FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Congress Relaxes Several PPP Loan Requirements

June 15, 2020 — Greg Tross & Michael Krueger – Newmeyer Dillion
On June 3, 2020, Congress passed the Paycheck Protection Program Flexibility Act ("Act") which does exactly what it means to do: provide flexibility for PPP loan recipients. President Trump is expected to sign the bill into law within the week. The Act extends the "covered period" for Paycheck Protection Program ("PPP") loans from the original eight weeks to 24 weeks or December 31, 2020, whichever is earlier. This extension provides much needed reprieve to small businesses who can utilize these funds to weather the economic effects of the Coronavirus Pandemic through 2020. The Act also revises the limitations on how small businesses utilize their PPP loans. While the CARES Act originally required 75% of the PPP loan to be used for payroll costs, this number has now been reduced to 60%. This means that up to 40% of the PPP loan can be used to cover mortgage obligations, rent, and other covered utility payments. The PPP loan payment deferral period has also been extended to align with the date on which the PPP loan's forgiveness amount is remitted to the lender. This should provide more certainty to small businesses on their payback obligations, if any. Recently, the Small Business Administration also released loan forgiveness applications to assist a business in calculating their loan forgiveness. While the SBA will likely revise it with the Act's passing, small businesses should look at the application's framework to prepare for submitting their loan forgiveness requests in the future. Newmeyer Dillion continues to follow COVID-19 and its impact on your business and our communities. Feel free to reach out to us at NDcovid19response@ndlf.com or visit us at www.newmeyerdillion.com/covid-19-multidisciplinary-task-force/. Reprinted courtesy of Greg Tross, Newmeyer Dillion and Michael Krueger, Newmeyer Dillion Mr. Tross may be contacted at greg.tross@ndlf.com Mr. Krueger may be contacted at michael.krueger@ndlf.com Read the court decision
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Contractual Setoff and Application When Performance Bond Buys Out of its Exposure

July 02, 2024 — David Adelstein - Florida Construction Legal Updates
The theory of “setoff” is an important theory in construction disputes. Florida’s Fourth District Court of Appeal recently provided worthy discussion on contractual setoffs:

Setoffs in contract claims are governed by [Florida Statute] section 46.015(2), which provides that if a plaintiff has released “any person in partial satisfaction of the damages sued for, the court shall [setoff] this amount from the amount of any judgment to which the plaintiff would be otherwise entitled at the time of rendering judgment.” The setoff statute intends to prohibit plaintiffs from getting double recoveries.

A setoff requires that settling and non-settling parties be jointly and severally liable. The settled damages must also be the same damages for which the setoff is sought; stated differently, a setoff is not proper where the trial damages to be setoff are separate and distinct from the settled damages.

Close Construction, LLC v. City of Riviera Beach Utility Special District, 49 Fla.L.Weekly D1184d (Fla. 4th DCA 2024) (internal citations omitted). Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

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Guidance for Structural Fire Engineering Making Its Debut

February 02, 2017 — Nadine M. Post - Engineering News-Record
The International Code Council has approved—as expected—the updated structural building-design standard, written by the American Society of Civil Engineers Structural Engineering Institute, for inclusion in the 2018 edition of the ICC’s model International Building Code. ICC’s validation committee certified “ASCE/SEI 7-16: Minimum Design Loads and Associated Criteria for Buildings and Other Structures,” and ICC’s board of directors confirmed it late last month, says Mike Pfeiffer, ICC’s senior vice president, technical services. Read the court decision
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Reprinted courtesy of Nadine M. Post, ENR
Ms. Post may be contacted at postn@enr.com

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Your “Independent Contractor” Clause Just Got a Little Less Relevant

January 12, 2015 — Garret Murai – California Construction Law Blog
Construction projects are complex, multi-partied, multi-disciplinary endeavors, in which subcontracting all or a portion of the work to be performed is not uncommon. When subcontracting work, parties usually make it clear in their contracts that the party performing work is acting as an “independent contractor.” Here’s a fairly typical provision from the AIA A201 General Conditions:

The parties agree that the contractual relationship on Contractor to Owner is one solely of an independent contractor in all respects and that the Contract Documents do not in any way create a partnership, joint venture or any other relationship between Owner and Contractor other than the contractual relationship as specified in this Agreement.

These provisions are intended to shield the contracting party from claims that it is responsible for workers’ compensation premiums, retirement contributions, health care insurance, or other benefits provided for the benefit of employees of the company performing the work. Fair enough. Read the court decision
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Reprinted courtesy of Garret Murai, Wendel Rosen Black & Dean LLP
Mr. Murai may be contacted at gmurai@wendel.com

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Sold Signs Fill Builder Lots as U.S. Confidence Rises: Economy

June 26, 2014 — Shobhana Chandra and Nina Glinski – Bloomberg
Buyers swarmed builder lots in May to propel the biggest gain in sales of new homes in 22 years, while consumer confidence this month was the strongest since 2008, showing how an improving U.S. job market is giving the economy a much-needed lift. Home sales jumped 18.6 percent, the largest one-month surge since January 1992, to a 504,000 annualized pace, according to figures from the Commerce Department today in Washington. Another report showed household sentiment climbed in June to the highest point since the early days of the recession that began more than six years ago. Payroll gains that have exceeded 200,000 workers for four consecutive months and stable borrowing costs at historically low levels are giving Americans the assurance to step back into the real-estate market. The need for builders such as Hovnanian Enterprises Inc. (HOV) to keep up with the growing demand will lead to gains in construction that will boost the economic expansion. Ms. Chandra may be contacted at schandra1@bloomberg.net; Ms. Glinski may be contacted at nglinski@bloomberg.net Read the court decision
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Reprinted courtesy of Shobhana Chandra and Nina Glinski, Bloomberg

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Hurdles with Triggering a Subcontractor Performance Bond

April 05, 2017 — David Adelstein – Florida Construction Legal Updates
There have been a couple of decisions as of late, particularly in federal court, that have gone in favor of a performance bond surety and against a general contractor’s claim against a subcontractor’s performance bond. These decisions have been so unfavorable that they may be swaying certain internal decisions to move to subcontractor default insurance with, perhaps, subcontractors that pose less risk. From the general contractor’s perspective, if they have to stop the management of the job and progress to jump through hoops to trigger the performance bond’s obligations, rightfully or wrongfully, the bond may not provide them the value they need. Performance bonds are an appropriate product in many instances, but there should be more consistency regarding the actual trigger of a subcontractor’s performance bond obligations. Project teams need to absolutely understand what efforts they need to take, and how they need to take such efforts, in order to properly trigger a performance bond’s obligations. This is a must (and I have presented many seminars on this very issue). Or, the general contractor should move away from the traditional AIA /standard performance bond form, which is the direction I always go when I am involved in the drafting of a performance bond. Read the court decision
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Reprinted courtesy of David Adelstein, Florida Construction Legal Updates
Mr. Adelstein may be contacted at dadelstein@gmail.com

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It’s Time for a Net Zero Building Boom

May 02, 2022 — James S. Russell - Bloomberg
Is it too much to ask Americans to take their foot off the gas and reset their thermostats? On March 18, the International Energy Agency released a 10-point plan for reducing oil use, arguing that advanced economies can readily cut demand by 2.7 million barrels a day in the next four months, an amount large enough to avoid major supply shortages as Russia’s invasion of Ukraine roils the energy market. The plan’s major prescriptions will look familiar to anyone who recalls the OPEC shocks of the 1970s: reducing speed limits to improve gas mileage, boosting transit use, and discouraging non-essential car and air travel. But its exclusive focus on the transportation sector overlooks the substantial efficiency gains to be had from the built environment: Buildings consume about 40% of the energy used in the U.S. every year. Yet reducing energy use in buildings has been stigmatized by fossil-fuel interests as a lifestyle deprivation — an argument that’s been internalized by pundits and politicians even as geopolitical turmoil drive spikes in oil prices and climate change impacts upend millions of lives. Read the court decision
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Reprinted courtesy of James S. Russell, Bloomberg

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San Francisco OKs Revamped Settling Millennium Tower Fix

August 29, 2022 — Nadine M. Post - Engineering News-Record
After more than six months of scrutiny, San Francisco’s Department of Building Inspection has issued a revised building permit for the revamped perimeter pile upgrade of the settling 645-ft-tall Millennium Tower, thanks to a determination from the planning department that the revised scheme would not have any negative environmental impacts. The upgrade now consists of 18 piles to bedrock, already installed, rather than 52. Reprinted courtesy of Nadine M. Post, Engineering News-Record Ms. Post may be contacted at postn@enr.com Read the full story... Read the court decision
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