Philadelphia Construction Law Blog

Florida Governor Rick Scott recently signed legislation making a significant chan Rick Scottge  to the potential liability of individuals providing design professional services in the state. The new law, which takes effect July 1, 2013, will enable a business entity to contractually limit the liability of its individual professionals to the extent of that professional’s scope of work performed under the contract. In other words, the individual design professional can now immunize himself for liability in design or project administration. The design firm remains potentially liable.

On Thursday, May 9, 2013, Kaplin Stewart’s construction law department will be offering a free program on OSHA regulations in the construction industry.  Using clips from Oscar nominated films to cover the material, the firm will add a little fun to a very serious topic.  The program will take place from 7:30-9:30 a.m. at Kaplin Stewart.  Breakfast will be provided.

The United States Court of Appeals for the Third Circuit recently affirmed 3 orders issued by the District Court for the Eastern District of Pennsylvania, the net effect of which was to uphold a finding that a defined completion date in a construction contract must be completed in a reasonable amount of time if change order work results in the original deadline being missed. The ruling confirmed an award of $422,923.83 in breach of contract damages and $539,521.15 in attorneys’ fees.

Construction of Easton’s $26 million transportation center project will start in April. The final hurdle to a ground breaking later this month is approval from the Easton Historic District Commission according to Mayor Sal Panto. The development is being developed through a partnership between the city, the state of Pennsylvania, and the Lehigh and Northampton Transit Authorities.

We previously reported the introduction of HB 34 in the Pennsylvania House of Representatives. The bill, which is strongly supported by Republican Representative Kate Harper, has passed the House and now moves to the Senate for consideration.

We recently reported that the Pennsylvania legislature passed amendments to the Pennsylvania Steel Products Procurement Act that Governor Corbett signed into law. The change, which created automatic exemptions for certain products under the Act, is designed to make compliance with the law more manageable and decrease costs on state contracts.

The Southeastern Pennsylvania Transportation Authority (“SEPTA”) recently released its annual report focusing on the theme of sustainability, aptly titled “SEP-TAINABLE”. In that report, SEPTA commits to partnering with developers, municipalities, and other organizations to invest in various Transit-Oriented Development (“TOD”) projects, which are high-density mixed-used development projects within a half mile of public transportation. Specifically, SEPTA announced that it intends to engage in one TOD per year.

Construction agreements often contain clauses requiring parties to submit their claims to arbitration. These provisions are favorable to the parties, as arbitration has certain benefits. For example, it may be quicker and more efficient than going through the court system and may be more relaxed than the legal process, thereby encouraging compromise or ongoing business relationships between the parties. An arbitrator or a panel of arbitrators is generally chosen by the parties, which typically results in the selection of someone sophisticated and knowledgeable in the construction industry.

The Pennsylvania General Assembly is considering legislation that would require the design, construction, and renovation of certain state-owned or leased properties to comply with specified energy and environmental building standards. House Bill 34, the lead proponent of which is Representative Kate Harper of Montgomery County, is largely identical to a bill introduced last session.

After years with little to no change, the legislature in Pennsylvania has spent a good amount of time making revisions to the Mechanic’s Lien Law recently. Just last year we reported on amendments being considered; and more changes are being proposed to the statute as the General Assembly begins its 2013 session.