Delaware Revises its Payment Act and Mandates that All Construction Contracts Be Governed by Delaware Law

On June 25, 2012, Governor Jack A. Markell signed legislation that provides for significant revisions to a statute formerly known as the “Delaware Building and Construction Payments Act.” By enacting House Bill 109, the statute has been renamed the “Building Construction Procedures Act” (the “Act”).

More significantly, the scope of the Act has been expanded to include all services provided on construction projects. In addition, the Act now provides that all construction contracts must be governed by Delaware law and all litigation, arbitration, mediation or other dispute resolution procedures must take place in the state of Delaware. Specifically, the Act states:

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Duane Morris Construction Group Nominated for Chambers USA Award for Excellence

We’re happy to announce that our construction group has made Chambers’ short-list for the Chambers USA Award for Excellence. 2012 marks the third year in a row Duane Morris has been nominated. Criteria for the nomination includes notable achievements over a 12-month period such as outstanding work, impressive strategic growth and excellence in client service and is based on the independent research conducted for Chambers USA 2012. Congratulations to all of our construction attorneys for this recognition.

Bill that Includes Major Revisions to Pennsylvania’s Mechanic’s Lien Law Passes House and Moves to Senate

Prior to 2007, the Pennsylvania Mechanic’s Lien Law of 1963, 49 P.S. §1101-§1902 (the “Mechanic’s Lien Law”) operated for over 40 years in its original form, without any significant or substantive modifications. In 2007, however, amendments to the Mechanic’s Lien Law went into effect that significantly changed the statute. For example, the 2007 amendments changed, inter alia, the enforceability of upfront waivers and the definition of a “subcontractor.” In 2009, additional amendments to the Mechanic’s Lien Law went into effect which changed some of the 2007 amendments.

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Governor Christie Unveils His 2012 “Project Portfolio” for School Construction Projects

On February 15, 2012, Governor Chris Christie announced his recommendation of twenty new capital school construction projects in eighteen municipalities. These new school projects will be financed and administered through the New Jersey Schools Development Authority (“SDA”).

The 20 projects set to advance in 2012 were divided into three categories addressing: 1) high educational priority needs; 2) high educational priority needs that require further discussions; and 3) serious facility deficiencies.

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Pennsylvania Does Not Adopt the 2012 International Code Council’s Model Construction Codes

On January 18, 2012, the Pennsylvania Uniform Construction Code Review and Advisory Council (the Council) voted 11 to 5 against the adoption of the 2012 I-Codes, the model building codes published by the International Code Council (ICC). The Council, however, did make an exception regarding the accessibility portion of the 2012 model code. Based on this vote, the Council is now charged with submitting a report to the Secretary of Labor and Industry by July 2012, and the bulk of the 2009 edition of the ICC’s codes will remain the basis for Pennsylvania’s uniform construction code.

Because the 2012 I-Codes were not adopted, the ICC’s new “green building” model code, called the International Green Construction Code will not be included in Pennsylvania’s construction code.

Many of Pennsylvania’s construction trade organizations celebrated the Council’s decision, because they believe the implementation of new codes would add additional costs that the construction industry cannot afford. Similarly, the Council voted against the 2011-I Codes, because, inter alia, the new codes were complicated and impossible to enforce.

Big Cities Lost Construction Jobs in 2011

The Association of General Contractors of America released its construction employment data for 2011, and, as expected, the overall construction market remains weak. Although construction spending between December 2010 and December 2011 increased by 4.3 percent, two of the country’s largest cities, Philadelphia and New York City, experienced sharp declines in their construction workforce. More specifically, out of the 337 metropolitan areas listed by the AGC, Philadelphia reported the largest job loss with a loss of 4,800 construction jobs, a 7 percent decline. New York City was a close second with a construction job loss of 4,600 jobs, a 4 percent decline.

On the bright side, Lake County-Kenosha County, Ill.-Wis., added both the most and the highest percentage of new construction jobs (33 percent, 3,900 jobs). Other areas adding a large number of jobs included Edison-New Brunswick, N.J. (3,700 jobs, 11 percent); Portland-Vancouver-Hillsboro, Ore.-Wash. (3,600 jobs, 8 percent); Louisville-Jefferson County, Ky.-Ind. (3,100 jobs, 13 percent) and San Jose-Sunnyvale-Santa Clara, Calif. (3,100 jobs, 10 percent).

Overall, construction employment increased in 148 out of 337 metropolitan areas between December 2010 and December 2011, decreased in 128 areas, and stayed level in 61 areas. Association officials said that recent developments in Washington that could lead to passage of long-delayed highway, bridge, transit and aviation investment legislation could give a needed boost to construction employment in many areas.

Amtrak Announces Major Projects for 2012

As passenger rail service continues to rise, Amtrak has announced an “aggressive” construction agenda for 2012. For example, Amtrak intends to spend $15 million in 2012 for planning and other pre-construction activities on its Gateway Program to provide additional capacity into Manhattan for Amtrak intercity and New Jersey Transit commuter services, including the proposed NextGen HSR system. As part of the overall plan, which is expected to cost several billion dollars, Amtrak will build two additional tunnels under the Hudson River to access expanded terminal facilities serving New York Penn Station and the future Moynihan Station on the site of the former Farley Post Office. In addition, Amtrak plans to replace and expand the century old Portal Bridge over the Hackensack River and increase from two to four the number of tracks between Newark and New York.

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The opinions expressed on this blog are those of the author and are not to be construed as legal advice.

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