The Coronavirus has been the subject of an extraordinary amount of media coverage since the start of 2020. As we approach the end of the first quarter of the year, its impact on local and global economies and our way of life cannot be ignored. This Alert will provide the construction industry with guidance and recommendations for navigating commercial risk resulting from the Coronavirus pandemic.

The potential impacts of the Coronavirus to the construction industry are wide reaching. Consequences on a project site can include quarantines or other governmental actions resulting in impacts to the project work force. Offsite impacts can cover a much broader scope of issues including labor shortages at factories of manufacturers or fabrication facilities, resulting in production delays, transportation embargoes causing project supply issues, or governmental actions which inhibit manufacturing and production causing supply chain shortages and inabilities to service existing demands. So, what can contractors facing such impacts do to avoid losses, mitigate the impacts, and prepare for what’s to come?

Reprinted courtesy of Peckar & Abramson, P.C. attorneys Levi W. Barrett, Steven M. Charney, Warren E. Friedman and Christopher B. Kinzel
Mr. Barrett may be contacted at lbarrett@pecklaw.com
Mr. Charney may be contacted at scharney@pecklaw.com
Mr. Warren may be contacted at wfriedman@pecklaw.com
Mr. Christopher may be contacted at ckinzel@pecklaw.com

Groundbreakings on new U.S. homes surged in December to a 13-year high, giving the housing market momentum heading into the new year amid low mortgage rates, solid job growth and optimistic buyers and builders.

Residential starts rose 16.9% to a 1.61 million annualized rate after an upwardly revised 1.375 million pace in the prior month, according to government figures released Friday. The gain was the biggest in three years and well above all estimates in a Bloomberg survey. Permits, a proxy for future construction, fell 3.9% to 1.42 million.

This morning, a federal judge from the Eastern District of California granted a temporary restraining order preventing California from enforcing Assembly Bill (AB) 51.

AB 51-which was set to take effect on January 1, 2020-prohibits employers from requiring, as a condition of employment, employees to waive their right to any forum or procedure to bring claims under the Labor Code or the California Fair Employment and Housing Act. Several industry groups filed a complaint, alleging that AB 51 is preempted by the Federal Arbitration Act and violates the Supremacy Clause of the United States Constitution.

Reprinted courtesy of Jeffrey K. Brown, Payne and Fears and Raymond J. Nhan, Payne and Fears
Mr. Brown may be contacted at jkb@paynefears.com
Mr. Nhan may be contacted at rjn@paynefears.com

As 2019 winds down, the Affordable Housing Credit Improvement Act of 2019 is gaining momentum in Congress. The Act, which is aimed at expanding and strengthening the low-income housing tax credit, was originally introduced in 2016. The Consolidated Appropriations Act of 2018 adopted two key provisions of the original bill—a 12.5% increase to the housing credit ceiling for years 2018-2021 and the “income averaging” minimum set-aside election. The 2019 bill reintroduces many key provisions from the original bill, along with new provisions to further bolster the housing credit. As of the end of October, more than one-third of the House and one-fourth of the Senate have signed on to co-sponsor the bill. In summary, the key proposals in the 2019 legislation would:

• Establish a minimum 4% credit rate for tax-exempt bond financed transactions;
• Increase the housing credit volume cap by 50% over five years;
• Add income averaging as a third minimum set-aside test for 4% bond deals to mirror the modifications to Section 42 of the Internal Revenue Code adopted as part of the 2018 Consolidated Appropriations Act;

Sao Paulo real estate has never been so hot.

Walking around Brazil’s wealthiest city, it’s impossible to avoid the construction sites suddenly breathing life into formerly empty lots. One street alone in Itaim Bibi, the city’s financial district, has five skyscrapers going up. Newspapers are packed with ads for new high rises targeting just about anyone with a steady paycheck.

Labor unions, the biggest developers and general contractors in Chicago, the Associated General Contractors of America's Chicagoland branch, the Chicago and Cook County North America's Building Trades Unions and the United Way all came together to launch a new group aimed at increasing minority and women participation in the construction process.

The small footprint of Arrivé Tower, a cast-in-place concrete building, created a significant challenge. The mid-city block location of the structure—with its seven levels of below-grade parking, six elevators and multiple amenities—constrained construction equipment access and deliveries and required careful planning of just-in-time deliveries for all materials.

Homebuilder D.R. Horton Inc. reported quarterly orders that beat analysts’ estimates, sending its shares to a record high.

In the three months through September, purchase contracts jumped 14% from a year earlier to 13,130, the Arlington, Texas-based company said in a statement Tuesday. Analysts surveyed by Bloomberg were expecting a gain of 7.9%. The company also posted higher than expected profit and boosted its dividend, sending its shares higher.

U.S. home construction surged in August to the fastest pace since mid-2007 on more apartment projects and single-family houses, a welcome sign for the housing sector that has struggled to gain momentum.

Residential starts climbed 12.3% to a 1.36 million annualized rate after an upwardly revised 1.22 million pace in the prior month, according to government figures released Wednesday that topped all estimates in Bloomberg’s survey. Permits, a proxy for future construction, also increased to a 12-year high.

South-East Asia’s largest 3D-printer for construction is declared operational in Singapore by the Housing and Development Board (HDB) in Singapore at the PEAK Forum on 11 September 2019.

This 3D concrete printer is capable of printing concrete components up to 9 m long, 3.5 m wide and 3.8 m tall. The 3D-printer is developed and operated for HDB by Witteveen+Bos South-East Asia Pte. Ltd. and the overall project is a joint effort of Robin Village Development Pte. Ltd., Nanyang Technological University and Witteveen+Bos.

The Woolworth Building, an iconic tower that was the world’s tallest in 1913, has been transformed into a mixed-use skyscraper—though it still has its Cass Gilbert-designed neo-Gothic facade, soaring arches and gargoyles.