Top 10 Lessons Learned from a Construction Attorney
February 18, 2015 —
Craig Martin – Construction Contractor AdvisorI have had the pleasure of working with
Cordell Parvin, who in his earlier career was a preeminent construction attorney, and now,
coaches attorneys. Cordell has shared countless construction guides and presentations with me over the years, for which I am extremely grateful. Below is Cordell’s Lesson’s Learned list, that is as true today as when he drafted it years ago.
1. Contracts and owners are not all alike. Some are fairer than others. Some create greater risks of making the budget if we encounter changes, delays and impacts. We should appreciate the risks before bidding and not underestimate indirect costs of staff to deal with these situations.
2. It is important to have a thorough understanding of the Contract Administration requirements of complex contracts. Identifying specifically what must be done when changes, delays and differing site conditions are encountered is one way to establish the understanding.
3. If a project ever ends up in court, every letter, note, e-mail and memo is evidence and will be taken out of context by the opposing lawyer. Recording every mistake, miscalculation, problem or lesson learned during construction of the project will come back to haunt you.
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Craig Martin, Lamson, Dugan and Murray, LLPMr. Martin may be contacted at
cmartin@ldmlaw.com
County Sovereign Immunity Invokes Change-Order Ordinance
December 20, 2017 —
Lizbeth Dison - AHC Contruction Law BlogThe recent case of Fulton County v. Soco Contracting Company, Inc. addresses two very interesting questions for local government attorneys. First, can a county ordinance bolster a defense of sovereign immunity against a contractor’s claims? Second, can a county waive sovereign immunity by failing to respond to Requests for Admission?
Facts:
County hired Contractor to construct a facility near the airport. The contract provided that change orders must satisfy a county ordinance, which required approval by the Board of Commissioners. But in emergency situations, the County Manager could approve change orders, as long as the contractor executes a proposed modification and the purchasing agent approves it.
The project suffered substantial delays, which Contractor attributed to weather, design delays, delays by the County in providing decisions on changes, and delays in obtaining permits during the federal government’s shutdown. As a result of these issues, Contractor comes County changed the scope of the contract. Contractor asserted claims against County for the delays and the changes to the work. The appellate opinion addresses the change order claims.
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Lizbeth Dison, Autry Hall & Cook, LLP
2017 Construction Outlook: Slow, Mature Growth, but No Decline, Expected
December 21, 2016 —
Garret Murai – California Construction Law BlogAs we count down the remaining days of 2016 (thank God) it’s time to think about what the new year will bring (I’m good with pretty much anything at this point).
The economists at Dodge Data & Analytics have a few predictions. According to their 2017 Dodge Construction Outlook, they predict that U.S. construction starts will increase modestly in 2017, up 5% to $713 billion, after rather anemic growth in 2016 following several years of steady growth.
According to Robert Murray, chief economist for Dodge Data & Analytics, while the first half of 2016 lagged behind construction activity in 2015, that shortfall grew smaller as the year progressed, easing concern that the construction industry might be in the early stage of a cyclical decline. Rather, according to Murray, it appears that the construction industry has now entered a more mature phase of expansion, one characterized by slower rates of growth than during the 2012-2015 period and that construction spending can be expected to see moderate gains through 2017 and beyond[.]
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Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
Angelo Mozilo Speaks: No Regrets at Countrywide
September 03, 2014 —
Max Abelson – BloombergSix years after he lost control of the largest mortgage lender in the U.S., and days after news that the U.S. Attorney’s Office in Los Angeles plans to sue him, the Countrywide Financial Corp. founder is baffled by a new effort to punish him, proud of past triumphs and incensed by criticism.
“You’ll have to ask those people, ‘What do you have against Mozilo, what did he do?’” he said in a 30-minute call with Bloomberg News before Labor Day, one of his few interviews since the firm’s downfall. “Countrywide didn’t change. I didn’t change. The world changed.”
Interviews with Mozilo, 75, and three friends show what retirement looks like for a chief executive officer linked to the worst financial crisis since the Great Depression. Remaining out of public view like Lehman Brothers Holdings Inc.’s Richard Fuld or Jimmy Cayne of Bear Stearns Cos., Mozilo has submitted plans for Old West-style offices in California, taught students in Italy about finance, invested in a building in the Arizona desert that houses a Taco Bell and written about his life so that his grandchildren will “know the truth.”
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Max Abelson, BloombergMr. Abelson may be contacted at
mabelson@bloomberg.net
Zero-Energy Commercial Buildings Increase as Contractors Focus on Sustainability
February 10, 2020 —
Jeffrey S. Wertman - Construction ExecutiveImagine a functional, low energy commercial building that annually consumes only as much power as the building creates with on-site, clean, renewable resources. From coast to coast, there is considerable momentum for zero-energy (ZE) buildings, also known as ZEB’s or net-zero energy buildings (NZEBs). Although still an emerging market, the growth trend for ZEBs is steep.
The world’s net-zero energy market for commercial and residential projects is expected to exceed $1.4 trillion by 2035. The number of ZEBs across North America has dramatically increased since 2010 which encompasses about 80 million square feet of commercial building space. ZE has captured the attention of building owners, developers, architects, engineers, contractors, designers, policymakers and others who see its potential to efficiently use clean energy resources to reduce the substantial carbon footprint of buildings.
Real Applications of Net Zero
From 2012 to 2019, the number of ZE projects has increased ten-fold. According to the “2019 Getting to Zero Project List” released in May 2019 by the New Buildings Institute, a nonprofit organization striving to achieve better energy performance in commercial buildings, the total number of certified, verified and emerging ZE projects grew to 607 in 2019. New projects continue to appear regularly. Today, hundreds of ZE buildings, including commercial buildings of all types (including retail, office, warehouse, hotel, educational and government) are being developed.
Reprinted courtesy of
Jeffrey S. Wertman, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Top 10 Take-Aways from the 2024 Fall Forum Meeting in Pittsburgh
December 03, 2024 —
Marissa L. Downs - The Dispute ResolverOver 500 construction law attorneys and consultants convened last week at the confluence of three rivers in what became the first-ever meeting in Pittsburgh, Pennsylvania of the ABA Forum on Construction Law. The Steel City was a fitting backdrop for a meeting focused on issues of design in construction. Thanks to the hard work of many, most notably the newly minted Forum Chair Keith Bergeron and Meeting Coordinators Kendall Woods and Michael Clark, the meeting's attendees brought home new connections and a host of new lessons learned. Read on for my top 10 take-aways from the 2024 Fall Meeting in Pittsburgh and feel free to share yours in the comments below.
10. An architect's standard of care does not require perfection. A common refrain across many of the meeting's plenary sessions was that any design that is produced by human hands will never be perfect. In recognition of our own fallibility, the legal standard to which design professionals will be held to account does not require that their designs be error-free. A design professional must generally exercise the degree of care and skill ordinarily exercised by professionals performing similar services under similar circumstances. Establishing what that means in each locality will vary and will most likely need to be supported by the expert opinion of another practicing design professional.
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Marissa L. Downs, Laurie & Brennan, LLPMs. Downs may be contacted at
mdowns@lauriebrennan.com
Harmon Hotel Construction Defect Update
July 18, 2011 —
CDJ STAFFCoverage of the ongoing litigation concerning the Harmon Hotel continues to proliferate. Architectural Record and a number of other news outlets continue to provide additional details and coverage of the matter. Chief among the conditions alleged are improperly installed reinforcing steel inside link beams on 15 floors. MGM Claims that the conditions amount to hundreds of millions of dollars in damages, while Perini (the builder) indicated in a July 12th statement that the buildings problems are related to the design, and the they are “fixable.”
There is significant speculation that MGM Resorts International isn’t interested in repairing the hotel due to a glut of hotel rooms attendant to the troubled economy. In a statement Tuesday Perini reportedly stated that “Repairing and opening the Harmon would only create a greater glut of unused hotel rooms for MGM,” “If market conditions were better and MGM found that demand existed for the Harmon hotel rooms, MGM would not be claiming that the Harmon is unstable.”
MGM asserts that Perini failed to ”properly construct” the project. Clark County’s Department of Development Services has reportedly asked MGM to provide a plan to fix the project by August 15th.
The Harmon is part of the $8.5 billion CityCenter project that opened in the fourth quarter of 2009 and is jointly owned by MGM Resorts and Dubai World.
Prior reports indicated that the owner (MGM) had considered razing the entire project. The future of the project remains uncertain.
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Michigan Claims Engineers’ Errors Prolonged Corrosion
June 30, 2016 —
Richard Korman & Erin Richey – Engineering News-RecordOnly a few months ago, Michigan’s state agencies stood at the center of a circle of blame for the Flint water crisis. A special advisory task force had condemned the state’s use of an emergency manager to make key decisions about the city, including, in 2014, the money-saving switch of the water source from Lake Huron to the Flint River and the state Dept. of Environmental Quality’s slow response to citizen reports of smelly, discolored water. On June 22, Michigan Attorney General Bill Schuette started working to expand the circle via a new lawsuit in a Genesee County state court, accusing engineers Veolia N.A. and Houston-based Lockwood, Andrews & Newnam (LAN) and its parent company, Leo A Daly Co., of professional negligence.
Reprinted courtesy of
Richard Korman, Engineering News-Record and
Erin Richey, Engineering News-Record
Mr. Korman may be contacted at kormanr@enr.com
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