Philadelphia Construction Law Blog

At Kaplin Stewart, we recognize that America is great because of the people that serve her and its people.  Those who work in the military, the police, and as firefighters are among our nation’s finest.  They put their lives on the line every day to protect us all – asking for very little in return.  Some – who we especially remember on Memorial Day – pay the ultimate sacrifice by laying their lives down in the line of duty.  For that, we are eternally grateful. We could never repay that debt.  Thank you for your service and sacrifice.

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.

People working in the construction industry, like any other business enterprise, are in it to make money. While some enjoy their work and get “payment” in the form of loving what they do, we don’t need to take a poll to know that participants in the construction industry would all be agreeable to making more money.

The Occupational Safety and Health Administration announced on April 7, 2016, that it was levying a huge fine on New Jersey contractor Berlin Builders. The citations and fines relate to multiple projects, the two most recent of which are the Springford Estates development in Limerick Township, Pennsylvania, and the American House project in Perkasie.

The City of Philadelphia and its people take a great deal of pride in any number of things – and rightly so. From great food and fantastic culture to a history older than America itself, there is so much to appreciate about the place we call home. But ask any Philadelphian what they are most proud of and they will tell you, perhaps in their own way, it’s the City’s indomitable spirit.

Many contracts provide that before a party can arbitrate or litigate a dispute, a mediation must occur. Often a party will choose not to submit a dispute to mediation believing that a mediation will not resolve the dispute. Many parties proceed directly to arbitration or litigation, dismissive of the contract language requiring mediation.

Funding for public school construction and maintenance projects has been delayed by the months- long budget gridlock in Pennsylvania. Although the Commonwealth’s budget was recently approved, a related funding bill providing for more than $306 million in construction reimbursements due to Pennsylvania school districts was vetoed. School districts may now be faced with getting, or extending, financing for past and ongoing construction projects until legislation authorizing the reimbursements is finalized. It is unclear how this may affect future construction projects planned by Pennsylvania schools.

The developer of the Constitution Pipeline, designed to carry natural gas from the Marcellus Shale areas in northeastern Pennsylvania to New York State and New England, has been delayed. The pipeline was to have been placed in service by the end of this year, but now will not be completed until at least the second half of 2017. The 124 mile pipeline would help ease a shortage of pipelines carrying abundant natural gas from Northeastern Pennsylvania to customers in New York and New England. When constructed, it would be the first direct path linking the Marcellus basin with New York and New England consumers.

In a recent decision, the Pennsylvania Superior Court clarified the legal requirements for a contractor’s direct claim for economic losses against a design professional caused by defective design. In Gongloff Contracting v L. Robert Kimball & Associates, a sub-subcontractor steel erector brought an action directly against a public project design professional (Kimball) for “misrepresentations” in the design documents. Gongloff claimed that the architect/engineer’s structural design was inadequate in that the steel roof structure and trusses could not safely sustain all required construction loads. As a consequence of those deficiencies, project shutdowns ensued, and multiple change orders were issued resulting in substantial additional cost to Gongloff. When the steel subcontractor and general contractor refused to pay those additional costs, Gongloff commenced an action against the design professional.

The Metal Building Contractors and Erectors Association will be hosting its annual national conference in Clearwater Beach, Florida, in May. The Metal Building Contractors & Erectors Association serves participants in the metal building industry, including contractors, erectors, and suppliers. Its goal is to provide exceptional training and education that allows its members to succeed and raises the profile of the metal building industry.