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DIRECTORY AND CAPABILITIES

China Allows Construction to Resume of High-Rise Stopped for Last Decade

May 19, 2025 — Saibal Dasgupta - Engineering News-Record
The Chinese government remains silent about why it has permitted construction to resume on a 117-story skyscraper in Tianjin city nearly a decade after it was abandoned, China media are reporting, with a goal to complete it by 2027. The project's $78-million construction permit has caused some surprises because China’s property sector is struggling to find buyers amid an economic slowdown. The building, originally named Goldin Finance 117, has remained the world’s tallest unoccupied building since 2015, when financial fallout from a Chinese stock market crash forced the project's Hong Kong-based real estate developer to liquidate. Read the full story...
Reprinted courtesy of Saibal Dasgupta, Engineering News-Record
ENR may be contacted at enr@enr.com

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Navigating the Executive Order Ending Affirmative Action and DEI for Federal Contractors: Essential Steps for Compliance

March 04, 2025 — Stephen E. Irving & Tara R. Munder - Peckar & Abramson, P.C.
Overview of Executive Order 14173 Federal contractors, subcontractors and grantees have until April 21, 2025, to comply with President Trump’s Executive Order (“EO”) 14173 entitled “Ending Illegal Discrimination and Restoring Merit-Based Opportunity.” This Order introduces significant changes for federal contractors and subcontractors and impacts those working on contracts where the project is wholly or partly funded by the federal government. The EO eliminates long-standing affirmative action requirements and restricts diversity, equity, and inclusion (“DEI”) programs, asserting DEI programs may constitute illegal discrimination. Federal contractors, subcontractors and grantees must reassess their compliance and hiring practices to align with the new regulatory framework, while maintaining compliance with other federal, state and local laws and regulations. Key Changes for Federal Contractors, Subcontractors and Grantees 1. Elimination of Affirmative Action Requirements Since 1965, federal contractors, subcontractors and recipients of federal grants have been required to implement affirmative action programs pursuant to EO 11246. President Trump’s Order revokes that EO, eliminating mandates for workforce composition analysis and hiring preferences based on protected characteristics such as race, national origin, sex, age, disability, and gender, among others. Federal contractors, subcontractors and grantees are now prohibited from implementing hiring or promotion policies that could be interpreted as favoring certain groups over others. Reprinted courtesy of Stephen E. Irving, Peckar & Abramson, P.C. and Tara R. Munder, Peckar & Abramson, P.C. Mr. Irving may be contacted at sirving@pecklaw.com Ms. Munder may be contacted at tmunder@pecklaw.com Read the full story...

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Business Risk Exclusion Dooms Coverage for Construction Defect Claim

January 21, 2025 — Tred R. Eyerly - Insurance Law Hawaii
The First Circuit, following Massachusetts law, found that coverage for allegations against the insured contractor for faulty workmanship were barred by the policy's (j) (6) Exclusion. Admiral Ins. Co. v. Tocci Bldg. Corp., 2024 U.S. App. LEXIS 28439 (1st Cir. Nov. 8, 2024). Tocci Building Corporation was the construction manager for an apartment project owned by Toll JM EB Residential Urban Renewal LLC (Toll). There were several work quality issues and delays on the project and Toll eventually terminated Tocci for alleged mismanagement of the project. Toll then filed a lawsuit against Tocci. The claims against Tocci included (1) damage to sheetrock resulting from faulty roof work; (2) mold formation resulting from inadequate sheathing and water getting into the building; and (3) damage to a concrete slab, wood framing, and underground pipes resulting from soil and settlement due to improperly backfill and soil compaction. Read the full story...
Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

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Winning Construction Disputes: Strategic Negotiation for Better Outcomes

February 19, 2025 — Mohamed Asker - The Dispute Resolver
Construction projects are inherently complex, and disputes seem to be inevitable. Whether it’s a disagreement over defective work, delayed payments, or unforeseen site conditions, effective negotiation can mean the difference between a favorable settlement and an expensive, drawn-out battle. While many in the industry rely on traditional bargaining tactics or the principles from “Getting to Yes,” Chris Voss’s “Never Split the Difference” provides a tactical, psychological approach that can give contractors, owners, and attorneys a decisive edge. 1. The Myth of Splitting the Difference The title of Voss’s book is a direct challenge to one of the most common, yet flawed, negotiation strategies: compromise. In construction disputes, parties often propose to “meet in the middle” as a quick resolution. However, as Voss warns, “A woman wants her husband to wear black shoes with his suit. But her husband doesn’t want to; he prefers brown shoes. So what do they do? They compromise, they meet halfway. And, you guessed it, he wears one black and one brown shoe.” In construction, this can mean accepting an unsatisfactory repair or agreeing to partial payment for incomplete work—neither of which truly resolves the issue. Read the full story...
Reprinted courtesy of Mohamed Asker, Fox Rothschild
Mr. Asker may be contacted at masker@foxrothschild.com

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How U.S. Design and Architecture Firms Can Profit from the Chinese Market and Avoid Pitfalls

December 23, 2024 — Chengdong ("C.D.") Xing - The Dispute Resolver
Despite recent challenges, including obvious political tensions, economic cooling in the PRC, and increased local competition, the Chinese market remains an attractive destination for U.S. design and architecture firms. For instance, PEI Architects has maintained its success in China through long-standing relationships with key clients and is currently involved in two major projects for the Bank of China: a 1.9 million-square-foot complex in Shanghai and a financial center in Haikou.[i] Similarly, NBBJ is playing a critical role in the development of Tencent’s Net City in Shenzhen, a 2-million-square-meter smart city project that aligns with China's goals of sustainable and tech-driven urbanization.[ii] These examples show that while the Chinese market presents challenges, it continues to offer significant opportunities, particularly in sectors where innovative and cutting-edge architectural solutions are in high demand. At the same time, U.S. firms should exercise care: proper advance planning and strategic alliances are crucial for profitable forays into the Chinese market. JR Design Project: A Cautionary Tale When operating in China, U.S. design firms often encounter regulatory challenges, particularly with respect to China’s strict qualification requirements for architectural design services. Failure to meet these requirements can result in serious legal issues, including the potential invalidation of design contracts, as demonstrated in a leading case decided by the Supreme People’s Court of PRC (the nation’s highest court). Read the full story...
Reprinted courtesy of Chengdong ("C.D.") Xing, Rajah & Tann Singapore LLP
Mr. Xing may be contacted at chengdong.xing@rajahtann.com

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BWB&O’s Colorado Lawyers Successfully Defend Damages of more than $150 Million in Historic Construction Lawsuit!

April 08, 2025 — Dolores Montoya - Bremer Whyte Brown & O'Meara LLP
Partner Devin Brunson and Associate Trevor Alexander played a critical role together as part of the multi-firm litigation team that obtained a judgment of more than $74 million (one of the highest awards in the history of the Denver District Court), while successfully defending more than $150 million in alleged damages! This case arises from the construction of a 23-story hotel and casino in Blackhawk, Colorado. BWB&O’s client was the construction manager for the project. When the Owner stopped paying for its ongoing work, BWB&O’s client was forced to commence the litigation. In response, the Owner asserted counterclaims alleging more than $150 million in damages related to construction defects and delay. The case culminated in a 7-week bench trial in the fall of 2023 and months of extensive post-trial briefing. After considering its decision for over a year, the Court awarded BWB&O’s client more than $74 million in unpaid construction fees, while also finding that BWB&O’s client was responsible for no delay and only $144,894 for minor defects. Read the full story...
Reprinted courtesy of Dolores Montoya, Bremer Whyte Brown & O'Meara LLP

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Rejection’s a Bear- Particularly in Construction

December 23, 2024 — Christopher G. Hill - Construction Law Musings
As I read through this week’s cases published in Virginia Lawyers Weekly, I came across a case posing an interesting question. The question is, “If your bid is rejected along with everyone else’s, can you complain?” The short answer set out by the Rockingham County, Virginia Circuit Court is “No.” In the case of General Excavation v. City of Harrisonburg the Court looked at the Virginia Public Procurement Act’s bid protest provisions in Va. Code 2.2-4360 and 2.2-4364(C) in the context of General Excavation’s protest of the City’s failure to award it (or anyone else for that matter) the contract on which it was the low bidder. The controlling section of the statute allows a challenge to the award or proposed award of a contract. In defending the action, the City of Harrisonburg argued that, because the Procurement Act waived some of the city’s sovereign immunity, it must be read strictly. The city further argued (somewhat ironically) that, because no award of the contract was given or even proposed, General Excavation could not bring suit because it would not be challenging the “proposed award or award” of a contract. Not surprisingly, the Rockingham County court held with the City and strictly construed the statute against General Excavation in finding that General Excavation did not have the standing necessary to bring suit under the statute. 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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LA’s Wildfire Recovery Shifts to Costly and Chaotic Rebuilding

April 22, 2025 — John Gittelsohn - Bloomberg
Across the fire-ravaged neighborhoods around Los Angeles, the Army Corps of Engineers has deployed battalions of excavators to topple chimneys, uproot trees and scrape away the ashes of thousands of homes, preparing the ground for new construction. Signs for contractors offering their services dot burned-out lots. For homeowners who lost their residences, the attention has turned to rebuilding—quickly and affordably. In Altadena, where the Eaton Fire killed 19 people and nearly wiped out the community, a half-dozen neighbors met a contractor on Glenrose Avenue this month to discuss building new houses from the rubble. A separate group of 100 property owners have banded together to share architects and contractors, hoping to cut costs as they work to restore their homes. Over near the Pacific Palisades, dozens of homeowners who lost properties convened at a Santa Monica hotel last month to hear from a developer with proposals to rebuild using pre-planned models. The price, starting around roughly $3 million, is fixed with homes set for delivery within a year of breaking ground. Read the full story...
Reprinted courtesy of John Gittelsohn, Bloomberg

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