AI in Construction: What Does It Mean for Our Contractors?
December 17, 2024 —
Patrick Scarpati - Construction ExecutiveArtificial intelligence is revolutionizing the construction industry by enhancing efficiency, safety and decision-making throughout the project lifecycle. AI in construction involves the application of advanced technologies like machine learning, computer vision and data analytics to various construction processes. Through AI, machines can learn and imitate human cognitive functions.
The possibilities may sound endless, but as an industry traditionally looking from the outside in at technology, we must first step back to educate ourselves on the basics. This paper is meant to function as a starting point in your journey to understand AI and its potential impact on the construction industry. By reading through definitions, construction use cases and considerations, the reader should walk away with a base level of knowledge to ensure they can actively participate in future conversations on AI in construction.
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Patrick Scarpati, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Connecticut Court Finds Anti-Concurrent Causation Clause Enforceable
March 19, 2015 —
Tred R. Eyerly – Insurance Law HawaiiCanvassing both case law and scholarly authority, the court determined that the anti-concurrent cause (ACC) provision barred coverage for loss caused by Tropical Storm Irene. Lombardi v. Universal N. Am Ins. Co., 2015 Conn. Super. LEXIS 138 (Conn. Super. Ct. Jan. 21, 2015).
Tropical Storm Irene caused the insured's home to shift and move from its concrete pier foundation. The house later had to be demolished.
The insurer's expert concluded that the house was removed from the foundation by storm surge and not by wind. The damage caused by wind was limited to 24 feet of trim missing from the roof and about 70 square feet of shingles that were blown away. The insured's expert concluded the house was removed from its foundation due to a combination of wind and water forces. The insured's expert reported that "the water wave action most probably caused most damage to the dwelling support pilings, with wind conditions contributing to the wave action."
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Evaluating Construction Trends From 2023 and Forecasting For 2024
February 12, 2024 —
Jason Feld & Dominic Donato - Kahana FeldAs we begin 2024, it is informative to evaluate what transpired in 2023 in the construction industry, and especially the use of construction technology. 2023 ushered in a variety of newly implemented construction technologies including 3D printed entire houses, improved wearables that detect all aspects of the construction worker from location to temperature to heart rate, increased use of modular construction for entire apartments, hotels, and condominium projects, and eco-friendly and conservation minded technologies to minimize carbon footprint, water preservation and sustainable construction methods, to name a few.
2023 also identified some significant issues in the construction industry. First and foremost, the labor shortages and hiring of skilled and qualified workers continued to be an issue resulting in increased delays, construction accidents, and project mismanagement. The skyrocketing interest rates, decline in commercial/office projects, supply chain issues, material price fluctuation and increase changes in scope of projects all negatively impacted the construction industry in 2023. There is also the demand for renewable and infrastructure projects put strain on construction resources as the projects became “mega” with larger and more complex construction leading to multi-party, high dollar, and more complex claims. Finally, there is a growing trend of construction claims and litigation being financed by third party litigation funding sources for personal/bodily injury claims and construction defect claims.
Reprinted courtesy of
Jason Feld, Kahana Feld and
Dominic Donato, Kahana Feld
Mr. Feld may be contacted at jfeld@kahanafeld.com
Mr. Donato may be contacted at ddonato@kahanafeld.com
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Foundation Differences Across the U.S.
October 15, 2014 —
Beverley BevenFlorez-CDJ STAFFThe National Association of Home Builders’ Eye on Housing analyzed data from the Survey of Construction (SOC) to demonstrate the differences in foundations built across the nation. For instance, “about 30 percent of new single-family homes started in 2013 have a full or partial basement, 54 percent are built on slabs, and 15 percent have a crawl space. The remaining share, including homes built on stilts or pilings, accounted for about 1 percent of homes started in 2013.”
Climate is the deciding factor in what type of foundations are used, Eye on Housing reported. “In colder regions where codes require foundations to be deep the marginal cost of providing a full or partial basement is not that great. So basements are the most common type of foundation in the colder climate divisions.” The warm climate area of the West South Central division are primarily built on slabs. However, “the other two divisions that make up the South region – the East South Central and South Atlantic –are still largely built on slabs but crawl spaces are also common.”
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Planes, Trains and Prevailing Wages. Ok, No Planes, But Trains and Prevailing Wages Yes
October 25, 2021 —
Garret Murai - California Construction Law BlogThe California Supreme Court doesn’t often delve into construction-related issues, but this year we’ve got two cases, both related to the payment of prevailing wages on California public works projects.
The first, Mendoza v. Fonseca McElroy Grinding Co., Inc. (2021) 11 Cal.5th 1118 which we discussed in our last blog post, concerned whether mobilization work qualifies as a “public work” and in turn requires the payment of prevailing wages. On the same day that the Supreme Court issued its decision in Mendoza, it issued a decision in Busker v. Wabtec Corporation, et al. , Case No. S251135 (August 16, 2021). This is the equivalent of being struck by lightning twice.
In Busker, the California Supreme Court considered whether on a public transportation project “field work” (e.g., building and outfitting radio towers on land adjacent to train tracks) and “onboard work” (e.g., installing electronic components on train cars and locomotives”) requires the payment of prevailing wage.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Construction Litigation Roundup: “Tender Is the Fight”
August 21, 2023 —
Daniel Lund III - LexologyA performance bond surety for a defaulted general contractor principal found itself with a recalcitrant owner which refused to accept the tender of a replacement general contractor to complete a $3,000,000 construction project in Monmouth County, New Jersey.
Even before the original GC was off the job, the surety – having been notified of the contractor’s difficulties in performing the work – stepped in promptly, providing assistance in the form of an additional contractor. At the surety’s behest, that additional contractor remained on the project (focused principally at the time on roof repairs) after the initial GC was placed in default and terminated.
Eventually, the surety, by draft tender agreement issued to the owner, offered that the additional contractor serve as the completion contractor for the entire project (not simply the roof repairs), a proposal rejected by the owner – which had never cared for the additional contractor. Instead, the owner proposed its own completion contractor and, in connection with that offer, demanded a sum of money ($1.6 million) from the surety – a proposal the surety rejected: “[Owner] cannot choose whatever contractor it wants to complete the work and then charge the costs to [the surety]."
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Daniel Lund III, PhelpsMr. Lund may be contacted at
daniel.lund@phelps.com
Wall Street Is Buying Starter Homes to Quietly Become America’s Landlord
February 27, 2023 —
Patrick Clark - BloombergJavier Vidana started out as a real estate agent in 2013, when Arizona’s Salt River Valley seemed wide open. It was the aftermath of a housing market crash that had seen the typical home value in the Phoenix metro area fall more than 50%, and a single parent with good credit could tap loan programs geared toward first-time homeowners and find a pretty decent place to live. For Vidana, the challenge was convincing potential clients that a house was something they wanted to own. “We were on the phone begging people to buy,” he says. “There was no buyer confidence whatsoever.”
The economy crawled forward, and the housing market with it. Vidana made a specialty of tutoring young buyers on real estate basics. Soon he was supplementing his commission income by selling how-to PDFs on his website and collecting ad revenue on his YouTube channel. Then the pandemic sparked a boom that gave him something new to explain.
Americans responded to the work-from-home era by house shopping, and no big city was hotter than Phoenix. The median home was worth about $285,000 at the beginning of the pandemic; it was valued at $435,000 two years later. It wasn’t unheard of for a seller to receive 50 offers or more, or for a prospective buyer to make offers on a dozen different homes before finally closing a deal.
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Patrick Clark, Bloomberg
Homebuilding Down in North Dakota
October 30, 2013 —
CDJ STAFFOnly eleven new homes have been started this year in the Pierre area in North Dakota. Last year saw 35 homes built in the same area. Brad Lawrence, the Fort Pierre Director of Public Works, blamed last year’s Hurricane Sandy in New Jersey, stating that “superstorm Sandy has just devoured a tremendous amount of building projects.”
Area builders did say that some building materials went up in price after the storm, describing it as an “availability scare,” but some prices went down during the summer of 2013. Susan Ogan, of Neil Ogan Construction said that “our biggest thing is that people cannot find a lot they can afford and still say within their budget for the overall project.”
Although single-family homes aren’t being built, apartments are. “We’ve got a 24-unit apartment going in as we speak,” said Mr. Lawrence. That, some feel, may be responsible for the lack of demand for single-family homes.
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