Cambridge Massachusetts Building Expert Directory

Recent Bribery and Anti-Corruption Enforcement Trends in Global Construction Industry

August 26, 2019 — Ralph A. Finizio & Anthony Finizio - ConsensusDocs
Bribery and corruption have long plagued the construction industry, particularly in the developing world and emerging markets. Large contracts often trickle down through layers of subcontractors, presenting opportunities for corruption at each level. The risk is enhanced in certain foreign jurisdictions, where large corporations may be wholly or partially state-owned enterprises and public officials may expect payment in exchange for state-issued licenses or government contracts. Recent enforcement trends indicate that both the U.S. Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) are increasingly targeting the construction industry for anti-bribery and corruption actions under the Foreign Corrupt Practices Act (FCPA). Several former DOJ officials also recently commented that the construction industry has become a focus of anti-corruption enforcement efforts. The FCPA is a formidable tool for regulators, making it unlawful to influence a foreign government official with any type of payment or personal reward. While certain safe harbors apply — including de minimis payments made to expedite routine governmental action or the payment being lawful in the foreign jurisdiction — these exceptions are construed narrowly and can be difficult to apply in practice. Reprinted courtesy of Ralph A. Finizio, Pepper Hamilton LLP and Anthony Finizio, Pepper Hamilton LLP Mr. Finizio may be contacted at finizior@pepperlaw.com Mr. Finizio may be contacted at finizioa@pepperlaw.com Read the court decision
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So, You Have a Judgment Against a California Contractor or Subcontractor. What Next? How Can I Enforce Payment?

May 04, 2020 — William L. Porter - Porter Law Group
The Contractors’ State License Board (“CSLB”) represents the interests of the public in California construction matters. In the field of California construction, the CSLB is all powerful. The agency has the right to suspend the license of any contractor or subcontractor who does not pay on a construction related judgment against it. If you are successful in obtaining a court judgment against a contractor or a subcontractor in a construction-related case, you can utilize the services of the CSLB to suspend the contractors’ license of that contractor or subcontractor until the judgment has been paid. Once the license is suspended, the contractor or subcontractor has no legal right to work as a contractor or subcontractor and can even be arrested for doing so. Details on using the CSLB to suspend the license of a contractor or subcontractor who has a construction-related judgment against it can be accessed at this particular CSLB link: CSLB – Judgment. On receipt of notice of the construction-related judgment, the CSLB will either suspend the contractors’ license of any contractor or subcontractor who does not pay on the judgment or who does not appeal the judgment to the Court of Appeals or file bankruptcy within 90 days. There also exists an opportunity for the licensed debtor to file a bond with the CSLB. The bond will either have to be renewed annually or the judgment paid, whichever comes first. Read the court decision
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Reprinted courtesy of William L. Porter, Porter Law Group
Mr. Porter may be contacted at bporter@porterlaw.com

The Condominium Warranty Against Structural Defects in the District of Columbia

July 24, 2023 — Nicholas D. Cowie - Cowie Law Group
THE CONDOMINIUM WARRANTY AGAINST STRUCTURAL DEFECTS Condominium developers in Washington DC are required by statute to warrant against structural defects in residential condominiums. District of Columbia Condominium Act (“DC Condo Act”) § 42-1903.16(b). The warranty applies to both condominium common elements and each condominium unit. It requires a developer to repair structural defects, including any resulting damage to the condominium caused by a common element structural defect. DC Condo Act § 42-1903.16(a-1)(2). The statute creating this warranty is called the “Warranty Against Structural Defects,” contained in the DC Condo Act § 42-1903.16. “Structural Defects” Defined The warranty applies to “structural defects,” which are very broadly defined to include many types of construction defects. Structural defects are not just limited to defects in the supporting structure of the building. Rather, a structural defect can be any condition that:

“(A) Reduces the stability or safety of unit or common elements below standards commonly accepted in the real estate market,” or (B) Restricts the normally intended use of all or part of the common elements of a unit and which requires repair, renovation, restoration, or replacement to serve the purpose for which it was intended.” DC Condo Act § 42-1903.16(j)(6).

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Reprinted courtesy of Nicholas D. Cowie, Cowie Law Group
Mr. Cowie may be contacted at ndc@cowielawgroup.com

Construction Leads World Trade Center Area Vulnerable to Flooding

February 07, 2013 — CDJ STAFF
The Port Authority of New York and New Jersey and outside experts are looking at ways to make the World Trade Center area less vulnerable to flooding, both as construction continues and after it has concluded. Much of the site is built on landfill and the Hudson River is held back by retaining walls. Hurricane Sandy caused $2 billion of damage to sites managed by the Port Authority, including $800 million for the PATH train system. Construction and increased vulnerability to flooding is likely to continue for at least eight more years. Read the court decision
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KONE is Shaking Up the Industry with BIM

January 20, 2020 — Aarni Heiskanen - AEC Business
KONE supplies elevators, escalators, autowalks and maintenance and modernization solutions. I sat down with Kenneth Flannigan to discuss how BIM is changing KONE and what it means to the industry. KONE operates in over 60 countries, has around 1.3 million units in service, and moves over one billion people per day. The company’s mission is “to improve the flow of urban life.” Kenneth Flannigan is the BIM Solution Owner for the company. He acknowledges that even though KONE provides equipment and software innovation, in this day and age that’s not enough. “We’re a critical path item. How innovative are we if we’re not working on every single project in a shared 3D environment, like our customers?” Flannigan asks. KONE serves both indirect and paying customers. It works with influencers like architects and with general contractors, builders, and construction managers. It also has a life-cycle relationship with building owners, which is evidenced by the fact that over 30% of the company’s sales come from maintenance. 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

Real Estate & Construction News Roundup (5/29/24) – Megaprojects on the Rise, Agency Guidance for CRE, and an Upbeat Forecast for Commercial Real Estate Investment

June 21, 2024 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
In our latest roundup, summer travelers seek alternative lodging options, purpose-built wellness real estate investments grow, bonds backed by CRE debt hit are hit with losses, and more!

Across all property types, purpose-built wellness real estate investment has grown dramatically in recent years, including properties with wellness features as a focus. (Mary Salmonsen, Multifamily Dive)
The travelers on the road this summer will have different demographics, budgets and reasons for travel and different preferences on accommodations, with more travelers opting for alternative housing options. (Noelle Mateer, Hotel Dive)
Megaprojects are on the rise, with massive projects, from rail tunnels to computer chip factories, having myriad stakeholders and lengthy timelines that span political administrations. (Julie Strupp, Construction Dive)

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Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team

OSHA Advisory Committee, Assemble!

February 06, 2023 — Rachel E. Pelovitz - Construction Executive
The Occupational Safety and Health Administration (OSHA) has sourced new members for its Advisory Committee on Construction Safety and Health, which was established by the Construction Safety Act to provide “advice and assistance in construction standards and policy matters” to the assistant secretary of labor for occupational safety and health. The committee consists of 15 members, one appointed by the secretary of labor, to represent the interests of employers, employees, state safety and health agencies, in addition to the public. Reprinted courtesy of Rachel E. Pelovitz, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Ms. Pelovitz may be contacted at pelovitz@abc.org Read the full story... Read the court decision
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Non-compliance With Endorsement Means No Indemnity Coverage

January 15, 2019 — Tred R. Eyerly - Insurance Law Hawaii
The insured's failure to verify that subcontractors had CGL policies and to provide a contract stating that the subcontractors would indemnify the insured as required by the policy's endorsement meant there was no coverage for the insured. Cincinnati Spec. Underwriters Ins. Co. v. Milionis Constr., Inc., 2018 U.S. Dist. LEXIS 199658 (E.D. Wash. Nov. 26, 2018). The homeowners filed suit against Milionis, the general contractor for construction of a home. The underlying suit alleged that Milionis breached the parties' agreement by leaving the home unfinished. Cincinnati defended Milionis under a reservation of rights. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

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