In the wake of the Russian invasion of Ukraine and economic sanctions imposed by countries around the world in response, supply chain disruptions and the resulting scarcity of construction have resulted in price escalation that threatens construction project budgets. To allocate the risk of these sorts of cost increases, project owners and contractors may use
Acts of God
Construction Work Under COVID-19 Orders in Utah
Unlike many of its neighboring states, Utah currently has no statewide “stay home” or “shelter in place” order. However, in response to COVID-19, Governor Gary Herbert has issued a “Stay Safe, Stay Home” directive on March 27, 2020. This is not a shelter in place order. It is a directive that tells individuals and businesses…
Guidance for Owners and Contractors with Construction Projects in Oregon in Light of the Statewide “Stay Home” Order
On March 23, 2020, Oregon Governor Kate Brown issued Executive Order No. 20-12 directing Oregonians to “Stay Home, Save Lives.”
Unlike “stay home” orders in some other states—which prohibit the operation of all business unless specifically exempted—the Oregon Order prohibits the operation of specific categories of businesses identified in the Order (e.g., amusement parks, aquariums, etc.). Presumably, this means that if a category of business is not identified, then it is not subject to the prohibition.
Because “construction” is not specifically identified as a prohibited business, it is reasonable for owners and contractors to presume that their projects in Oregon may continue for the time being. While not explicitly part of the Oregon Order, some are characterizing it as “permission by omission,” meaning that the omission of a business on the prohibited business list means you have permission to operate that business. But proceeding under that assumption is not entirely without risk, and there are other important considerations for both owners and contractors to bear in mind, including:
Tips for Owners and Contractors with Projects in the “Grey Area” of California’s COVID-19 Orders
In response to COVID-19, construction projects in California are currently subject to a statewide Executive Order and potentially other similar (or dissimilar) “stay home” or “shelter in place” orders or directives issued by counties and cities. Under the California statewide order, only businesses needed to maintain continuity of operations of identified federal critical infrastructure sectors (click here for the list) may continue to operate. Construction is not identified as a separate “critical infrastructure sector,” but many construction projects fall under the umbrellas of other sectors, such as “critical manufacturing,” “energy,” “healthcare,” and “commercial facilities.” The California State Public Health Officer also designated the following “essential workforce” members of relevance to the construction industry (this is not an exhaustive list):
- “Construction Workers who support the construction, operation, inspection, and maintenance of construction sites and construction projects (including housing construction)”
- “Workers such as plumbers, electricians, exterminators, and other service providers who provide services that are necessary to maintaining the safety, sanitation, construction material sources, and essential operation of construction sites and construction projects (including those that support such projects to ensure the availability of needed facilities, transportation, energy and communications; and support to ensure the effective removal, storage, and disposal of solid waste and hazardous waste)”
One challenge somewhat unique to owners and contractors is that the applicable orders are generally directed at identifying “essential businesses” or “critical businesses,” while owners and contractors may have a mix of projects—with some likely essential (such as construction of a hospital), others likely not (such as construction of a nightclub), and many falling in a grey area in between. When analyzing “grey area” projects it is recommended to focus on the traits of the particular project rather than attempt to understand whether your business—which may include a range of projects—can generally continue to operate.
Here’s what building owners need to know following last year’s wildfires, earthquakes
California’s 2018 wildfire season — the most damaging and deadly on record — and a pair of earthquakes in Alaska can serve as case studies for Northwest property owners as to steps they can take to mitigate their risks in the event such disasters strike closer to home. In my latest article for the Seattle…
Concerns over California’s Increased Earthquakes? Landlords and Developers Should Manage Their Risks Now
During the last month or two there has been a rise of news reports regarding potential earthquakes in California at a greater magnitude than in recent history: see here and here. These risks have even been reported recently in a London newspaper. While the unusual Southern California “big one” warning is now past…
No Crane Trespassing! Swingway Easements Make Good Neighbors
Earlier this year, my colleague Eric Grasberger authored a blog post about a crane collapse in Lower Manhattan. In that post, he mentioned that neighboring landowners may seek to prevent cranes from intruding into the airspace above their property. Contractors and owners alike are often surprised to learn that a crane swinging over adjacent property …
NYC Crane Collapse Likely to Fuel Crane Objections and Easements
On Friday, February 5, one man died and three were injured when a 565-foot crane toppled in gusty winds in lower Manhattan, not far from the World Trade Center. The investigation will likely take weeks to months as experts try to reconstruct whether the engineering, erection, operation or manufacture of the crane, or some combination…