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DIRECTORY AND CAPABILITIES

New Executive Orders Expedite the Need for Contractors to Go Green

August 22, 2022 — Vince Calio - Construction Executive
The importance of going green just became even more crucial for small construction companies, as President Joe Biden signed three executive orders on June 6, 2022, aimed at boosting clean energy construction projects and the use of domestically manufactured clean energy technology. Specifically, the orders require the U.S. Department of Energy to deploy the use of the Defense Production Act of 1950 to expand American manufacturing of solar panel parts, environmentally friendly building insulation, heat pumps, equipment for making clean power-generating fuels and critical power grid infrastructure. Federal construction contracts will also require local contractors to use eco-friendly materials. According to an announcement from the White House, the order will encourage the use of project labor agreements that offer wages “above and beyond the prevailing rate and include local hire provisions.” The order will also encourage clean construction projects in low-income areas burdened by legacy pollution. Reprinted courtesy of Vince Calio, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the full story...

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Construction Picks Up Post-COVID and So Do Claims (and A Construction Lawyer Can Help)

September 12, 2022 — Christopher G. Hill - Construction Law Musings
I’m a construction attorney and proud to be one. Over the past couple of years, my expertise (and that of my fellow members of the Virginia construction bar) has been challenged by everything from COVID-related shutdowns to supply chain issues to unanticipated price increases. With each of these obstacles placed in front of my clients and friends in the Virginia construction industry, I have gotten calls and questions as to how to best handle the various issues facing the construction world. Needless to say, changes in price or material availability occurring between the date of a contract’s signing and the (likely delayed) start or completion of the contractual scope of work have caused some consternation and claims. Many of these claims did not come forward or reach my, or others, desk until after the world reopened post-COVID and construction began to speed up and money started to be owed. While one “easy” answer, particularly for those “upstream” in the payment chain, is “tough luck, you gave me a fixed price, signed a contract, and we expect you to honor it,” this may not be the best and most practical way to get the job done. Read the full story...
Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

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Real Estate & Construction News Round-Up (12/07/22) – Home Sales, EV Charging Infrastructure, and Office Occupancy

December 26, 2022 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
This week’s round-up explores decreasing home sales, electric vehicle charging stations, office occupancy levels, and more.

• With home sales dropping and more buyers abandoning their plans, forecasters have rarely disagreed as much as they are now regarding where the housing market is going next. (Nicole Friedman, Nick Timiraos, The Wall Street Journal)
• Contractors and construction technology firms are watching as skilled workers look for new jobs in a turbulent economy. (Matthew Thibault, Construction Dive)
• The ability to conveniently charge electric vehicles away from home is a top concern for many owners, indicating the strong need for an extensive and reliable external charging infrastructure. (Robert Charette, IEEE Spectrum)

Read the full story...
Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team

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Rising Construction Disputes Require Improved Legal Finance

November 15, 2022 — Apoorva Patel - Construction Executive
Construction disputes are famously high stakes, and the industry is currently experiencing an uptick in the value and number of disputes resulting from contractual obligations and third-party or force majeure incidents. While this is not entirely surprising given COVID-19’s disruption of global markets and supply chains, the numbers are noteworthy. For example, in 2020 alone, the International Chamber of Commerce (ICC)—the leading institution for construction disputes, partly because its clauses feature in many FIDIC standard form contracts—registered 194 construction arbitrations, and construction disputes now comprise over 20% of the ICC caseload. In addition to the damage to business outcomes that the underlying disputes may present, parties can quickly spend many millions on legal fees and expenses, as well as technical experts and consultants, if and when those disputes progress through the courts or arbitration. According to Norton Rose’s 2020 Global Construction Disputes Report, the average construction dispute value rose sharply from $30.7 million in 2019 to $54.26 million in 2020. Reprinted courtesy of Apoorva Patel, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the full story...

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OSHA Set to Tag More Firms as Severe Violators Under New Criteria

November 01, 2022 — Richard Korman & Stephanie Loder - Engineering News-Record
In announcing last month broadened criteria for classifying employers as severe safety violators, U.S. Occupational Safety and Health Administration official Douglas Parker singled out a steel fabricator near El Paso, Texas. The U.S. Labor Dept. assistant secretary for occupational safety and health, he posted a blog stating that OSHA had placed Kyoei Steel Ltd. in its severe violators program, which subjects the firm to numerous re-inspections until it is allowed to exit. Reprinted courtesy of Richard Korman, Engineering News-Record and Stephanie Loder, Engineering News-Record Mr. Korman may be contacted at kormanr@enr.com Read the full story...

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Panthers Withdraw City, County Deal Over Abandoned Facility

September 19, 2022 — The Associated Press (Jeffrey Collins) - Bloomberg
Columbia, S.C. (AP) -- Carolina Panthers owner David Tepper’s real estate company wants to revoke a bankruptcy settlement it negotiated with the city and county where its abandoned South Carolina practice facility was supposed to be built because it says the governments are making exorbitant and unreasonable demands. GT Real Estate Holdings had offered $21 million to York County. It suggested giving the proceeds from selling part of its site in Rock Hill so the city would get at least $20 million. But the county and city have filed separate lawsuits and court papers. York County said it is entitled to more than $80 million in part to get back money from a special penny sales tax that was supposed to expand a road but Tepper’s company used for the proposed practice facility. Read the full story...
Reprinted courtesy of Bloomberg

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Designing the Process to Deliver Zero-Carbon Construction – Computational Design in Practice

January 04, 2023 — Peter Debney - AEC Business
Computational Design is generating increasing interest in the construction industry as well as a certain amount of confusion. It is not parametric design; instead it takes parametric design to the next level. It is a set of methods that will define how we design structures over the next decades. With Computational Design, you don’t design the building; you design the automated process to find the best building design. Why use Computational Design? Computational Design is enabling us to create buildings that are far more efficient than we can manage using more traditional methods. Some architects are indeed using it to produce novel building forms, but its great advantage is in helping us towards efficient, zero-carbon construction. Read the full story...
Reprinted courtesy of Peter Debney, AEC Business

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Anti-Concurrent Causation Endorsements in CGL Insurance Policies: A Word of Caution

August 29, 2022 — David M. McLain – Colorado Construction Litigation
While I have not performed exhaustive research into the origin of anti-concurrent causation (“ACC”) endorsements on insurance policies, or how or when they migrated from first-party property policies to commercial general liability (“CGL”) policies, they have done so. The result for Colorado’s construction professionals may rear its ugly head as an unwelcome and surprise outright declination of coverage for construction defect claims. ACC endorsements state that if there are two causes of damage: one of which is covered by a policy and one of which is not, the carrier can invoke the ACC endorsement to disclaim coverage for all of the damage. An exemplar ACC endorsement is ISO Form CG 21 67, entitled “Fungi or Bacteria Exclusion.” Read the full story...
Reprinted courtesy of David McLain, Higgins, Hopkins, McLain & Roswell
Mr. McLain may be contacted at mclain@hhmrlaw.com

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