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Real Estate & Construction News Roundup (3/20/24) – Construction Backlog Falls, National Association of Realtors Settle Litigation, and Commercial Real Estate Market’s Effect on City Cuts

April 15, 2024 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
In our latest roundup, bad loans outweigh loss reserves at top six U.S. banks, the FCC announces a proposed rule aimed at “bulk billing,” office-to-multifamily conversion projects grow in major metro cities, and more!

• The National Association of Realtors has agreed to settle litigation that accused them of artificially inflating real estate commissions – a major decision that could reshape the housing market for buyers, sellers and agents. (Rachel Siegel, The Washington Post)
• An NYU professor considers the positives and negatives of cities cutting services or raising other kinds of taxes to offset the continued faltering of the commercial real estate market. (Alan Rappeport, The New York Times)
• Construction backlog fell in February for every size of contractor except for those with under $30 million in annual revenue, while, over the past year, the largest contractors – those with greater than $50 million in revenue – have experienced the greatest decline in backlog. (Sebastian Obando, Construction Dive).

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Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team

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Construction Litigation Roundup: “Ursinus is Cleared!”

March 11, 2024 — Daniel Lund III - Lexology
Ursinus University in Pennsylvania – a “private, nonprofit liberal arts college” – funded a construction project for a new building utilizing monies loaned by the Montgomery County Health and Higher Education Authority, a public economic development authority “formed by the Board of County Commissioners… authorized to issue bonds relative to projects for eligible educational institution such as Ursinus.” Loans up to the amount of $23,000,000 became available to the University, and construction proceeded using the loans as construction funds. At issue: whether a project was to be considered publicly funded project such that prevailing wage rates were required to be paid. IBEW filed a related grievance with the Pennsylvania Department of Labor and Industry’s Bureau of Labor Law Compliance, which was refused by the Bureau, on the basis that because work was “financed completely by loans from the Authority, which Ursinus was required to repay in their entirety, the Project was ultimately funded through private sources and exempt from coverage under the [Pennsylvania Prevailing Wage Act].” A grievance to the Prevailing Wage Appeals Board ensued, and the Board took a different position. Read the full story...
Reprinted courtesy of Daniel Lund III, Phelps
Mr. Lund may be contacted at daniel.lund@phelps.com

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Real Estate & Construction News Roundup (4/10/24) – Hotels Integrate AI, Baby-Boomers Stay Put, and Insurance Affects Housing Market

May 06, 2024 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
In our latest roundup, DOT’s major grant programs, proptech’s solution to climate change risks, mortgage-locked sellers put their homes on the market, and more!

• The U.S. Department of Transportation opened applications for four major grant programs for infrastructure and transportation projects, totaling about $7.5 billion. (Dan Zukowski, Construction Dive)
• Hotel brands are integrating AI into their operational processes — such as virtual concierges — and working toward sustainability initiatives that accelerate more environmentally friendly practices industry-wide. (Noelle Mateer, Hotel Dive)
• The housing market will soon exit its slowdown, thanks to a growing number of mortgage-locked sellers opting to put their homes on the market, according to JPMorgan Asset Management. (Jennifer Sor, Business Insider)

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Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team

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National Engineering and Public Works Roadshow Highlights Low Battery Seawall Restoration Project in Charleston

April 29, 2024 — Engineering and Public Works Roadshow
CHARLESTON, SC — On Thursday, the nationwide Engineering and Public Works Roadshow stopped at the Low Battery Seawall Restoration Project in Charleston. The event highlighted the role engineers and public works professionals play in infrastructure projects like the local seawall improvements that increase coastal resiliency along the historic urban shoreline. The event, which took place along the newly constructed battery wall section between King Street and Battery Place along Murray Boulevard, marked the latest stop of the Engineering and Public Works Roadshow – a joint effort by the American Council of Engineering Companies, the American Public Works Association, and the American Society of Civil Engineers to bring public attention to the essential role engineers and public works professionals play in making our modern world possible. The battery project underscores the importance of innovative engineering solutions in addressing the challenges of climate change and rising sea levels. Thursday's event was also a chance to spotlight the engineering, construction, and public officials involved in the project, whose work often goes unrecognized. About the Engineering and Public Works Roadshow: The Engineering and Public Works Roadshow is a series of nationwide events highlighting critical infrastructure projects and the skilled professionals who make them possible. It is an opportunity to learn about the importance of infrastructure investment, showcase the work of engineers and public works professionals, and celebrate these projects' positive impact on our communities. Learn more at www.infrastructureroadshow.org.

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The (Jurisdictional) Rebranding of The CDA’s Sum Certain Requirement

April 15, 2024 — Jordan A. Hutcheson and Stephanie Rolfsness - Watt Tieder
The Contract Disputes Act (the “CDA”), 41 U.S.C.A. §§ 7101 et seq., which has provided the statutory framework for resolution of most contract disputes between the federal government and its contractors since 1978, has recently been the subject of changes in judicial interpretation, despite no corresponding statutory changes. The CDA’s implementing provisions in the Federal Acquisition Regulations (FAR), require that contractors submit a claim to the government in the form of written demand to a contracting officer requesting a final decision and seeking the payment of money in a sum certain prior to pursuing resolution via board or court. However, with respect to the sum certain requirement, the United States Court of Appeals for the Federal Circuit issued an opinion in late 2023 determining that this requirement “should not be given the jurisdictional brand” as it has categorically received in the past. Rather, the court concluded that the sum certain requirement is merely an element of a claim for relief under the CDA that a contractor must satisfy to recover. This rebranding does not debase the sum certain requirement, but it does indicate a renewed focus on what constitutes “jurisdictional” in government contracts litigation. Reprinted courtesy of Jordan A. Hutcheson, Watt Tieder and Stephanie Rolfsness, Watt Tieder Ms. Hutcheson may be contacted at jhutcheson@watttieder.com Ms. Rolfsness may be contacted at srolfsness@watttieder.com Read the full story...

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Construction Litigation Roundup: “A Fastball Right to the Bean!”

May 06, 2024 — Daniel Lund III - Lexology
The Metropolitan Municipality of Lima, Peru, filed suit in federal court in Washington DC to vacate two separate arbitration awards rendered against the city in international arbitration proceedings subject to the Federal Arbitration Act. The city had contracted to build, improve, and maintain various highways in and around the city. To pay for this infrastructure, Lima agreed that the contractor would “receive revenues from existing and new toll booths.” Apparently, the City of Lima forgot how much citizens of the area loathed tolls, and, according to the court, the local public officials “quickly truckled” (how apropos for a road project!) to the pressure. As a result, revenues promised to the contractor were not forthcoming, and the city did nothing about it. The contractor initiated arbitration, and the city countered by arguing that the contractor had bribed its way into the contract. The city lost and was held in breach. Read the full story...
Reprinted courtesy of Daniel Lund III, Phelps
Mr. Lund may be contacted at daniel.lund@phelps.com

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From the Ashes: Reconstructing After the Maui Wildfire

November 27, 2023 — Grace Calengor - Construction Executive
On Tuesday, Aug. 8, a wildfire on the Hawaiian island of Maui ravaged the town of Lahaina, killing nearly 100 people and stranding thousands of survivors, many of whom remain displaced today. The loss of life makes this the deadliest American wildfire on record, while the material cost in property damage has been estimated at upwards of $5 billion. The response to the disaster has involved firefighters and other emergency personnel—and also engineering and construction professionals. One of them is Tam Kim, director of operations for West Maui Construction Inc., a civil contractor on the island. Originally from Oregon, Kim fell in love with Hawaii when he visited on a surfing vacation; eventually he took his technology background and helped found a startup company on Maui in 2008. Eight years later, the startup relocated to Oahu, but Kim stayed on Maui to forge a different path, one that would lead him somewhere he never imagined. Reprinted courtesy of Grace Calengor, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the full story...

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When Must a New York Insurer Turn Over a Copy of the Policy?

December 23, 2023 — Nicholas P. Hurzeler - Lewis Brisbois
New York, N.Y. (December 7, 2023) - It has long been the rule in New York that a defendant should disclose all insurance policies that might provide coverage to the plaintiff for an underlying claim. McKiernan v Vaccaro, 168 AD3d 827 [2d Dept 2019]; Keenan v Harbor View Health & Beauty Spa, 205 AD2d 589 [2d Dept 1994]. This rule applies to all tort cases, including motor vehicle; however, it does not apply to lawsuits seeking to recover No Fault expenses (see, CPLR 3101(f)(5)). Frequently, a plaintiff will demand a copy of the policy even when the claim is still pre-suit. This raises the question of when the insurer must comply with this specific type of discovery demand in New York. Read the full story...
Reprinted courtesy of Nicholas P. Hurzeler, Lewis Brisbois
Mr. Hurzeler may be contacted at Nicholas.Hurzeler@lewisbrisbois.com

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