Construction Industry News Archives

U.S. MODULAR CONSTRUCTION ON THE RISE

On behalf of Kaplin Stewart Meloff Reiter & Stein, P.C. posted in Construction Industry News on Aug 10, 2017.

The Chicago Tribune recently reported that two European developers are planning a mixed-use development that could include up to 20,000 modular homes on the former site of a U.S. Steel plant in Chicago. A division of Irish firm WElink Group and Spain-based Barcelona Housing Systems (BHS) has entered into an agreement to purchase the 440-acre site. WElink builds energy-efficient modular housing, and BHS uses solar power and recycled materials in its homes. Closing on the property is to occur within five months. It is anticipated that the development would likely include low- and mid-rise buildings, parks and a marina. Developers are increasingly using modular and offsite construction to speed up construction and overcome skilled-labor shortage. Modular factories offer efficiencies which produce either whole rooms or room segments concurrently with site work and other site operations. This efficiency can significantly streamline the project schedule. A number of commercial developers, including Marriott, have made public commitments to use modular construction to reduce costs and achieve overall efficiency. It recently announced that it planned to incorporate modular in approximately 13% of its total North American hotel deals this year. That would translate to approximately 50 hotels that will include some element of modular building. Although most of the growth in modular in the U.S. has come from the multifamily and hospitality sector, some single-family builders are also using the method. Entekra, An Irish developer, Entekra, plans to build volume modular housing in the U.S. It claims that its model can produce the components for […]

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NJ CONSTRUCTION LIEN BARRED BY BANKRUPTCY AUTOMATIC STAY

On behalf of Kaplin Stewart Meloff Reiter & Stein, P.C. posted in Construction Defect on Jul 26, 2017.

In a recent opinion, the Third Circuit Court of Appeals held that the automatic stay of claims against a bankrupt contractor barred the filing of an electrical supplier’s NJ construction lien against the project real estate. The decision points out how differences between state lien statutes can affect the rights of lien claimants where a bankruptcy has been filed. In In Re Linear Electric Company, Inc., a prime electrical contractor filed a bankruptcy petition.  After the petition had been filed, two electrical suppliers to the bankrupt contractor filed New Jersey Construction Liens against real estate which had been improved with the electrical material supplied by the two lien claimants.  The bankrupt contractor moved to dismiss the liens as having been filed in violation of the automatic stay of claims imposed when a bankruptcy is filed, even though the lien claims were asserted against real property owned by the project owner, not directly against the bankrupt contractor. The Court held that the liens violated the automatic stay. It reasoned that even though the liens were asserted against real estate owned by a non-bankrupt party, under the New Jersey Lien statute, the liens functioned as a claim against the accounts receivable of the bankrupt electrical contractor in that if the liens were paid, the project owner would not have to pay the bankrupt contractor.  This would be to because, under the New Jersey Lien statute, construction liens are assessable only up to the amount of a “Lien Fund”, consisting of all unpaid […]

2017 AIA Documents

On behalf of Kaplin Stewart Meloff Reiter & Stein, P.C. posted in Construction Industry News on May 1, 2017.

The 2017 AIA Documents were released today.  Information about the new forms, and free downloadable comparisons of the 2017 and 2007 version’s text, are available here: https://www.aiacontracts.org/contract-doc-pages/67216-2017-document-release?tab=library&mkt_tok=eyJpIjoiWXpZeE56UTRNVEppWldNeCIsInQiOiJqUWtGb1FTSWpwellwaE40YVFZM2hISm5WbVdaVWxEZlJkS3pKUkRPSE1xMEMrbjlUQUFpbXF2RmNNb1lzbFNFMmZsUVlQODgrS2hXcWI4ZmpiUkIyUnJNeEZia2ppQ2xqaFpvNFI5RkFKN1FEaHM4SzNvRytcL05idWlTRGRtcEIifQ%3D%3D  

Design Professionals’ Contracts

On behalf of Kaplin Stewart Meloff Reiter & Stein, P.C. posted in Construction Industry News on Apr 14, 2017.

Design professionals’ contracts often contain indemnity clauses, and such clauses can impose liability not covered by the design professional’s insurance.  This article provides useful advise about the risks of such clauses: http://www.structuremag.org/?p=10874

Philadelphia Constructed the Most 1 Million-Sq.-Ft. Facilities in the Country Between 2010 and 2016

On behalf of Kaplin Stewart Meloff Reiter & Stein, P.C. posted in Construction Industry News on Feb 7, 2017.

via:www.cbre.us Philadelphia – February 6, 2017 – The rapid growth of e-commerce has created a big trend in U.S. industrial markets: a proliferation of warehouses spanning 1 million sq. ft. or larger. The massive warehouses and distribution centers have sprouted from Southern California to Philadelphia, clustering around metro areas that provide the mix of road, rail and sea access that e-commerce users covet, according to a new report from CBRE Group, Inc. All told, 117 such facilities were built across the U.S. from 2010 to 2016 for a total of 141.2 million sq. ft., which shows an increase from the 99 facilities built between 2003 and 2009, according to CBRE. The markets in which the most big-box construction occurred in the 2010-2016 timeframe are led by Philadelphia, California’s Inland Empire and Dallas/Fort Worth. Top Markets For 1 Million-Sq.-Ft. Warehouses Built 2010-2016:   Rank Market Number of Buildings Total Sq. Ft. (millions) 1 Philadelphia 16 19.7 2 Inland Empire 13 15.4 3 Dallas/Fort Worth 13 14.7 4 Atlanta 12 13.8 5 Chicago 9 11.7 6 Memphis 3 4.1 7 Columbus 3 3.4 8 Cincinnati 2 3.3 9 Indianapolis 2 2.2 10 Phoenix 1 1.2 Looking ahead, the busiest markets for on-going construction of 1 million-sq.-ft. warehouses are led by the Inland Empire, Chicago, Philadelphia and Atlanta. Across the 10 busiest U.S. markets for this type of construction, 29 such facilities are underway. “The Eastern Pennsylvania market is poised to see continued demand for large 1 million-sq.-ft. warehouses along the I78/I81 corridor,” […]

Construction Backlog Indicator Shows Overall Dip

On behalf of Kaplin Stewart Meloff Reiter & Stein, P.C. posted in Construction Industry News on Sep 24, 2016.

The Construction Backlog Indicator, or CBI, is a tool that measures backlog as an indicator of the health of the construction industry. The CBI is presently offering mixed signals to the market. While multi-national and large construction firms are showing the largest backlogs in history, this seems to correspond with a decrease in backlog for medium sized and small contractors.

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Bucks County Contractor Sentenced to Jail for Fraud

On behalf of Kaplin Stewart Meloff Reiter & Stein, P.C. posted in Construction Industry News on Sep 20, 2016.

A plethora of laws have been passed in recent years attempting to put more strict regulation on the construction industry – particularly residential construction – as it relates to payment and fraud. While there are voices on both sides of the debate as it relates to whether the laws are necessary and reasonable, there should be little doubt that the repercussions for failing to heed the recent trend are potentially serious.

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Football Season Is Upon Us: Will Temple Have Its Own Stadium?

On behalf of Kaplin Stewart Meloff Reiter & Stein, P.C. posted in Construction Industry News on Sep 8, 2016.

One of the surest signs that fall has arrived is the start of the college football season. In a town that adores its pro team, the Philadelphia Eagles, college football is gaining a little more attention these days. One of the primary reasons for this is the return of Temple football, which was literally on the school’s chopping blocks a short time ago, beginning to make noise at the top level on a somewhat consistent basis. The next step for the program seems to be moving into its own stadium.

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$45 Million Project Proposed In Allentown

On behalf of Kaplin Stewart Meloff Reiter & Stein, P.C. posted in Construction Industry News on May 24, 2016.

The Neighborhood Improvement Zone, otherwise known as the “NIZ” in the Lehigh Valley, is serving as the springboard for another large development in downtown Allentown. J.B. Reilly is planning to build a $45 million 12 story office project in the NIZ by 2018.

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