When the pandemic first hit the United States, many businesses were either ordered closed by different states or decided to close by themselves. There are, however, some major exceptions: those businesses that are considered as “essential” enough that should continue operating during this crisis. There are many states that include construction and building materials industries as “essential services.”

Of course, this might make many people wonder why construction is a fundamental service. To clear the misconception about construction services, here’s a brief guide that breaks down why construction is considered as a fundamental service.

Reprinted courtesy of Chris Jackson, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.

Though the COVID-19 pandemic has put millions out of work, essential workers in industries like construction have continued. Considered part of the more than 17 million workers in infrastructure jobs that include construction site workers, electricians, plumbers, other skilled trades and project managers, the need for a consistent labor force is even more urgent. Questions about how to fill labor gaps due to illness, vulnerability to the pandemic and aging pose real challenges to companies.

While these labor gaps might seem insurmountable or—at the very least—unfillable, another way to look at it is an opportunity. Namely, this is an opening for construction executives to think outside of the box or, in this case, traditional populations where hiring occurs and instead look to untapped communities.

Reprinted courtesy of Annalisa Enrile, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.

Studies by key union specialty contractors indicate that COVID-19 has turned their projects into money-losers and that firms must seek and receive additional payment via change orders to prevent a wave of company failures.

The Equal Employment Opportunity Commission (EEOC) updated its technical assistance guidance for employers. The new guidance explains that antibody tests cannot be required from employees to re-enter the workplace, addresses when an employee may receive an alternative symptom screening check as a disability or religious accommodation, reminds employers that actions taken based on their benevolent concerns about older workers, pregnant workers, and child caregivers may be discriminatory, and reiterates the employer’s obligation to prevent harassment against employees who are or are perceived to be of Chinese or other Asian national origin.

The Centers for Disease Control and Prevention (CDC) has also released guidance on contact tracing for government contract tracers. The guidance includes material that private employers might find helpful in contact tracing within their workforce.

Reprinted courtesy of Amy R. Patton, Payne & Fears and Rana Ayazi, Payne & Fears
Ms. Patton may be contacted at arp@paynefears.com
Ms. Ayazi may be contacted at ra@paynefears.com

Bolstered by a series of strategic acquisitions broadening its array of in-house capabilities, along with a major investment in modular construction, long-time design-builder Haskell is now embracing an all-of-the-above project delivery approach as it pursues a plan to nearly double annual revenue by 2025.

Associated Builders and Contractors reported that its Construction Backlog Indicator rose to 7.9 months in May, an increase of less than 0.1 months from April’s reading. Furthermore, based on an ABC member survey conducted from May 20-June 3, results indicate that confidence among U.S. construction industry leaders continued to rebound from the historically low levels observed in the March survey.

Nonresidential construction backlog is down 0.8 months compared to May 2019 and declined year-over-year in every industry, classification and region. Backlog in the heavy industrial category, however, increased by nearly one month in May after reaching its lowest level in the history of the series in April.

Reprinted courtesy of ABC, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.

One of the most challenging obstacles contractors face is securing qualified skilled laborers to meet the demands of their current workload. The advent of more sophisticated technology on jobsites is alleviating the problem in part as contractors are increasingly utilizing technology to assist in achieving timely job completion. The use of technology also makes current workers accountable for meeting production timelines. Of course, technology is not new to the construction industry; however, significant advances are enabling construction contractors to take greater advantage of technology to fill the gap in human capital.

Building Information Modeling is a prime example. During the design stage, BIM, combined with virtual and augmented reality, can facilitate sharper results and greater efficiencies. BIM assists contractors in choosing materials, fittings and design changes in order to make post-completion buildings more maintainable. For example, BIM enables the maintenance team to do a virtual walkthrough of the building to understand placement of the mechanical system in order to determine access and ability to service the system. This allows design changes to be made before the construction stage begins and can reduce or eliminate delays and change orders in the construction process.

Reprinted courtesy of Michelle Johnson & Robert Mercado, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.

Kaiser Permanente announced March 25 it has cancelled plans to build a $900 million headquarters facility in Oakland, Calif. The project, which would have been the largest office building in Oakland, was going to be called Kaiser Permanente Thrive Center.

A construction lien foreclosure action is an action against the real property and MUST be brought in the county where the property is located. It is an action concerning subject matter jurisdiction (the jurisdiction of the court to hear the matter) and, thus, can be raised at any time in a proceeding. If you are looking to foreclose a construction lien, please make sure 1) the lien is recorded in the right jurisdiction and 2) the lien is foreclosed on in the right jurisdiction.

In a recent case, Prime Investors & Developers, LLC v. Meridien Companies, Inc., 2020 WL 355930 (4th DCA 2020), a dispute arose between a general contractor and subcontractor on a hotel project in Miami-Dade County. The general contractor filed suit against the subcontractor for untimely and defective installation in Broward County. The subcontractor counter-sued the general contractor for breach of contract and asserted a claim against the developer of the hotel to foreclose a construction lien. Remember, the property was located in Miami-Dade County but the lawsuit was in Broward County.

New York City's Facade Inspection and Safety Program, or Local Law 11, now carries more stringent punishment for owners of buildings whose facades fail to meet safety regulations.

The Gordon & Rees Construction team has been closely watching all of the developments with COVID-19 and the impacts on our construction clients. We have compiled various resources that may be useful for you and will continue to update our COVID-19 Hub with information as it is released.

Reprinted courtesy of Brenda Radmacher, Gordon Rees and Ernest Isola, Gordon Rees
Ms. Radmacher may be contacted at bradmacher@grsm.com
Mr. Isola may be contacted at eisola@grsm.com