Anaheim California Building Consultant Directory

"On Second Thought"

October 28, 2024 — Daniel Lund III - Lexology
Rehearing requests are seldom granted by courts, and when they are, there’s usually something uniquely compelling in the request and the granting. So is the case in a matter involving monies deposited in the registry of the federal court in New Orleans related to work performed on cleanup after Hurricanes Maria and Irma in the U.S. Virgin Islands. The party depositing monies – which represented subcontract sums paid to it by the general contractor – held back several hundred thousand dollars based on withholding provisions in the various contracts in play. The Court was tasked with evaluating not only a pay-when-paid provision in the subcontract of the claiming party, but also incorporation of the terms of a higher tiered contract which allowed for the withholding. The Court initially granted summary judgment allowing the monies to be withheld. However, on request for rehearing, it was pointed up that while monies could be retained for purposes of covering attorney’s fees and costs related to litigation initiated by the plaintiff subcontractor’s vendors, there was a particular process for that withholding – and an assertion that the process was not followed. Read the full story...
Reprinted courtesy of Daniel Lund III, Phelps
Mr. Lund may be contacted at daniel.lund@phelps.com

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

Hawaii Supreme Court Reaffirms an "Accident" Includes Reckless Conduct, Finds Green House Gases are Pollutants

November 18, 2024 — Tred R. Eyerly - Insurance Law Hawaii
Answering certified questions from the federal district court, the Hawaii Supreme Court reaffirmed its prior holding that reckless conduct is an "occurrence' or accident. The court further held that green house gas (GHG) emissions were pollutants under liability policies. Aloha Petroleum, Ltd. v. National Union Fire Ins. Co. of Pittsburg, PA., et al., 2024 Haw. LEXIS 179 (Haw. Oct. 7, 2024). [Disclosure - our office was co-counsel on an amicus brief in this case filed on behalf of the United Policyholders]. The City and County of Honolulu and the County of Maui sued several fossil fuel companies, including Aloha Petroleum, Ltd., for climate change-related harms. The suits alleged that the fossil fuel industry knew beginning in the 1960s that its products would cause catastrophic climate change. Rather than mitigate their emissions, defendants concealed their knowledge of climate change, promoted climate science denial, and increased their production of fossil fuels. Defendants' actions, the complaints alleged, increased carbon emissions, which caused significant damage to the counties. Read the full story...
Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Unlocking the Hidden Power of Zoning, for Good or Bad

October 21, 2024 — David Zipper - Bloomberg
No longer dismissed as an insomnia-curing corner of local governance, zoning is having a moment. It’s at the heart of the pro-housing Yes In My Backyard — or YIMBY — movement, which seeks to reform the rules that mandate the construction of single-family homes across much of the US, and the arcane details of land use policy are being debated in national outlets and city councils across the US. In much of this discourse, zoning is the clear villain, blamed for feeding societal ills ranging from housing costs to racial discrimination to greenhouse gas emissions. In her new book Key to the City, Sara Bronin examines zoning with a critical but sympathetic eye. Bronin brings deep experience to the topic, having studied zoning as an architect and lawyer before overhauling the land use regulations of Hartford, Connecticut. A professor of architecture and planning at Cornell University (and an occasional Bloomberg CityLab contributor), she is currently on leave to chair the federal Advisory Council on Historic Preservation. Read the full story...
Reprinted courtesy of David Zipper, Bloomberg

BKV Barnett, LLC v. Electric Drilling Technologies, LLC: Analyzing the Impact of Colorado’s Anti-Indemnification Statute

December 23, 2024 — David M. McLain – Colorado Construction Litigation Blog
In the recent case of BKV Barnett, LLC v. Electric Drilling Technologies, LLC, the United States District Court for the District of Colorado dealt with significant legal issues concerning indemnification and insurance obligations in construction agreements. The ruling, handed down on September 26, 2024, serves as a crucial reminder of the limitations imposed by Colorado’s Anti-Indemnification Statute, C.R.S. § 13-21-111.5, and its implications for contracts in the construction industry. This case arose from a Master Service Contract (“MSC”) between BKV Barnett, LLC (“BKV”) and Electric Drilling Technologies, LLC (“EDT”), in which EDT provided electrical services and equipment to an oil and gas lease wellsite in Texas. Following a lightning strike in early 2022 that damaged electrical infrastructure at the site, EDT dispatched Turn Key Utility Construction to repair the damage. During the repair work, an arc flash occurred, causing significant injuries to one of Turn Key’s employees, Matthew Lara, leading to a personal injury lawsuit filed by Lara in Dallas County, Texas. BKV sought indemnification, defense, and additional insured status from EDT under the terms of their MSC, which EDT contested. Read the full story...
Reprinted courtesy of David McLain, Higgins, Hopkins, McLain & Roswell
Mr. McLain may be contacted at mclain@hhmrlaw.com

Real Estate & Construction News Roundup (8/21/24) – REITs Show Their Strength, Energy Prices Increase Construction Costs and CRE Struggles to Keep Pace

October 01, 2024 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
In our latest roundup, UBS to liquidate $2 billion real estate fund, hotel workers in San Francisco vote to strike, housing market to change after blockbuster settlement, and more!

When it comes to buying and selling homes, new rules are about to be put in play, five months after the National Association of Realtors agreed to a settlement over how its 1.5 million agents across the U.S. are paid commissions. (Kate Gibson, CBS)
Project abandonments tumbled in July in one of the largest monthly declines ever due to the anticipated interest rate cut. (Sebastian Obando, Construction Dive)
Increases in energy prices drove most of the total rise in construction input costs over the past month. (Sebastian Obando, Construction Dive)

Read the full story...
Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team

Report Highlights Trends in Construction Tech, Digitization, and AI

November 11, 2024 — Aarni Heiskanen - AEC Business
Bluebeam, a top technology provider for AEC professionals, has just released its “Building the Future: Bluebeam AEC Technology Outlook 2025” report. This report highlights key global trends in construction technology, including the role of AI and digital tools. Based on insights from over 400 AEC technology leaders, the report also uncovers challenges that prevent full-scale adoption of these tools. The online research surveyed technology decision-makers (managers or above) within AEC firms in the US, UK, Canada, France, Spain, Germany, Australia, and New Zealand in July 2024. AI’s Growing Role in Construction According to the report, 74% of surveyed AEC professionals are now using AI in one or more phases of building projects. AI is especially popular in the design (48%) and planning (42%) stages. Many AEC firms recognize its value: over half (55%) of companies using AI say it’s crucial, and most now allocate up to 25% of their budgets to AI initiatives. Despite this support, concerns over AI regulation are significant. About 54% of respondents are worried about regulations, and 44% say this impacts their use of AI. Read the full story...
Reprinted courtesy of Aarni Heiskanen, AEC Business
Mr. Heiskanen may be contacted at aec-business@aepartners.fi

Delays and Suspension of the Work Under Fixed Price Government Contract

July 22, 2024 — David Adelstein - Florida Construction Legal Updates
Here is an interesting fact pattern and case decided by the Civilian Board of Contract Appeals dealing with (1) force majeure type events and epidemics (Covid-19); (2) suspension of the work; and (3) delays. These are three topics important to all contractors including federal contractors. In Lusk Mechanical Contractors, Inc. v General Services Administration, 2024 WL 1953697, CBCA 7759 (CBCA 2024), a contractor entered into a fixed price contract with the government to repair, replace, and modernize site and building systems at a federal building. The contractor commenced work right before Covid-19. When Covid-19 hit, the government issued the contractor a two-week suspension of work notice on March 27, 2020. The suspension of work allowed off-site administrative work to continue but suspended on-site physical work. The government extended the suspension of work three more times. The contractor could resume work on the exterior on June 1, 2020, but was not permitted to resume work on the interior until July 20, 2020. On the same date that the contractor was able to commence interior work, it submitted a modification for delay caused by the suspension – 64 days for the time period the entire site shutdown, and 51 days for the interior work shutdown. Read the full story...
Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

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