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A Special CDJ Thanksgiving Edition

November 21, 2017 — Beverley BevenFlorez-CDJ STAFF
Welcome to the Construction Defect Journal’s special Thanksgiving edition. The CDJ staff has compiled the most important and interesting stories so far from 2017. From Supreme Court decisions to state construction defect law shake ups, this week’s edition showcases significant construction defect industry changes. With a mug of hot spiced cider in hand, relax and reflect on what has happened in our industry so far in 2017. CDJ wishes to give thanks to its amazing contributors and readers. It’s due to your efforts and support that CDJ is able to present a weekly summary of what is happening in the construction defect industry. We hope you enjoy this special edition, and wish you and your family a fun and festive Thanksgiving holiday. Read the court decision
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FirstEnergy Fined $3.9M in Scandal Involving Nuke Plants

February 06, 2023 — Annemarie Mannion - Engineering News-Record
Having admitted to participating in the largest energy-involved bribery scandal in Ohio history, provider FirstEnergy Corp., based in Akron, has agreed to pay a $3.9-million fine for withholding lobbying and accounting information from the Federal Energy Regulatory Commission’s enforcement office. Reprinted courtesy of Annemarie Mannion, Engineering News-Record Ms. Mannion may be contacted at manniona@enr.com Read the full story... Read the court decision
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Deadly Fire in Older Hawaii High-Rise Causes Sprinkler Law Discussion

July 19, 2017 — David Suggs – Bert L. Howe & Associates, Inc.
Last Friday, at least three people died and twelve were injured during a fire at a Honolulu high-rise that did not have sprinklers, according to CBS News. The fire began on the 26th floor and spread to at least the 28th floor and several units, the Honolulu Fire Department spokesman, Captain David Jenkins, stated. “Without a doubt if there were sprinklers in this apartment, the fire would be contained to the unit of origin,” Captain Jenkins concluded, as reported by CBS News. The Marco Polo development “was built four years before Honolulu required fire sprinkler systems in new residential high-rises,” the LA Times reported. “In 2005, the Honolulu City Council created a task force to estimate the cost of retrofitting and installing fire sprinkler systems in about 300 residential condominium buildings. A report estimated that retrofitting the Marco Polo would cost $4,305.55 for each unit.” A separate report estimated the cost would be $4.5 million to retrofit the entire building. According to Samuel Dannway, chief fire protection engineer for Coffman Engineers in Honoloulu, stated that the owners “lobbied strongly against any retrofitting” due to cost. Retrofitting sprinklers is more challenging in residential high-rises than office buildings, Glenn Corbett, associate professor of fire science at John Jay College of Criminal Justice in New York told the LA Times. “Wall after wall, you have to penetrate with piping, and that means moving people around in apartments,” Corbett said. “They can’t live there while workers are drilling holes in their walls.” Mayor Kirk Caldwell stated that Honolulu “needs to look at passing a new law requiring sprinklers in older high-rises.” Read the full story, CBS News... Read the full story, LA Times... Read the court decision
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Insurer Rejects Claim on Dolphin Towers

July 22, 2011 — CDJ STAFF

A year after residents were forced to leave Dolphin Towers in Sarasota, Florida because of concrete problems, some residents are defaulting on their obligations, abandoning their units. In June, the building’s insurer, Great American, rejected a claim, arguing that the building’s problems were due to latent defects, not covered under the policy. Repair estimates, previously put at $8.2 million, have now risen to $11.5 million. If homeowners cover this cost, it would require an assessment of about $100,000 for each unit.

About thirty owners are in arrears on dues and fees. Charlotte Ryan, the president of the Dolphin Tower board, wrote to owners, that “the board will have no choice but to lien your property and pursue foreclosure if you do nothing to bring your delinquencies up to date.” However, as homeowners default, the funding for repairs is imperiled. The board has already spent more than $500,000 on shoring up the building and hiring consultants. Their lawyers, on the other hand, are working on a contingency basis.

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Biden’s Buy American Policy & What it Means for Contractors

February 22, 2021 — Meredith Thielbahr & Nicole Lentini - Gordon & Rees Construction Law Blog
January 25, 2021, President Biden signed an Executive Order (EO) “Ensuring the Future is Made in All America by All of America’s Workers”, which seeks to bolster U.S. manufacturing through the federal procurement process. Note that, just six day earlier, on January 18, the Federal Acquisition Regulation (FAR) Counsel issued a final rule implementing former President Trump’s July 2019 EO, titled “Maximizing Use of American-Made Goods, Products, and Materials” (EO No. 13881) on the then-current Buy American standards. For context, Trump’s proposed revisions – adopted and implemented by the FAR Council earlier this year – imposed three (3) significant changes worth noting: (1) increasing the percentage of domestic content (other than iron or steel) from 50% to 55% that an end product must contain in order to qualify as a “domestic end product”; (2) implementing an even higher increase in the domestic content requirement for iron and steel products to at least 95% U.S. “predominately” iron or steel product; and (3) increasing the price evaluation preference for domestic offerors from 6% to 20% (for other than small business) and 30% (for small businesses). The FAR’s rule became effective January 21, 2021, and applies to solicitations issued on or after February 22, 2021, and resulting contracts let. Biden’s EO rescinds Trump’s EO No. 13881 “to the extent inconsistent with [Biden’s] EO.” However, when dissected, it is clear Biden’s Buy American plan does little to modify thresholds inconsistent with the Trump Administration; rather, the White House’s latest EO implements changes in the form of BA administration. Nonetheless, Biden’s EO does expressly note that it supersedes and replaces Trump’s EO on the same issues. Reprinted courtesy of Meredith Thielbahr, Gordon & Rees and Nicole Lentini, Gordon & Rees Ms. Thielbahr may be contacted at mthielbahr@grsm.com Ms. Lentini may be contacted at nlentini@grsm.com Read the court decision
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A Vision and Strategy for the Adoption of Open International Standards

November 18, 2019 — Aarni Heiskanen - AEC Business
The final report of RASTI is now available in English. The project outlined a national vision and strategy for the adoption of open international standards in the real estate and construction industries. The Finnish version includes several appendices. One of the frameworks that RASTI devised was a built environment life-cycle process map. It is derived from the model of Antti Autio of the Ministry of the Environment. The map presents the processes of the four “lanes”: the customer’s/users value creation processes, public sector processes, information work, and production. Ideally, data and information flow across the processes, using open standards. Read the court decision
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Reprinted courtesy of Aarni Heiskanen, AEC Business
Mr. Heiskanen may be contacted at aec-business@aepartners.fi

While You Were Getting Worked Up Over Oil Prices, This Just Happened to Solar

October 29, 2014 — Tom Randall – Bloomberg
Every time fossil fuels get cheaper, people lose interest in solar deployment. That may be about to change. After years of struggling against cheap natural gas prices and variable subsidies, solar electricity is on track to be as cheap or cheaper than average electricity-bill prices in 47 U.S. states -- in 2016, according to a Deutsche Bank report published this week. That’s assuming the U.S. maintains its 30 percent tax credit on system costs, which is set to expire that same year. Even if the tax credit drops to 10 percent, solar will soon reach price parity with conventional electricity in well over half the nation: 36 states. Gone are the days when solar panels were an exotic plaything of Earth-loving rich people. Solar is becoming mainstream, and prices will continue to drop as the technology improves and financing becomes more affordable, according to the report. Read the court decision
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Reprinted courtesy of Tom Randall, Bloomberg
Mr. Randall may be contacted at trandall6@bloomberg.net

Governor Ducey Vetoes Water and Development Bills

June 09, 2016 — Patrick J. Paul – Snell & Wilmer Real Estate Litigation Blog
With the second regular legislative session of Governor Doug Ducey’s tenure complete, the Governor exercised his veto pen rejecting several laws impacting water and land development. On May 9th, Governor Ducey vetoed two measures that could have allowed developers to manipulate the requirements of Arizona’s Groundwater Management Act of 1980: Senate bills the 1268 (adequate water supply requirements) and 1400 (county water supply). The bills’ sponsor, Senator Gail Griffin, had expressed concerns that the federal government was exercising too much control of the water supply in Cochise County in its efforts to ensure the continued flow of water in the San Pedro River. Read the court decision
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Reprinted courtesy of Patrick J. Paul, Snell & Wilmer
Mr. Paul may be contacted at ppaul@swlaw.com

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