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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 Blog
In 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

When Every Drop Matters, Cities Turn to Watertech

November 25, 2024 — James B. Bobotek - Gravel2Gavel Construction & Real Estate Law Blog
We all need water to survive—but access to the liquid lifeline isn’t always a given. With a shifting climate and ever-increasing agricultural and industrial demands on this limited commodity, UNICEF predicts that by 2025, half of the world’s population could be living in areas facing water scarcity. On top of the obvious resource drains, many countries are losing surprising amounts of potable water to leaks. For example, in the United States alone, an estimated 6 billion gallons of treated drinking water seep out of its supply every day due to aging pipelines and undetected leaks. “Smart” water innovations may offer conservation solutions, though. As part of an overall smart city scheme, where internet of things (IoT) devices work hand-in-hand with AI to improve daily life, many municipalities are giving their water systems a makeover. From new meters to irrigation and pipeline maintenance, we look at some of the key intelligent technologies that endeavor to improve how we harness our water supply. Read the full story...
Reprinted courtesy of James B. Bobotek, Pillsbury
Mr. Bobotek may be contacted at james.bobotek@pillsburylaw.com

$31.5M Settlement Reached in Contract Dispute between Judlau and the Illinois Tollway

September 16, 2024 — Annemarie Mannion - Engineering News-Record
The Illinois Tollway will pay nearly $31.5 million to New York-based Judlau Contracting and its trade contractors to resolve a lawsuit filed after the tollway, in April, terminated a $324-million contract with Judlau to rebuild the southbound lanes of the Interstate 290 and Interstate 88 interchange near Oak Brook, Ill. Reprinted courtesy of Annemarie Mannion, Engineering News-Record Ms. Mannion may be contacted at manniona@enr.com Read the full story...

Flushing Away Liability: What the Aqua Engineering Case Means for Contractors and Subcontractors

October 21, 2024 — Heather Zipperer - Colorado Construction Litigation Blog
The recent Town of Mancos v. Aqua Engineering case is an insightful example of how well written contracts and timely legal action can make all the difference in resolving disputes between municipalities, general contractors, and subcontractors. The ruling favored Aqua Engineering; a subcontractor that played a role in a wastewater treatment facility project gone wrong. The court’s decision highlighted key legal principles, including the economic loss rule and the importance of well-structured contracts in construction disputes. Whether you are a subcontractor looking to avoid undue liability or a general contractor seeking to ensure subcontractors shoulder their fair portion of responsibility, this case offers valuable lessons for all parties involved in construction projects. The Background: A Wastewater Project with Issues In 2008, the Town of Mancos, Colorado, hired Souder, Miller & Associates (“SMA”) to design a new wastewater treatment facility. SMA subcontracted Aqua Engineering to help implement a specific wastewater treatment system known as the Multi-Stage Activated Biological Process (“MSABP”). However, after construction, the facility never worked as expected. For years, the Town faced ongoing issues, and despite Aqua’s involvement in attempts to fix the problems, the facility remained dysfunctional. Read the full story...
Reprinted courtesy of Higgins, Hopkins, McLain & Roswell, LLC

Corrective Action Protest Grounds for GSA Schedule Federal Construction Contractors

September 09, 2024 — Marissa L. Downs - The Dispute Resolver
A contract awarded, protested, terminated, appealed, then reinstated. It’s no secret that federal construction procurements are plagued with uncertainty. From delays, constructive suspensions, compromised supply chains, the litigation-laden critical path method, and the mandate for all construction materials used in federally funded projects for infrastructure to be produced in the United States under the Build America, Buy America Act (BABAA) (to name just a few traditional and emerging favorites), just one of these issues could fill the rest of anyone’s month with substantive research. To add one more, which is entirely unique to bid protests, federal contractors–including construction contractors–listed in a General Service Administration (GSA) Schedule may have new grounds to have a contract award reinstated that was terminated by a federal agency pending a GAO decision. GAO Protest An initial GAO protest filed by Deloitte & Touche LLP (Deloitte) argued that the National Geo-Spatial Intelligence Agency (Agency) wrongfully made an award to Kearney & Company, P.C. (Kearney) when the Agency: (1) improperly evaluated quotes; and (2) failed to conduct a proper best-value tradeoff analysis. At issue was a competed task order with Kearney under a GSA FSS multiple-award contract. Before the GAO issued an opinion, however, it held an unrecorded predictive-outcome conference with Deloitte and Kearney where the only mutual consensus was the likely ineligibility of all offerors for the relevant award. The Agency subsequently elected to take corrective action, terminating Kearney’s contract award for convenience, amending the solicitation to avoid issues (including undisputed issues) addressed in the GAO protest. After the Agency adopted their corrective action, the GAO protest was dismissed as academic and moot. Read the full story...
Reprinted courtesy of Marissa L. Downs, Laurie & Brennan, LLP
Ms. Downs may be contacted at mdowns@lauriebrennan.com

Meet the Forum's Neutrals: TOM DUNN

October 21, 2024 — Marissa L. Downs - The Dispute Resolver
Company: Pierce Atwood LLP Office Location: Boston, MA Licensed in: Massachusetts, Rhode Island, California (inactive) Email: rtdunn@pierceatwood.com Website: https://www.pierceatwood.com/people/r-thomas-dunn Law School: McGeorge School of Law (2004 JD) Types of ADR services offered: Arbitration Affiliated ADR organizations: American Arbitration Association Geographic area served: Massachusetts, Rhode Island, and New England Q: Describe the path you took to becoming an ADR neutral. A: Arbitration and alternative forms to avoid and resolve disputes has interested me since law school. Serving as an arbitrator is rewarding both as a neutral helping people close out disputes, but also as an advocate as it reminds me about how best to communicate with the fact finder. Read the full story...
Reprinted courtesy of Marissa L. Downs, Laurie & Brennan, LLP
Ms. Downs may be contacted at mdowns@lauriebrennan.com

WSHB Secures Victory in Construction Defect Case: Contractor Wins Bench Trial

October 01, 2024 — Wood Smith Henning & Berman
Wood Smith Henning & Berman is pleased to announce a significant victory in a bench trial led by trial attorney Thomas Fama. The case, which had been pending for nearly five years due to pandemic-related delays and unreasonable demands by the plaintiff, concluded with a resounding judgment in favor of the defendant. "The result of this trial is a testament to our team's unwavering tenacity and strategic focus throughout the entire process," stated WSHB partner Tom Fama, lead counsel in the case. "We kept our eye on the proverbial ball and diligently worked to expose the lack of evidence supporting the plaintiff's claims." The matter involved allegations of defective installation of a solar energy system, which the plaintiff claimed leaked during inclement weather. Fama and his team successfully demonstrated that the plaintiff's claims lacked substance, highlighting numerous pre-existing conditions on the roof that could have been responsible for the problem. Read the full story...
Reprinted courtesy of Wood Smith Henning & Berman

Caltrans Reviewing Airspace Program in Aftermath of I-10 Fire

July 02, 2024 — Aileen Cho - Engineering News-Record
The California Dept. of Transportation has indefinitely suspended approving any new leases, subleases, and renewals of open storage properties in the wake of a fire that damaged a section of Interstate 10 through downtown Los Angeles last fall. Reprinted courtesy of Aileen Cho, Engineering News-Record Ms. Cho may be contacted at choa@enr.com Read the full story...

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