Federal Government Partial Shutdown – Picking Up the Pieces
February 27, 2019 —
Jacob W. Scott - Now that the partial shutdown has ended (though with the specter of another just around the corner), contractors are asking, “What now?” and “What did that cost me?” Although every case is fact-specific, following are some guidelines for moving forward after the shutdown.
Following up on our previous guidance, contractors should make sure that any court, board, or agency filings made during the shutdown were received and properly docketed. If there is any question whether a filing was received, file it again as soon as possible with proof of the earlier attempt to file. The busiest tribunals, such as the federal courts, the Court of Federal Claims, the Boards of Contract Appeals, and the Government Accountability Office, remained open, or at least open to accept filings, and all indications are that filings made during the shutdown were received and acknowledged. But for some of the other tribunals or agencies, such as the Small Business Administration (“SBA”) Office of Hearings and Appeals and the SBA Office of Government Contracting and Business Development, prudence dictates double-checking that all filings were received. In many cases, non-statutory deadlines have been or will be adjusted by the court, board, or agency.
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Jacob W. Scott, Smith CurrieMr. Scott may be contacted at
jwscott@smithcurrie.com
They Say Nothing Lasts Forever, but What If Decommissioning Does?
June 10, 2019 —
Stella Pulman - Gravel2Gavel Construction & Real Estate Law BlogThe looming decommissioning liabilities of offshore energy producers have been a focus of the federal government in recent years. One recent case out of the U.S. Court of Federal Claims, Taylor Energy v. United States, highlights the tension between the federal government’s desire to maintain financial security for decommissioning activities, and that of an operator whose security is tied up indefinitely while the government awaits technological advances to allow for safe decommissioning.
The case relates to a trust agreement between Taylor Energy and the United States, established to secure Taylor’s decommissioning liabilities for 28 wells in the Gulf of Mexico. Taylor completed certain decommissioning work for which it was reimbursed by the trust. However, with over $400 million remaining in the trust, Taylor and the Bureau of Safety and Environmental Enforcement (BSEE) concluded that the ecological benefits of further decommissioning would be outweighed by the ecological risks. But despite recognizing that the limitations of current technology made the environmental impacts of further decommissioning work unjustifiable, the BSEE declined to release Taylor from its decommissioning obligations and instead decided to await “changes in technology and a better understanding of the undersea environment.” Because Taylor’s decommissioning obligations remained in place, the U.S. refused to release the remaining funds in the trust.
Taylor claimed that the United States should release the remaining funds in the trust because “decommissioning the remaining wells is not ‘currently technologically feasible.’” Taylor asserted that Louisiana law applied to the trust agreement, and that under Louisiana law every contract must be completed within an ascertainable term. By holding the trust funds until decommissioning was complete, Taylor argued that the government was essentially holding the funds in perpetuity given the technological infeasibility of completing decommissioning. Taylor also asserted that the agreement was premised on an impossibility (the full decommissioning of the wells), and/or a mutual mistake of the parties (that the wells could be decommissioned).
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Stella Pulman, PillsburyMs. Pulman may be contacted at
stella.pulman@pillsburylaw.com
Denver’s Proposed Solution to the Affordable Housing Crisis
March 06, 2022 —
Taylor Ostrowski - Colorado Construction Litigation BlogOver the past ten years, Colorado has seen a population growth of almost 15 percent, with many residing in Denver. In fact, in 2020, Denver ranked among the top five cities for inbound growth in the United States. At the same time, from 2010 through 2020, the state’s production of new housing decreased by 40 percent. The decrease in supply, coupled with the increase in demand has exasperated the already rising cost of housing in the state. This, along with other external factors such as job loss due to the COVID pandemic, has resulted in a statewide housing crisis.
The City of Denver is proposing a revision to the municipal code that would expand affordable housing through three main tools: (1) increasing “linkage fees,” (2) requiring new multi-family development to designate a percentage of units to be affordable, and (3) offering zoning and financial incentives. The proposal addresses both rental housing and ownership opportunities. Although it is essential to combat the housing crisis and increased homelessness in the region, it is equally important to understand the impacts the proposed affordable housing ordinance would have on developers, if and when enacted.
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Taylor Ostrowski, Higgins, Hopkins, McLain & Roswell, LLCMs. Ostrowski may be contacted at
ostrowski@hhmrlaw.com
Another Las Vegas Tower at the Center of Construction Defect Claims
November 07, 2012 —
CDJ STAFFAccusations are coming from both sides over construction defects at a Las Vegas tower, only this time, it’s not the Harmon Towers, it’s Hilton Grand Vacations, which is part of the Planet Hollywood Resort. The project was originally dubbed PH Towers Westgate, and it was developed by Westgate Resorts, which is suing the contractor, Tutor-Saliba for $10 million over late completion and construction defects.
Among the defects Westgate is claiming are cracked floor tiles in the valet lobby and cracks and delamination of the pool deck. Tutor-Saliba argues that the failure of the valet lobby floor is due to Westgate specifying only 1/16th inch-wide grouting, instead of the specified ¼ inch, and Westgate’s refusal to allow expansion joints on the pool deck has lead to problems there. Westgate’s attorney, Robert Schumacher, attributes the problems to “shoddy construction practices.”
According to the article in the Las Vegas Review Journal, plans were only 60 percent complete when construction began, leading to “thousands of change orders.” Despite not meeting an August completion deadline, Tutor-Saliba is claiming it is owed a $1.5 million bonus nevertheless.
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Back Posting with Thoughts on Lien Waivers
May 20, 2015 —
Christopher G. Hill – Construction Law MusingsAfter a week of being unable to post due to the rigors of my solo construction practice, I’m back on the blogging train. For those of you that missed my new musings this past week, I hope that you had a chance to look through some of the past Guest Post Friday posts for some good stuff to read.
During the course of my busy week last week, a question came up regarding the mechanic’s lien waivers that commercial construction companies routinely execute as part of the payment process. The waiver forms vary, but each essentially states that in exchange for payment the payee, whether a subcontractor or supplier (or even general contractor) waives its future rights to record a mechanic’s lien for the work that is covered by the payment received. Most if not all of these forms further require a certification that the funds paid will either be used to pay suppliers or that suppliers have already been paid. This general description is not the reason for this post.
As is always the case in the Commonwealth of Virginia where the contract is king and a court is unlikely to reinterpret any written contractual document, the devil is in how that waiver is worded. Some waivers are worded in such a way that they essentially require a payee to certify receipt of the funds prior to payment being received. These same forms require the same pre-payment certification that all suppliers and subcontractors of the payee have already been paid. In short they require a payee to both place complete trust in the payor that the check will be paid and that the check will not bounce while in many cases (often with an unstated “wink and nod”) claiming payment was already made when all know the likelihood is that it has not.
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Christopher G. Hill, Law Office of Christopher G. Hill, PCMr. Hill may be contacted at
chrisghill@constructionlawva.com
What Does “Mold Resistant” Really Mean?
December 21, 2016 —
Duane Craig – Construction InformerMold resistant building products offer to reduce the long term risks builders and architects face, but it’s important to know how companies verify their products are truly mold resistant. Here’s the deep story.
It may come as a surprise to many but we live in a world that is infested with mold. Some sources put the number of species of mold, or fungi, at three hundred thousand or more. Most of these fungi spend their time doing useful things like breaking down complex substances into simpler compounds. For example the single-celled forms of fungi, called yeast, make bread, beer, and wine possible. Even most of the multi-celled, or hyphae molds, serve the planet by decomposing organic matter so it can be recycled and reused by other life forms on earth.
Outdoor Mold Dominates
The built environment definitely has its share of mold. But new research has found that most of the mold occurring inside is actually of the outdoor variety. In “The Diversity and Distribution of Fungi on Residential Surfaces” study, Rachel I. Adams and researchers “sampled fungi from three surface types likely to support growth and therefore possible contributors of fungi to indoor air: drains in kitchens and bathrooms, sills beneath condensation-prone windows, and skin of human inhabitants. ” They took the samples at a university housing complex that didn’t have any mold problems.
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Duane Craig, Construction InformerMr. Craig may be contacted at
dtcraig@constructioninformer.com
Deadline Nears for “Green Performance Bond” Implementation
December 03, 2024 —
Christopher G. Hill - Construction Law MusingsFor this weeks Guest Post Friday at Musings, we welcome Surety Bonds.com, a leading online surety provider. SuretyBonds.com specializes in educating current and prospective business owners about local surety requirements. To keep up with surety bond trends, follow and Surety Bonds Insider blog and @suretybond on Twitter.
Professionals who work in the construction industry know the laws that regulate the market change constantly. Unfortunately, even government agencies are flawed, which means they sometimes establish nonsensical, arbitrary regulations that leave construction professionals even more confused as to how they’re expected to do their jobs.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Empowering Success: The Advantages of Female Attorneys in Construction Defect Law
December 11, 2023 —
Alexa Stephenson, Hoosai Kabiri & Ivette Kincaid - Kahana FeldPer the most recent U.S. Census records, women make up 50.4% of the U.S. population. It should come as no surprise then that women currently outnumber men in U.S. law schools. Nevertheless, as of 2022, only 38% of attorneys, 30% of federal judges, 22% of equity partners, and 12% of managing partners nationwide are comprised of women. While great strides have been made in the last century to increase gender equality in the legal field, there is undoubtedly still a long way to go.
Studies have shown that women in the workforce lead to a number of benefits not only to the business itself, but to a business’ employees and culture. In the realm of construction defect law in particular, the presence and contributions of female attorneys have become increasingly impactful and essential. As the legal landscape evolves, the benefits of having female attorneys practicing in this specialized field are becoming more evident, offering a range of advantages that contribute to a more diverse, comprehensive, and successful legal environment. These advantages include:
1. Diverse Perspectives: Female attorneys bring a unique perspective to the practice of construction defect law, enriching the field with their insights and experiences. Their diverse backgrounds and viewpoints can lead to innovative strategies and fresh approaches when tackling complex legal issues.
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Alexa Stephenson, Kahana Feld,
Hoosai Kabiri, Kahana Feld and
Ivette Kincaid, Kahana Feld
Ms. Stephenson may be contacted at astephenson@kahanafeld.com
Ms. Kabiri may be contacted at hkabiri@kahanafeld.com
Ms. Kincaid may be contacted at ikincaid@kahanafeld.com
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