Tag Archives: construction

How We Won a $7.9 Million Arbitration Award: Construction Litigator Talks Shop

A real estate investor in an independent living facility in Texas has won a $7.9 million arbitration award against a construction company that delivered a project 179 days late.

The case should serve as a warning bell for integrated developer-owner-contractor companies that set up a “special purpose entity” for their development projects, said Benton Wheatley, partner in Duane Morris in Austin, who represented plaintiff Montgomery Street Partners.

To read the full text of this article, originally published in Texas Lawyer, please visit the firm website.

Considerations of UK Construction Remobilisation, Part 2

Last week we discussed, in light of the encouragement from Robert Jenrick MP (Secretary of State for Housing, Communities and Local Government) for the construction industry to remobilise, the government’s apparent reluctance to provide confidence and clarity for the construction industry in respect of the safe operation of sites.

In the Prime Minister’s address to the nation on 10 May 2020, he re-stated that encouragement for the construction industry, where possible, to return to work.

To read the full text of this post by Duane Morris attorneys Steve Nichol and Matthew Friedlander, please visit the Duane Morris London Blog.

Considerations of UK Construction Remobilisation

The construction industry in the UK has been afforded the freedom to continue work where it is safe to do so since the lockdown was implemented. It is a freedom that the sector has done its best to exploit where it can, with significant works continuing on a variety of essential and less essential projects. A number of leading construction companies and housebuilders have continued or recommenced work where they are able to do so, and a number of high profile projects are apparently progressing well. Build UK has reported that its members, who comprise some of the largest contractors operating in the UK, are now working on 73% of sites (up from 69% last week). However, the issues for the industry facing the prospect of full remobilisation to all sites have not changed.

To read the full text of this post by Steve Nichol and Matthew Friedlander, please visit the Duane Morris London Blog.

Construction Industry at Core of Post-COVID-19 Debates

By Owen Newman and Chris Chasin

Who is in the best position to sustain the loss? And what outcome is in the overall best interests of industry, economy and the public at-large? Governments will grapple with these issues in the context of COVID-19 in the months and years to come. And the construction industry, willing or not, will find itself at the core of these debates as it deals with COVID-19 related cost and schedule impacts caused by work stoppages, disruption of labor resources and productivity, disturbed supply chains and varied safety requirements. Continue reading Construction Industry at Core of Post-COVID-19 Debates

Exit Strategies: Construction & Engineering UK

By Vijay Bange and Tanya Chadha

It was announced on Sunday 5 April that Keir Starmer was selected as leader of the Labour Party. Whilst the current Covid-19 outbreak has no basis for political jostling, he raised a very important question, namely, what is the government’s “Exit Strategy” to eventually get us back to a sense of normality.

The point raised by Keir Starmer is of wider economic relevance. Save for key workers, most other business sector activities have come to a halt. This is largely (but not exclusively) the case for construction and engineering projects. Continue reading Exit Strategies: Construction & Engineering UK

Challenging Times: Construction and Engineering in the UK

By Vijay Bange and Tanya Chadha

The COVID -19 pandemic has already had a massive effect on global economies. Its impact has been unprecedented and there is a degree of uncertainty on almost every facet of daily life.

This article seeks to touch upon issues that may affect those in the UK construction industry specifically, but certain elements will no doubt equally apply across other sectors. Continue reading Challenging Times: Construction and Engineering in the UK

Coronavirus and Construction in the UK: The Time to Talk Is Now

In an industry of seemingly ever-tighter margins across the board, it is perhaps unsurprising that the construction industry has fought to continue through the current coronavirus crisis as much as it has.  However, many in the industry have stopped work and shut down sites and, despite the current and perhaps somewhat over-optimistic view from the government that work can continue whilst still complying with social distancing rules, it seems inevitable that all non-essential work will stop very soon. Continue reading Coronavirus and Construction in the UK: The Time to Talk Is Now

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.

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.

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 96th 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.”

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.

 

Duane Morris Attorneys Contribute to Construction & Engineering Law 2016

Charles Lewis and Jeffrey Hamera have authored a chapter on USA Construction Law in the recently published book, International Comparative Legal Guide to: Construction & Engineering Law 2016

Construction & Engineering Law covers common issues in construction and engineering laws and regulations – including making construction projects, supervising construction contracts, common issues on construction contracts and dispute resolution – in 29 jurisdictions.

The USA chapter includes the following sections: 1. Making Construction Projects; 2. Supervising Construction Contracts; 3. Common Issues on Construction Contracts; 4. Dispute Resolution.

To read the full text of the chapter online, please visit the ICLG website.