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Decaying U.S. Roads Attract Funds From KKR to DoubleLine

January 28, 2015 — Romy Varghese and Mark Niquette – Bloomberg
(Bloomberg) -- Investors such as Jeffrey Gundlach’s DoubleLine Capital and KKR & Co. are looking at crumbling U.S. roads -- and like what they see. DoubleLine, which oversees $64 billion, plans to start its first fund to finance infrastructure, Gundlach said this month. KKR, the private-equity firm led by Henry Kravis and George Roberts, signed a contract in December to manage the water system in Middletown, Pennsylvania, with Suez Environnement Co.’s United Water unit. Its debut infrastructure fund started buying assets in 2011, Bloomberg News reported in April. The companies are partnering with states and localities fed up with federal inaction to jump-start transit projects and revamp public works suffering from decades of neglect. Such an alliance in Pennsylvania, home to the nation’s highest number of deficient bridges, is letting the state replace 558 crossings more cheaply and more quickly. Reprinted courtesy of Romy Varghese, Bloomberg and Mark Niquette, Bloomberg Ms. Varghese may be contacted at rvarghese8@bloomberg.net; Mr. Niquette may be contacted at mniquette@bloomberg.net Read the court decision
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Breaking with Tradition, The Current NLRB is on a Rulemaking Tear: Election Procedures, Recognition Bar, and 9(a) Collective Bargaining Relationships

September 09, 2019 — Keahn Morris, John Bolesta & James Hays - Construction and Infrastructure Law Blog
In its 84-year history, the National Labor Relations Board (NLRB, Board or Agency) has promulgated a very small number of rules pursuant to the Administrative Procedures Act, relying, instead, on individualized adjudications to establish the Board’s legislative policies. However, breaking with that long tradition, the current Board now appears to be on the verge of a formal rulemaking jag for on May 22, the Board released its “Unified Agenda” of anticipated regulatory actions which, in addition to proceeding with rulemaking regarding joint employer standards, announced the Board’s intention to consider formal rulemaking in a number of critical areas. Consistent with that wide-ranging Agenda, on August 12, the Board published a Notice of Proposed Rulemaking (NPRM) over the objection of Democratic appointee, Lauren McFerran, that would amend the Agency’s rules and regulations governing the filing and processing of election petitions in three very important ways. This NPRM, therefore, deserves attention. The first possible amendment will modify the Board’s administrative election blocking charge practice by establishing a regulation-based vote and impound procedure to be used when a party, typically a union facing possible decertification, files an unfair labor practice (ULP) charge and, based thereon, seeks to block the holding of an election. The second possible amendment will modify the Board’s current recognition bar case law by codifying prior Board case doctrine and creating a regulation-based requirement of notice of voluntary recognition to affected employees and a 45-day open period within which affected employees may call for an election before that voluntary recognition will be allowed to operate as a bar to employees raising later questions concerning the union’s representative status (QCR). Reprinted courtesy of Sheppard Mullin attorneys Keahn Morris, John Bolesta and James Hays Mr. Morris may be contacted at kmorris@sheppardmullin.com Mr. Bolesta may be contacted at jbolesta@sheppardmullin.com Mr. Hays may be contacted at jhays@sheppardmullin.com Read the court decision
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How Tech Is Transforming the Construction Industry in 2019

July 08, 2019 — Ginger Butz - Construction Executive
The immediate applications and benefits of Industrial Internet of Things technologies are obvious in industries like manufacturing and computing, but these digital transformation technologies may not be top of mind for construction managers. It’s time for that mindset to change. Worldwide spending on IIoT is expected to reach nearly $2 trillion in 2022, proving that these technologies hold a significant amount of value to the industries using them. That rings especially true in construction, where IIoT stands to bolster an already significant commitment to safety and communication. Construction managers should keep these technologies firmly on the radar when making investments in 2019. Smart equipment With sensors and radio-frequency identification (RFID) tags, even legacy construction equipment can become part of a construction company’s IIoT fleet. The data collected from these machines provides construction managers with a wealth of knowledge around downtime, safety, labor, efficiency and more. Additionally, the next era of smart construction equipment will feature more autonomous vehicles and automatic equipment shutdown, both of which promote worker safety. Autonomous vehicles, which self-correct based on feedback and environmental factors, also free up human engineers to move from maintenance tasks into more complex roles that leverage the feedback data reported by IIoT machinery. Reprinted courtesy of Ginger Butz, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Ms. Butz may be contacted at info@moreycorp.com

UK Construction Output Rises Unexpectedly to Strongest Since May

March 27, 2023 — Lucy White - Bloomberg
UK construction industry output grew for the first time in two months in February, boosting hopes that the economy may avoid a prolonged recession. A rebound in commercial and civil engineering work helped to compensate for continued gloom in the housing market, where buying activity has been depressed by higher mortgage rates and the cost-of-living crisis. The closely-watched Construction Purchasing Managers’ Index from S&P Global and the Chartered Institute of Procurement and Supply jumped to 54.6 in February, up from 48.4 a month earlier and the highest since May 2022. It was the first time in three months that activity was above the crucial no-change level of 50. Economists had expected a decline. Read the court decision
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Reprinted courtesy of Lucy White, Bloomberg

Fracking Fears Grow as Oklahoma Hit by More Earthquakes Than California

July 09, 2014 — Zain Shauk – Bloomberg
Squinting into a laptop perched on the back of his pickup, Austin Holland searches for a signal from a coffee-can-sized sensor buried under the grassy prairie. Holland, Oklahoma’s seismology chief, is determined to find the cause of an unprecedented earthquake epidemic in the state. And he suspects pumping wastewater from oil and gas drilling back into the Earth has a lot to do with it. “If my research takes me to the point where we determine the safest thing to do is to shut down injection -- and consequently production -- in large portions of the state, then that’s what we have to do,” Holland said. “That’s for the politicians and the regulators to work out.” So far this year, Oklahoma has had more than twice the number of earthquakes as California, making it the most seismically active state in the continental U.S. As recently as 2003, Oklahoma was ranked 17th for earthquakes. That shift has given rise to concern among communities and environmentalists that injecting vast amounts of wastewater back into the ground is contributing to the rise in Oklahoma’s quakes. The state pumps about 350,000 barrels of oil a day, making it the fifth largest producer in the U.S. Read the court decision
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Reprinted courtesy of Zain Shauk, Bloomberg
Mr. Shauk may be contacted at zshauk@bloomberg.net

Triple Points to the English Court of Appeal for Clarifying the Law on LDs

July 01, 2019 — Vincent C. Zabielski & Julia Kalinina Belcher - Gravel2Gavel
Can an employer recover liquidated damages (LDs) from a contractor if the contract terminates before the contractor completes the work? Surprisingly, heretofore, English law provided no clear answer to this seemingly straightforward question, and inconsistent case law over the past century has left a trail of confusion. Given the widespread use of English law in international construction contracts, this uncertainty had gone on far too long. The good news is that drafters of construction contracts throughout the world can now have a well-deserved good night’s sleep courtesy of the English Court of Appeal’s March 2019 decision in Triple Point Technology, Inc. v PTT Public Company Ltd [2019] EWCA Civ 230. The Triple Point case concerned the delayed supply by Triple Point (the “Contractor”) of a new software system to employer PTT. The contract provided for payments upon achievement of milestones, however order forms incorporated into the contract set out the calendar dates on which fixed amounts were payable by PTT, resulting in an apparently contradictory requirements on when payment was due. Triple Point achieved completion (149 days late) of a portion of the work milestones, and were paid for that work. Triple Point then sought payment for the work which was not yet completed, relying on the calendar dates in the order forms rather than achievement of milestone payments. Things got progressively worse as PTT refused payment, Triple Point suspended the work for PTT’s failure to pay, PTT terminated the contract and then appointed a new contractor to complete the work. Reprinted courtesy of Vincent C. Zabielski, Pillsbury and Julia Kalinina Belcher, Pillsbury Mr. Zabielski may be contacted at vincent.zabielski@pillsburylaw.com Ms. Belcher may be contacted at julia.belcher@pillsburylaw.com Read the court decision
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Construction Contract Basics: Venue and Choice of Law

February 19, 2024 — Christopher G. Hill - Construction Law Musings
Previously in this on-again-off-again series of posts on construction contract basics, I discussed attorney fees provisions and indemnification. In this installment, the topic at hand is venue and choice of law. As construction professionals (outside of us construction attorneys), you are likely to be focused on things like the scope of work in a construction contract, the price terms, payment, delays, change orders, and the like. However, the venue (where any lawsuit or arbitration will have to happen) and the choice of law (what state’s law applies) can be equally important. You need to know where you will have to enforce your rights under the contract and also what law will apply. Will you need to go to another state to enforce your rights? Even if not, will your local attorney have to learn the law of another jurisdiction? These are important questions when reading and negotiating your prime contract (if with the owner) or subcontract (if with the general contractor). Read the court decision
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Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

D.R. Horton Earnings Rise as Sales and Order Volume Increase

May 07, 2015 — John Gittelsohn – Bloomberg
D.R. Horton Inc., the largest U.S. homebuilder by revenue, said fiscal second-quarter earnings rose as sales increased in a sign of growing demand for new homes. Net income climbed to $147.9 million, or 40 cents a share, for the three months ended March 31 from $131 million, or 38 cents, a year earlier, the Fort Worth, Texas-based company said Wednesday in a statement. The average of 15 analyst estimates was 38 cents a share, according to data compiled by Bloomberg. “The spring selling season at D.R. Horton is off to a strong start,” Chairman Donald R. Horton said in the statement. “Our increasingly diverse product offerings are enabling us to expand our industry-leading market share.” Read the court decision
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Reprinted courtesy of John Gittelsohn, Bloomberg
Mr. Gittelsohn may be contacted at johngitt@bloomberg.net

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