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Construction Updates

Read need-to-know updates, commentary, and analysis on Construction issues written by leading professionals.

A $1 Trillion Infrastructure Package Will Only Get You $500 Billion Worth of Stuff Without Permitting Reform

Tuesday, President Donald Trump released his FY 2018 budget. Within the budget the administration included a fact sheet containing key principles for the president’s $1 trillion infrastructure plan. On a call with reporters,...more

Compensation events under NEC3: Prospective vs Retrospective Assessment

by White & Case LLP on

The NEC3 suite of contracts contemplates compensation events being assessed at around the time they occur or are instructed, based on the forecasted impact of the event.But if the actual cost or delay arising from an event is...more

West Coast Real Estate Update - May 2017 - #3

by Holland & Knight LLP on

L.A. to Legalize Residential Units Previously Created in Violation of Building Code - On May 10, 2017, the Los Angeles City Council unanimously approved an ordinance that would permit previously unapproved dwelling...more

Construction One-Minute Read: Allowance or Contingency?

While both relatively simple concepts, allowances and contingencies are often confused with one another. Conflating the two can lead to pitfalls. ...more

Construction Liens Filed by Suppliers in New Jersey After Contractor’s Filing of Bankruptcy Petition Are Barred by the Automatic...

by Pepper Hamilton LLP on

In re: Linear Electric Co., Inc., No. 16-1477, 2017 U.S. App. Lexis 5527 (3d Cir., March 30, 2017) - This case concerns whether suppliers, Cooper Electrical Supply Co. and Samson Electrical Supply Co. (“Suppliers”),...more

Massachusetts Appellate Court Holds That No-Damages-for-Delay Clause Does Not Bar Claim for Schedule Compression and Affirms Award...

by Pepper Hamilton LLP on

Central Ceilings, Inc. v. Suffolk Constr. Co., Inc., 2017 Mass App. Lexis 36 (March 29, 2017). The Massachusetts State College Building Authority contracted with Suffolk Construction Company (“Suffolk”) to serve as the...more

Wage and Hour Pitfalls Part 1: What You Need To Know

by Farrell Fritz, P.C. on

1. Employers Must Pay “Manual Workers” Weekly. In New York, employers are required to pay manual workers weekly. A “manual worker” includes “a mechanic, workingman or laborer” or individuals who spend more than 25% of...more

Factoring and leading with your chin

by Dentons on

Factoring agreements are very popular with subcontractors and suppliers in the construction industry, assisting cash-flow by providing a line of credit against accounts receivable. However, like any financial product,...more

Descoping of works: what is the employer entitled to do?

by White & Case LLP on

Financial constraints mean that employers are often looking to descope works from major projects. But how feasible is this? A recent case highlights the potential implications for employers who attempt to descope works...more

Court Rejects Claim That Arbitrator’s Ruling Was In Manifest Disregard Of The Law

by Carlton Fields on

A court has granted a petition to confirm an arbitration award despite the defendant’s argument that the arbitrator acted in manifest disregard of the law. While acknowledging questions regarding the continuing viability of...more

Third Appellate District Holds Right to Repair Act Precludes Certain Common Law Claims for Damages Caused by Construction Defects

In Gillotti v. Stewart (No. C075611, filed 4/26/17, publication order 5/18/17), the California Court of Appeal for the Third Appellate District held that the Right to Repair Act, Civil Code section 895, et seq. (the “Act”)...more

Colorado Construction Defect Action Reform: HB 17-1279 Approved by Colorado Legislature; Governor’s Approval Imminent

by Snell & Wilmer on

Colorado developers frequently cite Colorado’s Construction Defect Action Reform Act (CDARA) as an obstacle to building new condominiums in the state. Developers contend that the law makes it too easy for condo boards to sue...more

New Federal Infrastructure Plan Coming Soon

Transportation Secretary Elaine Chao recently informed the U.S. Senate that the President’s $1 trillion infrastructure plan will be announced by the end of the month. The new plan is anticipated to rely upon public-private...more

Oregon OSHA Issues Proposed Changes to Regulations Regarding Occupational Exposure to Beryllium in General Industry, Construction,...

by Stoel Rives LLP on

In response to the federal Occupational Safety and Health Administration’s adoption of revised beryllium exposure standards, Oregon OSHA has proposed to adopt the federal OSHA final rules, with minor modifications that would...more

Deadline Extended for D.C. Comprehensive Plan Amendment Proposals

by Ballard Spahr LLP on

The District of Columbia Office of Planning (OP) has extended the deadline for individuals and groups to submit proposed amendments to D.C.'s Comprehensive Plan, which guides future growth and development in the District. OP...more

Keeping Your Place in Line: Title Insurance Protections for Construction Loan Disbursements

Most construction loans contemplate multiple advances or disbursements of funds at various stages of the construction project. The construction loan agreement will set forth the conditions that the borrower must satisfy to...more

Federal Court in Alaska Holds Insurer Liable Under E&O Policy to Indemnify and Defend Construction Manager for Claims by...

by Pepper Hamilton LLP on

KICC –Alcan Gen. v. Crum & Forster Specialty Ins. Co., 2017 U.S. Dist. LEXIS 37560 (March 16, 2017) - A Contractor/Construction Manager, KICC-Alcan General (“KICC”), entered into a subcontract with an MEP subcontractor,...more

The Ontario Municipal Board may be no more

by Dentons on

The Province of Ontario announced changes to the land use planning appeals system this morning. Although the Province had publicly indicated it would not abolish the Ontario Municipal Board (O.M.B.), these changes will do...more

Colorado State Legislature Finally Passes Construction Defects Reform Legislation

In a dramatic and seemingly overnight change of course, the Colorado House of Representatives unanimously approved House Bill 1279 on April 24, 2017. Days later, on May 4, 2017, HB 1279 passed unanimously in the Colorado...more

Tokyo Dispute Resolution & Crisis Management Newsletter – April 2017

by King & Spalding on

Building a Favorable Project Record During Construction Disputes - The value and importance of the written record in a dispute arising from a major construction project cannot be overstated. Even when project personnel are...more

Deadline Approaching for D.C. Comprehensive Plan Amendment Proposals

by Ballard Spahr LLP on

The deadline is approaching for individuals and groups to submit proposed amendments to the District of Columbia's Comprehensive Plan, which guides future growth and development in the District. May 26 is the last day of the...more

The Indiana Supreme Court Finds a Non-Delegable Duty of Worksite Safety Created in Form Design-Build Contracts Between the Owner...

by Reminger Co., LPA on

In Indiana, courts have historically found it is acceptable practice for a general contractor to delegate the duty of ensuring the safety of a subcontractor’s employees to the subcontractor, so long as it is clearly set forth...more

Maryland Senate Fails To Consider Bill Passed By House To Preclude Limitations On Construction Defect Claims

by Baker Donelson on

The Maryland Senate failed to vote on SB 670, which would prevent condominium developers from limiting the ability of the council of unit owners and individual unit owners to bring claims for building defect issues. The...more

President Trump’s “Buy American, Hire American” Executive Order and the Construction Industry

“We will have two simple rules when it comes to this massive rebuilding effort, buy American and hire American” – President Donald Trump On April 18, 2017, President Trump signed Executive Order No. 13788 implementing his...more

Contractor May Receive Indemnity Despite Alleged Active Negligence or Willful Misconduct

by Low, Ball & Lynch on

Oltmans Construction Co. v. Bayside Interiors, Inc. - Court of Appeal, First Appellate District, 10 Cal.App.5th 355 (March 30, 2017) - Civil Code § 2782.05 renders an indemnity provision in a contract void and...more

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