Jose A. Aquino – Duane Morris Construction Law

January 12, 2023January 12, 2023 by Jose A. Aquino

New York Announces Investments In Clean And Efficient Buildings

Yesterday, New York Governor Kathy Hochul announced new investments in clean and efficient buildings. As part of her 2023 State of the State, Governor Hochul introduced a series of building decarbonization initiatives, including zero-emission for new construction and the phase out of the sale of new fossil fuel heating equipment.

“I’m proposing a plan to end the sale of any new fossil-fuel-powered heating equipment by 2030,” said the governor. “And I’m calling for all new construction to be zero-emission, starting in 2025 for small buildings and 2028 for large buildings. We are taking these actions because climate change remains the greatest threat to our planet, and to our children and grandchildren.”

Continue reading “New York Announces Investments In Clean And Efficient Buildings”

January 3, 2023 by Jose A. Aquino

New York Court Rejects Building Owner’s Motion For Default Judgment Against Subcontractor And Architect

A recent decision of the New York Supreme Court, LAM Group v. Anthony T. Rinaldi LLC, 2022 WL 17881264 (Sup. Ct., NY Co., Dec. 22, 2022), illustrates the importance of meticulously following the procedures set forth in civil practice statues and rules. In LAM, the owners of a commercial building in lower Manhattan brought an action against their contractor, a subcontractor, and other construction professionals alleging breach of contract, negligence, and other claims in connection with the installation of a stucco façade on their property.

Plaintiffs alleged that pieces of the stucco façade from the exterior of the building dislodged and landed on a neighboring property causing damage. Eventually, the entire stucco façade required replacement. Defendant Bayport Construction Group (“Bayport”), a subcontractor, had performed the masonry and stuccowork. Bayport and another defendant, Nobutaka Ashihara Architect PC (“NAA”), the initial architect retained for the project, were served with the summons and verified complaint by service on the New York Secretary of State, pursuant to New York Business Corporation Law § 306(b). However, neither Bayport nor NAA filed an answer or otherwise appeared in the action. Plaintiffs filed a motions for default judgment against the two non-appearing defendants. The court found that plaintiffs properly served Bayport and NAA with process and with the motion papers, but refrained from entering a default because plaintiffs failed to strictly follow the procedure set forth in the New York Civil Practice Law and Rules (“CPLR”).

Continue reading “New York Court Rejects Building Owner’s Motion For Default Judgment Against Subcontractor And Architect”

January 3, 2019 by Jose A. Aquino

NY Governor Vetoes Bill To Allow Delay Damages On Public Contracts

New York Governor Andrew Cuomo ended 2018 by vetoing New York Senate Bill 6686 to amend the state finance law by adding a new section 138-b to allow contractors working on public construction projects seek delay damages against government agencies. The vetoed bill would have required all public contracts to contain a clause allowing a contractor, subcontractor or supplier to make a claim for costs due to excusable delays resulting from actions or omissions by a public owner or any of its representatives. The bipartisan bill sponsored by Senators Michael Ranzenhofer (Republican) and Luis Sepulveda (Democrat) passed the Assembly by a vote of 103 to 40 and the Senate 59 to 0. The text of the bill can be seen here.

Jose A. Aquino (@JoseAquinoEsq on Twitter) is a special counsel in the New York office of Duane Morris LLP, where he is a member of the Construction Group and of the Duane Morris Cuba Business Group. Mr. Aquino focuses his practice on commercial litigation with a concentration in construction law, mechanics’ lien law and government procurement law. This blog is prepared and published for informational purposes only and should not be construed as legal advice. The views expressed in this blog are those of the author and do not necessarily reflect the views of the author’s law firm or its individual attorneys.

December 3, 2018December 3, 2018 by Jose A. Aquino

Major Milestone Reached in Phase II of New York City’s Second Avenue Subway Project

The Metropolitan Transit Authority (MTA) announced that the Federal Transit Administration issued a “Finding of No Significant Impact” (FONSI) for Phase II of New York City’s Second Avenue Subway Project. The FONSI was issued after an extensive update of the original Environmental Impact Statement that was prepared in 2004. The new findings mean changes to the design of the project since 2004 were found to have no additional adverse impact on the environment in the construction area.

Congresswoman Carolyn B. Maloney said: “This finding is a major step forward toward making Phase 2 of the Second Avenue Subway a reality,” “Phase 2 will make it much easier to commute to and from East Harlem, and to access Metro North and the LaGuardia bus at 125th Street. We have already seen the extraordinary success of Phase 1, and the MTA must move forward as quickly as possible to build the full-length Second Avenue Subway up to 125th Street and then down to lower Manhattan.”

Phase I of the Second Avenue Subway opened for service January 1, 2017. Phase II is now underway with engineering and environmental reviews. Phase II will extend the subway line to 125th Street with stops at 106th, 116th, and 125^th. When completed, the Second Avenue Subway Line will extend 8.5 miles from 125th Street in Harlem to Hanover Square in Lower Manhattan, including 16 new ADA-accessible subway stations.

January 23, 2017January 23, 2017 by Jose A. Aquino

New York Governor Issues Executive Order to Close Wage Gap In State Contracts

On January 9, 2017, New York Governor Andrew Cuomo signed Executive Order 162 requiring state agencies and authorities to include a provision in state contracts “requiring contractors to agree to include detailed workforce utilization reports, in addition to the equal employment opportunity information” that is currently required to be included in such reports. The new reports must contain the job title, salary and other data, including the gender, race, and ethnicity of each employee working on the state contract. If the contractor cannot identify the particular workers on the state contract, the report must then contain the job titles and salary data “of each employee in the contractor’s entire workforce.”

Executive Order 162 applies to “all State contracts, agreements, and procurements issued and executed on or after June 1, 2017.” The new reporting requirement applies to both contractors and subcontractors. Contractors and subcontractors will be required to report the information on a quarterly basis for all prime contracts with a value in excess of $25,000. Contractors with contracts of more than $100,000 must report monthly.

The New York State Department of Economic Development will set forth procedure in which the information will be reported. The New York State Department of Labor will analyze the data and make recommendations to eliminate any detected wage disparity.

Upon signing the Order Governor Cuomo stated: “At these stormy times of instability and confusion, New York must serve as a safe harbor for the progressive principles and social justice that made America.”

Executive Order 162 can be found here.

November 14, 2016January 23, 2017 by Jose A. Aquino

New York Construction Industry Welcomes New Agreement On Extension Of 421-A Tax Abatement Program

Almost a year after it expired, the Building and Construction Trades Council and the Real Estate Board of New York (REBNY) reached an agreement to restore the 421-a tax exemption program. The New York State legislature still has to approve the agreement.

The new agreement will require developers to pay construction workers an average hourly wage of $60 (including wages and benefits) for projects in Manhattan with over 300 units south of 96^th Street. In Brooklyn and Queens, the average hourly rate for workers, including wages and benefits, will be $45, and the wage and benefit obligations will apply to buildings located in Community Boards 1 and 2 within one mile of the nearest waterfront bulkhead. Projects with 50 percent or more affordable apartments are excluded from the wage and benefits requirement.

The agreement will also extend the maximum time developers will pay zero in property tax with the 421-a program from 21 years to 35 years. In exchange, affordable apartments with rent limitations must remain that way an additional 5 years to 40 years.

To assure compliance with the wage and benefits obligation of the program, developers will have to hire independent monitors to audit certified payrolls. The independent monitors will certify to the New York City Department of Housing Preservation and Development within 120 days of the receipt of the final Certificate of Occupancy that the compulsory wages and benefits have been paid.

Under the new agreement, developers may opt out of the 421-a wage and benefits requirement by entering into a Project Labor Agreement (PLA). If a developer chooses to enter into a PLA, the developer can still take advantage of all other elements of the 421-a program.

“The deal reached today between these parties provides more affordability for tenants and fairer wages for workers than under the original proposal. While I would prefer even more affordability in the 421-a program, this agreement marks a major step forward for New Yorkers,” Governor Andrew Cuomo said in a statement.

Rob Speyer, chair of REBNY, said: “We are pleased to have reached an agreement that will permit the production of new rental housing in New York City, including a substantial share of affordable units, while also ensuring good wages for construction workers.”

March 11, 2016January 23, 2017 by Jose A. Aquino

Moody’s: U.S. Public Private Partnership Market (P3s) Set For Growth

According to a Moody’s Investors Service, the U.S. market for public-private partnerships (P3s) is equipped for growth and positioned to become one of the world’s largest. According to a new report from Moody’s important factors like availability of new state and federal resources, political support, the underlying legal structure to enforce P3 contracts and a strong capital market shape the necessary foundations for steady growth.

“State-level P3 activity has risen over the last three years, and nearly all P3 projects have been completed early or on time,” said John Medina, Moody’s VP – Senior Analyst “The need for more inter- and intra-government P3 best practice sharing remains key for the US P3 market’s long-term development compared to other markets where infrastructure development and funding may be more centrally aligned.”

The announcement of Moody’s Investors Service’s report can be seen here.

Jose A. Aquino (@JoseAquinoEsq on Twitter) is a special counsel in the New York office of Duane Morris LLP, where he is a member of the Construction Group and focuses his practice on commercial litigation with a concentration in construction law, mechanics’ lien law and government procurement law.. This blog is prepared and published for informational purposes only and should not be construed as legal advice. The views expressed in this blog are those of the author and do not necessarily reflect the views of the author’s law firm or its individual attorneys.

October 8, 2015January 23, 2017 by Jose A. Aquino

New York University Gets $100M Donation for Engineering School

NYU Polytechnic School of Engineering received a $100-million donation from trustee Chandrika Tandon and her husband, Ranjan. The school will be renamed the Tandon School of Engineering. The Tandons said in a statement that they “hope their gift will bring many more of us together to reinvent engineering.”

NYU President John Sexton said the funds would go to faculty, financial aid and new areas of engineering. NYU pledged to raise an additional $50 million in response to the donation. The engineering school has approximately 5,000 students.