Published: May 6, 2019
A recent article in the Baltimore Business Journal on a Maryland construction industry survey reports that tight labor markets and rising materials costs are influencing the opinion of Maryland contractors that there may be a downturn coming in the near future. While contractors are individually optimistic about their own businesses, they recognize that the labor crisis is growing. Fewer young people are entering the construction indus
Published: April 23, 2019
A bill pending in the Illinois legislature (HB2838) exemplifies a nationwide trend in the construction industry to hold a contractor who has a direct contract with an owner (“Direct Contractor”) liable for the unpaid wage and fringe benefit obligations of its subcontractors on a private project.
Published: April 19, 2019
A recent decision from the United States District Court for the District of Connecticut is a reminder to contractors and developers that indemnification agreements tied to bonds usually heavily favor and give a large amount of discretion to insurers issuing bonds. See Arch Ins. Co. v. Centerplan Constr. Co., LLC, No. 3:16-CV-01891 (VLB), 2019 WL 613375, --- F.Supp. --- (D. Conn. Feb.
Published: March 26, 2019
A recent Federal Court summary judgment decision provides a stark warning for contractors and owners to adequately secure their construction sites, or risk denial of insurance coverage. See Praetorian Ins. Co. v. Axia Contracting, LLC, No. 17-CV-2034-WJM-KLM, 2019 WL 1002939 (D. Colo. Mar. 1, 2019). In Praetorian, the Court ruled that the failure of an owner and its contractor to adequate secure the jobsite was a breach of the Builder’s Risk policy, thus preventing the owner and contractor from securing coverage for a $3 million fire loss.
Published: March 22, 2019
On February 8, 2019, Saul Ewing Arnstein and Lehr’s Construction Practice hosted a half day symposium that focused on important risk management issues facing the industry. From safety practices to cyber threats to labor and employment challenges, the risks faced by the construction industry are best managed by staying ahead of a rapidly changing environment. This was the central theme at the symposium, attended by nearly 100 professionals in construction, real estate and development, insurance, consulting, and recruiting.
Published: February 19, 2019
A United States Department of Justice investigation of two construction companies and their owners has resulted in a $3.6 million settlement following allegations that the companies defrauded the Small Business Administration (SBA). The fraud resulted from false statements in the SBA bid process for federal government contracts.
Published: February 1, 2019
The Scope of the Threat. Five or ten years ago, the most widely recognized cybersecurity threats involved the risk of compromises of personally identifiable information (PII) such as Social Security numbers, payment card information, and the like. The high-profile data breaches frequently involved retailers, health care providers, or other consumer-facing companies and industries. Many of the warnings about cybersecurity threats focused on these kinds of risks, and state data breach laws in the U.S.
Published: January 24, 2019
On January 11, 2019, the Commonwealth Court of Pennsylvania held that absent extraordinary circumstances, requiring contractors to execute a project labor agreement (a "PLA") in connection with a bid for a public construction project violates the Pennsylvania Constitution and Commonwealth Procurement Code. See Allan Myers, L.P. v. Pennsylvania Department of Transportation, No. 314 C.D. 2018.
Published: January 18, 2019
A recent decision by Florida’s Fifth District Court of Appeal on Florida’s "anti-indemnity" statute" is one that should catch the attention of lawyers who draft and negotiate construction contracts in Florida.
Published: January 15, 2019
The Wall Street Journal recently reported that cyber-attacks by foreign governments into the nation’s electric grid are utilizing what it called "the system’s unprotected underbelly," the contractors and subcontractors that work for the utilities. According to the Journal’s reporting, a 15-person construction contractor in Salem, Oregon had fallen victim to a cyber attack, one that the Department of Homeland Security said was most likely carried out by a foreign government.