Author Archives: Melissa Dewey Brumback

2012 Construction Jobs That Are in High Demand (guest post) (Tue Tip)

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Today’s guest post is by Derek Singleton, ERP Analyst with Software Advice, a website that reviews construction software. 
 

The construction industry is undergoing a change–several states are showing positive signs of job growth. A June report released by the Associated General Contractors of America (AGC) indicates found that 20 states added new construction jobs. The catch, however, is the jobs that are available require highly skilled individuals. 

 

The chart above aggregates survey data of the top five anticipated engineering and skilled labor shortages from 2,223 construction industry professionals. As you can see, engineers of all types are expected to remain in high demand.To find out what’s driving job gains in the industry, I recently caught up with AGC’s Chief Economist, Ken Simonson. In my conversation with Simonson, he highlighted three key drivers to the current trends in construction employment.

  1. Low vacancy rates are spurring investment in apartment complex construction.
  2. The acceleration of natural gas extraction is fueling related construction job growth.
  3. Manufacturing investment is leading to new manufacturing facility construction.

So what kinds of jobs fit well with these market drivers? Below I’ll profile a few relevant professions that are currently in demand.

Apartment Complex Construction
Apartment construction requires nearly every kind of construction trade on the job. However, there are a few particular positions that are particularly high demand.

Architects: Efficiently building an apartment complex starts at the design process. With new apartment construction increasing, architects familiar with designing multi-family residences will be in high demand.

Carpenter: Naturally, carpenters are in high demand as more complexes are built they’re needed for everything from framing to setting crown molding.

Millwork: The millwork trade is in high demand to produce the doors, crown moldings, window casings, etc. needed to finish an apartment.

Electrician: Electricians that are familiar with multi-family electrical wiring are know how to run standard power distribution to lighting and other outlets in apartments.

Natural Gas Extraction
The growth in natural gas extraction from underground shales is also supporting new construction jobs. The majority of these jobs involve heavy construction or civil engineering.

Plumbing Engineering: Natural gas extraction is complex process that involves a lot of fluid dynamics. For this reason, drilling sites typically need a plumbing engineer to help figure out how to manage the hydraulics needed to extract gas from thousands of miles below the Earth’s surface.

Civil Engineering: Of course, effectively planning these roadways requires civil engineers that can effectively plan the infrastructure of these projects.

Manufacturing Facilities
Construction jobs are also being supported by the uptick in domestic manufacturing, which is prompting manufacturers to build new facilities in the U.S. As a result, there are two main professions that are in high demand.

Structural Engineering: Structural engineers are needed both for apartment construction and for manufacturing facility construction. These engineers need to be able to check facilities to ensure that buildings are up to code, and help amend design plans as construction is underway.

Iron work: Iron work professionals are needed to put together the large steel frames that facilities require. Within the iron work profession, welders are among the most in demand professions as certified welders are hard to find given that it can take several years to achieve certification. /

Electrician: Commercial electricians are needed when constructing a new manufacturing facility because of the need to install power and controls to motors and HVAC systems at the facility–in addition to run power distribution directly from the electrical grid.

Thanks, Derek, for your post.  Please comment below, or check out Derek’s map of construction employment by state and comment there. 

And, be sure to pick up your copy of “7 Critical Mistakes that Engineers & Architects make During Project Negotiation and Execution that Sabotage their Projects & Invite Litigation” by signing up for email updates on blog posts or by sending me an email at mbrumback at rl-law dot com.

The top 10 architecture mistakes of the 21st century (guest post)

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For a fun Friday guest post, Marcela De Vivo is joining us today.  Marcela is a freelance writer from Los Angeles, focusing on Marketing, Real Estate, and Technology.  She works for Process Sensors Intl and spends her time connecting online, reading and researching. 
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The 21st century is one of the most innovative eras for architecture. With great ideas, there comes great failures.
Starting at number ten is the First World Hotel from Malaysia. It was once, the biggest hotel in the world, but it fell short in terms of design. The main problem came with the color scheme. It looks as if the designer had an obsession with rainbows.

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Number nine goes to a building that looks great as something in your pocket, but not as an architectural inspiration. It resembles an old Chinese currency that is circular with a square cutout in the middle. The building, known as the Fang Yuan building, is in Shenyang, China.

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Eight is the Federation Square in Melbourne, Australia. It contains many buildings that seems incomplete. Patched by a bunch of metal plates with various patterns, the square is lacking a wholesome building.

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Lucky number seven was created through the collaboration of Dutch architecture studio MVRDV and Spanish architect Blanca Lleo. The result was not so great. Assuming they were going for a abstract look, it came off as random and bland. It contains random streaks of red lines in obscure areas.

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Six is a shiny pineapple shaped building in Macau. It is a hotel and a casino with 430 rooms and over 800 table games. It is also the home to the “star of Stanley Ho”, the world’s largest cushion shaped internally flawless D-color diamond.

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At number five, the National Library of Belarus opened in 2006 in Minsk. The shape is reminded of a virus. It houses the largest collection of Belarusian printed materials and has the third largest collection of Russian books.

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 Number four is similar to the Fang Yuan building because of its circular structure. The Aldar headquarters located in Dubai has the shape and color of a fly’s eye.

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Number three is the Meadowlands Xanadu that is to be finished by 2013. It is located in New Jersey. Even the governor is saying bad things about the project.
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Number two goes to the EMP Museum for being just plain random and hideous.
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Number one, the worst architecture made to this date, is none other than the latest observation tower of the 2012 London Olympics, the ArcelorMittal Orbit sculpture and observation tower. It is like an entanglement of wires construed together by an even gray spiral.
 

 

 

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This concludes my list of the top ten architecture mistakes of the 21st century. You really have to wonder what the architects were thinking when they created these buildings.  All we can do is hope others won’t follow suit.
Do you concur? Object? Have other nominations?  Let us know in the comment section, below.

Play Nicely in the Sandbox (or, Why GC’s and Subs Should Get Along) (guest post)

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Chris HillToday’s guest post is from Christopher G. Hill, lawyer, Virginia Supreme Court certified General District Court mediator and owner of the Richmond, VA firm, The Law Office of Christopher G. Hill, PC, a LEED AP. Chris authors the Construction Law Musings blog where he discusses legal and policy issues relevant to construction professionals. Additionally, Chris is active in the Associated General Contractors of Virginia and a member of the Board of Governors for the Construction Law and Public Contracts Section of the Virginia State Bar.

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First off, thanks to Melissa for this opportunity to post here at Construction Law in North Carolina. Having co-presented with her and discussed construction contracting from all perspectives, I can safely say she’s good at what she does and shares great insight here at her blog.

Now that the formalities are out of the way, I thought I’d share my thoughts as one who represents many subcontractors and general contractors on the topic of good relationships meaning good business. I am always a bit surprised at the failure of either side of the GC/Sub dynamic to act in a businesslike manner.

Remember, the General Contractor and the subs are in the boat together in many ways. They both have a job to do and, ultimately, an owner at the top of the payment food chain that is looking to get a project done on time. Ultimately, they both have an architect/engineer representing the owner that may or may not be up on the job (sorry Melissa) and may not be trained in project management. If the general and its subs aren’t “playing well in the sandbox” together, the relationships up and down the project chain get all out of whack and cause delays in completion and importantly in payment.

Another phenomenon that happens more frequently than I would like is the general contractor “burning” good subcontractors in an area through making payment (particularly final payment) difficult to receive. While this type of activity occurs on what I am sure is the minority of projects (and fully acknowledging that my practice makes me think that Murphy was an optimist) I am always flabbergasted by this sort of treatment given to a subcontractor that should be helping pull the boat.

While it is obvious that subs need to play nice with GC’s because they have the money, it may seem less obvious how the above can hurt a general contractor. The short answer (and don’t worry I won’t be going into the long one) is that burning good subs eventually means that good subs won’t work with you. Subs talk to each other. Your reputation will precede you. Eventually the economy will improve and you won’t be the only game in town. Not to mention that such actions are the stuff of which claims are made.

In short, getting along costs your local construction lawyer money because he or she doesn’t get to go to court for you. It is almost always less expensive to get along, finish the job and work out payment than to get we attorneys involved in the construction claims process.

To make a long story somewhat less long, GC’s work with the subs and subs, play nice with the GC’s. It’s the best way to a lower stress project and a higher monetary payoff.

Thanks, Chris, for your insights from the contractor’s side of things.  Even if you did (politely) slam the hard-working design professionals.  Reader, now it’s your turn.  Share your thoughts, comments, or questions with Chris or me in the comment section, below.

Joint Ventures & Geotechnical Agreements (two free seminars) (Tue Tip)

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ConsensusDocsTwo upcoming, FREE webinars from ConsensusDocs might be of interest:

 Venture to Manage Your Partners Wisely (with the ConsensusDocs 298 Joint Venture Agreement)

September 19th, 2012 at 2:00-3:30pm ET (this Wednesday; i.e., tomorrow!)

— and — 

What Lurks Below?  Using ConsensusDocs 246 to Get the Answer  (discussing the importance of consulting agreements for geotechnical services)

September 26th, 2012 at 2:00-3:30pm ET (next Wednesday)

Registration for both webinars is here. 

Do you know of upcoming seminars or other items of interest to  Construction Professionals?  Drop me a note so I can help spread the word.

Latent Defects: extending the statute of limitations (law note)

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surprisedAs we’ve previously discussed, the statute of limitations for construction claims in North Carolina is generally three years.  That is, once 3 years have passed, you are generally protected from any lawsuit filed after that time.

Does that mean that no lawsuit can be filed against you subsequent to that time?  No.  First, the statute of limitations is an affirmative defense, meaning that you must timely assert the defense as part of your response to the lawsuit.

Secondly, it is sometimes not apparent when the three year period begins to run.  Substantial completion or final completion?  What if your work is finished, but the project is not– does the three year period not start until project completion?  The issue of whether the statute of limitations has run is complex, and a mixture of law and fact questions.  See, Lord et al v. Customized Consulting Specialty, Inc. et al, 182 N.C. App. 635, 643 S.E.2d 28 (2007).

Finally, be aware of the hidden danger of hidden dangers. 

The three years does not start to run until it becomes obvious that there is damage stemming from your professional negligence.  The applicable statute states that the three years “shall not accrue until bodily harm to the claimant or physical damage to his property becomes apparent or ought reasonably to have become apparent to the claimant, whichever event first occurs.” N.C. Gen.Stat. § 1-52 (2005).

In other words, if there is a defect that is not readily observable and visual, the three years may not start to run until it becomes observable (e.g., through destructive testing, repair work, or renovation work).  This is what is known as a “latent defect”, and it can impose liability far beyond the initial 3 years.

Does the latent defect rule extend liability indefinitely?  No, it does not.  The statute of repose (6 years in NC; other states vary) will impose an absolute final date on real property improvements, after which no further liability can successfully be claimed.

Questions?  Drop me a comment, below.  Also, be sure to sign up for regular email updates and our free Construction Professional newsletter by entering your contact information on the top right of the homepage.

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