If you are involved in the construction industry, like it or not risk management is part of your job. From home office executives to workers in the field, each person is expected to manage schedule, cost, and safety risks. While these risks are common, the recent prolonged period of economic growth has created new challenges, … Continue Reading
In the event of a near-term slowdown in the U.S. economy, analysts forecast that any resulting decline in construction starts will nevertheless leave the level of activity in that industry sector “close to recent highs.” As a result, project owners and general contractors already facing a strong demand for workers will continue to do so, … Continue Reading
Cross-laminated timber (“CLT”) is a leading building technology that has been employed by European developers for decades, but the product’s use in the United States only recently took hold after its adoption by the 2015 International Building Code. A type of structural timber product composed of dimensional timber layers bonded together with structural adhesives, CLT … Continue Reading
Experienced project developers know that managing risk on a major project involves initial planning, design, construction, and commissioning. These tasks call for different skill sets — making it tempting to think of them as separate — but they need to be coordinated to prevent the creation of troublesome gaps in areas of responsibility. In my latest … Continue Reading
President Trump’s new tariffs and ongoing trade negotiations concerning building commodities like steel, aluminum, and lumber have resulted in uncertain market conditions for those in the construction industry, making it nearly impossible for owners, developers, contractors, and suppliers to accurately analyze and allocate risks during construction contract negotiations. In my latest article for the Daily … Continue Reading
You may have recently heard that on December 11, 2013, the California Supreme Court denied the builder’s Petition for Review of the published decision in Liberty Mutual Insurance Co. v. Brookfield Crystal Cove LLC, 163 Cal. Rptr. 3d 600, Cal. App. 4th 98 (2013). For builders and contractors, this is very frustrating news and undermines the … Continue Reading
In my latest Daily Journal of Commerce Construction column, I discuss the need to know Oregon construction contracting law to avoid unwanted consequences. In Oregon, construction contracts are subject to a wide variety of legal requirements, many of which are often ignored or, in some cases, violated with disastrous results. Following link will provide a summary … Continue Reading
In recent years, the Department of Industrial Relations (“DIR”), the Legislature and the California courts have expanded the application of the prevailing wage law to projects through the broad definition of a “public works,” beyond what most contractors, owners and even counsel would expect. While most involved in construction anticipate that any work directly for, … Continue Reading
A California appellate court recently held that the value of an original construction contract is admissible as evidence to limit a contractor’s right to recovery under Civil Code section 3123(a), even by a property buyer that was not a party to the construction contract. Appel v. Los Angeles Superior Court (CA No. B244590, Mar. 11, 2013). The … Continue Reading
As they say, timing is everything, and the success of a development project often hinges on when it will be complete. Whether it’s a new business, a new school, or some other project, delay can be disastrous for an owner. Here are five tips to reduce the risks of project delay. Avoid terms that shift … Continue Reading
Litigation can be one of the most time-consuming and expensive ways to resolve disputes in the construction industry. Often, parties to construction-related disputes prefer to resolve them through alternate dispute resolution procedures, such as mediation or arbitration. However, sometimes litigation cannot be avoided. In his latest article in the Daily Journal of Commerce, Guy Randles … Continue Reading
A California appellate court has clarified for public owners and contractors (a) what the results may be if the owner does not timely sign a change order and (b) under what circumstances a change order is required. In G. Voskanian Construction, Inc. v. Alhambra Unified School District, No. B221005 (Cal. Ct. App. Mar. 29, 2012), … Continue Reading
The Department of Labor’s latest jobs report includes some encouraging news for the construction industry. In January, construction jobs increased by 21,000 and jobs in architectural and engineering services increased by 7,000. Over the past two months, “nonresidential specialty trade contractors” added 30,000 jobs. We’ll keep a close eye on next month’s jobs report to … Continue Reading
2/1/2012; 4:37 p.m. I’m heading down to Houston for a meeting of the ABA Forum on the Construction Industry. You can learn about the Forum on the ABA website. It has subdivisions that focus on various interests such as insurance, owners and lenders, etc. I’ll try to "live blog" from the meeting, describing papers of interest that … Continue Reading
