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.
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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
Sound Transit accuses Japanese contractor Obayashi Corp. of leaving nine voids in the two-mile
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"When I took over as governor, I was told that
Similar investment must be made in the state of
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By mid-June the Safeco overpass, a new bridge between the baseball stadium on
Shepherd's Flat project in
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The U.S. Army Corps of Engineers reports that repairs to the Howard Hanson Dam have dramatically reduced the chance of flooding in the
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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)
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.
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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.
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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
A summary of some the technical areas in dispute as to what caused the World Trade Center to collapse on
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According to a recent
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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
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.
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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.
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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.
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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.
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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.
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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.
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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.
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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."
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.
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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:
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:
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.
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."
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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.
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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.
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.
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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.
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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.
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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
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
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
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
http://seattletimes.nwsource.com/html/nationworld/2008418429_transpochallenges21m.html
http://onlinewsj.com/article/SB122706058287939735.html
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
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
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.
http://seattletimes.nwsource.com/html/politics/2004362615_developers21m.html
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.
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
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.
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
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
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.
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.
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.