Philadelphia Construction Law Blog

The American Institute of Architects initiated a program it calls the 2030 Commitment Program approximately 5 years ago.  Designed as voluntary initiative, its goal is to have member firms and other entitites in design and construction, including those in Pennsylvania and New Jersey, promise to work towards a goal of carbon nuetral buildings by 2030.  The ultimate objective is to make buildings more environmentally friendly. 

In what will be a positive move for construction companies from Pennsylvania and New Jersey working in the City of Bethlehem, the City has been awarded one of two City Revitalization and Improvement Zone program designations. Those involved in the process are hoping it will have the same effect on development and the resulting economic impact as the construction of the Sands Casino at the old Bethlehem Steel Stacks.

In a published opinion on December 3, 2013, the Pennsylvania Superior Court held that the gist of the action doctrine does not necessarily preclude coverage under a commercial general liability policy in Pennsylvania.

On January 2, 2014, the U.S. Department of Commerce reported that U.S. construction spending rose to its highest level in nearly five years in November, led by a surge in private construction project spending.

A recent decision in the Eastern District of Pennsylvania added some clarity and protection for contractors and subcontractors in their dealings with owners and contractors respectively. As part of a 117 page opinion, the Court held in Nippo Corporation/International Bridge Corp. v. AMEC Earth and Environmental, Inc., that the duty of good faith and fair dealing in a commercial transaction includes the duty not to hinder the other party’s performance of the contract.

We previously reported that the case of Atlantic Marine Construction Company, Inc. v. United States District Court for the Western District of Texas was to be decided by the Supreme Court. This case addressed a contractual provision requiring that all litigation arising as a result of the project be brought in Norfolk, Virginia. The project was located at Ft. Hood in Texas.

The Occupational Safety and Health Administration recently concluded an investigation into possible lead exposure at a high profile construction project in the Kensington section of Philadelphia. The developer agreed to pay $3,000 in fines with no admission of liability. Its remediation subcontractor, however, was cited for 22 separate violations relating to lead exposure and hit with $34,000 in fines.

Recent news in the surety industry suggests that demand is increasing for a different approach to bonding on projects using public-private partnerships. A significant push seems to be underway in the surety market to provide a product responsive to that demand.

We reported yesterday that the Pennsylvania House failed to pass Governor Corbett’s proposed transportation legislation. In what can only be described as a surprisingly quick turn of events, the House voted on largely the same bill on Tuesday evening and passed it. The vote was 104-95.

Governor Corbett’s full court press to pass his preferred transportation bill met with stern resistance and failed to pass last night in the Pennsylvania House. Although a top priority for the Republican governor, it is the Republican caucus in the House that has proven difficult for him to convince.