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Philadelphia Construction Law Blog

Green Parking Initiative

Posted by:  Josh Quinter  (jquinter@kaplaw.com)

The Green Building Certification Institute, which handles certification for the U.S. Green Building Council responsible for LEED Certification, has signed a Memorandum of Understanding with the International Parking Institute and the Green Parking Council. The goal of the cooperation agreement is to encourage sustainability in the transportation network that supports green buildings. The ultimate goal is to create and promote a Green Garage Certification program that will apply the same ideas that drive the LEED Certification process in the parking component of construction.

The certification program will include about 50 elements that, ironically, include promotion of alternative modes of transportation and discourage automobile use. Although not stated directly by those involved, it can safely be assumed that the elements involved in the evaluation process will be focused on the ultimate goal of cutting carbon emissions. It is unclear whether this will become part of the LEED Certification process or remain a separate element.

2014 A Better Year For Construction In Place Numbers

Posted by:  Josh Quinter  (jquinter@kapaw.com)

According to the Raleigh, North Carolina based form FMI Corp., 2014 was a vastly better year than 2013 in terms of total construction in place (CPIP). The total for 2014 was $62 billion more - a 7 percent increase - than the year before. The gross number for 2014 was estimated to be around $972 billion. In even better news, the projected number for 2015 exceeds $1 trillion.

Construction in the commercial and manufacturing segments of the industry led the way in 2014. They came in at $111 billion in new construction. FMI attributed a great deal of this growth to the construction associated with the boom in energy production. It is leading to the need for more refineries and processing facilities, as well as opportunities for more manufacturing that relies on the energy sector to be profitable. A good deal of foreign investment is part of this growth.

New Construction Technology Helps Immensely With As-Builts

Posted by:  Josh Quinter  (jquinter@kaplaw.com)

As-built drawings, or renderings of the building as constructed, are common in the industry. Many contracts require that the contractor or subcontractor providing the labor and materials to construct the project provide them as part of the close out documents. This is because there is often variation between the design, specifications, and final constructed product. Sometimes this change is known; while on other occasions it can be an unknown fact until it is measured.

Accounting for changes in scope by change orders for purposes of as-builts is easy to do. Smaller variations that come from work being slightly different than how it was designed because of small errors in measurements, for example, harder to detect. This makes it harder for follow-on trades who arrive on site to perform their work and are reliant on knowing that the site is really ready for them to start work. It can also make it harder for maintenance and repair contractors who come on site years later to perform work and don't have accurate as-builts.

A Primer for Open Shop Contractor's On Philadelphia's New Sick Leave Law

Posted by:  Josh Quinter  (jquinter@kaplaw.com)

Open shop developers and contractors alike will soon have a new rule to contend with when they work in Philadelphia. The new ordinance mandating paid sick leave for companies with 10 or more employees will go into effect on June 13, 2015. Employees covered by a collective bargaining agreement or working as independent contractors are exempt from the new law.

As for the specifics, the ordinance requires that employers give each employee covered by the law 1 hour of paid sick leave for every 40 hours worked. The sick leave earned by employees can be used when the employee is sick or for a number of other purposes, including the illness of a family member or to seek care or support for domestic violence.

Many employers already provide sufficient sick leave policies, so no adjustment will be required. If one is necessary, however, there are requirements about establishing and announcing the new policy. Advocates have praised the new law as recognition of "workers' rights" and helping to prevent others working with a sick coworker from getting sick themselves. Opponents object on the basis that it drives up costs, encourages employees to take time off and/or abuse the system, and hurts businesses.

Construction Trivia - Super Bowl Style

Posted by:  Josh Quinter  (jquinter@kaplaw.com)

This weekend's Super Bowl between the New England Patriots and the Seattle Seahawks is being played in Glendale, Arizona at the University of Phoenix Stadium. Home to the Arizona Cardinals of the NFL, University of Phoenix Stadium was constructed at a cost of $455 million and took 3 years to build.

University_of_Phoenix_Stadium_aerial.jpgThe building itself contains enough concrete to build 900 miles of sidewalk, has enough seats to span 9 miles if all 63,500 were lined up in a row, and has a retractable roof. It also has one other unique feature that was the first of its kind in a construction project. Can you name that unique design and construction element?

Primer on Contracts: Payment Clauses

Posted by:  Josh Quinter  (jquinter@kaplaw.com)

Payment clauses ... no construction contract clause has a more immediate impact on the bottom line for contractors of all shapes and sizes. Understanding payment clauses can be the key to knowing when to press for payment or not and, ultimately, whether payment will ever arrive for work on a project. Careful review of your contracts with the help of counsel is a shrewd approach; but here are the basics at the risk of over-simplification.

Construction Contract.pngThe law varies from state to state, but there are generally two types of payment clauses about which contractors should be concerned. The first is pay-if-paid clauses; and the second is pay-when-paid clauses. While they sound the same at first blush, they are different.

Pay-if-paid clauses are exactly as they appear. If the contractor does not get paid by the owner (or a similar combination in the chain of privity), the contractor does not have to pay the subcontractor. This type of clause would include words like "condition precedent to payment", "contingent upon receipt of payment from the owner", "only upon payment from owner", and other similar language.


Posted by:  Josh Quinter  (jquinter@kaplaw.com)

Thomas_Perez_official_portrait.jpgFollowing the lead set in President Obama's Executive Order 13658, the Department of Labor's Wage & Hour Division issued a final rule raising the minimum wage for workers providing labor on federal construction and service contracts to $10.10 an hour. This final rule applies to new and replacement contracts that result from solicitations after January 1, 2015. It also places the Secretary of Labor in charge of setting the minimum wage beginning in 2016 with the restriction that the Secretary cannot ever lower it.

President Obama's Executive Order and the subsequent final DOL rule are ultimately meaningless though. In addition to the fact that most employers already pay more than the minimum wage, the application of Davis-Bacon Act and the similar Service Contract Act requirements on federal projects already require a higher wage than the newly minimum wage rate. Moreover, a completed 2014 analysis of the previous year's salary records shows that the pay of construction professionals was up on average 10% in any case. FMI reviewed 75,000 salary records for 280 positions to reach its conclusions.

Positive News on Real Estate and Construction Market in NJ

Posted by:  Josh Quinter (jquinter@kaplaw.com)

One of the biggest commercial real estate brokerage firms in New Jersey is reporting some positive numbers for New Jersey's real estate and construction economy. According to recent information released by the company, new industrial space was built at the fastest pace seen since 2002 last year. In addition, nearly 12 million square feet of existing tenant space was reabsorbed by the tenants back in the market.

According to Cushman and Wakefield, demand seems to be on the rise for warehouses and distribution centers in the state. It seems likely this demand will only continue to go up as people shop on line and want quick deliveries that can only be provided from closer warehousing and processing centers. In addition, it's not surprising to learn that the numbers show a large portion of this activity taking place in northern New Jersey near the ports.

graph shwoing increase.jpg

Construction Trivia

Posted by:  Josh Quinter  (jquinter@kaplaw.com)

The construction industry is a great way to earn a living and offers the opportunity for workers to offer tangible improvements to the world around them. Working in the industry comes with risks though. In some cases it can mean injury; and in others it can mean, unfortunately, death. Many worthwhile steps are taken to protect workers and allow them to go home at the end of each shift in modern construction. While not even these steps can always prevent an accident, they have gone a long way to decrease construction fatalities.

fall hazard sign.png

Can you name the construction project with the highest known number of fatalities in history?


Posted by:  Josh Quinter  (jquinter@kaplaw.com)

In what appears to be a public private partnership agreement of large proportions, Hill International has been awarded a 4 year contract by the New Jersey Turnpike Authority for the Garden State Parkway and the New Jersey Turnpike. The contract, worth $33.7 million, will require Hill to provide construction management services on a number of projects and inspection services in support of the Facilities Improvement Program.

Hill International, a multi-national construction management and claims services company, has been providing program management services for the Turnpike Authority since 2012. According to Hill International's press release, the new contract aims to bring the Turnpike's roads and facilities into better condition. Much of the infrastructure, which was built approximately 60 years ago, is in need of work. During the course of its new contract, it has 5 separate projects on which it intends to focus. These include the construction of 4 separate police stations, building a backup traffic/data management center, and rehabbing toll facilities at 23 different locations.

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