The Environmental Protection Agency (EPA) recently announced its intention to modify the 2017 National Pollutant Discharge Elimination System (NPDES) General Permit for Construction Stormwater Discharges (2017 CGP). EPA implements the 2017 CGP in states and territories that have not yet received authorization to implement the NPDES Stormwater program. Primarily, this includes New Hampshire, Massachusetts, Puerto Rico, and the District of Columbia.
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OSHA Clarifies Position On Anti-Retaliation Rule
As all members of the construction industry know, the prevention of the occurrence of work-related injuries and illnesses is a constant concern, and one that can have serious implications for the various contractual relationships on a construction project. To address these concerns, construction industry employers often implement incentive programs to award both the reporting of injuries or illnesses and the lack of occurrence of reportable incidents. In addition, both before and after injuries or illnesses occur, many employers have drug testing policies which are implemented with the goals of preventing and/or discovering the causes of work-related injuries and illnesses.
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NLRB Pursues Rulemaking to Address Joint-Employer Standard
Whether a general contractor or subcontractor is a joint employer with another company on a construction project for purposes of the National Labor Relations Act can have significant legal and practical consequences, including, but not limited to, potential union bargaining obligations, liability for unfair labor practices committed by a joint employer, and potential impact on…
Oral Argument Preview: G4S Technology LLC v. Mass. Technology Park Corp.
The Supreme Judicial Court (SJC) is slated to hear oral argument in G4S Technology LLC v. Mass. Technology Park Corp. on Monday, March 5, 2017 – a case with significant implications for construction litigation.
The dispute arises out of a $45 million public works project to build a 1200-mile fiber optic network bringing high speed Internet access to western Massachusetts. Appellee Massachusetts Technology Park Corporation (MTPC), a state development agency, awarded the contract to design and build the fiber optic network to Appellant G4S Technology LLC (G4S).
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Are Construction Project Supervisors Exempt from the FLSA’s Overtime Requirements?
The Answer: It depends on the facts and circumstances of each case.
However, two recent reissued opinion letters from the United States Department of Labor’s Wage and Hour Division (WHD) provide construction companies with guidance regarding the issue of whether project superintendents and project supervisors are exempt administrative employees under the Fair Labor Standards Act (FLSA).
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Out with the Old and in with the New: What Technological Trends Can the Construction Industry Expect in 2018?
As we embark upon 2018 we find ourselves not only reflecting on past accomplishments but also looking to future goals for the upcoming year. Construction is a fast moving and ever changing industry which requires a real commitment to keep apprised of the latest trends and developments.
So what can we expect in 2018? Although there are a variety of opinions concerning expected trends one in particular is the increased use of technology. Construction is not an industry known for being at the technological forefront. But with heightened competition and pressure to efficiently and cost effectively deliver projects, certain technological advances are surely to increase in popularity including the continued use of BIM, project management software, virtual and augmented reality and of course, drones.
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The Drone Economy in the Construction Industry
Drone data is used in construction (3-D mapping, site surveying), agriculture (crop mapping), energy (solar and wind turbine monitoring), insurance (roof inspections), infrastructure (inspection), communications (damage assessments) and countless other industries. These industries, and more, have long sought data ‘from above,’ generally from satellites or airplanes, but drones are better sensors in the sky. Drones…
The Enforceability of Mechanic’s Liens in Bankruptcy is Dependent on State Law
In a recent decision by the Third Circuit Court of Appeals, the Court held that a mechanic’s lien filed by an unpaid supplier against a construction project, after the contractor through whom the materials were furnished filed for bankruptcy, was voidable. In re Linear Electric Co., No. 16-1477 (3rd Cir. March 30, 2017). Specifically, the Court held that once the contractor filed for bankruptcy, the automatic stay barred the filing of a mechanic’s lien. While the supplier argued that the lien only encumbered property of the owner of the construction project, rather than property of the contract, the Court rejected that argument. The Court held that because the lien permitted recovery of money owed by the owner to the contractor, the lien acted to seize a portion of the contractor’s accounts receivable, which was now an asset of the bankruptcy estate.
Interestingly, the Court noted that the result might have been different if another state’s law governed. The Court acknowledged that in another case, In re Yobe Electric, Inc., 728 F.2d 207 (3rd Cir. 1984), the filing of a mechanic’s lien by a subcontractor did not violate the automatic stay provision because, under Pennsylvania law, the date of filing the mechanic’s lien related back to “the date of visible commencement upon the ground of the work of erecting or constructing the improvement.” In In re Linear, the Court applied New Jersey law, which contained no such relate back provision and, therefore, the mechanic’s lien was effective only as of the date of filing.
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Contract Barred Recovery of Lost Productivity Damages Suffered by Contractor
Construction projects are no stranger to delays and the inevitable resulting disputes. To allocate such risks, parties frequently include no damage for delay causes in their contracts. These provisions commonly provide that in the event of a delay the contractor’s remedy is limited to an extension of time. Given that there are often multiple causes of delays and a variety of types of delay damages it is critical that at the onset of a construction project the parties consider and properly allocate the risk of such delays and the potential resulting costs in the contract documents.
A recent Massachusetts Superior Court decision offers further insight into the importance of the contract in allocating the risk of delay damages. In Cumberland Farms, Inc. v. Tenacity Constr., Inc. (Mass.Super, 2016), the court held that the terms of the contract precluded the contractor from recovering lost productivity and costs associated with work inefficiencies incurred while performing Winter work. The case arose from two distinct construction projects involving the plaintiff Cumberland Farms, Inc. (“CFI”) as the owner and Tenacity Construction, Inc.(“Tenacity”) as the contractor. Both projects suffered severe delays. As a result CFI granted Tenacity an extension of time and agreed to pay Tenacity time and materials for costs incurred while performing work during the Winter months. Prior to performing the work Tenacity claimed that reimbursement for time and materials would likely not fully compensate Tenacity for any lost productivity or inefficiency costs incurred during the Winter and that Tenacity may seek such costs at a later date. Although CFI did not deny this request it also did not agree to the request. A couple months after completing the Winter work, Tenacity sent CFI a letter claiming that it was entitled to an equitable adjustment of the contract price for lost productivity and inefficiency costs attributable to Winter conditions. In response CFI requested back-up information in support of Tenacity’s claim but ultimately denied the request.
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Maryland Sheriff’s Office Recovers Stolen Construction Goods Through Drones
Last week, Maryland’s Cecil County Sheriff’s Office used an unmanned aerial vehicle (UAV) to recover nearly $400,000 worth of stolen construction equipment, which also led to the arrest of the culprit. The New Jersey State Police, Pennsylvania State Police and Delaware Fish and Wildlife Natural Resources Police were all investigating this case—the construction equipment had…