Houston’s High Housing Demand due to Employment Growth
August 27, 2014 —
Beverley BevenFlorez-CDJ STAFFAccording to a Metrostudy survey, as published in Builder, “The quarterly starts rate in Houston rose 16% to 7,977, and was up 3.5% when compared to the second quarter of 2013. The annual starts rate increased 1%, to 28,990 over the previous quarter, and up 10% from the second quarter of 2013.”
“Houston’s housing market continues to outperform. We are seeing strong pricing appreciation and low levels of inventory of finished product and vacant developed lots,” Scott Davis, Regional Director for Metrostudy’s Houston Market, told Builder. “After five and half years of strong job growth, the real challenge for builders in Houston’s new housing market is finding affordable lots in desirable locations.”
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Sureties do not Issue Bonds Risk-Free to the Bond-Principal
August 30, 2017 —
David Adelstein - Florida Construction Legal UpdatesIf your construction company is bonded, then you have signed a General Agreement of Indemnity with your surety / bonding company. Stated another way, if a surety issued an obligee on behalf of your construction company, as the bond-principal, a payment or performance bond, then you have signed a General Agreement of Indemnity with your surety.
The General Agreement of Indemnity is NOT to be taken lightly. Without the General Agreement of Indemnity, the surety is NOT issuing the bonds you need to work on a certain project. A bond is not insurance and sureties do not issue the bonds under a risk-free premise. Oh no! If a surety has to pay-out claims under a bond, the surety will be looking to recoup that loss from the indemnitors that executed the General Agreement of Indemnity.
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David Adelstein, Florida Construction Legal UpdatesMr. Adelstein may be contacted at
Dadelstein@gmail.com
Europe’s Satellites Could Help Catch the Next Climate Disaster
February 15, 2021 —
Jonathan Tirone - BloombergSpain began the new year battling Storm Filomena, a once-in-a-generation weather event that blanketed Madrid in snow and paralyzed the economy. Health workers were stranded, supermarkets shut, and the army was called in. At least four people died.
“Now, consider a government or company that knew two weeks ago there was a risk that this would happen,” said Francisco Doblas-Reyes, a physicist at Barcelona’s Supercomputing Center. “Knowing the risk that a 1-in-20-year event was going to happen would have given more possibilities to prepare.”
Doblas-Reyes and his team are working on complex models that they hope can better detect the next Filomena, a job that’s become increasingly important as climate change makes weather more unpredictable — and extreme. The data collected by European satellites is at the heart of the continent’s multibillion-euro Destination Earth program seeking to develop the world’s best digital simulation of Earth.
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Jonathan Tirone, Bloomberg
Waiver of Subrogation and Lack of Contractual Privity Bars Commercial Tenants’ Claims
May 08, 2023 —
Melissa Kenney - The Subrogation StrategistIn United States Automatic Sprinkler Corporation v. Erie Insurance Exchange, et al., No. 2SS-CT-264, 2023 Ind. LEXIS 105, the Supreme Court of Indiana (Supreme Court) reversed an order of the trial court that denied a motion for summary judgment filed by a sprinkler contractor. At issue was whether commercial tenants – one who contracted with the sprinkler contractor and others who did not – could recover for their respective property damages. The court held that under the contract’s subrogation waiver and agreement to insure, the contracting tenant waived its insurer’s rights to recover through subrogation. With respect to the non-contracting tenants, who sought to recover only property damages, the court held that the absence of contractual privity barred their recovery.
The case centered around a sprinkler system that malfunctioned and flooded the Sycamore Springs Office Complex (Landlord), causing extensive property damage to four commercial tenants. Surgery Center, one of the four tenants, requested permission from the Landlord to install a sprinkler system inside the building. Landlord agreed, in exchange for Surgery Center agreeing to be solely responsible for maintaining the sprinkler system. Surgery Center hired United States Automatic Sprinkler (Automatic Sprinkler) to both install and conduct periodic inspection and testing of the sprinkler system. The contract terms outlined the scope of work to be performed by Automatic Sprinkler and the work was limited to the inspection and testing of the sprinkler system. Although repairs and emergency services were excluded from the contract, each could be performed upon the request and authorization of Surgery Center for an additional cost. The contract also contained certain risk allocation provisions including a waiver of subrogation and an agreement to insure.
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Melissa Kenney, White and Williams LLPMs. Kenney may be contacted at
kenneyme@whiteandwilliams.com
Putting 3D First, a Model Bridge Rises in Norway
June 21, 2021 —
Aileen Cho - Engineering News-RecordWhen the Norwegian Public Roads Administration asked the design-build team of Sweco, PNC, Armando Rito Engenharia and Isachsen to deliver a 643-meter-long concrete box-girder bridge completely in 3D, designers with Armando Rito were initially a bit skeptical. In the firm’s home country of Portugal, it had used building information modeling on some projects, “but not in terms of bridges, and not this advanced,” says Tiago Vieira, the firm’s design team leader. “Norway is more advanced regarding this type of methodology than other countries.”
Reprinted courtesy of
Aileen Cho, Engineering News-Record
Ms. Cho may be contacted at choa@enr.com
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Tighter Requirements and a New Penalty for Owners of Vacant or Abandoned Storefronts in San Francisco
June 18, 2019 —
Matt Olhausen - Gravel2GavelOrdinance 52-19 became effective in April 2019 and expands upon existing San Francisco Building Code registration requirements for “Vacant or Abandoned” “Commercial Storefronts.”
A storefront becomes “Vacant or Abandoned” once it has been unoccupied for 30 days (among other earlier triggers for blighted or unsecured storefronts). A “Commercial Storefront” is broadly defined as “any area within a building that may be individually leased or rented for any purpose other than Residential Use as defined in Planning Code.” (See § 103.A.5.1 of the San Francisco Building Code.) So, a building that is 97% leased could still contain a Vacant or Abandoned Commercial Storefront, which would technically require registration under the Building Code.
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Matt Olhausen, PillsburyMr. Olhausen may be contacted at
matt.olhausen@pillsburylaw.com
False Implied Certifications in Making Payment Requests: What We Can Learn from Lance Armstrong
January 20, 2020 —
Brian S. Wood & Alex Gorelik - ConsensusDocsIn April 2018, the Department of Justice announced a $5M settlement reached in its lawsuit against former professional cyclist, Lance Armstrong. While the fallout from Armstrong’s latently-admitted use of performance-enhancing drugs (“PEDs”) was well-publicized, including lost sponsorship deals, stripped Tour de France titles, and damage to his reputation, few were aware of Armstrong’s exposure to liability and criminal culpability for false claims against the government. The DOJ’s announcement reminded Armstrong and the rest of us of the golden rule of dealing with the government: honesty is the best policy. The corollary to that rule is that dishonesty is costly.
Armstrong’s liability stemmed from false statements (denying the use of PEDs) he made, directly and through team members and other representatives, to U.S. Postal Service (“USPS”) representatives and to the public. USPS was the primary sponsor of the grand tour cycling team led by Armstrong. The government alleged in the lawsuit that Armstrong’s false statements were made to induce USPS to renew and increase its sponsorship fees, in violation of the False Claims Act.
The Statute
Enacted in 1863, the False Claims Act (“FCA”) was originally aimed at stopping and deterring frauds perpetrated by contractors against the government during the Civil War. Congress amended the FCA in the years since its enactment, but its primary focus and target have remained those who present or directly induce the submission of false or fraudulent claims. The current FCA imposes penalties on anyone who knowingly presents “a false or fraudulent claim for payment or approval” to the federal Government. A “claim” now includes direct requests to the Government for payment, as well as reimbursement requests made to the recipients of federal funds under federal benefits programs (such as Medicare). Thirty-one states, the District of Columbia, and Puerto Rico have also enacted laws imposing penalties for false claims against state agencies and their subdivisions, with most of these laws modelled after the federal FCA.
Reprinted courtesy of
Brian S. Wood, Smith, Currie & Hancock, LLP and
Alex Gorelik, Smith, Currie & Hancock, LLP
Mr. Wood may be contacted at bswood@smithcurrie.com
Mr. Gorelik may be contacted at agorelik@smithcurrie.com
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Federal Contractors Should Request Debriefings As A Matter Of Course
May 30, 2018 —
Scott MacDonald - Ahlers Cressman & Sleight BlogFederal Contractors—especially those engaging in FAR Part 15 direct contract negotiations—should make it a routine practice to timely request debriefings after the Contracting Agency excludes the bidder from the competitive range (“pre-award debriefing”) or after the Agency issues the award (“post-award debriefing”). Debriefings allow the Contractor to understand the evaluation process used by the Contracting Agency and to receive an assessment of how it fared in that evaluation. This is not a one-sided presentation as Contracting Agencies are required to answer the contractor’s relevant questions about the decision-making process. Properly run debriefings can be used to better tailor future bids and negotiations, as further marketing to the Contracting Agency for future awards, and, occasionally, to unearth grounds for a potential protest if any part of the evaluation process is out of sync with the FARs. In the event the contractor learns of a basis for protest at the debriefing, the deadline to file a protest begins running from the date of the debriefing—whether it was required or not.
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Scott MacDonald, Ahlers Cressman & Sleight PLLCMr. MacDonald may be contacted at
scott.macdonald@acslawyers.com