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With many New York City construction projects deemed non-essential, owners find themselves with partially completed work coupled with legal obligations to maintain the safety of the property. The temporary shutdown shifts responsibilities (and liability) for maintaining the safety of the property and the public to the owner. From maintaining permits to weekly inspections and weather protection, owners are now tasked with numerous roles and responsibilities more typical of those of a general contractor. Failure to understand and address these requirements places the owner at risk of noncompliance and potential delays when work is ready to resume if for example, permits have lapsed or areas of the site are no longer code compliant. The full New York City Building Department bulletin (the Bulletin) issued last week provides guidance to owners and contractors regarding the minimum requirements for maintaining construction and demolition sites when operations are suspended.
Continue Reading New York Construction Building Owners Assume New Roles and Responsibilities in Wake of Construction Shutdowns

Although Governor Cuomo put “New York State on PAUSE” a week ago, at that time, “construction” was not specifically exempted from his Executive Order and the Empire State Development’s (ESD) guidance on what businesses were subject to the 100 percent workforce reduction. Yet, pursuant to a further directive from the Governor, on March 27, 2020,…

As the Coronavirus has encapsulated the world, government go-aheads to construction firms are welcome relief to the industry. Lenders’ collective reaction to the current economic concerns is another matter. Future financing is always imperative to ensure ongoing construction as well as new projects.

Government responses are changing by the day, but the Federal Reserve (the Fed) has acted decisively and thoroughly in response to the economic threats following the Coronavirus outbreak. Staying true to its Congressional mandate to “promote maximum employment and stable prices, along with its responsibilities to promote the stability of the financial system,” the Fed has devised numerous strategies to meet the persistent demand for redemptions and infuse money into the market. It has cut interest rates to zero, coordinated with other central banks to encourage purchases of the U.S. dollar, committed to purchasing an unlimited amount of U.S. Treasury’s and mortgage-backed securities, and explicitly encouraged banks to reduce their reserves held against demand deposits (by eliminating entirely reserve requirements).
Continue Reading The Federal Reserve’s Powers to Pave the Way for Continued Development and Construction Through COVID-19

As the Coronavirus has encapsulated the world, government go-aheads to construction firms are welcome relief to the industry. Lenders’ collective reaction to the current economic concerns is another matter. Future financing is always imperative to ensure ongoing construction as well as new projects.

Government responses are changing by the day, but the Federal Reserve has…

Property development companies regularly create single-purpose entities (SPE) to acquire new real estate for development, construction or renovations. SPEs are often comprised of only a few members, no assets beyond the property itself and are considered “closely-held” companies.

There has been a growing trend in New York construction defect lawsuits where boards of managers of…

In the wake of the tragic death of architect Erica Tishman, who was killed by falling debris from a brick tower in midtown Manhattan in December 2019 , the New York Department of Buildings (DOB) amended its rules governing exterior wall inspections and repairs. The new rules went into effect on February 20, 2020. Known as the Local Law 11 inspections, the Façade Inspection & Safety Program (FISP) has undergone extensive amendments in an effort to address the increasing number of dangerous façade conditions including corroded masonry and fractured terra cotta which in addition to causing structural problems, can loosen and fall to the ground causing bodily harm or property damage.

This issue is a growing concern. During the past six years, more than 4,790 Environmental Control Board violations related to facades were issued of which more than half remain active.[i] The DOB reported more than 22,000 violations related to facades since 2014.[ii]
Continue Reading NYC Amends Its Façade Inspection and Safety Program to Push Building Owners into Action

A subcontractor has liened the property although the owner has paid in full for its work. The general contractor has disappeared. What should an owner do next? And will its attorneys’ fees be recoverable?

In New York, a mechanic’s lien, although filed in the county clerk’s office on the project owner’s land record, secures only…

As we have written about previously, this past Spring the New York State Legislature and New York City Council adopted broad new requirements to combat workplace gender-based harassment. Adopted in April and May by the New York General Assembly and New York City Council, respectively, the sweeping sexual harassment laws represent a renewed and comprehensive program to end workplace sexual harassment.

In addition, the New York City Commission on Human Rights published a mandated sexual harassment poster, which is now required to be posted conspicuously, both in English and Spanish, in covered workplaces.
Continue Reading New York Requires Sexual Harassment Policies in Compliance with New Requirements to Be Distributed by Tuesday, October 9, 2018 (But Deadline Extended for Newly Mandated Training)

For years, general contractors and trade contractors have faced very strict “no damages for delay” clauses on New York State construction projects. The tides are changing.  If signed into law, S. R. 06686, Reg. Sess. 2017-2018 (NY 2017) will require public entities to allow contractors, subcontractors and suppliers to recover for costs associated with project delays to the extent the delays were caused by the entity’s actions or inactions. Public entities would include, without limitation, any state agency, department, board, bureau, municipal corporation, school district or any instrumentality or public subdivision of the State of New York.
Continue Reading Will Strict “No Damages for Delay” Clauses Be Outlawed on New York Public Construction Projects? Stay tuned.