Build, Baby, Build. But Not Like This, Britain.
March 04, 2024 —
Matthew Brooker - BloombergThe UK needs to do a lot more building. A lack of access to physical and digital connections is holding back the economy, the government says. Besides tackling the housing crisis, the country has to construct more roads, railways, wind farms and reservoirs to open up opportunity and drive productivity. The only problem is that Britain is notoriously inept at delivering infrastructure projects on time and within budget.
The advantage of doing things badly is that at least you get to learn from your mistakes — in theory. Updates this month have offered some illuminating insights into two of the biggest civil-engineering undertakings in the country: High-Speed Rail 2, better known as HS2, and Hinkley Point C, which will be Britain’s first new nuclear power station since 1995. Here are five lessons that can be drawn from the issues encountered by two projects with a combined bill that’s likely to exceed £100 billion ($127 billion):
Don't take budgets too seriously — especially at the start. Fixing an initial budget that was too low may have done much to feed later perceptions that HS2’s costs were spiraling out of control. The original estimate for the expanded train network was set too early and based on “very immature data,” Jon Thompson, appointed executive chair of High Speed 2 Ltd. in February last year, told the House of Commons transport committee. Numbers get more accurate and reliable as work progresses and the quality of information improves. What were viewed as cost blowouts partly reflected this process. The effect was unfortunate, undermining political support for HS2 and providing cover for cutbacks that have reduced the network to a single line between London and Birmingham that fails to fulfill most of its original purpose. To avoid this problem: Stick to a range rather than a single figure, and make sure people understand the uncertainties inherent in early-stage estimates.
Read the full story...Reprinted courtesy of
Matthew Brooker, Bloomberg
Meet the Forum's ADR Neutrals: LESLIE KING O'NEAL
January 29, 2024 —
Marissa L. Downs - The Dispute ResolverCompany: JAMS
Office Location: Orlando, FL
Email: lkoneal1117@gmail.com
Website: https://www.jamsadr.com/oneal/
Law School: University of Florida, J.D. (1977)
Types of ADR services offered: Mediation, arbitration, neutral evaluation
Geographic area served: Nationwide
Q: Describe the path you took to becoming an ADR neutral.
A: Florida was one of the first states to allow judges to send civil cases to mediation. When I was an advocate, nearly all my cases went to mediation at least once—sometimes more than once! I became a firm believer in the value of mediation and other ADR methods. I became a Florida certified circuit court mediator in 2021 and I joined JAMS in 2022, after retiring as in-house counsel with Brasfield & Gorrie, a large commercial general contractor. I am also an adjunct professor at Pepperdine Law School, teaching arbitration theory and practice in its master of dispute resolution and master of laws programs.
Read the full story...Reprinted courtesy of
Marissa L. Downs, Laurie & Brennan, LLPMs. Downs may be contacted at
mdowns@lauriebrennan.com
Navigating the Construction Burrito: OCIP Policies in California’s Construction Defect Cases
November 16, 2023 —
Alexa Stephenson & Ivette Kincaid - Kahana FeldIn the early 2000’s, Owner-Controlled Insurance Programs (OCIP) or WRAPS, were traditionally used in large commercial projects of over $50 million in construction costs. As construction defect lawsuits became more prevalent, subcontractors found themselves unable to meet the insurance requirements of their contracts with developers and general contractors because they could not find insurance companies that were willing to insure the risk. This presented a problem for developers and general contractors and left them with no option but to look into new insurance products that would insure them and all subcontractors who worked on the project. OCIPs became in some instances the only insurance option for developers, general contractors, and subcontractors to build single-family or multi-family projects in California and other western states.
OCIPS or WRAPS, often likened to the layers of a savory burrito, offer both enticing benefits and potential pitfalls. Just as a burrito’s ingredients can harmonize or clash, OCIP policies can shape the outcome of legal battles, impacting contractors, developers, and insurers alike.
Pros – Savoring the OCIP Burrito:
1. Wrapped Protection: Much like a well-folded burrito envelops its contents, OCIP policies offer comprehensive coverage for construction projects. Developers, general contractors, and subcontractors find comfort in knowing that their liability risks are bundled into a single policy, ensuring all enrolled parties have coverage in the event of a claim.
Reprinted courtesy of
Alexa Stephenson, Kahana Feld and
Ivette Kincaid, Kahana Feld
Ms. Stephenson may be contacted at astephenson@kahanafeld.com
Ms. Kincaid may be contacted at ikincaid@kahanafeld.com
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McDermott International and BP Team Arbitrate $535M LNG Site Dispute
April 02, 2024 —
Mary B. Powers - Engineering News-RecordBP and Kosmos Energy are seeking “maximum recoverable damages” of about $535 million in binding arbitration with contractor McDermott International over a claim that it failed to meet contract obligations on subsea pipeline installation for an estimated $4.8 billion liquefied natural gas project off Africa.
Reprinted courtesy of
Mary B. Powers, Engineering News-Record
ENR may be contacted at enr@enr.com
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Denial of Motion to Dissolve Lis Pendens Does Not Automatically Create Basis for Certiorari Relief
November 16, 2023 —
David Adelstein - Florida Construction Legal UpdatesA recent appellate decision out of Florida’s Sixth District Court of Appeal holds that a trial court’s denial of motion to dissolve a lis pendens does NOT automatically give a basis for a petition for a writ of certiorari. Generalized allegations of “irreparable harm” to support the basis for the petition for writ of certiorari are insufficient. Rather, the party moving for the petition MUST clearly demonstrate the irreparable harm; otherwise, the petition for writ of certiorari will fail.
A lis pendens has legal significance. It is a recorded document that notifies the world that there is a pending lawsuit dealing with the real property at issue. This is important because who wants to buy a piece of property that is subject to litigation – that would be a risky transaction!
In CPPB, LLC v. Taurus Apopka City Center, LLC, 48 Fla.L.Weekly D1837a (Fla. 6th DCA 2023), a dispute arose as to a real estate transaction. The owner sold a parcel to a buyer. The owner also owned three adjacent parcels. As part of the transaction, the buyer agreed to perform certain improvements to all of the parcels including those adjacent parcels owned by the owner. The owner deposited funds in escrow for purposes of its share of the improvements. A payment dispute arose regarding the improvements and the buyer sued the seller. The seller filed a counterclaim to rescind the transaction along with a recorded lis pendens on the parcel purchased by the buyer. The buyer moved to dissolve the lis pendens which the trial court denied. This prompted the appeal – a petition for a write of certiorari based on the trial court’s denial of the motion to dissolve the lis pendens.
Read the full story...Reprinted courtesy of
David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
What Will the 2024 Construction Economy Look Like?
January 02, 2024 —
Grace Calengor - Construction ExecutiveCE just wrapped its "2024 Economic Update and Forecast" webinar, which revealed some interesting insights for 2023 and projections for next year. Anirban Basu, chief economist for ABC and CEO of Sage Policy Group, began his presentation by stating auspiciously: “The economy has been much stronger along more dimensions than I expected.”
Polling: good news for the supply chain
Not only did Basu's own research reveal strong construction growth in a majority of sectors, a decent number of construction job openings and wage increases, as well as supply-chain improvement and a stagnating federal rate—but webinar attendees who answered Basu's polling questions felt similarly.
Reprinted courtesy of
Grace Calengor, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Settlement Reached on Troubled Harbor Bridge in Corpus Christi, Texas
November 16, 2023 —
Daniel Tyson - Engineering News-RecordA $400-million settlement was reached between the Texas Dept. of Transportation and general contractor Flatiron/Dragados over Corpus Christi’s Harbor Bridge in mid-October. The accord ends all disagreements and damage claims concerning the cable-stayed bridge, a project halted multiple times.
Reprinted courtesy of
Daniel Tyson, Engineering News-Record
Mr. Tyson may be contacted at tysond@enr.com
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Court Grants Insurer's Motion for Summary Judgment After Insured Fails to Provide Evidence of Systemic Collapse
April 15, 2024 —
Tred R. Eyerly - Insurance Law HawaiiWith the insurer conceding that there was evidence of potential collapse at portions of eight specific building locations, the court granted the insurer's motion for partial summary judgment in determining no additional buildings suffered from collapse. Exec. 1801 LLC v. Eagle W. Ins. Co., 2024 U.S. Dist. LEZXIS 5923 (D. Or. Jan. 11, 2024).
Executive 1801 owned a group of six buildings with eighty-six residential units. The court previously granted partial summary judgment on Executive 1801's rain damage claim, leaving only claims regarding collapse. Eagle insured "the property for direct physical los or damage to Covered Property . . . caused by or resulting from any Covered Cause of loss." The policy further provided, "We will pay for direct physical loss or damage to Covered Property, caused by collapse of a building or any part of a building insured under this policy, if the collapse is caused by . . . hidden decay."
Read the full story...Reprinted courtesy of
Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com