting officer to not issue a final decision within the 60-day deadline and allowing interest to accrue for months or years. But the government has tools to address this challenge: The contracting officer can communicate to the contractor that she is going to treat the document as a claim and issue a final decision within 60 days. Or the government can explicitly require the contractor to propose settlement terms and attempt to settle disputes before submitting a claim to the contracting officer for a final decision.
Zafer Construction Company v. U.S., 2022 WL 2793596, *5 (Fed.Cir. 2022).
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Connecticut Reverses Course for Construction Managers on School Projects
August 05, 2024 —
Anand Gupta - Construction Law Zone BlogOn June 6, 2024, Connecticut Governor Ned Lamont signed into law Public Act 24-151 (H.B. 5524) (Bill 5524). Bill 5524 authorized and adjusted bonds of the state and provisions related to state and municipal tax administration, as well as addressed school building projects. Notably, Bill 5524 removed the ban on construction managers self-performing work on public school construction projects, effective July 1, 2024. Allowing construction managers to self-perform certain portions of the work, such as general trades, subject to the standard bidding requirements, is a common industry practice that, theoretically, reduces total project costs by reducing the amount of subcontracted work. However, proponents of banning self-performance argue that construction managers have too much information to bid fairly and competitively.
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Anand Gupta, Robinson+Cole
Mr. Gupta may be contacted at agupta@rc.com
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RDU Terminal 1: Going Green
June 30, 2014 —
Melissa Dewey Brumback – Construction Law in North CarolinaLast week, I had the fortune to join the Triangle USGBC for its “Talk & Walk” about the RDU Terminal 1 renovation project and its sustainable features. For those who haven’t had the chance, I recommend you check out the new terminal specifics the next time you find yourself jet-setting in or out of Raleigh on Southwest airlines.
Terminal 1 has been in operation since 1981, with the last upgrade in 1991. The 2010 opening of the new Terminal 2 had, until now, cemented Terminal 1′s status as the airport’s ugly duckling- complete with the long, featureless metal addition abandoned to times past.
While the $68 million Terminal 1 renovation cannot compete with the Terminal 2 $580 million budget, it nevertheless is an entirely re-imagined space. Better traffic flow (yes, you can now find where to go through security!), increased daylighting, a new canopy system, and commercial curb canopy (see photo) all complete the new architectural image.
Clark Nexsen principals Irvin Pearce and Doug Brinkley explained the renovation, which included energy saving escalators- the first escalator system in North Carolina that slows down during non-use. Other sustainable features include LEED complaint flooring, 86% structural building re-use (slabs on grade, composite decks, and structural roof deck), and 28% reuse of exterior walls.
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Melissa Dewey Brumback, Construction Law in North CarolinaMs. Brumback can be contacted at
mbrumback@rl-law.com
Year and a Half Old Las Vegas VA Emergency Room Gets Rebuilt
March 07, 2014 —
Beverley BevenFlorez-CDJ STAFFLess than two years have passed since the billion dollar Las Vegas VA Medical Center construction was completed, and “earthmovers have begun churning the site again, this time to expand the hospital’s emergency room because the existing one is inadequate,” according to the Las Vegas Review-Journal. The new emergency room project is estimated to cost $16 million.
The current emergency room’s design is flawed. “VA officials this week couldn’t explain why the ambulance parking area was designed to be roughly 50 yards from the emergency room’s south entrance, a distance that adds critical seconds to a lifesaving situation,” reported the Las Vegas Review-Journal. Furthermore, VA officials did not confirm “who drew up the flawed design” or who “was responsible for checking the blueprints.”
The Las Vegas Review-Journal also reported that another reason for the expansion is that the current emergency room is too small. A VA spokesman had told the journal that “the emergency room ‘was built based on the workload and the funding that was available at the time,’” yet the journal pointed out that “the number of potential veterans projected to use the center” has remained constant.
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Contractors with Ties to Trustees Reaped Benefits from LA Community College Modernization Program
March 03, 2011 —
Gale Holland, Michael Finnegan and Doug Smith, Los Angeles TimesIn the latest installment of the “Billions To Spend” series of investigative reports focused on construction defects, management, and cost issues relevant to LACC’s Community College Modernization Projects, the LA Times examines the costs associated with the various layers of construction management and benefits that accrued to contractors with ties to LACC trustees.
The reporting by the Times is seemingly critical of the project’s utilization of “body shops” an industry term for companies that function as employers of record. The article segment published today cites a number of circumstances wherein their utilization appears to have escalated costs substantially.
“To gauge the cost of the staffing system, The Times reviewed thousands of pages of financial records from April 2007, when URS began managing the program, to July 2010. Reporters identified two dozen contractors serving as conduits for pay and benefits for employees they did not supervise.
At least 230 people were employed in this manner, at a total cost of about $40 million, the records show.
Approximately $18 million of the total was paid to the employees, according to the Times analysis. The remaining $22 million went to profit and overhead for contractors, the records indicate.
For employees on its own payroll, the district says that medical and other benefits increase compensation costs 40% above base salaries. So if the district had employed its construction staff directly, the total cost for the period studied would have been $25 million instead of $40 million, a savings of $15 million, The Times calculated.”
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