The Rise of Modular Construction – Impacts for Consideration
December 04, 2023 —
Chad V. Theriot - ConsensusDocsModular construction is not new. However, over the last several years, modular construction has seen significant growth with no signs of slowing down. In 2021, global modular construction represented a market of approximately $130 billion and is projected to reach upwards of $235 billion by 2031. Modular construction growth in the US is largely due to the technological advances and globalization.
In general, modular construction involves the manufacturing and fabrication of standardized components of a structure in an off-site, controlled environment. Once those components are fabricated, they are then transported to the project site and assembled by an installer or contractor. Moving these fabrication and construction activities off-site allows the fabricator to control the quality standards over the fabrication process and gain the economic advantage of an assembly line and manufacturing process. This leads to a reduction in cost. This cost savings is then passed on to the owner, thereby driving down the overall price of construction.
Read the full story...Reprinted courtesy of
Chad V. Theriot, Jones Walker (ConsensusDocs)Mr. Theriot may be contacted at
ctheriot@joneswalker.com
Empowering Success: The Advantages of Female Attorneys in Construction Defect Law
December 11, 2023 —
Alexa Stephenson, Hoosai Kabiri & Ivette Kincaid - Kahana FeldPer the most recent U.S. Census records, women make up 50.4% of the U.S. population. It should come as no surprise then that women currently outnumber men in U.S. law schools. Nevertheless, as of 2022, only 38% of attorneys, 30% of federal judges, 22% of equity partners, and 12% of managing partners nationwide are comprised of women. While great strides have been made in the last century to increase gender equality in the legal field, there is undoubtedly still a long way to go.
Studies have shown that women in the workforce lead to a number of benefits not only to the business itself, but to a business’ employees and culture. In the realm of construction defect law in particular, the presence and contributions of female attorneys have become increasingly impactful and essential. As the legal landscape evolves, the benefits of having female attorneys practicing in this specialized field are becoming more evident, offering a range of advantages that contribute to a more diverse, comprehensive, and successful legal environment. These advantages include:
1. Diverse Perspectives: Female attorneys bring a unique perspective to the practice of construction defect law, enriching the field with their insights and experiences. Their diverse backgrounds and viewpoints can lead to innovative strategies and fresh approaches when tackling complex legal issues.
Reprinted courtesy of
Alexa Stephenson, Kahana Feld,
Hoosai Kabiri, Kahana Feld and
Ivette Kincaid, Kahana Feld
Ms. Stephenson may be contacted at astephenson@kahanafeld.com
Ms. Kabiri may be contacted at hkabiri@kahanafeld.com
Ms. Kincaid may be contacted at ikincaid@kahanafeld.com
Read the full story...
Is Modular Construction Destined to Fail?
March 11, 2024 —
Aarni Heiskanen - AEC BusinessThe construction sector is a harsh environment for innovation. I’ve been following the story of one Finnish innovative contractor, Lehto Group, over the years with enthusiasm. I was saddened to hear that the group’s three significant subsidiaries joined the ranks of many Finnish contractors who have filed for bankruptcy over the last six months.
Lehto developed industrialized building concepts and had its own production facilities. The company had a promising start but eventually ran into problems. Was the industrial approach a mistake, or were other factors contributing to the firm’s fall?
Three Contributing Factors
Lehto Group’s collapse was not a surprise to its competitors, who had observed warning signs years prior. The company’s order book plummeted in 2024 despite still employing around 500 workers. Rakennuslehti, the leading construction magazine in Finland, asked three experienced industry professionals to give their views on Lehto’s failure. The interviewees spoke anonymously due to the small size of the Finnish market and the sensitive nature of commenting on a competitor’s matters.
Read the full story...Reprinted courtesy of
Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi
GOP, States, Industry Challenge EPA Project Water Impact Rule
January 02, 2024 —
Pam McFarland - Engineering News-RecordDays after the Biden administration rule reinstated state authority under the U.S. Clean Water Act to delay or deny construction permits on projects with water quality impacts, attorneys general from 11 Republican-led states, along with the American Petroleum Association, National Hydropower Association and Interstate Natural Gas Association of America, filed suit in federal court.
Reprinted courtesy of
Pam McFarland, Engineering News-Record
Ms. McFarland may be contacted at mcfarlandp@enr.com
Read the full story...
Judicial Economy Disfavors Enforcement of Mandatory Forum Selection Clause
December 16, 2023 —
David Adelstein - Florida Construction Legal UpdatesMandatory forum (venue) selection provisions are generally construed in favor of enforceability. Parties agreed to the forum for disputes so why not enforce them, right? A recent federal district court case out of the Eastern District of Louisiana exemplifies an exception grounded in judicial economy which disfavors the enforceability of mandatory forum selection provisions. Keep in mind that this judicial economy exception is fairly limited but the fact pattern below demonstrates why enforcing the mandatory forum selection provision was disfavored due to judicial economy.
In U.S. f/u/b/o Exposed Roof Design, LLC v. Tandem Roofing, 2023 WL 7688584 (E.D.La. 2023), a sub-subcontractor filed a Miller Act payment bond lawsuit against the prime contractor and the prime contractor’s Miller Act payment bond sureties. The sub-subcontractor also sued the subcontractor that hired it. However, the sub-subcontractor’s subcontract with the subcontractor included a mandatory forum selection provision in a different form. The subcontractor moved to sever and transfer the sub-subcontractor’s claims against it to the forum agreed upon in the subcontract. The trial court denied the severance and the transfer. Below are the reasons.
Read the full story...Reprinted courtesy of
David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Don’t Fall in Trap of Buying the Cheapest Insurance Policy as it May be Bad for Your Business Risks and Needs
March 25, 2024 —
David Adelstein - Florida Construction Legal UpdatesDon’t fall in the trap of buying the cheapest insurance policy. It will come and bite you in the butt big time! Consult with an insurance broker that understands construction and, importantly, your specific industry, to provide you coverage within your industry. Otherwise, you’ll be paying for a policy that may (i) not be a good policy, and (ii) may provide you minimal to no value for your industry’s RISKS and NEEDS when factoring in exclusions. When procuring insurance, think of the old adage “penny wise and pound foolish,” and don’t make decisions that fit within this adage!
The recent decision in Nautilus Ins. Co. v. Pinnacle Engineering & Development, Inc., 2024 WL 940527 (S.D. Fla. 2024) serves as an example. Here, a subcontractor was hired by a general contractor to perform underground utility work for a townhome development which consisted of 57 townhome units included in 18 detached structures. The subcontractor’s underground work was defective which caused damage to the property’s water line, sewer system, plumbing lines, pavers, etc. The general contractor was liable to the owner for this defective work. Although the general contractor was an additional insured under the subcontractor’s commercial general liability (CGL) policy, the subcontractor’s CGL carrier denied the duty to defend and initiated an insurance coverage lawsuit. Motions for summary judgment were filed.
Read the full story...Reprinted courtesy of
David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
New York Revises Retainage Requirements for Private Construction Contracts: Overview of the “5% Retainage Law”
January 22, 2024 —
Levi W. Barrett, Patrick T. Murray, Skyler L. Santomartino & Mark A. Snyder - Peckar & Abramson, P.C.On November 17, 2023, the State of New York enacted the “5% Retainage Law.” This legislation effectively limits the amount of retainage that can be held from general contractors and subcontractors to no more than 5%. It applies to many but not all construction contracts. In addition, the new law revises late stage billing requirements, enabling contractors to invoice for retainage at substantial completion. Previously, the parties to a construction contract were free to negotiate any retainage amount, limited only by an unspecified “reasonable amount” that would be released as the parties contractually set forth.
Summary
The new law amends Sections 756-a and 756-c of the General Business Law (part of Article 35E of the GBL, known as the “Prompt Pay Act”), and applies to private construction contracts “where the aggregate cost of the construction project, including all labor, services, materials and equipment to be furnished, equals or exceeds one hundred fifty thousand dollars.”
Reprinted courtesy of
Levi W. Barrett, Peckar & Abramson, P.C.,
Patrick T. Murray, Peckar & Abramson, P.C.,
Skyler L. Santomartino, Peckar & Abramson, P.C. and
Mark A. Snyder, Peckar & Abramson, P.C.
Mr. Barrett may be contacted at lbarrett@pecklaw.com
Mr. Murray may be c
2023’s Bank Failures: What Contractors, Material Suppliers and Equipment Lessors Can Do to Protect ThemselvesGovernment Claims Act Does Not Apply to Actions Solely Seeking Declaratory Relief and Not Monetary ReliefNorth Dakota Supreme Court Clarifies Breadth of Contractual Liability CoverageSales of Existing U.S. Homes Decrease on Fewer InvestorsPillsbury Insights – Navigating the Real Estate Market During COVID-19California Ranks As Leading State for Green Building in 2022The Impact of Sopris Lodging v. Schofield Excavation on Timeliness of Colorado Construction Defect ClaimsResolving Subcontractor Disputes with Pass-Through Claims and Liquidation AgreementsPresident Trump’s “Buy American, Hire American” Executive Order and the Construction Industry Home Prices in 20 U.S. Cities Increased 5% in Year to JuneAhlers, Cressman & Sleight PLLC Ranked Top Washington Law Firm By Construction ExecutiveExtrinsic Evidence, or Eight Corners? Texas Court Sheds Light on Determining the Duty to DefendCalifornia Court of Appeal Vacates $30M Non-Economic Damages Award Due to Failure to Properly Apportion Liability and Attorney Misconduct During Closing Argument
Construction Defect Dispute Governed by Contract Disputes Act not yet Suited to being a "Suit"
Traub Lieberman Attorneys Lisa Rolle and Christopher Acosta Win Summary Judgment in Favor of Property Owner
Condo Buyers Seek to Void Sale over Construction Defect Lawsuit
Alert: AAA Construction Industry Rules Update
Schools Remain Top Priority in Carolinas as Cleanup From Storms Continues
Georgia Federal Court Says Fact Questions Exist As To Whether Nitrogen Is An “Irritant” or “Contaminant” As Used in Pollution Exclusion
Illinois Court Determines Insurer Must Defend Property Damage Caused by Faulty Workmanship
CRH to Buy Building-Products Firm Laurence for $1.3 Billion
New FAR Rule Mandates the Use of PLAs on Large Construction Projects
Colorado Federal Court Confirms Consequetial Property Damage, But Finds No Coverage for Subcontractor
“I Didn’t Sign That!” – Applicability of Waivers of Subrogation to Non-Signatory Third Parties
Water Damage Sub-Limit Includes Tear-Out Costs
Congratulations to BWB&O Partner John Toohey and His Fellow Panel Members on Their Inclusion in West Coast Casualty’s 2022 Program!
Georgia Super Lawyers Recognized Two Lawyers from Hunton’s Insurance Recovery Group
No Coverage for Collapse of Building
Wall Enclosing Georgia Neighborhood Built for Walking Dead TV Show
Waiving Consequential Damages—What Could Go Wrong?
Jinx: Third Circuit Rules in Favor of Teamsters in Withdrawal Case
Palo Alto Considers Fines for Stalled Construction Projects
Colorado’s New Construction Defect Law Takes Effect in September: What You Need to Know
Florida Governor Signs Construction Defect Amendments into Law
Here's How Much You Can Make by Renting Out Your Home
Avoid L&I Violations by Following Appropriate Safety Procedures
Heatup of Giant DOE Nuclear Waste Melter Succeeds After 2022 Halt
Is Modular Construction Destined to Fail?
Hilary Soaks California With Flooding Rain and Snarls Flights
Bank Sues over Defective Windows
Transplants Send Nashville Home Market Upwards
Claim Against Broker for Failure to Procure Adequate Coverage Survives Summary Judgment
Georgia Supreme Court Addresses Anti-Indemnity Statute
Newmeyer Dillion Attorneys Named to 2022 Southern California Rising Stars List
Administrative and Environmental Law Cases Decided During the U.S. Supreme Court’s 2017-2018 Term
New York Developer’s Alleged Court Judgment Woes
Congratulations to BWB&O’s 2023 Mountain States Super Lawyers Rising Stars!
Foundation Arbitration Doesn’t Preclude Suing Over Cracks
Seattle Condos, Close to Waterfront, Construction Defects Included
Colorado Legislature Kills SB 20-138 – A Bill to Extend Colorado’s Statute of Repose
The Right to Repair Act Isn’t Out for the Count, Yet. Homebuilders Fight Back
Endorsement Excludes Replacement of Undamaged Property with Matching Materials
No Rest for the Weary: Project Completion Is the Beginning of Litigation
WSDOT Seeks Retraction of Waiver Excluding Non-Minority Woman-Owned Businesses from Participation Goals
Colorado Defective Construction is Not Considered "Property Damage"
4 Lessons Contractors Can Learn From The COVID-19 Crisis
Contractors and Owners Will Have an Easier Time Identifying Regulated Wetlands Following Recent U.S. Supreme Court Opinion
Quick Note: Don’t Forget To Serve The Contractor Final Payment Affidavit
Hunton Insurance Lawyer, Adriana Perez, Selected to the National Association of Women Lawyers’ 2023 Rising List
Governmental Action Exclusion Bars Claim for Damage to Insured's Building
OSHA Updates: You May Be Affected
California to Require Disclosure of Construction Defect Claims
