Participants in some of New York City’s largest concrete construction projects are now trying to determine the potential impact of the Feb. 17 conviction of the city’s main concrete testing firm and its owner for filing false test reports. A state supreme court jury in Manhattan rules that Testwell Laboratories and its owner, V. Reddy Kancharla, were guilty of the flawed fillings related to concrete strength on more than 100 projects that used the firm’s services. They included the Freedom Tower at Ground Zero and the Second Avenue subway. The jury has yet to rule on other charges against Kancharla,
In a unanimous decision, the Mississippi Supreme Court ruled February 11 that contractors are covered under their commercial general liability policies for subcontractor work later found to be defective, adding momentum to a national battle being fought state by state over whether insurers are actually providing coverage defined and paid for in those policies. Related Links: Mississippi Insurance Case Could Reshape Contractor Policies “It has implications for the rest of the country because the policies being written and enforced throughout the U.S. are identical to the policies the Mississippi court has addressed,” says Mike Kennedy, general counsel of the Associated
The Congressional Oversight Panel’s new report predicts more trouble ahead for the already suffering banking industry. The Feb. 11 analysis says a wave of commercial real estate loan defaults over the next four years could jeopardize the stability of midsize and small banks. As much as $1.4 trillion in commercial real estate loans made over the last decade will require refinancing in 2011 through 2014. Nearly half of those loans are currently “under water,” the panel says, meaning the borrower owes more on the loan than the underlying property is worth. The panel, created in 2008, concludes government intervention may
President Obama’s three nominees to serve on the National Labor Relations Board remain in limbo as controversy embroils one of them: Craig Becker, associate general counsel to the Service Employees International Union and the AFL-CIO. Photo: Senate Help Committee Becker has strong support from unions but is opposed by business groups. Business groups strongly oppose Becker’s nomination, contending his academic writings on topics such as the Employee Free Choice Act, which is organized labor’s top priority and would make it easier for unions to organize, demonstrate a strong pro-union bias. Organizations like the Associated Builders and Contractors and the U.S.
The United States and Canada signed a trade agreement on Feb. 12 that seeks to address concerns over “Buy American” provisions of the American Recovery and Reinvestment Act as well as other long-standing procurement issues between the two nations. U.S. Trade Rep. Ron Kirk says that the deal will result in “tens of billions of dollars” in new job-supporting contracts for U.S. firms. “For years, U.S. firms have sought market access to Canadian provincial procurement under the World Trade Organization Government Procurement Agreement [GPA], which Canada resisted,” Kirk adds. The pact provides permanent U.S. access to Canadian provincial and territorial
The owners of the Alabama landfill that is taking about 10,000 tons per day of coal-ash waste from a collapsed Tennessee Valley Authority storage site in Kingston, Tenn., have filed for bankruptcy. Perry Uniontown Ventures I LLC, which owns the Arrowhead Landfill in Perry County, filed papers in federal court in Mobile last month saying facility operators Phillips & Jordan and Phill-Con Services are withholding money they have received from TVA. The operators claim an “outstanding balance” owed them by the owners. A spokesman for the landfill owners says the site will continue to operate, and a TVA official says
A battle is brewing in the Senate over Alaska Republican Lisa Murkowski’s proposed “resolution of disapproval” to block the Environmental Protection Agency from moving forward with plans to regulate greenhouse gases under the Clean Air Act (CAA). Murkowski’s proposal, introduced on Jan. 21, expresses congressional disapproval for EPA’s finding issued late last year that greenhouse gases pose a danger to public health and welfare. The resolution would need Senate and House approval and President Obama’s signature before taking effect. At least 25 Republicans and Democrats Ben Nelson (Neb.), Blanche Lincoln (Ark.) and Mary Landrieu (La.) back Murkowski’s measure. It needs
The Supreme Court’s decision to lift campaign-finance restrictions on corporations has sparked mixed reactions in construction circles. Some contractors’ organizations hail the Jan. 21 ruling as a free-speech victory that will give more groups a stronger political voice. But labor unions and non-profit advocacy groups worry the decision will unleash a wave of corporate spending that could sway election results. Campaign finance decision is expected to have a dramatic impact on the political process. The high court’s 5-4 ruling in the case, Citizens United v. Federal Communications Commission, permits corporations to spend unlimited amounts on political advertising 60 days before
An estimated 262,000 construction-sector jobs have been produced or saved by American Recovery and Reinvestment Act funds through the end of 2009, the White House Council of Economic Advisers says in its second quarterly report on the stimulus measure’s impact. That total is nearly double the 133,000 ARRA construction jobs CEA estimated in its first ARRA snapshot, issued on Sept. 10. In its new report, released on Jan. 13, CEA notes that its numbers “are only estimates,” but those figures are in line with job counts reported by states and localities to the House Transportation and Infrastructure Committee. The panel
The Environmental Protection Agency has proposed water-quality standards for Florida that would for the first time set numeric limits on nutrients such as phosphorous and nitrogen in that state. Nitrogen and phosphorous pollution comes from stormwater and agricultural runoff as well as municipal wastewater treatment. Normally, states are responsible for developing their own water-quality standards. EPA says it is taking the action, announced on Jan. 15, as a result of a 2009 consent decree between the EPA and the Florida Wildlife Federation. The wildlife organization filed a lawsuit in 2008 seeking to require EPA to develop numeric water-quality standards for
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