Contractors across the nation will be watching the Mississippi Supreme Court on Oct. 5 to see if it upholds a Rankin County Circuit Court decision that ruled an insurer is not responsible for subcontractor performance under a contractor’s commercial general liability policy. In Architex Association Inc. v. Scottsdale Insurance Co., Architex alleges that “an unintended construction defect by a subcontractor constitutes an occurrence that triggers coverage under a contractor’s CGL insurance policy,” according to a statement from the law firm of Burr & Forman LLP, Jackson, Miss., which represents Architex. The lawsuit alleges that Arizona-based Scottsdale has a “duty to
Despite recent administration efforts to play down the impact of the “Buy America” provisions of the American Recovery and Reinvestment Act (ARRA), industry and business groups remain concerned that the provisions could cause delays on construction projects or be expanded to other programs. Photo: AP/Wideworld At a recent summit of North American leaders, President Obama played down ARRA’s Buy America provisions. “The perception and the fear is that more Buy America-type requirements could be passed, and that creates a level of fear with Canada and our other trading partners,” says Chris Braddock, senior director of procurement policy with the U.S.
Firms have until Sept. 2 to submit comments on a Labor Dept. proposal to require contractors and subcontractors to post notices informing their employees of their rights under the National Labor Relations Act, which includes the right to join a union. The proposed rule, published in the Aug. 3 Federal Register, was drafted to implement a Jan. 30 executive order by President Barack Obama. Violation of the rule could lead to contract suspension, termination or debarment. Nonunion construction groups say they have concerns with the proposal. Bob Hirsch, director of legal and regulatory affairs for Associated Builders and Contractors, says
The Obama administration on Aug. 14 announced a new program to award $2.3 billion in tax credits to manufacturers of advanced energy equipment. Authorized under the American Recovery and Reinvestment Act, the program will allow manufacturers to reduce their taxes by 30% of the amount they invest in establishing, expanding or retooling manufacturing facilities for equipment for solar, wind and other renewable energy sources. The credit also will be available to manufacturers of equipment to capture and sequester carbon. The administration says the program will help encourage innovation in design of clean energy technologies and create green jobs. Denise Bode,
It has been more than two years since the Interstate-35W bridge in Minneapolis suddenly collapsed into the Mississippi River, killing 13 people and injuring 145 others, and yet scores of lawsuits filed against firms involved in the bridge’s design and upkeep are just getting under way. Photo: Tudor Van Hampton / ENR The collapse of the Interstate 35W bridge in Minneapolis more than two years ago has spawned 121 lawsuits. While the replacement bridge, completed last year, required the attention of more than 600 craft workers and engineers, just one state judge, Deborah Hedlund, sitting in the Hennepin County District
Contractors across the nation will be watching the Mississippi Supreme Court Oct. 5 to see if it upholds a Rankin County circuit court decision that ruled the insurer is not responsible for subcontractor performance under a contractor’s Commercial General Liability policy. In Architex Association Inc. v. Scottsdale Insurance Co., Architex alleges that “an unintended construction defect by a subcontractor constitutes an occurrence that triggers coverage under a contractor's CGL insurance policy,” according to a statement from the law firm of Burr & Forman LLP of Jackson, Miss., representing Architex. The lawsuit alleges that Scottsdale has a “duty to investigate and
The Senate on Aug. 7 confirmed longtime Senate staffer Jo-Ellen Darcy as assistant secretary of the Army for civil works. In that post, she will oversee the Corps of Engineers’ non-military programs. Darcy was nominated on April 2 and was through committee in June, but floor action was delayed. An industry source says there was concern in Alabama’s congressional delegation about a multistate dispute over water rights from Georgia’s Lake Lanier. The Corps operates Buford Dam, which forms the lake. After meeting with Darcy on July 13, Sen. Richard Shelby (R-Ala.) said she committed to “an honest and fair adjudication
A projected August Highway Trust Fund shortfall has been averted, at least for now. President Obama signed a bill on Aug. 7 adding $7 billion to the trust fund�s ailing highway account. The new money, transferred from the general fund, is expected to keep the account solvent through Sept. 30 or maybe a bit longer. When Congress returns after Labor Day, debate is likely to heat up over reauthorizing highway and transit programs.
As Robert A. Peck returns to the headquarters of the General Services Administration as Public Buildings Service commissioner, he may have some déjà vu moments. Peck, whose new appointment as PBS chief was announced on Aug. 10, held that job from 1995 to 2001. Once again, he will be in charge of design, construction and management for the 354 million sq ft of offices, courthouses and other facilities Uncle Sam owns or leases. He says it’s “the best job in real estate.” But the situation is very different from that of a decade ago. The recession has hit construction hard,
The U.S. Environmental Protection Agency has re-opened the door for developing a standard for perchlorate in drinking water. Perchlorate is a naturally occurring substance and also a man-made chemical used as an oxidizer in rocket fuel and fireworks. In October 2008, EPA published a preliminary determination not to regulate the substance. But the agency said on Aug. 5 it wanted to reassess perchlorate’s impact on public health. In large doses, it can affect the thyroid gland. Alan Roberson, the American Water Works Association’s director of security and regulatory affairs, says a drinking-water standard for perchlorate probably would require utilities to