The Star Advertiser reports that construction lending by Hawaii's banks dropped off during the recession by as much as 66%. "Construction loans made by the state's top seven banks dwindled to $773 million in the fourth quarter of 2011, a 66 percent decline from $2.26 billion at the end of 2007, according to a Star-Advertiser
Pennsylvania Court Requires Rejection of Nonconforming Bid
In Dragani v. Borough of Ambler and BFI Waste Services of PA, 2012 Pa. Commw. LEXIS 52 (February 6, 2012), a Pennsylvania appellate court addressed the question of noncomforming bids for public works and to what extent such nonconformities could be waived.
The invitation for bids required that each bid be accompanied by a document called the
New Prompt Payment Bill Working its Way Through Hawaii’s Legislature
House Bill 1969 is currently working its way through the legislature, and has made its way past three committees without major changes. The bill, frankly, is a strange one, in that it purports to extend the prompt payment measures set forth in Hawaii's procurement code (and thus applicable to public projects), to private jobs. Even more strangely
Senate passes $500 million dollar construction bill
A bill for $500 million in construction funding has passed the Hawaii Senate. The bill is called the "Invest In Hawaii Act of 2012" and is designed to stimulate job growth.
Pay If Paid Upheld in Pennsylvania Trial Court
In Pencoyd Iron Works v. Axis Constr. Services, Ltd., 2012 Phila. Ct. Com. Pl. LEXIS 23 (January 18, 2012), the trial court enforced a pay if paid clause in a subcontract, finding the subcontractor assumed the risk of nonpayment in the event the general contractor was not paid by the owner. The language of the
Huge Summary Judgment Decision on Insurance Coverage for Construction Defects
Judge Patrick Border issued a Minute Order yesterday granting summary judgment to insureds in an enormous ongoing construction defect litigation class action lawsuit. The Minute Order, which I will attempt to include in a later post, does not identify the reasoning for the decision, but this is a big, post-Group Builders, post-legislation case that requires insurers
Building Code Council Bill Voted Down
The Hawaii State Senate defeated a bill its opponents said would have effectively removed the state from active involvement in building design and construction standards.
The Senate voted down Senate Bill 2692, which would abolish the State Building Code Council, and provide for a transition from the current to the new proposed law, and requires
New ICA Case on Economic Loss Doctrine
The ICA issued an opinion today affirming summary judgment in favor of a designer's motion for summary judgment on the grounds that professional negligence claims were barred by the economic loss doctrine. In the case, a building owner contracted with a general contractor to install a thermal eneregy system. The general contractor subcontracted mechanical engineering
How Much Would It Cost to Undo the Rail Project?
Critics of the rail project often complain that the $5+ billion anticipated price tag for the project does not approximate the project's actual cost. Former governor Ben Cayetano has staked his mayoral candidacy on his challenge of the rail project, noting that the monies slated to be used for the rail project are sorely needed elsewhere.
UHERO Forecast: Construction Sector Still Forthcoming
On February 10 , UHERO issued its forecast for the first quarter of 2012. The forecast was mixed, noting a disappointing 2011 and the lingering failure of Hawaii's construction sector to bounce back from the recession. This is some of what the report had to say about construction:
"In the construction sector, it is necessary to talk