Real Estate & Construction News Roundup (8/21/24) – REITs Show Their Strength, Energy Prices Increase Construction Costs and CRE Struggles to Keep Pace
October 01, 2024 —
Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law BlogIn our latest roundup, UBS to liquidate $2 billion real estate fund, hotel workers in San Francisco vote to strike, housing market to change after blockbuster settlement, and more!
- When it comes to buying and selling homes, new rules are about to be put in play, five months after the National Association of Realtors agreed to a settlement over how its 1.5 million agents across the U.S. are paid commissions. (Kate Gibson, CBS)
- Project abandonments tumbled in July in one of the largest monthly declines ever due to the anticipated interest rate cut. (Sebastian Obando, Construction Dive)
- Increases in energy prices drove most of the total rise in construction input costs over the past month. (Sebastian Obando, Construction Dive)
Read the full story...Reprinted courtesy of
Pillsbury's Construction & Real Estate Law Team
Snooze You Lose? Enforcement of Notice and Timing Provisions
November 11, 2024 —
Cornelius F. "Lee" Banta, Jr. - ConsensusDocsDeadlines are an inescapable part of the construction industry. Bid deadlines. Submittal deadlines. Material delivery deadlines. Substantial completion. Final completion. And so, inevitably, fighting about deadlines becomes a necessary byproduct. Was the deadline really a deadline? Was the schedule slippage on the critical path? Should there be an equitable extension to the date of substantial completion? Given the amount of attention and concern conferred on deadlines, those drafting construction contracts naturally seek to clarify which deadlines really matter with the inclusion of notice and timing provisions.
A contract’s change order and claims procedures are often a key friction point for those drafting and administering the contract. Should there be a requirement for prior written notice of a claim for cost/time relief? How much advance notice? Who should the request be sent to? Is a specific form of notice required? What are the consequences of failing to provide timely notice? A practitioner should pay careful attention to negotiating these terms on the front end, because rest assured, these contract provisions will garner scrutiny when a change order dispute boils over.
Read the full story...Reprinted courtesy of
Cornelius F. "Lee" Banta, Jr., Peckar & Abramson, P.C.Mr. Banta may be contacted at
lbanta@pecklaw.com
Timely and Properly Assert Affirmative Defenses and Understand Statutory Conditions Precedent
August 05, 2024 —
David Adelstein - Florida Construction Legal UpdatesA recent case serves as a reminder to TIMELY and PROPERLY assert affirmative defenses and to understand statutory conditions precedent to construction lien claims. Failing to do one or the other could be severely detrimental to the position you want to take in a dispute, whether it is a lien foreclosure dispute, or any other dispute.
In Scherf v. Tom Krips Construction, Inc., 2024 WL 3297592 (Fla. 4th DCA 2024), the president of a construction company and his wife were building a residence. They orally accepted the proposal from the concrete shell contractor and asked for invoices to be submitted to the president’s construction company. No written contract was memorialized. The president and his wife did not pay the concrete shell contractor and the contractor recorded a lien and sued to foreclose on the lien. Years later (the case had been stayed because the president and his wife filed for bankruptcy and the shell contractor had to get leave of the automatic bankruptcy stay to pursue the lien foreclosure), the shell contractor moved for summary judgment. The president and his wife moved for leave to file an amended answer and affirmative defenses. They claimed the oral contract was with the construction company and the shell contractor was required to serve a Notice to Owner under
Florida Statute s. 713.06. Alternatively, they argued that if the oral contract was with the president and his wife, the shell contractor was required to serve a Final Contractor’s Payment Affidavit at least 5 days before filing its lien foreclosure claim, and did not, as required by s. 713.06.
Read the full story...Reprinted courtesy of
David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
OSHA Finalizes PPE Fitting Requirement for Construction Workers
December 31, 2024 —
Jonathan H. Schaefer - Construction Law ZoneOn December 11, 2024, the Occupational Safety and Health Administration (OSHA) announced it finalized a revision to the personal protective equipment (PPE) standard for the construction industry. The
final rule adds specific language to the existing standard requiring employers to provide properly fitting PPE for construction industry workers. This change aligns the construction industry with the standards in place for the general industry.
According to OSHA, many types of PPE must properly fit workers. Improperly sized PPE can ineffectively protect workers, creating new hazards for them, such as oversized gloves or protective clothing being caught in machinery and discouraging use because of discomfort or poor fit. OSHA stated that the longstanding issue with improperly fitting PPE particularly impacted women, as well as physically smaller or larger workers.
Read the full story...Reprinted courtesy of
Jonathan H. Schaefer, Robinson+ColeMr. Schaefer may be contacted at
jschaefer@rc.com
Real Estate & Construction News Roundup (8/14/24) – Commercial Real Estate AI, Hotel Pipeline Growth, and Housing Market Improvements
September 23, 2024 —
Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law BlogIn our latest roundup, nonresidential spending drops, realtor payment structure changes, office vacancy rates soar, and more!
- A decline in mortgage rates and a drop in housing prices are giving buyers a potential path to securing homeownership. (Omar Mohammed, Newsweek)
- Starting August 17, new rules will roll out that overhaul the way Realtors get paid to help people buy and sell their homes. (Samantha Delouya, CNN)
- Spending dropped in almost half of nonresidential subcategories in June with the decrease stemming from higher interest rates, tighter credit conditions and a softening economy. (Sebastian Obando, Construction Dive)
Read the full story...Reprinted courtesy of
Pillsbury's Construction & Real Estate Law Team
The Impact of Nuclear Verdicts on Construction Businesses
October 28, 2024 —
Craig Tappel - Construction ExecutiveA rush to build at a time when the U.S. housing supply continues to fall short may come with a cost to the construction industry.
Particularly in hot markets—Sun Belt states and the Mountain West—the drive to finish fast, if not big, can lead to construction and design-defect litigation. Last fall, for example, $22 million in damages were awarded to 220 unhappy homeowners in a South Carolina subdivision northwest of Charleston, four years after their claim for defective work was filed against a major U.S. homebuilder and its subcontractors.
Defective work is one of three areas where the construction industry is particularly vulnerable as class-action litigation and thermonuclear verdicts surge.
Another is the risk of loss of life or permanent disability on a site, and not solely involving workers: Over $860 million was awarded in 2023 to the family of a woman who was killed in a 2019 crane collapse at a Dallas construction site.
Reprinted courtesy of
Craig Tappel, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Wilke Fleury Attorneys Featured in “The Best Lawyers in America” & “Best Lawyers: Ones to Watch” 2025 Editions
August 19, 2024 —
Wilke Fleury LLP2025 Best Lawyers & Ones to Watch
George Guthrie, Best Lawyer
Adriana Cervantes, One to Watch
Steven Williamson, Best Lawyer
Jason Eldred, One to Watch
Daniel Foster, Best Lawyer
David Frenznick, Best Lawyer
Kathryne Baldwin, One to Watch
Daniel Egan, Best Lawyer
Wilke Fleury is extremely proud to have five attorneys recognized in The Best Lawyers in America and three attorneys recognized in the Best Lawyers: Ones to Watch in America! Best Lawyers has been regarded by lawyers and the public for more than 40 years as the most credible measure of legal integrity and distinction in the United States. Congratulations to this talented group!
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Wilke Fleury LLP
Toolbox Talk Series Recap - The Mediator's Proposal
January 21, 2025 —
Douglas J. Mackin - The Dispute ResolverIn our final edition of the year of Division 1's Toolbox Talk Series on December 19, 2024,
Matthew Argue and
Gene Witkin discussed the use of the Mediator’s Proposal to bridge any final gaps to settlement between parties to a mediation. For those unfamiliar, a Mediator’s Proposal is a settlement proposal that the mediator makes to all parties to the dispute simultaneously. Each party then advises the mediators in confidence whether they accept or reject the proposal. The Mediator will communicate to all the parties that the Mediator’s Proposal is accepted only if all parties accept.
Argue and Witkin emphasized that the Mediator’s Proposal is not a shortcut and should not be u
Florida Former Public Works Director Fined for Ethics ViolationGeneral Contractors: Consider Importance of "Primary Noncontributory" LanguageContract Disruptions: Navigating Supply Constraints and Labor ShortagesVelazquez Framing, LLC v. Cascadia Homes, Inc. (Take 2) – Pre-lien Notice for Labor Unambiguously Not RequiredPSA: Pay If Paid Ban Goes into Effect on January 1, 2023Senior Living Facility Makes Construction Defect Claims Couple Perseveres
Balcony Collapses Killing Six People
Wilke Fleury Celebrates the Addition of Two New Partners
California Courts Call a “Time Out” During COVID-19 –New Emergency Court Rules on Civil Litigation
Appraisal Process Analyzed
When is Construction Put to Its “Intended Use”?
AEM Pursuing ISO Standard for Earthmoving Grade-Control Data
What Makes a Great Lawyer?
Florida Lien Law and Substantial Compliance vs. Strict Compliance
Starting July 1, 2020 General Contractors are “Employers” for All Workers on Their Jobsite
Loan Modifications Due to COVID-19 Pandemic: FDIC Answers CARES Act FAQs
Designed to Expose: Beware Lender Certificates
Designing a Fair Standard of Care in Design Agreements
Surplus Lines Carriers Cannot Compel Arbitration in Louisiana
Homeowners Should Beware, Warn Home Builders
Is Your Contract “Mission Essential?” Recovering Costs for Performing During a Force Majeure Event Under Federal Regulations
Fraudster Sells 24-Bedroom ‘King’s Speech’ London Mansion
With VA Mechanic’s Liens Sometimes “Substantial Compliance” is Enough (but don’t count on it)
Increases in U.S. Office Rents Led by San Jose and Dallas
Judgment for Insurer Reversed Due to Failure to Establish Depreciation
How Machine Learning Can Help with Urban Development
California Makes Big Changes to the Discovery Act
Washington Court Limits Lien Rights of Construction Managers
Quick Note: Discretion in Determining Prevailing Party for Purposes of Attorney’s Fees
Colorado Defective Construction is Not Considered "Property Damage"
Contractor Entitled to Defense for Alleged Faulty Workmanship of Subcontractor
Jury Awards 20 Million Verdict Against Bishop Abbey Homes
Trends and Issues which Can Affect Workers' Compensation Coverage for Construction Companies
Alaska Civil Engineers Give the State's Infrastructure a "C-" Grade
Contractor Sentenced to 7 Years for “Hail Damage” Fraud
Ensuing Loss Provision Salvages Coverage for Water Damage Claim
No Coverage for Repairs Made Before Suit Filed
Homeowners Not Compelled to Arbitration in Construction Defect Lawsuit
Hawaii Federal District Court Grants Preliminary Approval of Settlement on Volcano Damage
New FAR Rule Mandates the Use of PLAs on Large Construction Projects
Alexis Crump Receives 2020 Lawyer Monthly Women in Law Award
Know and Meet Your Notice Requirements or Lose Your Payment Bond Claims
Partner John Toohey is Nominated for West Coast Casualty’s Jerrold S. Oliver Award of Excellence!
Nonparty Discovery in California Arbitration: How to Get What You Want
“Genuine” Issue of “Material” Fact and Summary Judgments
Proposed Bill Provides a New Federal Tax Credit for the Conversion of Office Buildings
Final Rule Regarding Project Labor Agreement Requirements for Large-Scale Federal Construction Projects
Risky Business: Contractual Versus Equitable Rights of Subrogation
White and Williams Lawyers Recognized by Best Lawyers
Ohio: Are Construction Defects Covered in Insurance Policies?
Corps Issues Draft EIS for Controversial Alaskan Copper Mine
Increase in Single-Family New Home Sales Year-Over-Year in January
Building Growth Raises Safety Concerns
How to Remove a Mechanics Lien from Your Property
Courthouse Reporter Series: Nebraska Court of Appeals Vacates Arbitration Award for Misconduct
Potential Pitfalls Under the Contract Disputes Act for Federal Government Contractors
