Serving Construction clients throughout the Northwest and Alaska

Construction Law Blog - Construction News and Notes

Disclaimer: The content provided on this website is for informational purposes only and is not legal advice. Transmission of this information is not intended to create, and receipt does not constitute, an attorney-client relationship. The information provided is intended for general information which may or may not reflect the most current developments. Although these materials may be prepared by legal professionals, they should not be used as a substitute for professional services. By using this website you expressly agree that there is no attorney-client relationship between you and the drafter of the content of this website. If you have a question regarding a particular issue or need legal advice, please contact one of the attorneys at AHLERS & CRESSMAN, PLLC.

The opinions or viewpoints expressed herein do not necessarily reflect those of AHLERS & CRESSMAN, PLLC any link to other websites are not intended to be referrals or endorsements of those sites. The links provided are maintained by the respective organizations, and they are solely responsible for the content of their own sites.

Posted By: John P. Ahlers | Apr 30, 2010 | Topics: Construction News and Notes | View Article

Viaduct Gates Will Quicken Closure of Road After Earthquake

During the 2001 Nisqually earthquake motorists continued to drive over the damaged Alaskan Way Viaduct until the Washington State Department of Transportation (WSDOT) closed the Viaduct hours later. WSDOT plans to install nine (9) gates at entrances to the Alaskan Way Viaduct. Within minutes of a future earthquake, the gates will seal off the roadway and prevent motorists from driving on the structure that may be damaged during a quake. The Alaskan Way Viaduct carries approximately 110,000 vehicles per day.

To read the article click here



Posted By: John P. Ahlers | Apr 13, 2010 | Topics: Construction News and Notes, Department of Labor & Industries, Government Contracts, Regulatory Administration | View Article

EPA New Lead Paint Requirements

The Environmental Protection Agency has instituted a new requirement for contractors who perform work on buildings constructed before 1978 to reduce exposure to lead paint. All contractors performing renovation, repair, and painting projects that disturb paint in homes, childcare facilities, and schools before built before 1978 must be certified in the new EPA Renovation, Repair, and Painting Rule (RRP) and follow specific work practices to reduce human exposure to lead paint by April 22, 2010. All contractors must be trained certified by April 22, 2010. Landlords, property manager, and their employees are responsible for ensuring compliance with the rule. To locate an EPA-accredited training provider, visit the EPA’s Get Lead Safe website at http://www.epa.gov/opptintr/lead/pubs/renovation.htm or contact the National Lead Information Center at 1-800-425-5323.



Posted By: John P. Ahlers | Apr 12, 2010 | Topics: Construction News and Notes, Government Contracts | View Article

Sound Transit Takes on Obayashi at the Beacon Hill Tunnel

Sound Transit accuses Japanese contractor Obayashi Corp. of leaving nine voids in the two-mile Beacon Hill tunnel that was built as part of Sound Transit’s regional Light Rail construction. Sound Transit has engaged another contractor to fill the voids and has made a claim against Obayashi for $1.6 million. Obayashi disputes that it has any liability for the alleged voids.

To read the article click here



Posted By: John P. Ahlers | Feb 23, 2010 | Topics: Construction News and Notes | View Article

Call For Boost to Infrastructure Investment

Pennsylvania governor Ed Rendell is championing rebuilding of the U.S. aging infrastructure. It is easy, especially in tough economic times, for legislators to push aside infrastructure initiatives, including basic maintenance and repair, in favor of issues that seem more pressing or more appealing. Such neglect misses the point that infrastructure spending is a thoughtful and wise investment, a crucial investment in the nation's future – and it is an excellent source of high-value jobs. Governor Rendell is quoted as follows:

"When I took over as governor, I was told that Pennsylvania lead the nation in the number of structurally deficient or functionally obsolete bridges. We had more than 5,600 of them, so I put a ton of money into bridge repair. We more than tripled the amount of capital budget from $200 million a year to $700 million per year. I got a special appropriation from the Legislature to do $200 million a year extra for the next four years. Well, the good news is that we repaired a lot of bridges. The bad news is that by the end of my 6th term [as governor], the end of 2008, the number of deficient or structurally obsolete bridges had gone from 5,600 to more than 6,000. The reason is that we [Pennsylvania] led the nation in bridges 75 years or older, and the recommended life span for a bridge is 40 years. So, every time we fixed two, three would bump on to the list."

Similar investment must be made in the state of Washington to update and rebuild this State's aging infrastructure.

To read the article click here



Posted By: John P. Ahlers | Feb 22, 2010 | Topics: Construction News and Notes | View Article

Safeco Field Overpass Nears Completion

By mid-June the Safeco overpass, a new bridge between the baseball stadium on South Royal Brougham Way will carry traffic and pedestrians over the BNSF railroad tracks. The west end of the bridge was open on February 17, 2010. The Royal Brougham Way bridge will open to vehicles only and bicycles by April 12, 2010. The bridge's sidewalks, stairs and elevators will be open only for stadium events by April 12, 2010 at the earliest and by the end of April at the latest. By mid-June, the bridge will be open at all times to vehicles, bicycles and pedestrians. The I-90/I-5 off-ramp to the South Atlantic Street overpass will open by May 12, 2010.



Posted By: John P. Ahlers | Dec 14, 2009 | Topics: Construction News and Notes | View Article

Construction Of Giant Wind Farm In Oregon Presents Opportunities For Contractors

Shepherd's Flat project in Oregon, is the largest wind farm completed to date. The construction will take place between 2011 and 2012 and approximately 400 workers will be needed. The wind farm will power 235,000 California homes and will supply 10% of Southern California Edison's renewable energy.

To read the article click here



Posted By: John P. Ahlers | Nov 10, 2009 | Topics: Construction News and Notes | View Article

Corps of Engineers Reduces The Chance of Green River Flooding from 33% to 4%

The U.S. Army Corps of Engineers reports that repairs to the Howard Hanson Dam have dramatically reduced the chance of flooding in the Green River Valley this winter. The installation of a grout curtain in the dam is slowing the seepage through a damaged abutment. The Corps of Engineers' officials indicated that if heavy rains raised the water levels in the dam, the Corps of Engineers may have to release water so that the dam does not collapse. The Green River Valley is the West Coast's second largest manufacturing and distribution center located southeast of Seattle.

To read the article click here



Posted By: John P. Ahlers | Oct 29, 2009 | Topics: Construction Defect, Construction News and Notes, Contracting, Damages, Indemnity | View Article

OREGON COURT OF APPEALS RULES THAT BUILDERS IN OREGON CAN BE SUED FOR "NEGLIGENT CONSTRUCTION" IF A BUILDING CODE VIOLATION IS INVOLVED

A recent decision by the Oregon Appeals Court allows property owners to file negligence lawsuits against contractors for building-code violations. In a construction defect case brought eight (8) years after the construction was substantially complete, the Court ruled that the breach of contract action against the contractor was barred by the six (6) year statute of limitation, however, allowed the homeowners to sue the contractor on a negligence cause of action which has a two (2) year statute of limitation with a "discovery" proviso (the cause of action must be commenced within two (2) years of discovery). Though the discovery of the alleged construction defect occurred well after the contract statute of limitations had run, the lawsuit was brought within two (2) years of the date of the discovery of the alleged defect. The Court reasoned that because the water leakage, which was at the heart of the allegation, involved possible violations of the Oregon building-code, the homeowners were allowed to bring a negligence cause of action against the contractor.

This case has far reaching implications for commercial contractors (and their insurers), involved in construction defect disputes. Since most "construction defects" involve some violation of some provision of the building code, an owner now has two (2) years from the date of discovery of the defect (irrespective whether the contract statute of limitations has expired) to bring a cause of action against builders and their insurance companies.

Abraham v. T. Henry Construction, Inc., Or. App. __, WL 2766868 (2009)



Posted By: John P. Ahlers | Oct 16, 2009 | Topics: Construction News and Notes | View Article

Former Mayoral Candidate Files Lawsuit To Halt Seattle Tunnel

Seattle Citizens Against the Tunnel filed a lawsuit to prevent the WSDOT from proceeding with a plan to replace the Alaskan Way Viaduct with a tunnel. The lawsuit seeks to halt work on the tunnel until an Environmental Impact Study is completed in 2011.

To read the article click here



Posted By: John P. Ahlers | Oct 14, 2009 | Topics: Construction News and Notes | View Article

City of Seattle Takes Another Step Toward Construction of the Alaska Way Viaduct Replacement Project

On October 19th the City Counsel will vote on an agreement to take on nearly a billion dollars of responsibility for streets, a new seawall, parking, a waterfront promenade and perhaps a street car. These costs are over and above the $3.1 billion State highway project. This month's paperwork does not lock in the "big bore" but, is one step further in committing the City to the tunnel project.

To read the article click here



Posted By: John P. Ahlers | Oct 13, 2009 | Topics: Construction News and Notes | View Article

Committee On Advancing The Competitiveness And Productivity Of U.S. Construction Industry (National Research Council) Publishes Its Findings

In 2008 the National Institute of Standards and Technology (NIST) requested that the National Research Council (NRC) appoint an ad hoc committee of experts to provide advice for "advancing the competitiveness and productivity of the U.S. construction industry." NRC defined efficiency improvements as ways to cut waste in time, costs, materials, energy, skills and labor. The Committee believes that improving efficiency will improve overall productivity and help individual construction firms produce more environmentally sustainable projects and become more competitive. The Committee identified 5 "opportunities for breakthrough improvements." There were (1) widespread deployment and use of inter-operable technology applications, also called Building Information Modeling ("BIM"); (2) improve job-site efficiency through more effective interfacing of people, processes, materials, equipment and information; (3) greater use of pre-fabrication, pre-assembly, modernization and offsite fabrication techniques and processes; (4) innovative, widespread use of demonstration installation; and (5) effective performance measurement to drive efficiency and support innovation. The Committee discusses its findings in this report that can be obtained by accessing the following website: http://www.nap.edu/catalog/12717.html



Posted By: John P. Ahlers | Oct 12, 2009 | Topics: Construction News and Notes, Out of the Ordinary | View Article

The World Trade Center Collapse Still Being Debated By Engineers and Scientists

A summary of some the technical areas in dispute as to what caused the World Trade Center to collapse on September 11, 2001 is set forth in this article. The National Institute for Standards and Technology (NIST) and its building trade and scientific allies are one side of the debate and its equally credentialed science, profession and licensed critics (building and structural engineers, architects, physicists, chemists) on the other side, put forth their cases in these theories compiled from NIST's official report. In addition to complex engineer explanations, very convincing arguments are made that the collapse could only have occurred due to explosives having been "planted" in the building before the airplanes struck the towers. Incendiary "super thermite," evidence of explosives and the iron-rich microspheres that can only derive from high pressure, high temperature explosives have allegedly been discovered in the buildings rubble. This article provides an interesting recap of the raging debate: Whether the high-rise steel building collapsed in such a manner without the use of explosives? At issue seems to be NIST's competence and willingness to examine all the evidence.

To read the article click here



Posted By: John P. Ahlers | Oct 09, 2009 | Topics: Construction Bidding, Construction News and Notes, Rants and Raves | View Article

Are Bidders Choosing to "Bomb" Project Pricing?

According to a recent ENR article, if all bidders have experienced estimators and costs of materials and efficiencies of bidders are the same, the variances in bids should be very small. Nevertheless, as of late, bid tabulations are showing significant variances, the explanation offered for these variances are mistakes in bids, missing amendments, takeoffs or subcontractors' quotes, or the company owners have decided to bid the work at or below cost to keep work coming in or generate cash flow. Qualified bidders are losing projects to bad business managers and poor bidders are ruining the markets for the competent bidders. "What the industry is facing today is complicated by having too many bidders either making mistakes in bides or poorly managing their businesses."

To read the article click here



Posted By: John P. Ahlers | Oct 05, 2009 | Topics: Construction News and Notes, Employment, Government Contracts, Regulatory Administration | View Article

Court Rules E-Verify Will Take Effect On September 8, 2009

The U.S. District Court for the District of Maryland upheld the legality of a federal regulation that will require many federal government contractors to use the E-Verify system to verify the employment eligibility of new hires, as well as certain existing employees. The regulation requires a new E-Verify clause to be included in certain federal contracts awarded or solicited on or after September 8, 2009. In a departure from the voluntary E-Verify, employers that are a party to a contract (or subcontract) containing this E-Verify clause will be required to use E-Verify to confirm the employment eligibility of all new hires and all employees who perform work directly under the contract.

Chamber of Commerce of the United States of America v. Janet Napolitano, Civil Action No. AW-08-3444 (D. Maryland M.D.) See Regulation 73 Fed. Reg. 67,651 (November 14, 2008).



Posted By: John P. Ahlers | Oct 01, 2009 | Topics: Construction News and Notes | View Article

Is The U.S. Headed For A Commercial Real Estate Crisis?

Tishman Construction CEO Daniel Tishman warns that in the next 5 to 7 years, $3.4 trillion in commercial real estate mortgages must be refinanced. Unemployment in the construction industry is about 18.2% nationally and he expects that many companies will struggle to find financing. Tishman calls for new government programs to assist with financing.

To read the article click here



Posted By: John P. Ahlers | Sep 29, 2009 | Topics: Construction News and Notes | View Article

Cannon Beach, Oregon Considers Tsunami Evacuation Buildings

The former Mayor of Cannon Beach, an architect, has designed a conceptual city hall building that could double as a Tsunami evacuation building. The city hall would sit about 15 feet above the water on pilings, allowing the tsunami wave to flow under it. The building would not only save lives, but would allow city government to function after a disaster.

To read the article click here



Posted By: John P. Ahlers | Aug 26, 2009 | Topics: Construction News and Notes | View Article

The Tunnel Replacing The Alaskan Way Viaduct (The Widest In The World), Commences With The Geotechnical Investigation

A half dozen drill rigs are currently at work in downtown Seattle boring holes 100 to 300 feet deep, sampling soils for the construction of the tunnel that will replace the Alaskan Way Viaduct. Once the test drilling is completed, the Washington State Department of Transportation will put the tunnel boring machine (custom built for the project the size of an aircraft cylinder) out for bid.

To read the article click here



Posted By: John P. Ahlers | Aug 24, 2009 | Topics: Construction News and Notes | View Article

Brightwater Sewage Treatment Plant to Open in 2011, But Without The Tunnel

The Brightwater Sewage Treatment Plant in Everett, WA is scheduled to open in 2011. Mechanical breakdowns of two tunnel boring machines have halted the 13-mile tunnel which was to carry treated waste water to Puget Sound. Until the tunnel is complete, the treated waste water will be sent through existing pipes to the Westpoint or Renton treatment plant. The $1.8 billion Brightwater Plant was scheduled for completion in 2010, but the opening date was pushed back to September 2011 before the tunnel machines broke down. The tunneling contractors are working with the German based tunnel machine manufacturer to repair the boring machine and no date has been provided as to when the damaged machines will be back in service.

To read the article click here



Posted By: John P. Ahlers | Aug 21, 2009 | Topics: Construction News and Notes | View Article

WSDOT Testing Quieter Pavement On 405 In Bellevue

The Washington State Department of Transportation (WSDOT) is testing quieter pavement to reduce road noise on 405 in Bellevue in the vicinity of Factoria. The asphalt surface is noticeably quieter. Previous sections of I-5 on which WSDOT tested quieter pavement (I-5 through Lynnwood and SR520 between Medina and Bellevue) did not perform well. The asphalt mix for the test section in Bellevue has been changed; let's hope it works this time.

To read the article click here



Posted By: John P. Ahlers | Aug 19, 2009 | Topics: Construction News and Notes | View Article

Representative Clibborn declares the Viaduct Tunnel Replacement a "done deal"

The Washington State Department of Transportation is proceeding with the $4.2 billion Alaskan Way Viaduct replacement project despite opposition from Mayoral candidates who say the traffic should be dispersed on surface streets.

To read the article click here



Posted By: John P. Ahlers | Aug 18, 2009 | Topics: Construction News and Notes | View Article

Repairs Begin on Howard Hanson Dam (Green River)

The Army Corps of Engineers has commenced repairs at the Howard Hanson Dam to control the potentially destabilizing seepage to the earth and abutment. The repair should reduce the likelihood of winter flooding in the populace Green River Valley. The work will increase the Dam's ability to reduce the downstream flooding risk. Funds from the Federal Stimulus Package are paying for the repair contracts.

To read the article click here



Posted By: John P. Ahlers | Aug 17, 2009 | Topics: Change Orders, Construction News and Notes, Delay Claims, Government Contracts, Settlements/Releases | View Article

Bell BCI Co. v. United States - Release of Cumulative Impact Claims

Bell involved a construction contract under which the government issued an extensive series of change orders. Following the first of those change orders, the parties executed Modification 93, which stated in part the increased contract amount set forth in the Modification represented "full and equitable adjustment for the remaining direct and indirect costs of the [changed work] . . . and full and equitable adjustment for all delays resulting from any and all Government changes transmitted to the Contractor on or before August 31, 2000." Modification 93 also included the following "release" language: "the Modification agreed to herein is a fair and equitable adjustment for the Contractor's direct and indirect costs. This Modification provides full compensation for the changed work, including both Contract costs and Contract time. The Contractor hereby releases the Government, including all liability under the Contract for further equitable adjustment attributable to the Modification."



Posted By: John P. Ahlers | Aug 14, 2009 | Topics: Construction News and Notes | View Article

Ahlers & Cressman Clients are Five of the Ten Top Northwest Specialty Contractors

Five Ahlers & Cressman PLLC mechanical and electrical contractor clients made the top ten list of Washington State Specialty Contractors! McKinstry (1); J.H. Kelly, LLC (2); Veca Electric & Communications (4); Cochran, Inc. (6); and Valley Electric (10). We are proud to be business partners with these industry leaders and wish them continued success and prosperity in all of their endeavors. For a listing of top Northwest specialty contractors. See attached.

To view the full list click here



Posted By: John P. Ahlers | Aug 13, 2009 | Topics: Construction News and Notes, Government Contracts, Recent Legislation | View Article

Federal Government Employment Eligibility and Verification Regulation

On June 6, 2008, the FAR council released a new provision requiring the use of the Department of Homeland Security's Electronic Employment Eligibility Verification System ("E-Verifiy"). The contractor performing construction work in excess of $100,000, a "covered contract" must enroll in E-Verify within thirty (30) calendar days of contract award and start using E-Verify within ninety (90) calendar days of enrollment to verify the employment eligibility of a new employee.

Posted By: John P. Ahlers | Aug 12, 2009 | Topics: Construction News and Notes, Government Contracts, Recent Legislation | View Article

American Recovery & Investment Act, Federal Work Requires Familiarity with Federal Acquisition Regulations (FARs) and Business and Ethics Compliance. New AGC Federal Government Contractor Ethics And Compliance Program, Tool Kit & Guidance Publication

The interest in bidding on federal work, considering the new American Recovery and Reinvestment Act (Stimulus Bill) has attracted many new bidders to federal procurements. Federal contractors need to take note of the recent Business and Ethics compliance provisions of the Federal Acquisition Regulations. Any contractor receiving a government contract in excess of $5 million with a duration of 120 or more days shall:

  • Adopt a written code of business ethics and conduct and make its "available to each employee during the covered contract;
  • Exercise "due diligence" to prevent and detect criminal conduct;
  • Promote an organizational culture that encourages ethical conduct and compliance;
  • Make a timely written disclosure to the agency inspector general with a copy to the contracting officer whenever the contractor as "credible evidence: of a violation of the Civil False Claims Act or a federal criminal law involving fraud, conflict of interest, bribery or gratuity violations.

Every contractor (except for small business) must establish a business ethics and awareness program and an internal control system within 90 days of contract award. The contractor's system and program shall include:

  • Reasonable steps to communicate standards, procedures and provide training;
  • An internal control system that includes standards and procedures to facilitate timely discovery of improper conduct, periodic assessments of criminal conduct, reporting mechanisms such as a hotline and disciplinary action for improper conduct for failing to prevent or detect improper conduct;
  • Disclosure of improper conduct to the federal government. Not only must the contractor comply with these business and ethics provisions, these provisions must be included in subcontracts in purchase orders in excess of $5 million and 120 day's duration.

In addition, the contractor must verify subcontractor and supplier compliance. The Associated General Contractor's (AGC) Federal Government Contractor Ethics And Compliance Programs, tool kit and guidance publication includes generic ethics and compliance programs. This sample program assists contractors to navigate these complex and new regulatory waters.



Posted By: John P. Ahlers | Jul 10, 2009 | Topics: Construction News and Notes | View Article

Business Capitalizes on Ruling in Political Case

A U.S. Supreme Court which ruling focused on national security may end up becoming a significant decision for U.S. businesses. Ashcroft v. Iqbal, 556 U.S. ___, 128 S.Ct. 2931, (2009) will make it more difficult for plaintiff's to bring a lawsuit without asserting specific factual evidence, raising the threshold for moving a case into litigation and possibly saving companies millions of dollars in legal fees.

A Pakistani named Javaid Iqbal sued the U.S. government officials over his detainment after September 11, 2001. The Supreme Court ruled that Mr. Iqbal didn't have sufficient factual evidence to proceed with his discrimination claims.

"While legal conclusions can provide the framework of a complaint, they must be supported by factual allegations," Justice Anthony Kennedy wrote in the 5-4 opinion. He cited the 2007 decision in Bell Atlantic Corp. v. Twombly, an antitrust case that outlined what plaintiffs must assert to make it through initial court proceedings.

As a result of the Iqbal ruling, businesses may find it easier to fend off lawsuits by persuading courts to dismiss complaints early in litigation. The court didn't allow Mr. Iqbal to assert that government officials had "supervisory liability" for the orders that resulted in his arrest. The decision translates most easily to business cases that list not only a single, but also its parent company and its affiliates.

Justice David Souter in the dissent said that the Twombly decision didn't require the court to decide early on if the facts are true, as was decided in Iqbal.

"We made it clear, on the contrary, that a court must take the allegations as true, no matter how skeptical the court may be," he said in the dissent.

Robin Conrad, executive vice president of the U.S. Chamber of Commerce indicated "It puts the burden on the person filing the complaint, and that applies to businesses, too."

To read the article click here



Posted By: John P. Ahlers | Apr 21, 2009 | Topics: Construction News and Notes | View Article

Chelan Washington's wooden pipes emphasize the need for radical infrastructure upgrades

Chelan, Washington's wooden water mains were recently featured in the New York Times. The resort community on Lake Chelan relies in part on a handful of wooden water mains to transport drinking water. Wooden water mains are relics of the days when water was transported in bored out logs. This article stresses the need for our State to maintain the public works trust fund and to continue to invest much needed money in the State's infrastructure.

To read the article click here



Posted By: John P. Ahlers | Mar 24, 2009 | Topics: Construction News and Notes | View Article

WSDOT goes out for bid for removal of the viaduct’s southern mile

The Washington State Department of Transportation is seeking bids for the removal of the southern mile of the Alaskan Way Viaduct. This portion of the viaduct borders the Port of Seattle property and rests on unstable soils. The estimated value of the project is $15M. The new southern mile of SR 99 will have three lanes in each direction and will be a side-by-side road instead of a double-decker structure as it exists today. The contract will include new on- and off-ramps near the baseball and football stadiums as well as an undercrossing at the South Atlantic Street which will eliminate long traffic backups that occurred due to frequent rail crossings. To read the article click here.

Posted By: John P. Ahlers | Feb 24, 2009 | Topics: Construction News and Notes | View Article

The Stimulus Bill - The Audit and Oversight Provisions of the 2009 Stimulus Bill Will Startle Many Funding Recipients

President Obama, February 17, 2009, signed the American Recovery and Reinvestment Tax Act of 2009 (the Stimulus Bill). The Stimulus Bill includes approximately $787 billion in government spending and tax cuts. The U.S. Government (as well as state and local recipients of this money) will disburse the funds through a number of different spending vehicles - grants, government contracts, cooperative agreements, and other transactions. This bill contains significant federal acquisition and grant processes which will likely slow down the distribution of monies to recipients. Further, the recipients of stimulus moneywill find themselves embroiled in one of the most rigorous oversight regimes ever enacted.



Posted By: John P. Ahlers | Feb 09, 2009 | Topics: Construction News and Notes | View Article

Building Information Management Used (BIM) at Vancouver Centre for Structural Engineering

The structural design for the Vancouver Convention Centre was modeled in 3-D using building information modeling (BIM). By using BIM, the structural engineers were able to estimate the amount of steel needed within 5% of the final configuration. The AGC and other industry organizations have developed the Consensus Docs BIM Addendum 301 which provides a workable, practical, and reasonable allocation of risk and responsibilities associated with Building Information Modeling. Watch the A+C blog for further updates on the risks and pitfalls of BIM for the construction contractor.

Click here to read article.



Posted By: John P. Ahlers | Feb 06, 2009 | Topics: Construction News and Notes | View Article

More Infra-Structure Investment - A Major Over-Haul of the U.S. Electrical Grid Needed

Demand for electrical energy has surged up 25% since 1995 and the US network will need some 1.5 trillion dollars in investment over the next two decades in order to achieve the "green revolution" supported by President Barrack Obama. "Our biggest problem is building enough transmission lines to adequately transmit the power where it is needed and allow us to have a redundant system for the maintenance," said Otto Lynch.

Click here to view article

 



Posted By: John P. Ahlers | Jan 27, 2009 | Topics: Construction News and Notes | View Article

Water Main Break Highlights Need for Infrastructure Investment

In Maryland, a water main break highlights the need for infrastructure investment. Both the state of Washington legislature as well at the Federal Government politicians are calling for investment in infrastructure as the vehicle to lift the US economy out of its present doldrums. A water main break during the morning rush hours on a busy commuter route in Maryland last month is an example of the crumbling infrastructure in the Untied States and illustrates the need for immediate repairs. The economic stimulus package proposed by President-elect Obama is an opportunity to make those water infrastructure investments desperately needed Maryland as well as the rest of the United States.

Click here for the article



Posted By: John P. Ahlers | Jan 26, 2009 | Topics: Construction News and Notes | View Article

Governor Gregoire Economic Stimulus Plan includes $8 million for Construction

On January 15, Governor Chris Gregoire unveiled her $1.2 billion economic stimulus package encouraging consumer spending, creating jobs and providing more unemployment assistance. The construction portion of that stimulus package was $800 million for construction projects. More than half of the $800 million, approximately $427 million, involves new projects already proposed in the Governor's recent budget request. The remainder consists of previously approved transportation projects that are not scheduled to start for some time. The Governor wants to access $400 million from the state unemployment program's reserves that are estimated in excess of $4 billion.

http://www.djc.com/news/co/12002162.html



Posted By: John P. Ahlers | Jan 21, 2009 | Topics: Construction News and Notes | View Article

Gloomy Construction Industry Forecast

An estimated two thirds of the nation's non-residential construction companies are planning to cut their pay rolls according to new employment and business forecast figures release by the AGC of America. All told those layoffs are forecast to result in a 30% decline on the number of people working on construction projects.

http://www.agc.org/cs/news_media/press_room/press_release?pressrelease.id=259

 



Posted By: John P. Ahlers | Jan 14, 2009 | Topics: Construction News and Notes | View Article

Congratulations Seattle Firm, McKinstry, Awarded $5B Federal Contract

The federal government, the single largest user of energy in the country, awarded Seattle-based McKinstry, a 10-year contract worth up to $5B for a series of energy efficient projects in federal government buildings. McKinstry will design, build and obtain funding for energy saving projects. The federal government will pay for the work over time from the savings realized in the utility bills. No net cash outlay for U.S. taxpayers. Ahlers & Cressman PLLC is a proud business partner of McKinstry.

http://www.djc.com/news/co/12001810.html?query=McKinstry



Posted By: John P. Ahlers | Jan 12, 2009 | Topics: Construction News and Notes | View Article

A Washington state company seeks approval to study ocean waves potential to produce electricity

A Washington state company, Grays Harbor Ocean Energy, applied for permits to study the potential in producing electricity from ocean waves in south California, Hawaii and the Atlantic coast. The company is asking for permits in seven locations on the Pacific and Atlantic coast. If all seven sites are developed, the facilities would cost between $20 - $30 billion dollars to build. http://seattlepi.nwsource.com/business/395019_oceanenergy07.html



Posted By: John P. Ahlers | Dec 08, 2008 | Topics: Construction News and Notes | View Article

Washington State Legislature Pushes Transportation Projects

Infrastructure projects are popular with Governor Gregoire. The State Legislature is considering two large transportation projects as part of the plan to create more Washington jobs. The two proposals being considered are the Alaska Way Viaduct and the Highway 520 Bridge Project both of which are not effected by shortfall in the state's operating budget because both projects are funded by gasoline tax and are not dependent upon the state budget (presently in the red). Costs of the two projects range from about 5 to 10 billion dollars.

http://seattletimes.nwsource.com/html/nationworld/2008418429_transpochallenges21m.html



Posted By: John P. Ahlers | Nov 26, 2008 | Topics: Construction News and Notes | View Article

Alaska’s Thirty Billion Dollar Natural Gas Pipeline ("Palin’s Pipeline") May be Delayed

After Governor Sarah Palin returned home from the campaign trail, the thirty billion dollar pipeline she has been touting may well be in jeopardy. The economy downturn has lowered the demand for natural gas and has caused a decrease in the price of gas. The State of Alaska may not have adequate amount of funds to begin construction. Energy consultant Pedro van Meurs was quoted as saying: "Current economic conditions are not good for the Alaska gas line, and I expect considerable delays in the initiation of its construction."

http://onlinewsj.com/article/SB122706058287939735.html



Posted By: John P. Ahlers | Sep 30, 2008 | Topics: Construction News and Notes | View Article

Road Through Wildlife Refuge Divides Alaskans

Before it recesses for November elections, Congress is considering swapping land between the State of Alaska and Federal Government that would allow a road to be built through a national wildlife refuge on the Alaska peninsula. The issue before congress is whether Alaska will be allowed to swap 43,000 acres of state land for 200+ acres of the Izembek refuge needed for the road (a single lane gravel road, 17 miles estimated at $1 - $2 million per mile). Environmentalists insist the road will fragment and irreparably harm one of the "most pristine and valuable wilderness and wetland areas in the Northern Hemisphere". Proponents of the road assert that the 800 residents of King Cove need access to the airport at Cold Bay via land, rather than by hovercraft. See http://www.nytimes.com/2008/09/27/us/27road.html

Posted By: John P. Ahlers | Sep 05, 2008 | Topics: Construction News and Notes | View Article

State Dam's At Issue In Political Race

Hydroelectric power provides about 2/3's of Washington's electricity, a major reason the State's carbon footprint is much lower than places where coal or other fossil fuels are used to make power. Four dams along the Snake River, Ice Harbor, Lower Monumental, Little Goose and Lower Granite dams were build in the 1950s and 60s to open up the lower Snake River to navigation and to make electricity. The dams also provide flood control and irrigation for agriculture.

Posted By: John P. Ahlers | Jul 29, 2008 | Topics: Construction News and Notes | View Article

Alaska House of Representatives moves the TransCanada Pipeline One Step Closer to Reality

On Tuesday, July 22, 2008, the Alaska House of Representatives approved TransCanada's plans to build a $26 billion, 1,700 mile pipeline to transport natural gas from Alaska's North Slope to the US market. An Alaskan State license means streamlined permitting and the state of Alaska will match up to $500 million for funds TransCanada spends on preconstruction costs. Opponents of the pipeline criticize what they see as a $500 million state subsidy for TransCanada. Click here for article



Posted By: John P. Ahlers | Jul 25, 2008 | Topics: Construction News and Notes | View Article

Boston’s Big Dig Plunged the State of Massachusetts into a Sea of Red Ink

The big dig project in Boston, Massachusetts has caused the state of Massachusetts to struggle under a massive debt burden.  The project escalated to $22 billion.  The state government now faced with an annual expense of $600 million over several years to pay off has sidelined road maintenance and other construction projects and is borrowing heavily to pay its highway workers.  The big dig project should be a looming example of what can occur when ambitious public transportation projects get out of hand.  A good lesson for the state of Washington in its upcoming seawall project in downtown Seattle.  Article here

Posted By: John P. Ahlers | Jul 23, 2008 | Topics: Construction News and Notes | View Article

Alaska House of Representatives moves the TransCanada Pipeline One Step Closer to Reality

On Tuesday, July 22, 2008, the Alaska House of Representatives approved TransCanada's plans to build a $26 billion, 1,700 mile pipeline to transport natural gas from Alaska's North Slope to the US market.  An Alaskan State license means streamlined permitting and the state of Alaska will match up to $500 million for funds TransCanada spends on preconstruction costs.  Opponents of the pipeline criticize what they see as a $500 million state subsidy for TransCanada.  To read the article click here

Posted By: John P. Ahlers | Jul 22, 2008 | Topics: Construction News and Notes | View Article

After Twenty Years, Portland’s Light Rail is Still a National Model

Portland, Oregon's light rail system, was built 20 years ago and it continues to expand with 50% more track expected in the next 18 months.  Ridership numbers are increasing.  City government is adding street cars and commuter rails to the public transportation mix.  Each of Portland's four light rail lines came in at or under budget and according to officials some $6 billion in development has sprouted along the rail corridor.  To read the article click here



Posted By: John P. Ahlers | Jul 21, 2008 | Topics: Construction News and Notes | View Article

Sound Transit May Add Further Contingency Funds

Federal officials have asked Seattle Sound Transit to add another $150 million in contingency funds to the budget for the 3.15 mile light rail link to the University of Washington.  The additional were sought for overruns in the high-risk tunnel construction.  The light rail project is now estimated at a total project cost of $1.7 billion.  http://seattlepi.nwsource.com/transportation/371299_sound18.html

Posted By: Ryan Sternoff | Jun 25, 2008 | Topics: Construction News and Notes | View Article

Tale of two construction sectors?

The Seattle Times reports the Washington State nonresidential construction industry is more than pulling its weight to pick up the slack caused by the downturn in residential construction.  The article notes that the glut of nonresidential building around the state has helped cushion the state's construction sector from the impact of the housing slump.  Nonresidential construction spending in the Seattle area jumped 20 percent last year, to $9.57 billion.

A walk outside the downtown Seattle offices of Ahlers & Cressman PLLC will tell you that the nonresidential boom does not look to be slowing any time in the immediate future.     

For a link to the Seattle Times article, click here.



Posted By: John P. Ahlers | Apr 23, 2008 | Topics: Construction News and Notes | View Article

MAYOR OF SEATTLE PROPOSES EASY ENVIRONMENTAL REVIEWS FOR DEVELOPERS

Fewer Seattle construction projects will face environmental reviews, if the City Counsel agrees with the Mayor's proposal to exempt urban centers from State environmental policy guidelines. The change would limit reviews to larger residential, commercial and high-rise projects.

http://seattletimes.nwsource.com/html/politics/2004362615_developers21m.html



Posted By: John P. Ahlers | Apr 14, 2008 | Topics: Construction News and Notes | View Article

Donald Trump Tells His Lawyers, “You're Fired!” After Claiming They Treated Him Like a “Cash Cow.”

Real estate developer, Donald Trump, in a legal malpractice case, claims that his Manhattan law firm overcharged him and treated him like a "cash cow" after the lawyers won a construction case on the developer's behalf. 

Trump has filed suit against the New York firm of Morrison Cohen, asserting that the firm did unnecessary work to generate higher bills.  The case involved Trump's national golf club in Briarcliff Manor, NY.  The suit claimed that the excavation and utility contractor overcharged for earth work and then walked off a separate contract for the utility and infrastructure.  Trump prevailed at trial, winning approximately $2 million in damages for breach of the earth-moving contract, but the court awarded Trump only $40,000 for the infrastructure contract.  The judge awarded Trump $1.3 million in attorneys' fees.



Posted By: John P. Ahlers | Apr 03, 2008 | Topics: Construction News and Notes | View Article

Proposed Oregon Natural Gas Pipeline Raises Environmental Concerns

The proposed Palomar Pipeline to be built across the state of Oregon shows a freeway wide clearcut slicing through 73 miles of public forest and crossing 50 rivers and streams.  At peak construction, Palomar Gas Transmission plans to employ up to 1,000 workers to clear the right-of-way, level terrain and bury the pipe in a trench 7 ft. deep according to the latest draft of a report filed with the Federal Energy Regulatory Commission.  The Oregonian



Posted By: John P. Ahlers | Apr 01, 2008 | Topics: Construction News and Notes | View Article

Civil Engineers Accused of Disaster Probe Cover-Ups

After the September 11, 2001 attack on the World Trade Center in New York and the levy failures in New Orleans caused by Hurricane Katrina in 2005, the federal government paid the American Society of Civil Engineers (ASCE) to investigate what went wrong.  An engineering group now accuses the ASCE of covering engineering mistakes, downplaying the need to alter building standards, and using investigations to protect engineers and government agencies from lawsuits.  Daily Journal of Commerce, Wednesday, March 26, 2008 article. 

Posted By: John P. Ahlers | Mar 31, 2008 | Topics: Construction News and Notes | View Article

Port of Anchorage Overhaul to Cost $700 Million

Alaskans are questioning the $700M price tag for a huge expansion for the Port of Anchorage.  The Port of Anchorage is the main conduit for 75% of all goods sold statewide.  The present plan for the new Port calls for doubling the land mass of the Port by erecting a long steel wall in the bay and then filling in the area with gravel.  Environmentalists and residents worry about the scale of the project, but officials insist that it is necessary to bring the aging Port into the millennium.  Anchorage Daily News, http://www.adn.com/front/story/353533.html

Posted By: Sean Russel | Mar 25, 2008 | Topics: Construction News and Notes | View Article

Homeowner's Bill of Rights: Is it Dead?

Rep. Mark Ericks, D-Bothell, sounded off in an editorial in the Seattle PI that a new task force will be established to propose new remedies for homeowners during the next legislative session.

Posted By: John P. Ahlers | Mar 25, 2008 | Topics: Construction News and Notes | View Article

Seattle Axes Plan for Floating Bridge Light-Rail

Seattle officials have nixed plans for the light-rail system on the new SR 520 floating bridge, despite design specifications that call for pontoons strong enough for a rail line.  The transit authorities indicated that beyond cost considerations, technical issues made the light-rail line all but impossible.  The City is now studying a combination of toll roads and rapid bus transit to relieve the congestion in the busy corridor.



Posted By: John P. Ahlers | Mar 13, 2008 | Topics: Construction News and Notes | View Article

MCA Takes On University of Washington Emergency Regulations for Renovation of Husky Stadium (February 2008)

The Mechanical Contractors' Association (MCA), in a strongly worded letter, has taken issue with the University of Washington's (University) decision to declare an emergency and adopt regulations that would permit the Husky Stadium renovation to proceed without the safeguards of competitive bidding.  MCA has asked the University that the emergency regulations be rescinded.  The University is considering significant renovations to Husky Stadium to coincide with Sound Transit's construction of a station on the west end of Husky Stadium.

Posted By: John P. Ahlers | Mar 13, 2008 | Topics: Construction News and Notes | View Article

Port of Seattle Reorganizes Construction Division

Engineers and construction managers at the Port of Seattle will join a Development Division aimed at preventing the kind of waste and fraud which auditors assert have plagued the Port authority for months.  A recent audit concluded the Port's construction program wasted millions of dollars, failed to rigorously negotiate with contractors, appeared to favor certain businesses and sometimes broke state law when awarding contracts.  It has also spawned a federal criminal investigation.  Chief Executive Tay Yoshitani said the centralized unit for new capital projects will allow for better oversight and coordination, from the bidding process to construction. 

See Seattle Post Intelligencer, http://SeattlePI.nwsource.com/local/353088_Portreorg29.html



Posted By: John P. Ahlers | Mar 12, 2008 | Topics: Construction News and Notes | View Article

Public Works Projects In Washington Get Funded By The Legislature:

The Washington State Senate Approved The A $7.5 Billion Highway Budget: The Washington State Senate approved new funding for Washington highways, including replacement of the Alaskan Way Viaduct in Seattle, and the new 520 floating bridge across Lake Washington. Money was also earmarked for US Highway 2 terms "killer highway." Lawmakers did cut $129 million from the two-year plan.


Posted By: John P. Ahlers | Mar 12, 2008 | Topics: Construction News and Notes | View Article

Pew Research Gives Washington State An “A” For Infrastructure Government Performance

From the great news for the state of Washington, bad news for Dino Rossi, a new 50 state report card released on May 4, 2008 gives Washington an "A" grade for government performance for infrastructure maintenance.  Pew Research gave 23 states a grade lower than C+ for the way they maintained bridges, roads, and other infrastructures, while a B- grade was the overall average.  The high score was awarded to only three states.  The Pew accolade follows last year's gushing story in Forbes about Washington's excellent business climate and Governor Gregoire's appearance on the cover of Governing Magazine which honored her as one of many Public Officials of the year.

http://www.reuters.com/article/domesticNews/idUSN0321337020080303



Posted By: John P. Ahlers | Mar 12, 2008 | Topics: Construction News and Notes | View Article

Cement Demand Expected To Soar 43% By 2030

According to the Portland Cement Association, US demand for cement will increase 43% by 2030, driven by both population growth and environmental concerns.  With the population expected to increase by 63 million, "construction will boost demand for cement to record levels," according to Edward J. Sullivan, PCA's chief economist.  Sullivan also expects green building methods such as insulated concrete walls to grow over the coming decades, further driving up the demand for cement. 



Posted By: John P. Ahlers | Mar 11, 2008 | Topics: Construction News and Notes | View Article

Job Satisfaction of Women in Construction Trades

Tradeswomen in the Cincinnati, Ohio area were surveyed to assess to their satisfaction or dissatisfaction with construction work.  The study showed that pay, benefits and job security are most important to women in their occupation.  Although the tradeswomen are satisfied with the nature of the work in the construction trades, but are less satisfied with the pay, benefits, job security and availability of separate, hygienic/sanitary facilities. 

Mar 11, 2008 | Topics: Construction News and Notes | View Article

AAA Takes On The New AIA 207 documents and ConsensusDOCs Contracts – Arbitration Clauses

The new AIA 201 2007 form departs with almost a century of American Institute of Architects (AIA) tradition of arbitrating disputes in American Arbitration Association (AAA) arbitration.  Up until 2007, the exclusive dispute resolution process under AIA documents was AAA arbitration.  The AIA A-201 General Conditions, instead of making AAA arbitration mandatory, now gives contractors and owners a choice as to what dispute resolution process they wish to employ.  The same choice is provided in the AGC ConsensusDOCs.   In a recent advertising campaign, AAA is urging construction industry participants to continue to select AAA arbitration as their dispute resolution mechanism.



Posted By: Ryan Sternoff | Jan 26, 2008 | Topics: Construction News and Notes | View Article

Seattle School District in Race Against Rising Construction Costs

Rising construction costs from China's demand for steel and concrete, the regional condominium-building boom and the 2010 Olympics in Vancouver, B.C. have caused the Seattle School District to accelerate the schedule on several projects, but not without community concern. Courtesy of The Seattle Times.