MGM Seeks to Demolish Harmon Towers
September 01, 2011 —
CDJ STAFFCiting public safety concerns and the cost of repair, MGM Resorts International is seeking to demolish the unfinished hotel tower. The company has a few hurdles to go through before they start laying the charges to implode the structure. Any plans would have to be approved by not only Clark County officials, but also the district court has an order blocking any activity during litigation between MGM and the general contractor on the project, Perini Building Company.
Architectural Record reports that MGM states it would take “approximately 18 months to conduct test and come up with an approved, permitted design to fix the Harmon.” MGM feels that repairs would then take another two to three years. Perini contends that they could “provide stamped drawings detailing all necessary repairs within three months.” They attribute MGM’s desire to demolish the building as “buyer’s remorse.”
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2017 Legislative Changes Affecting the Construction Industry
November 21, 2017 —
Melinda S. Gentile – Peckar & Abramson, P.C.Originally published by CDJ on July 13, 2017
The 2017 Florida Legislative Session recently concluded, and a number of important construction-related House Bills (HB) and Senate Bills (SB) were presented during the Session, most notably SB 204/HB 377. These Bills may impact General Contractors and Construction Managers in a number of ways, not the least of which is the period of time that a cause of action may be initiated for the design, planning or construction of an improvement.
The following construction-related Bills passed in both the House and Senate and will become law if approved by the Governor.
Senate Bill (SB) 204/House Bill (HB) 377: Relating to the Statute of Repose for causes of action based on design, planning or construction of an improvement to real property. This bill passed both the House and the Senate and was approved by the Governor on June 14, 2017. This bill becomes effective on July 1, 2017.
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Melinda S. Gentile, Peckar & Abramson, P.C.Ms. Gentile may be contacted at
mgentile@pecklaw.com
How to Lose Your Contractor’s License in 90 Days (or Less): California and Louisiana
November 15, 2021 —
Rafael Boza - Gravel2Gavel Construction & Real Estate Law BlogHaving your Contractor’s License up and running to perform work when needed, where needed, is an indispensable compliance matter that contractors face every year. However, this indispensable process may also be cumbersome and time consuming. Knowing the regulations applicable to your business in each state and what to do, how to do it, and when to do it, is of critical importance to maintain compliance and your ability to work in different states.
In this post we will do a high-level review of reporting obligations in California and Louisiana.
California’s
Contractors’ State License Law, Bus. & Prof. Code §§ 7000 et seq., requires licensees to report various information to the Contractors State License Board (CSLB) “within 90 days” of the effective date or event. Louisiana State
Licensing Laws and Regulations, R.S. §§ 37:24 et seq. and La. Admin. Code tit. 46, XXIX, §§ 101 et seq. also require similar reporting to the Louisiana State Licensing Board for Contractors (LSLBC), sometimes “within 15 days” of the event.
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Rafael Boza, PillsburyMr. Boza may be contacted at
rafael.boza@pillsburylaw.com
Illinois Supreme Court Rules Labor Costs Not Depreciated to Determine Actual Cash Value
November 19, 2021 —
Tred R. Eyerly - Insurance Law HawaiiThe Illinois Supreme Court determined that a homeowner insurer may not depreciate labor costs in calculating actual cash value (ACV) after a loss under the policy. Sproull v. State Farm Fire and Casualty Co., 2021 Ill. LEXIS 619 (Ill. Sept. 23, 2021).
Plaintiff was insured under a homeowner's policy that provided replacement cost coverage for structural damage. Under the policy, the insured would initially receive an ACV payment but then could receive replacement cost value (RCV) if repairs or replacement were completed within two years and the insurer was timely notified. The policy did not define "actual cash value."
Plaintiff suffered wind damage to his residence and timely submitted a property damage claim to State Farm. The adjuster determined that the building sustained a loss with RCV of $1711.54. In calculating ACV, State Farm began with the RCV and then subtracted plaintiff's $1000 deductible and an additional $394.36, including taxes, for depreciation. Plaintiff thus received an ACV payment of $317.18. Plaintiff claimed that he was underpaid on his ACV claim because State Farm depreciated labor, which is intangible and thus not subject to wear, tear, and obsolescence. Further, labor should not have been depreciated because it was not susceptible to aging or wearing and its value did not diminish over time.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Drone Operation in a Construction Zone
August 17, 2020 —
Mark R. Berry & Freddy X. Muñoz - Peckar & AbramsonThe potential uses of unmanned aircraft systems (UAS) in the construction industry continue to expand as new technologies enter the market and construction companies realize UAS can perform unique tasks at tremendous cost savings. The full technological capabilities of UAS are, however, limited by law for public safety reasons. UAS share airspace with traditional passenger, military and cargo aircraft, and are potential hazards for humans below. The risk of potential catastrophic collisions has led to a careful approach to the adoption of this technology.
All U.S. airspace is exclusively regulated by the Federal Aviation Administration (FAA), and therefore, most drone regulation originates from this agency. Many states and localities have also enacted additional limits on UAS operations, and many of these nonfederal regulations are presently on unsure footing after a federal court ruling in Singer v. Newton invalidated a local regulation that conflicted with FAA regulations.
What is clear is that all commercial UAS operations must comply with FAA regulations. Any drone operation conducted by any private company, even through use of an employee’s personal drone, would constitute commercial operation subject to regulation.
Reprinted courtesy of
Mark R. Berry, Peckar & Abramson and
Freddy X. Muñoz, Peckar & Abramson
Mr. Berry may be contacted at mberry@pecklaw.com
Mr. Muñoz may be contacted at fmunoz@pecklaw.com
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Surety Bond Now a Valid Performance Guarantee for NC Developers (guest post)
June 09, 2016 —
Melissa Dewey Brumback – Construction Law in North CarolinaWelcome summer days! Today we have a guest post by Todd Bryant, president and founder of
Bryant Surety Bonds. He is a surety bonds expert with years of experience in helping contractors get bonded and start their business. While design professionals generally don’t have to deal with performance bonds directly, they are often at the front lines of advising owners as to various Requests for Proposals submitted by hopeful contractors. In that spirit, be sure to read how the new law changes security requirements. Take it away, Todd!
Last year wrapped up with some good news for North Carolina subdivision developers:
House Bill 721 confirmed that construction bonds are, in fact, a viable form of performance guarantee. Previous legislation was ambiguous on this point, but the new bill– which took effect last October– sought to clear up the confusion. Although the new rules have been in effect for eight months, there’s been scant coverage of the changes, and what they mean for developers.
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Melissa Dewey Brumback, Ragsdale Liggett PLLCMs. Brumback may be contacted at
mbrumback@rl-law.com
The EPA’s Renovation, Repair, and Painting Rule: Are Contractors Aware of It?
March 12, 2015 —
Beverley BevenFlorez-CDJ STAFFRemodeling Magazine reported recently that some remodelers are unaware of the U.S. Environmental Protection Agency’s (EPA) Renovation, Repair and Painting (RRP) rule despite that it took effect back in April of 2010.
“There are still quite a few remodelers who have never heard of RRP,” Mark Schlager, president of Access Training Services, an EPA and Occupational Safety and Health Administration (OSHA) trainer in Pennsauken, N.J. told Remodeling Magazine.
According to the article, “The RRP rule applies to homes, apartments, and child-occupied commercial facilities built before 1978.” There are two RRP certifications required on every job: “a “Firm” certification for the company that contracts to do the work, and a “Renovator” certification for the person overseeing the work. A solo operator needs both certifications, which are good for five years.”
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OH Supreme Court Rules Against General Contractor in Construction Defect Coverage Dispute
October 30, 2018 —
Theresa A. Guertin - Saxe Doernberger & Vita, P.C.On October 9, 2018, the Ohio Supreme Court issued a decision in Ohio Northern University v. Charles Construction Services, Inc., Slip Op. 2018-Ohio-4057, finding that a general contractor was not entitled to defense or indemnity from its CGL insurer in a construction defect suit brought by a project owner post-project completion. With this decision, Ohio has solidified its place amongst a diminishing number of states, including Pennsylvania and Kentucky, which hold that there is no coverage for defective construction claims because those losses do not present the level of fortuity required to trigger CGL coverage. This places Ohio amongst the worst in the country on this issue at a time when numerous states have abandoned old precedent and moved towards a policyholder friendly analysis.
Ohio Northern University (“ONU”) hired Charles Construction Services, Inc. (“CCS”) to construct the University Inn and Conference Center, a new hotel and conference center on their campus in Ada, Ohio. CCS purchased CGL insurance from Cincinnati Insurance Company (“CIC”) insuring the project. Following completion of the project, ONU sued CCS alleging defects in the construction of the completed project, including allegations that windows improperly installed by one subcontractor led to damage to walls built by another subcontractor. CIC agreed to defend CCS under a reservation of rights but intervened in the action between ONU and CCS to pursue a declaratory judgment that it had no obligation to defend or indemnify its insured for the alleged losses.
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Theresa A. Guertin, Saxe Doernberger & Vita, P.C.Ms. Guertin may be contacted at
tag@sdvlaw.com