Anaheim California Building Consultant Directory

The Ghosts of Tariffs Past May Help Us in the Future

January 07, 2025 — Kellie Ros - ConsensusDocs
The havoc material tariffs have caused the construction industry is nothing new. President-Elect Donald Trump imposed heavy tariffs on steel and aluminum in his first administration in 2016. While the tariffs themselves were not wholly unexpected, the ripple effect of those tariffs (coupled with the impacts of the COVID-19 pandemic) caused unexpected challenges for the construction industry. Those included allocating the risk of the additional costs caused by tariffs, supply and demand issues, grappling with escalation clauses, and navigating fixed price projects. The industry must now utilize the lessons learned from the rear-view mirror to strategically prepare for what was promised to be a second round of tariffs come January 2025. Tariffs’ Impacts on Material Prices Everywhere New or increased tariffs have the potential to raise prices for a wide range of construction inputs. Based on simple supply and demand principles, this includes inputs produced domestically that compete with foreign imports. For example, if a 20% tariff is imposed on Chinese steel, contractors may look to procure Brazil or U.S. steel in an effort to cut their costs. Such a rush to those less-costly alternatives may result in a supply shortage or an increase in prices in the marketplace across the globe. This occurred in 2016 when material prices indirectly related to the inputs on which the tariffs were imposed even increased. Contractors may be well served to get ahead of anticipated price increases and purchase materials now or take other actions in negotiating contracts to protect themselves. Read the full story...
Reprinted courtesy of Kellie Ros, Peckar & Abramson, P.C.
Ms. Ros may be contacted at kros@pecklaw.com

Civil Engineers: Montana's Infrastructure Grade Declines to a 'C-'

December 23, 2024 — American Society of Civil Engineers
Helena, MT — The Montana Section of the American Society of Civil Engineers (ASCE) today released the 2024 Report Card for Montana's Infrastructure, assigning 14 categories of infrastructure a cumulative grade of 'C-', which is on par with the national average from the 2021 Report Card for America's Infrastructure. This is a one-notch decrease from the 'C' grade Montana received in its last report in 2018, citing increasingly severe weather events putting strain on aging and underfunded assets, and one of the fastest growing populations requiring expansions of transportation, water and energy infrastructure. The report includes the first-ever chapter on Montana's broadband infrastructure, assigning an 'I' grade for 'incomplete' due to a lack of sufficient condition data; however, the chapter does note that 71% of Montana residents have access to adequate broadband service, and the IIJA provided nearly $630 million to expand this access across the state. ABOUT THE AMERICAN SOCIETY OF CIVIL ENGINEERS Founded in 1852, the American Society of Civil Engineers represents more than 160,000 civil engineers worldwide and is America's oldest national engineering society. ASCE works to raise awareness of the need to maintain and modernize the nation's infrastructure using sustainable and resilient practices, advocates for increasing and optimizing investment in infrastructure, and improve engineering knowledge and competency. For more information, visit www.asce.org or www.infrastructurereportcard.org and follow us on Twitter, @ASCETweets and @ASCEGovRel.

Court Retained Jurisdiction to Enforce Settlement Under Code of Civil Procedure Section 664.6 Despite Dismissal of Complaint

October 21, 2024 — Garret Murai - California Construction Law Blog
Attorneys will commonly add a Code of Civil Procedure section 664.6 provision in their settlement agreements to ensure that courts have continuing jurisdiction to enforce the terms of a settlement, as opposed to having to file a new complaint in the event of a breach of a settlement agreement. Oral settlements before a trial court are also enforceable under Section 664.6, but as discussed in Eagle Fire and Water Restoration, Inc. v. City of Danuba, Case No. F086052 (May 30, 2024), in cases involving a complaint and multiple cross-complaints, questions can arise as to whether a trial court has in fact retained jurisdiction under Section 664.6 to enforce an oral settlement and even what the terms of the settlement were. The Eagle Fire Case Eagle Fire and Water Restoration, Inc. was hired by the City of Dinuba to reroof the City’s police station and courthouse building. The contract was for approximately $500,000. Before completion of the project, a rainstorm caused significant water damage to the interior of the building. The City incurred over $330,000 in clean-up and repair costs and withheld approximately $319,000 from Eagle as an offset. Read the full story...
Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

FEMA Offers Recovery Tips for California Wildfire Survivors

January 14, 2025 — FEMA
WASHINGTON -- While fire suppression activities are still ongoing in parts of Southern California, affected individuals and families are taking steps toward recovery. FEMA is helping people jumpstart their recovery. You may be eligible for FEMA assistance, even if you have insurance. More than $5.3 million so far are in the hands of survivors to help pay for emergency supplies like food, water and baby formula as well as to replace personal property and pay for a temporary place to stay. Below are tips to help Californians recover from the historic wildfires. If your primary home was affected by the fires, FEMA may be able to help you cover certain costs – like paying for essential items, finding a place to stay, replacing personal property or making basic repairs to your home. However, FEMA assistance is designed to help you if you do not have insurance or if your insurance policies don't cover basic needs. If you have insurance, you should file a claim as soon as possible and be ready to provide your coverage information when applying to FEMA. There are several ways to apply for FEMA assistance:

Online at DisasterAssistance.gov and in Spanish language at DisasterAssistance.gov/es.
Calling the FEMA Helpline at 1-800-621-3362 for assistance in multiple languages.
On the FEMA App for mobile devices.

To view an accessible video about how to apply visit: FEMA Accessible: Registering for Individual Assistance or en Español.

How Finns Cut Construction Lead Times in Half

December 17, 2024 — Aarni Heiskanen - AEC Business
Rakennustieto organized a Q&A on December 5, 2024, titled “Halving Construction Lead Times—Responsible or Irresponsible?” The discussion focused on speeding up residential construction and renovations. The experts answering questions were representatives from two Finnish contractors (COfLOW and Fira), a client organization (HOAS), a building materials retailer (STARK), and a research institute. Can you halve construction lead time without sacrificing quality? Jaana Matilainen of Rakennustieto asked the panelists whether halving construction time is a realistic goal today, whether they can provide any examples, and if the speed-up has increased or decreased quality. Read the full story...
Reprinted courtesy of Aarni Heiskanen, AEC Business
Mr. Heiskanen may be contacted at aec-business@aepartners.fi

Slow Down?

December 03, 2024 — Daniel Lund III - Lexology
Absolutely not, said the Louisiana Fifth Circuit Court of Appeal to a masonry subcontractor being sued for allegedly improperly refusing to honor a subcontract bid. A general contractor preparing its overall bid for a public project in Jefferson Parish relied in the process on the defendant masonry subcontractor’s bid. After a public bid process and receiving the award of the project, the general contractor was informed by the subcontractor that it believed that the unit price form that had been supplied to the sub “contained inaccuracies.” Notwithstanding offers by the GC to endeavor to address the purported “inaccuracies” during the project, most likely by a change order, the subcontractor refused to execute its subcontract. The general contractor then awarded the masonry work to another subcontractor for $368,222 more than the original sub’s bid. The GC filed suit – for recovery of $368,222 – against the defendant subcontractor during the course of the public project. The defendant sub objected, arguing to the court that the lawsuit was “premature.” At the heart of the prematurity argument: the sub urging that the general contractor filed suit before its right to recover damages had accrued. Read the full story...
Reprinted courtesy of Daniel Lund III, Phelps
Mr. Lund may be contacted at daniel.lund@phelps.com

New York Appellate Team Obtains Affirmance of Dismissal of Would-Be Labor Law Action Against Municipal Entities

August 12, 2024 — Lewis Brisbois Newsroom
New York, N.Y. (July 11, 2024) - In Charlot v. City of New York, ___ A.D.3d ___, 2024 NY Slip Op 03161 (2d Dep’t 2024), New York Associate Dean Pillarella, a member of the Appellate Practice, recently obtained an affirmance of the lower court’s dismissal of the plaintiff’s action against the City of New York (“the City”) for failure to timely serve a notice of claim. New York Partner Meghan Cavalieri, a member of the Construction Practice, and her team authored and argued the initial motion to dismiss. The plaintiff alleged to have sustained injuries as a result of a construction-site accident on December 8, 2020, on City-owned property in the course of the construction of a school by the New York City School Construction Authority. N.Y. General Municipal Law (“GML”) § 50-e(1)(a), requires service of a notice of claim within 90 days after the claim arises as a condition precedent to the commencement of a tort action. The plaintiff served no notice of claim until June 2021 and commenced an action in January 2022, alleging violations of N.Y. Labor Law §§ 240(1), 241(6), and 200. Given the plaintiff’s failure to comply with GML § 50-e(1)(a), Meghan and her team rejected the notices of claim as untimely. The plaintiff then moved for leave to deem the notices of claim timely served nunc pro tunc. In response, Meghan and her team opposed the motion and cross-moved to dismiss the action. Read the full story...
Reprinted courtesy of Lewis Brisbois

Suffolk Construction Drywall Suits Involve Claim for $3 Million in Court Costs

November 11, 2024 — Richard Korman - Engineering News-Record
Suffolk Construction lost a breach-of-contract contract lawsuit in July with a former drywall subcontractor's surety—but the contractor's payout may dramatically increase if the presiding U.S. district court judge in Miami allows the surety to collect $3 million more in requested attorneys' fees and trial costs. Reprinted courtesy of Richard Korman, Engineering News-Record Mr. Korman may be contacted at kormanr@enr.com Read the full story...

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