Maryland Construction, Real Estate and Land Use Law

Contractor’s FAQs for Surety Bonding

2012-01-06T10:23:00.008-05:00

Today's post is courtesy of Lance Surety Associates.

Contractor’s FAQs for Surety Bonding
The amount of paperwork required to bid on a construction project can, at times, be overwhelming. A common prerequisite for many public construction projects is to acquire a surety bond. Although their presence is common within the construction industry, many contractors know little about the services and benefits surety bonds provide. To help dispel myths and misunderstandings, the following is an insider’s look into contractor’s most frequently asked questions regarding surety bonding.

What is a surety bond?

In simple terms, surety bonds are a form of financial guarantee. They help ensure stakeholders that contractors will complete work and play suppliers and laborers per the specifications of the contract. Surety bonds are an agreement between three parties:
• An obligee – the project owner
• A principal – the bond purchaser or bond owner
• A surety – the company who sells the bond and ensures the contract is followed

Where did surety bonds originate?

The origin of surety bonds dates back to 1935 with the passage of the Miller Act. This required performance and payment bonds on federal construction projects which exceed $100,000. With the Miller Act’s passage, several state legislatures also adopted similar regulations for smaller projects. These rulings are known as Little Miller Acts.
What is the difference between contract bonds and contractor bonds?
In short the answer is “nothing.” These terms are used interchangeably to refer to various types of construction surety bonds. The most common types of contract surety bonds are bid bonds, performance bonds and payment bonds.
• Bid Bonds : guarantees the contractor will enter into a project for the amount he/she bid upon
• Performance Bonds: these bonds protect project owners from contractor default or if work is not performed as outlined in the contract
• Payment Bonds: these ensure that all parties involved in the project will be paid appropriately. Often, performance and payment bonds are issued jointly as a single surety bond.

How much do surety bonds cost?

Surety bond costs range depending upon the geographic region the bond is required, the financial history of the applicant and the surety’s policy. Those with strong credit ratings will receive the most competitive rates, however those with weaker financial histories are eligible to purchase a bond through a surety company’s bad credit program. Rates range between 1 to 3 percent of the contract amount while high-risk applicants may spend as much as 20 percent of the bond cost.

What is the difference between bonded and insured?

One of the most commonly asked questions for surety bonding is how it differs from insurance policies. The main variant between the two is how risk is assessed. For insurance, individuals pay a premium to their insurance company which transfers most risk to the agency that is overseeing the policy. Should a claim be filed, it is the insurance company’s responsibility to ensure all parties are financially compensated. With surety bonds, the element of risk continues to lie with the individual who owns the bond, or the principal. If a claim is filed against the contractor who owns the bond, the principal will be expected to repay damages.

Vic Lance (vic@suretybonds.org) is the owner of Lance Surety Bonds a nationwide surety agency. He helps advise contractors and small businesses on the bonding process.

Announcement

2011-10-13T10:18:00.002-04:00

I am now posting on Facebook rather than the blog. Please visit and "like" my page. I post interesting and useful articles relating to construction and real estate frequently!

You are also able to comment. Thanks for following. Click the title link above to connect to the page.

Baltimore Among Top 10 Markets in College Towns

2011-08-15T09:13:00.001-04:00

Click the link above for an interesting article on market conditions in Baltimore.

Maryland First State to Approve International Green Construction Code

2011-04-11T11:12:00.001-04:00

The Maryland House of Delegates concurred with amendments approved by the Senate last week and Maryland has become the first state in the country to approve the International Green Construction Code (IGCC).

The IGCC has been developed by the International Code Council, in conjunction with the American Institute of Architects; ASTM International; the American Society of Heating, Refrigerating and Air-Conditioning Engineers; the U.S. Green Building Council; and the Illuminating Engineering Society to establish a model code focused on new and existing commercial buildings addressing green building design and performance.

Click the title above to read the entire article.

O'Malley Offers Famers Compromise on Septic Bill

2011-03-08T09:24:00.002-05:00

With the septic debate raging in Maryland, Governor O'Malley, in his push to require high-end septic systems for new developments, has drafted a compromise to salvage the bill and even plans to wade into a polluted lake at midweek to draw attention to the issue.

What's your take on the Septic Bill? Is it toxic?

Click the title link to read more.

Homebuilder Ads Highlight Pitfalls of Foreclosures

2011-03-07T10:29:00.003-05:00

Home builders are advertising the benefits of buying a new home over buying a foreclosure home in an effort to attract those customers thinking about purchasing a home out of foreclosure.

Click the title link above to read the Washington Post article.

Builders: Septic Bill Represents State Control Over Local Land Use

2011-03-01T08:12:00.001-05:00

Builders should always follow the legislative session; however this year in particular there are a number of bills of interest, including the Sustainable Growth and Agricultural Preservation Act of 2011.

Click the title link above to read an opinion piece on the subject.

Are wind generators coming to the mid-Atlantic coast?

2011-02-09T09:23:00.004-05:00

Offshore wind R&D gets $50M boost

The departments of Interior and Energy announced a $50 million research and development commitment to jump-start offshore wind energy projects and said the government could begin leasing sites off the mid-Atlantic coast by the end of this year or early next.

Read More. Click the title link above.

Why Contractors Should Notify Bond Companies Quickly!

2010-12-13T09:12:00.002-05:00

Please click the link above to go to an excellent article by Virginia Construction Attorney Chris Hill.

Construction spending edges up in August with private sector declines offset by government

2010-10-04T09:49:00.001-04:00

Click the link above for an article from the Sun re: construction spending. It reports that construction spending rose in August. "The weakness in construction activity has been a major drag on the overall economy. Given continuing problems in housing and commercial real estate, analysts are not looking for a sustained rebound in the building industry for some time to come." the numbers might be deceiving however as "In August, private construction fell for a fourth consecutive month, a decline of 0.9 percent that left private sector building at an annual rate of $498.2 billion, the slowest pace since January 1998.Residential construction was down 0.3 percent to an annual rate of $238.5 billion. Residential spending has been down every month starting in May. Housing activity received a temporary boost in the spring as homebuyers rushed to take advantage of a homebuyer tax credit before it expired on April 30. But since that time, home construction has struggled."

Best Blogs at the Forefront of Sustainable Building

2010-09-28T07:58:00.001-04:00

Click the link above for a blog about the best blogs at the forefront of sustainable building, along with a plethora of other green building resources.

150 Reasons to Talk to a Construction Lawyer Early in a Project

2010-08-23T09:24:00.002-04:00

Please find a great article from Chris Hill, a pre-eminent Virginia Construction law attorney. His musing are always insightful and informative.

Click the link above for his article.

Nonresidential Construction Employment Falls in May

2010-06-04T11:57:00.000-04:00

June 4, 2010 | www.abc.org
Nonresidential Construction Employment Falls in May

"A combination of factors, including still tight credit and high commercial vacancy rates, conspired to reverse what had been growing construction employment momentum." —ABC Chief Economist Anirban Basu

Employment in the nation’s nonresidential construction industry fell by 4,200 jobs in May after an across-the-board jobs gain the previous month, according to June 4 employment report by the U.S. Labor Department. Since May 2009, the nonresidential building construction sector has lost 55,400 jobs, or 7.5 percent, and the employment stands at 684,300. (See Analysis below)

Hardest hit was the nonresidential specialty trade sector where employment fell by 16,500 jobs for the month and 251,700, or 11.3 percent, since May 2009. The heavy and civil engineering construction sector lost 7,400 jobs in May and 53,200, or 6.2 percent, since the same time last year.
Residential construction employment slipped by 3,300 jobs last month and has lost 66,400 jobs, or 10.3 percent, since May 2009. The construction industry as a whole lost 35,000 jobs in May – the first monthly job loss since February. Over the past twelve months, the industry lost 529,000 jobs, or 8.6 percent of total employment. The national unemployment rate for the construction industry in May is 20.1 percent.
Overall, total employment for all industries was up by 431,000 jobs in May, with temporary Census workers accounting for 411,000 of those jobs. Private sector employment gained 41,000 jobs for the month. On a year-over-year basis, total employment is down 585,000, or 0.4 percent, and the nation’s unemployment rate in May stands at 9.7.
Analysis
“At first glance, today's jobs report could be viewed as very positive. However, nothing could be more disappointing,” said Associated Builders and Contractors Chief Economist Anirban Basu. “Almost all of the jobs added are temporary federal government positions, and for the construction industry as a whole, last month represented a setback.
“Undoubtedly, a combination of factors, including still tight credit and high commercial vacancy rates, conspired to reverse what had been growing construction employment momentum,” said Basu. “In addition, the lower unemployment rate for the industry tells us that more people have given up trying to find construction jobs."
“Meanwhile, the financial markets are responding badly to today's employment release. The data indicates that the nation’s economic recovery remains fragile and has not yet become self sustaining,” Basu said. “It will be interesting to see if job growth numbers turn negative again later this year once Census Bureau hiring begins to trail off.”

Construction Backlog up 4.5 Percent in First Quarter of 2010

2010-05-25T14:30:00.000-04:00

FROM ABC:

WASHINGTON, D.C. (May 25, 2010) - Associated Builders and Contractors (ABC) today released its Construction Backlog Indicator (CBI) for the first quarter of 2010 showing a 4.5 percent increase in construction backlog orders to 6.07 months, up from 5.81 months in the fourth quarter of 2009. Over the two-month period from February to March of this year, CBI shot up 17 percent and now stands at 6.05 months.
While the CBI rose in all areas of the country except the West from February to March, the Northeastern United States is the only region to see a higher backlog when compared to March 2009. CBI is a forward-looking indicator that measures the amount of construction work under contract to be completed in the future.
"The fact that the CBI is on the rise illustrates that the improvements recently seen in various other indicators, including construction spending, will continue through much of the balance of 2010," said ABC Chief Economist Anirban Basu. "However, the overall impact of the recession may not be at an end or approaching an end. It remains too soon to tell whether the current momentum will continue through 2011.
"As an indicator, the nonresidential construction industry tends to lag the overall economy by 12 to 24 months. With the broader economy having been in recovery for the better part of a year, and with stimulus spending still having an impact, the expectation is that for now, backlog will remain stable or better in the months ahead," Basu said. "Still, there are many forces at work that suggest that the sector's recovery may not be sustained as stimulus monies are steadily drawn down and commercial construction remains weak due to high vacancy rates and tight credit," Basu said.
Regional Highlights
o The Northeast presently enjoys the highest construction backlog at 7.31 months in March 2010.
o The South and Middle States have also been experiencing a rise in backlog, but are still down compared to the same time last year.
o In the West, backlog stands at 5.76 months in March 2010, roughly the same level as in August 2009, and has yet to demonstrate significant momentum.
CBI Map of Regions, January 2009 v. January 2010

Regional Analysis
"Overall, the nation's nonresidential construction industry is in the early stages of a rebound, and this is apparent in CBI statistics for the Northeast, South and Middle States. However, it appears momentum has stalled in the West, which may be due in part to the prevalence of serious state and local fiscal issues, as well as weak housing market performance," said Basu.
Industry Highlights
o Backlog has been roughly flat for several months in the infrastructure category, posting at 9.33 months in March 2010.
o Backlog in both the heavy industrial and commercial/institutional categories have been on the rise, coming in respectively at 6.61 months and 6.31 months in March 2010.
Industry Analysis
"Construction backlog is no longer falling, and in fact, was rising during the first quarter of 2010 – a sign that nonresidential construction's rebound is spreading beyond government-financed projects and is increasingly private-sector motivated. It is important to note that the relative flatness of construction backlog in the infrastructure category shows that much of the money associated with the stimulus package has been obligated and is already reflected in backlog," Basu said.
Highlights by Company Size
o Those firms with annual revenue less than $30 million, those with revenue between $50 million and $100 million, and companies with revenue in excess of $100 million reported the greatest backlog increase in March 2010 compared to the previous month.
o Firms reporting revenue between $50 million and $100 million saw their backlog rise more than one month in March 2010 and now stands at 8 months compared to February 2010.
o In contrast, firms with annual revenue between $30 million and $50 million saw their backlog decrease 0.5 months from February to March.
Company Size Analysis
"Average backlog is now at its lowest level among firms with annual revenue in both the $50 million to $75 million category and the $75 million to $100 million category. Many of these firms appear to be general contractors that continue to be underbid by larger firms with greater resources and greater capacity to undertake projects with little or no profit margin built into their bids. In addition, larger firms may also be more likely to maintain productive banking relationships, allowing them to more nimbly access available contractual opportunities," said Basu. "As for contractors in the $30 million and under category, the impact of the federal stimulus package, as well as an improving economy, is channeling down to them through subcontracting."
###
Associated Builders and Contractors (ABC) is a national association with 77 chapters representing 25,000 merit shop construction and construction-related firms with two million employees.

Leading Lawyers 2010

2010-05-25T10:14:00.002-04:00

The results of the second What’s Up? Annapolis attorney peer-review survey are out. Once again, the editors of What’s Up? Annapolis have compiled a comprehensive list of leading attorneys practicing in the Annapolis area.

Matt Evans was recognized in the Construction Law category.

Click the link above to see the entire list and read the article.

Surety Bonds Explained

2010-05-25T08:54:00.005-04:00

I am pleased to have a guest post today by Kevin Kaiser of suretybonds.com. Please feel free to contact Kevin at: kevin@suretybonds.com

Surety Bonds Explained

While many people may not realize it, surety bonds of all descriptions are a critical component of business today in the United States. A wide variety of industries are required to carry surety bonds, and a variety of business types from construction companies to retirement communities are built upon surety bonds. But what are surety bonds and how do they work?

A surety bond is essentially an agreement between three parties: the principal (the party required to have the bond), the obligee (the party requiring the bond), and the surety bond company (the party who sells the bond). The bond represents an agreement between these three parties that the principal will adhere to the terms set forth in the bond (generally that they will perform their business practices ethically and in accordance with federal, state, and local laws) and that if they do not, a claim will be filed against the bond by the obligee in order to receive restitution for the wrongdoing. In the event of such a claim, the surety company pays the obligee damages and then requires reimbursement from the principal.

In most cases, surety bonds work synergistically with the business practices of most industries, and the bond is in place merely to ensure that the bonded company behaves ethically and according to the legal standards for its profession. However, there are occasional exceptions to this situation, and sometimes new business practices and surety bond regulations can clash, as is the case with green construction bonds.

Nearly every construction project undertaken in the US today requires a surety bond, which has been the case for nearly a century. As the construction industry has evolved to include greener, environmentally friendly methods of construction, the industry has found a conflict between the required performance bonds for these projects and the third-party certifications often necessary to qualify a project as green. Surety companies usually rely on a construction company’s financial health, work history, and expertise to issue a bond, but in the case of a green project, the responsibility for the project’s success no longer rests solely on the construction company in question, but instead partially on a third party’s approval. As a result, many surety companies will not bond a green construction project. Legislation is currently being constructed to accommodate this discrepancy between the reality of the construction industry and the requirements of the surety bond industry, but until the matter is resolved, many green building projects have had to take a necessary hiatus.

50 Greenest Buildings Around the World

2010-04-13T09:08:00.003-04:00

Please click the title link to an interesting article ranking the 50 greenest buildings around the world. Thanks to Betty Jones for sending this over to me.

If anyone has any comments or thinks there should be any other buildings on this list, please let me know.

Should Subcontractors Share the Risk of Owner Non-Payment

2010-03-04T11:18:00.001-05:00

Click the title link above for an interesting article from Construction Advisor Today.

55 Resources on State Construction Laws

2010-03-03T16:11:00.001-05:00

Click the title link above for 55 sites providing resources on State Construction Laws.

Maryland General Assembly UPDATE Green Building

2010-02-15T12:00:00.001-05:00

Here is an update on Green Building Legislation. If you want more information, please contact me.

MARYLAND GENERAL ASSEMBLY 2010 SESSION
PENDING BILLS RELATING TO GREEN BUILDING

BILL NUMBER/TITLE: SB 215, High Performance Buildings Act – Applicability to Recipients of State Aid
LEAD SPONSOR: Senator Brian Frosh
SUMMARY: Amends the existing High Performance Buildings Act, the law requiring state-owned buildings to meet or exceed a LEED Silver rating or an equivalent, by making the requirement applicable to capital projects that are funded solely or partly by a grant of state aid to specified grantees. Definitions of “Grantee” and “State Aid” are incorporated by reference to the State Finance and Procurement Article, Section 7-406(a)(3) and (5). “Grantee” is defined as a for-profit or non-profit entity or association that receives State aid during a fiscal year, not including a unit of State or local government. “State Aid” is defined as a contribution, grant, or subsidy of $50,000 or more provided through the State operating or capital budget or by the action of a unit of State government from State funds appropriated to that unit, not including reimbursements to providers participating in a State program.
INTRODUCED: 1/21/10
COMMITTEE: Budget and Taxation
ACTION: 2/2/10 Committee Hearing

http://mlis.state.md.us/2010rs/billfile/sb0215.htm

BILL NUMBER/TITLE: SB 234, High Performance Buildings Act – Applicable to Community College Capital Projects
LEAD SPONSOR: Senator James Robey
SUMMARY: Amends the existing High Performance Buildings Act, the law requiring state-owned buildings to meet or exceed a LEED Silver rating or an equivalent, by making the requirement applicable to community college capital projects that receive State funds.
INTRODUCED: 1/22/10
COMMITTEE: Budget and Taxation
ACTION: 2/10/10 Committee Hearing
CHAPTER POSITION: Support
http://mlis.state.md.us/2010rs/billfile/sb0234.htm
BILL NUMBER/TITLE: HB 224, Plumbing – Greywater Recycling
LEAD SPONSOR: Delegate Dan Morhaim
SUMMARY: Prohibits counties from adopting or enforcing provisions of a local plumbing code that prohibit a system that recycles greywater. “Greywater” is defined as used, untreated water generated by a clothes washing machine, shower or bathtub.
INTRODUCED: 1/22/10
COMMITTEE: Economic Matters
ACTION: 2/3/10 Committee Hearing

http://mlis.state.md.us/2010rs/billfile/hb0224.htm

BILL NUMBER/TITLE: HB 705, Energy Performance Ratings – State, County and Municipal Buildings
LEAD SPONSOR: Delegate Dana Stein
SUMMARY: Requires state and local governments to post, in a building’s public area, the Energy Star ratings of government-owned buildings. Effective October 1, 2010 for state government buildings of 100,000 square feet or more. Effective October 1, 2011 for local government buildings and state government buildings of less than 100,000 square feet.
INTRODUCED: 2/4/10
COMMITTEE: Health and Government Operations
ACTION: None

http://mlis.state.md.us/2010rs/billfile/hb0705.htm

BILL NUMBER/TITLE: SB 656, Energy Performance Ratings – State, County and Municipal Buildings (Cross-file of HB 705)
LEAD SPONSOR: Senator Mike Lenett
SUMMARY: See HB 705 above
INTRODUCED: 2/5/10
COMMITTEE: Education, Health and Environmental Affairs
ACTION: None

http://mlis.state.md.us/2010rs/billfile/sb0656.htm

BILL NUMBER/TITLE: SB 277, Renewable Energy Portfolio Standard – Solar Energy
LEAD SPONSOR: President Mike Miller (by request of Administration)
SUMMARY: Accelerates the percentage of electricity that utilities must derive from solar energy in meeting the State goal of 2% derived from solar energy by 2022. Increases compliance fee utilities must pay when failing to meet the solar energy requirement.
INTRODUCED: 1/22/10
COMMITTEE: Finance
ACTION: 2/16/10 Committee Hearing
http://mlis.state.md.us/2010rs/billfile/sb0277.htm
BILL NUMBER/TITLE: HB 471, Renewable Energy Portfolio Standard – Solar Energy (Cross-file of SB 277)
LEAD SPONSOR: Speaker Michael Busch (by request of Administration)
SUMMARY: See SB 277 above.
INTRODUCED: 1/29/10
COMMITTEE: Economic Matters
ACTION: 2/16/10 Committee Hearing
http://mlis.state.md.us/2010rs/billfile/hb0471.htm

BILL NUMBER/TITLE: SB 479, State Capital Projects – High Performance Buildings – Green Globes Rating
LEAD SPONSOR: Senator Lowell Stoltzfus
SUMMARY: Alters the definition of "high performance building" in the State High Performance Buildings Act to include a building that achieves a rating of at least two Green Globes according to the Green Globes Program as adopted by the Green Building Initiative.
INTRODUCED: 2/1/10
COMMITTEE: Budget and Taxation
ACTION: None
http://mlis.state.md.us/2010rs/billfile/sb0479.htm

BILL NUMBER/TITLE: SB 287, Maryland Clean Energy Incentive Act of 2010
LEAD SPONSOR: President Mike Miller (by request of Administration)
SUMMARY: Extends the Clean Energy Incentive Tax Credit, set to expire at the end of 2010, for an additional 5 years. Offers state income tax credit for electricity generated by qualified resources of .85 cents per kilowatt hour, and .50 cents per kilowatt hour for electricity generated from co-firing a qualified resource with coal.
INTRODUCED: 1/22/10
COMMITTEE: Budget and Taxation
ACTION: 2/17/10 Committee Hearing
http://mlis.state.md.us/2010rs/billfile/sb0287.htm
BILL NUMBER/TITLE: HB 464, Maryland Clean Energy Incentive Act of 2010 (Cross-file of SB 287)
LEAD SPONSOR: Speaker Michael Busch (by request of Administration)
SUMMARY: See SB 287 above
INTRODUCED: 1/29/10
COMMITTEE: Ways and Means; Economic Matters
ACTION: None
http://mlis.state.md.us/2010rs/billfile/hb0464.htm

BILL NUMBER/TITLE: SB 285, Sustainable Communities Act of 2010
LEAD SPONSOR: President Mike Miller (by request of Administration)
SUMMARY: In order to better coordinate and target existing State community revitalization programs to achieve investment in housing, historic preservation, economic growth and transportation development…provides for designation of certain areas in the State as “sustainable communities” eligible for certain State programs. Re-establishes and alters the Heritage Structure Rehabilitation Tax Credit Program to be the Sustainable Communities Tax Credit Program. Provides for an additional Sustainable Communities tax credit to commercial rehabilitations that achieve a LEED Gold or equivalent rating.
INTRODUCED: 1/22/10
COMMITTEE: Budget and Taxation
ACTION: 2/17/10 Committee Hearing
http://mlis.state.md.us/2010rs/billfile/sb0285.htm

BILL NUMBER/TITLE: HB 475, Sustainable Communities Act of 2010 (Cross-file of SB 285)
LEAD SPONSOR: Speaker Michael Busch (by request of Administration)
SUMMARY: See SB 285 above
INTRODUCED: 1/29/10
COMMITTEE: Ways and Means; Environmental Matters
ACTION: None
http://mlis.state.md.us/2010rs/billfile/hb0475.htm
BILL NUMBER/TITLE: SB 355, Energy Companies – Net Energy Metering – Payment for Accrued Generation Credit
LEAD SPONSOR: Senator Paul Pinsky
SUMMARY: Provides that a utility “customer-generator” with a net metering contract or tariff who generates electricity from a renewable source shall be credited at the same retail rate that they pay for electricity consumption. A customer-generator served on a time-of-use tariff shall be credited using time-of-use rates.
INTRODUCED: 1/28/10
COMMITTEE: Finance
ACTION: 2/9/10 Committee Hearing
http://mlis.state.md.us/2010rs/billfile/sb0355.htm

BILL NUMBER/TITLE: HB 701, Energy Companies – Net Energy Metering – Payment for Accrued Generation Credit (Cross-file of SB 355)
LEAD SPONSOR: Delegate Sue Hecht
SUMMARY: See SB 355 above
INTRODUCED: 2/4/10
COMMITTEE: Economic Matters
ACTION: 3/2/10 Committee Hearing
http://mlis.state.md.us/2010rs/billfile/hb0701.htm

Maryland General Assemby Update 1/21/2010

2010-01-21T11:12:00.003-05:00

Bills of Interest to the Construction Industry:

New Bills as of 1/21:

SB 200
Senator Edwards
WIND–POWERED ELECTRIC GENERATING FACILITIES – DECOMMISSIONING AND RESTORATION – SURCHARGE, BOND, OR OTHER SECURITY, AND FUND
Requiring the Public Service Commission to establish a surcharge on wind–powered electric generating facilities in the State with a generating capacity that does not exceed 70 megawatts; requiring the Comptroller to collect the revenue from the surcharge and deposit it into the Maryland Wind–Powered Electric Generating Facility Decommissioning and Restoration Fund; authorizing a wind–powered electric generating facility to post a bond or other security acceptable to the Commission in lieu of the surcharge; etc.
EFFECTIVE OCTOBER 1, 2010
PUC, §§ 7-213 and 7-214 - added

SB 215
Senator Frosh, et al
HIGH PERFORMANCE BUILDINGS ACT – APPLICABILITY TO RECIPIENTS OF STATE AID
Making the High Performance Buildings Act applicable to capital projects that are funded solely or partly by a grant of State aid to specified grantees.
EFFECTIVE OCTOBER 1, 2010
SF, § 3-602.1 - amended
Assigned to: Budget and Taxation

The House:

No additional Legislation

See below for prior updates. Click the title link above to search for yourself. As always, email me with any specific questions. Thanks.

Maryland General Assembly Update 1/18/10

2010-01-18T17:04:00.002-05:00

Here is an update on the status of some bills relevant to the Construction Industry. Click the title link to go to the MGA website. If you have detailed questions, please do not hesitate to contact me.

In the Senate:

1.SB 23
Energy Companies - Net Energy Metering - Credit Transfers
Senate: First Reading Finance - 1/13

2.SB 50
Electric Companies - Net Energy Metering
Senate: First Reading Finance - 1/13

In the House:

1. HB 42
Real Estate Appraisers - Knowledge of Value of Real Estate - Prohibited
House: First Reading Economic Matters - 1/13

Some new bills:
SB 106
The President (By Request – Administration), et al
LABOR AND EMPLOYMENT – JOB CREATION AND RECOVERY TAX CREDIT
Providing a credit against the State income tax for qualified employers employing specified individuals in qualified positions; providing for certification by the Secretary of Labor, Licensing, and Regulation of qualified employers eligible for the credit and the maximum credit for which a qualified employer is eligible; limiting the credit to $250,000 for each qualified employer; limiting the aggregate credit that may be approved by the Secretary to $20,000,000, to be allocated on a first–come, first–served basis; etc.
EMERGENCY BILL

HB 92
The Speaker (By Request – Administration), et al
LABOR AND EMPLOYMENT – JOB CREATION AND RECOVERY TAX CREDIT
Providing a credit against the State income tax for qualified employers employing specified individuals in qualified positions; providing for certification by the Secretary of Labor, Licensing, and Regulation of qualified employers eligible for the credit and the maximum credit for which a qualified employer is eligible; limiting the credit to $250,000 for each qualified employer; limiting the aggregate credit that may be approved by the Secretary to $20,000,000, to be allocated on a first–come, first–served basis; etc.
EMERGENCY BILL
LE, §§ 11-1101 through

More to come....

Maryland General Assembly

2010-01-14T11:13:00.003-05:00

I took a brief hiatus from blogging over the holidays and enjoyed a short vacation. Now with the new year upon us, I intend to reinvigorate this blog and hopefully turn itself into something more useful for those in the construction industry. I am also working on a construction law website which I intend to roll out later this year.

The Maryland General Assembly is now in session, as of yesterday. I am going to track and comment on some bills which have been introduced in the House or Senate which might affect the construction and real estate industries. This might not be inclusive as things change frequently.

SB 23- Relating to Green Energy
Senator Mooney
ENERGY COMPANIES – NET ENERGY METERING – CREDIT TRANSFERS
Authorizing specified not–for–profit customers to transfer all renewable energy generation credits from net energy metering to specified properties; and requiring the Public Service Commission to adopt specified regulations.
EFFECTIVE OCTOBER 1, 2010
PUC, § 7-306(a) and (i) - amended and § 7-306(i) - added
Assigned to: Finance

SB 50-Relating to Green Energy
Senator Mooney
ELECTRIC COMPANIES – NET ENERGY METERING
Repealing a limitation on the period of time that a specified eligible customer–generator may accrue specified generation credit; repealing a limitation on the time that a specified electric company is required to carry forward a generation credit or a negative kilowatt–hour reading; requiring a specified electric company to carry forward a specified generation credit until specified events occur; etc.
EFFECTIVE OCTOBER 1, 2010
PUC, § 7-306 - amended
Assigned to: Finance

SB 103- Landscape Architects
STATE BOARD OF EXAMINERS OF LANDSCAPE ARCHITECTS – SUNSET EXTENSION AND PROGRAM EVALUATION
Continuing the State Board of Examiners of Landscape Architects in accordance with the provisions of the Maryland Program Evaluation Act (sunset law) by extending to July 1, 2024 the termination provisions relating to specified statutory and regulatory authority of the Board; requiring that an evaluation of the Board and the statutes and regulations that relate to the Board be performed on or before July 1, 2023; and requiring the Board to submit a specified report on or before October 1, 2011.

HB 29
Delegate Braveboy
REAL PROPERTY – CONDOMINIUMS AND HOMEOWNERS ASSOCIATIONS – PRIORITY OF LIENS
Establishing that, in a foreclosure sale of a condominium unit or a lot in a homeowners association, a portion of a contract lien consisting of not more than 6 months of specified unpaid assessments, including attorney’s fees or specified costs, has priority over the claim of the holder of a first mortgage or deed of trust recorded against the unit or lot after October 1, 2010 under specified circumstances; establishing that a lot owner in a homeowners association is liable for specified assessments and charges; etc.
EFFECTIVE OCTOBER 1, 2010
RP, § 11-110(d) -

HB 42
Delegate Conaway
REAL ESTATE APPRAISERS – KNOWLEDGE OF VALUE OF REAL ESTATE – PROHIBITED
Prohibiting specified real estate appraisers from providing real estate appraisal services under specified circumstances in which the specified real estate appraisers know the asking price or the selling price of the real estate being appraised; providing that a person who violates the Act is guilty of a misdemeanor; and establishing penalties.
EFFECTIVE OCTOBER 1, 2010
BOP, § 16-705.2 - added and § 16-706 - amended
Assigned to: Economic Matters

HB 64
Delegate McConkey
REAL PROPERTY – RESIDENTIAL MORTGAGES AND DEEDS OF TRUST – FORECLOSURE SALES
Creating a rebuttable presumption that a foreclosure sale of specified residential real property is invalid if the sale begins more than 30 minutes after the scheduled time for the sale.
EFFECTIVE OCTOBER 1, 2010
RP, § 7-105 - amended
Assigned to: Environmental Matters

HB 80
Chair, Economic Matters Committee (By Request – Departmental – Labor, Licensing and Regulation)
STATE BOARD FOR PROFESSIONAL ENGINEERS
Requiring the State Board of Professional Engineers to adopt regulations to require a demonstration of continuing professional competency for a licensee as a condition of renewal of a license subject to specified exceptions; authorizing the Board to issue a retired status license to specified individuals; prohibiting the holder of a retired status license from practicing professional engineering; authorizing the holder of a retired status license to use a specified designation; etc.
EFFECTIVE JULY 1, 2010
BOP, § 14-314 - amended and § 14-316 - added
Assigned to: Economic Matters

HB 84
Chair, Economic Matters Committee (By Request – Departmental – Labor, Licensing and Regulation)
STATE BOARD OF HEATING, VENTILATION, AIR–CONDITIONING, AND REFRIGERATION CONTRACTORS – MEMBERSHIP
Increasing the number of members of the State Board of Heating, Ventilation, Air–Conditioning, and Refrigeration Contractors to include two additional contractor members; and requiring that the two additional Board members be appointed without regard to geographic region or location in the State.
EFFECTIVE JULY 1, 2010
BR, § 9A-202 - amended
Assigned to: Economic Matters

It's still early and surely there are more to come.

Click the link above to go to the MGA website. If you have any questions, let me know.

More on Chinese Drywall

2009-12-02T10:29:00.005-05:00

The U.S. Consumer Product Safety Commission (CPSC) issued a report on Chinese drywall today. The study of fifty-one homes found a strong association between the problem drywall, the hydrogen sulfide levels in homes with that drywall, and corrosion in those homes. The study included homes in Florida, Louisiana, Virginia, Alabama, and Mississippi. While the U.S. Consumer Product Safety Commission (CPSC) has aggressively pursued a detailed investigation into the Chinese drywall supply chain, it remains difficult to estimate the total number of homes that could contain problem drywall. From the consumer end of the chain, CPSC has received over 2000 consumer reports from thirty-one states, the District of Columbia and Puerto Rico. According to the CPSC, only two reports have come from Maryland. The reported problem drywall was installed in homes mostly between 2006 and 2007. The CPSC has a website devoted to the issue. http://www.cpsc.gov/info/drywall/index.html.

If you are a contractor who may have purchased and used Chinese Drywall or believe you have Chinese Drywall in your home and have any questions, please do not hesitate to contact me.

To review the report, click the title link above.

Green City Planned for Charles County

2009-11-25T07:23:00.001-05:00

American Community Properties Trust, a diversified real estate organization and the master developer of St. Charles, a planned community in Charles County, said Gov. Martin O’Malley will announce on Monday the creation of a “Green City” in St. Charles.

In a release, the company said it will be “an international model of how to design and build an economically vibrant and environmentally sustainable community.” In addition, thousands of existing homes will be retrofitted to take advantage of current and future green technologies and services.

When completed, the community will include nearly 25,000 homes and 9 million square feet of industrial, commercial and retail space.

Developers Vying for Federal Stimulus Money

2009-11-20T16:20:00.003-05:00

Some of Baltimore's prominent developers are vying for a piece of the City's $30.8 million in federal stimulus funds. The Baltimore Development Corp. (BDC) is the City's economic development arm. It has received 19 proposals for City's Recovery Zone Facility Bonds, which is money set aside in the Federal stimulus bill to stimulate economic recovery in distressed parts of the country.

Click the title link for more the complete article.

Organization and Preparation Can Make or Break Your Case

2009-11-12T06:03:00.006-05:00

I came across a post from another blog that I found useful. When a construction company or owner comes into my office with a potential dispute, they save themselves time and money if their project has been well documented and such documents are well organized. In some instances it can make or break your case.

Thanks to Timothy Hughes for these basic tips. Click on the title link to read more.

Is the housing market recovering?

2009-11-11T11:54:00.003-05:00

Is the housing market recovering? For Toll Brothers, Inc. a regional construction company, it seems to be. "We have definitely progressed from one year ago,” said Toll Brothers CEO Robert Toll." It's fourth quarter results have jumped approximately 42%. The positive sentiment amplifies that of Reston-based Comstock Homebuilding Cos. Inc. (NASDAQ: CHCI) which returned to profitability during the third quarter and said the homebuilding industry is on the mend.

Will the rest of the construction industry follow? Probably, but it's too soon to tell how quickly.

Click on the title link to read the article in the Baltimore Business Journal.

New MBE Laws went into effect in Maryland in October 2009

2009-11-05T11:08:00.003-05:00

In the State of Maryland, new MBE laws went into effect in October 2009. If you are bidder on Maryland state construction projects, are a minority contractor, or otherwise deal with minority contractors, you should be aware of such changes.

Most important to note is that Contractors bidding on Maryland state construction projects are prohibited from including a certified MBE in a bid or proposal without requesting, receiving or obtaining the MBE's authorization to do so. The contractor must also actually use the MBE's services to perform the contract.

Click the title link above for a summary of the new laws.

If you have any questions regarding MBE or construction law generally in Maryland or D.C., please contact me at Evans@cbknlaw.com.

USGBC CAN NOW REVOKE LEED CERTIFICATION

2009-10-31T06:04:00.002-04:00

In the newest version of the U.S. Green Building Council's green building standards, there's an element that has never before been in the LEED guidelines: A green building can now have its LEED certification revoked. That's got some industry professionals a little worried.

New rules require building owners to submit performance data on an ongoing basis for five years after certification. If they don't comply, their project's LEED status can be rescinded.

The USGBC has said this change was spurred by studies showing some LEED buildings were not performing up to expectations, casting a shadow on LEED's credibility. The purpose is to make the LEED certification translate to something increasingly meaningful.

Will this change inhibit some owners seeking LEED certification? We shall see.

Obama Administration Awards 100 Smart Grid Grants

2009-10-27T13:44:00.002-04:00

The grants are a result of an allocation of funds to smart grid projects in the American Recovery and Reinvestment Act of 2009. The total amount of funds to be disbursed by the federal government is $3.4 billion. Each award recipient will provide matching funding, meaning that today's action represents over $8 billion of investment in the Smart Grid.

Construction Documentation Seminar

2009-09-28T10:21:00.002-04:00

I do not usually post links to CLE's but I thought this might be helpful for some clients. In my experience, poor documentation is one of the leading causes of the failure of a claim or the amount awarded not being maximized. Clients that have their documents in perfect order are in a much better position to prevail in a dispute. Further, having the project and claim well documented can often cut down on litigation costs.

For those of you interested in learning more, click the Title Link above.

ABA Forum on the Construction Industry Fall Meeting

2009-09-24T14:38:00.003-04:00

I took a brief Hiatus from blogging over the past month and a half. That is mostly attributable to the birth of my daughter on July 7.

In any event I am attending the ABA Forum on the Construction Industry Fall Meeting in Philadelphia! I am looking forward to meeting up with my peers and major players in the industry and otherwise learning more from them about what is going on in the industry and where it is going. There looks to be many good educational programs. It takes place on October 15 and 16. Look forward to seeing some of you there.

Be sure to follow me on Twitter @MdConstrlawyer. I'll be tweeting from the meeting.

Legislating LEED: Developers worry about new city law

2009-07-27T11:03:00.002-04:00

Today I am posting an article from the Maryland Daily Record about LEED mandates. More and more LEED certification is becoming the law. Developers and construction professionals need LEED-AP's on their team.

Legislating LEED: Developers worry about new city law
ROBBIE WHELAN
Daily Record Business Writer
July 23, 2009 5:25 PM
Starting this month, everything’s got to be green. A new law in Baltimore City requiring builders to adhere to strict green building regulations on new construction projects and major renovations took effect July 1, and with the city still drafting the specific regulations that accompany the bill, some developers are worried that the bill may have unintended negative consequences. Council Bill 07-0602, which was signed into law by the mayor more than two years ago, was sponsored and shepherded through the lawmaking process by Councilman James Kraft, whose district includes several neighborhoods in the southeastern part of the city. Kraft has taken the lead on the most recent sustainability and environmental policies in city government. Any new construction, including both free-standing structures and additions to existing buildings, must adhere to the LEED-Silver standard, a benchmark set by the U.S. Green Building Council, a Washington-based nonprofit group. LEED, which stands for Leadership in Energy and Environmental Design, is based on a point system in which builders collect points for adding “green” amenities such as energy-efficient materials, power-saving heating systems and clean stormwater management systems. Baltimore’s new law effectively makes LEED part of the city’s building code. If you don’t commit to building green, you will no longer be approved for a building permit in the city. If your building or renovation does not comply with LEED, you will not be issued an occupancy permit. “I think that in our efforts to build a sustainable city, this is a good bill, because if you follow these guidelines, the buildings are cheaper to operate in terms of efficiency,” Kraft said. “People who work in these buildings have fewer sick days, better attitudes. There are all these benefits to green buildings.” But those benefits, Kraft acknowledges, come at a cost. A range of reports have shown that building to LEED standards — there are four: basic certification, silver, gold and platinum — can add up to 12 percent to the construction of a building. All points aren’t equal The reason is that some points are easier — and cheaper — to obtain than others: For example, if a building is located near major public transit lines and the workers who come to it use a bus rather than a car, that’s a point toward LEED certification. But others, such as the use of low-emissive glass and wood in buildings, can be quite expensive. “The objections we’re getting are people who by and large just don’t want to do it,” Kraft said. “There are two avenues of argument. One is that there really isn’t any money right now, it’s hard enough to get development money for anything, why make us jump through this hoop? The other avenue is, it really costs more to build green buildings. That avenue, I think, is a dead end. I think it’s been shown that a building can be built green for the same price or even less in some cases.” Stuart Kaplow, a local real estate lawyer who is well-versed in the rules and regulations associated with sustainable development, said that the real pain will be felt by developers who want to renovate their properties, but are required to do so according to LEED standards. “Baltimore City is quickly going to become one of the greenest cities in America,” he said. “The drag on the business community will be major renovations … Let’s say you need to totally refit out for a national retailer. You have to renovate one whole floor, new HVAC, and you have to do that entire renovation to a LEED-Silver standard. It requires more sophistication, and potentially costs more. Some of these buildings you’re renovating in Baltimore City could be 100 years old with granite footers and stone walls.” Especially vulnerable are developers doing historic rehabs. Projects seeking state and federal historic tax credits, which often provide 20 percent of the cost of a renovation in tax incentives, sometimes preclude builders from using the types of materials and building schemes that LEED requires. Windows of opportunity Joshua Neimann, whose company, Hybrid Development, is working with developers David Holmes and Daniel Winner to renovate five buildings in Fells Point as part of a $60 million mixed-use development, raised concerns that the historic elements of his project, especially the windows, might clash with the green elements. About $10 million of his project will be put into one building on South Broadway, the northern portion of the 19th-century Broadway Market. The developers are seeking millions in historic tax credits to rebuild the structure as it was in the late 1800s, with arched, steel-sash, single-pane windows, an architecturally significant detail that is about as far from “green” as you can get. “I support the mayor’s goals of a cleaner, greener Baltimore. What concerns me is that there’s a potential conflict between the goals of LEED and the goals of historic renovation,” Neimann said. Uptown, another developer, RWN Development Group LLC, is halfway done with a historic renovation of the Brexton Hotel, a triangular, 19th-century brick structure that was the childhood home of famous Baltimore socialite Wallis Warfield. John Ginnever, an executive vice president with RWN, said all the permitting on the Brexton was done before the green building law took effect, but said that the project would be very difficult to pull off with a LEED requirement. However, another project in the pipeline for RWN, the conversion of a historic downtown grain warehouse into an apartment building called the Flour House, will have to comply with the new green standards. “Flour House will need to be LEED-Silver, and one of the biggest issues we’re going to have is meeting LEED-Silver on the windows,” Ginnever said. Michael Goodwin, a principal with Baltimore architecture firm Design Collective Inc., had a similar experience with another project: the American Can Company on Boston Street in Canton. There, a local developer renovated the historic factory building as a mixed-use space. Goodwin said that 1,300 feet of a west-facing wall with lots of glass needed to be preserved for historical reasons, but also needed to be energy-efficient. “How green are you going to be able to be on that project if you’re replacing uninsulated single-pane glass and then increasing your [heating and cooling] capacity to deal with that extra heat gain? It’s just an enormous chasm as far as energy is concerned,” he said. “The reality is that right now, there is still an unknown premium to doing something green … The premium, which is 4 or 8-to-12 percent on a green project, you can justify it if it’s a build-and-hold type of company, and in the boom we’ve been experiencing in the last four or six years, there haven’t been a lot of those.” Where’s the incentive? Financing for American Can, he said, only became feasible when a tax credit law providing major incentives for the redevelopment of brownfields areas went into effect. And many Baltimore developers say that a green building requirement needs the same sort of thing: an incentive package to make it affordable. “The incentive needs to be bigger than immediate upfront costs for [green] certification,” Goodwin said. In the past two years, Kraft has also introduced three different packages of tax breaks for green buildings, which have been criticized in committee by the city’s finance department because it would forfeit too much property tax revenue. Kraft said in an interview this week that he expects the tax credit bills to come before City Council again before the end of the year. Baltimore’s surrounding counties already have tax credit programs for new green buildings. In Howard County, for example, a comprehensive green building package took effect a year ago, requiring new commercial buildings of 50,000 square feet or larger to be LEED certified at the system’s lowest level. Any building of 10,000 square feet or more that receives at least 30 percent funding from the county must be LEED Silver. In early 2008, the county approved five-year tax credits for buildings that use LEED — 25 percent breaks for LEED Silver, 75 percent for LEED Platinum, the system’s highest rating. By contrast, Baltimore County offers only tax credits for green building. Two bills, enacted in 2005 and 2007, deal with commercial buildings and houses, respectively, and offer up to 80 percent and 100 percent tax breaks over five years for building at LEED-Platinum standards.

Buildings Seeking LEED to Provide Performance Data

2009-07-13T11:31:00.002-04:00

In a relatively drastic change the USGBC is requiring buildings seeking LEED certification to provide performance data. Until now, design was all important, but actual performance data from the systems was not a prerequisite to LEED certification. I will discuss what this means in some future posts.

Click on the title above for a link to the press release from USGBC.

The Tax Benefits of Going Green

2009-06-29T10:25:00.002-04:00

Please click the title link above for more information on some seminar information. Now is the time to position your company for the future.

"Green is more affordable than you think! Learn about the various Federal and Maryland green tax credits and other tax incentives available to individuals and small businesses. Examples of topics to be covered are residential energy credits, credits for alternative fuel vehicles and investment tax credits for businesses as well as accelerated depreciation. This is a workshop presented by a tax professional and geared towards everyday consumers and business owners."

LEED-AP

2009-06-29T08:34:00.005-04:00

I have not updated this blog in awhile. Since the last post I have been studying diligently to become a Leadership in Energy and Environmental Design Accreditited Professional (LEED-AP) through the U.S. Green Building Council. On Friday, June 26, 2009, I acheived that goal.

The LEED Green Building Rating System is a nationally accepted rating and certification system for the design, construction, and operation of high-performance green buildings.

LEED Professional Accreditation distinguishes building professionals with the knowledge and skills to successfully steward the LEED certification process. LEED Accredited Professionals (LEED APs) have demonstrated a thorough understanding of green building practices and principles and the LEED Rating System. The LEED AP designation will allow firm clients to earn one point toward LEED Certification for their projects, if they do not already have a LEED –AP on the project team. Otherwise it will useful in consulting regarding all aspects “green” construction projects from contracting to implementation.

Achieving LEED certification has been mandated at the local and state levels for certain public and private building construction projects and certain jurisdictions give tax credits for LEED certification.

For example: In Annapolis commencing Jan. 1, 2009, all public buildings have to be U.S. Green Building Council LEED certified Silver, or the equivalent and affected commercial construction would have to be LEED certified, or the equivalent. The Green Building law will impact all new construction and major modifications to residential and commercial structures of greater than 7,500 square feet.

On the State level, on April 24, 2008, Governor Martin O'Malley signed into law SB 208, the High Performance Buildings Act. The act requires that all new public construction and major renovation projects greater than 7500 square feet (including universities) achieve the LEED Silver standard. The High Performance Buildings Act further requires that Maryland public schools using state funds earn LEED Silver certification, effective July 2009.

Green building is certainly the way of the future. I am available to consult on green building projects in which you would like to become involved or otherwise discuss LEED and green building and construction.

ABC launches new "Green" website

2009-06-01T15:08:00.002-04:00

ABC now has a "green website" where they have information about their "Green Contractor Certification Program". It recently named the first Certified Green Contractors in May 09.

Check it out by clicking the Title above.

ABC Construction Economic Update

2009-06-01T14:57:00.008-04:00

Are good things on the horizon for the construction industry?

According to ABC, "the performance of non-residential contruction remains solid" which could be an indicator that some other segments of the industry will see better months ahead. What do you think?

See the entire article from ABC.org below:

June 1, 2009
Construction Spending Posts Fourth Straight Increase

"While it is true that economic conditions continue to batter office and commercial construction by a combination of job declines, diminished consumer and business spending and tight credit, other nonresidential segments have more than compensated for lost dollar volume in those categories." —ABC Chief Economist Anirban Basu

For the fourth straight month, private nonresidential construction spending increased, rising 1.8 percent in April, according to the June 1 report by the U.S. Census Bureau. On a year-over-year basis, private nonresidential construction spending is up 2.0 percent. Overall, total nonresidential construction spending increased 0.8 percent on the month to $712.3 billion, up 2.5 percent from April 2008. (See what this means below)

Construction subsectors posting the largest gains from the previous month were power plants, up 7.2 percent; communication, up 6.0 percent; and manufacturing, up 3.8 percent. Meanwhile, construction subsectors posting the largest gains from one year ago were manufacturing, up 70.3 percent; power, up 25.9 percent; and conservation and development construction spending, up 16.7 percent.

In contrast, those construction subsectors posting decreases in spending from last month were water supply, down 5.9 percent and commercial construction, down 2.6 percent. Since April 2008, communication construction spending is down 26.1 percent, commercial is down 24.4 percent and office construction spending is down 10.5 percent.

Public nonresidential construction spending fell 0.5 percent for the month, but is still up 3.3 percent from April 2008. Residential construction spending finally increased for the month, up 0.6 percent from March, but still down 34.4 percent from a year ago. Overall, total construction spending increased 0.8 percent on the month, but is down 10.7 percent from April 2008.
What This Means

“In light of the historic downturn in the national economy, and the ongoing credit crunch, the performance of nonresidential construction remains remarkably solid,” said Associated Builders and Contractors (ABC) Chief Economist Anirban Basu. “While it is true that economic conditions continue to batter office and commercial construction by a combination of job declines, diminished consumer and business spending and tight credit, other nonresidential segments have more than compensated for lost dollar volume in those categories.
“Particularly exceptional is the performance of manufacturing and power-related construction, which is a reflection of the enormous transformation taking place in those segments of the economy,” added Basu.

“Undoubtedly, today’s data release will be considered another “green shoot," indicating that the US economy is now on the mend. However, much of the focus remains on residential construction because its value has not significantly increased since August 2008,” said Basu. “With the overwhelming majority of stimulus dollars yet to be distributed and spent, many nonresidential construction segments can expect even better months ahead, though office and commercial construction will likely lag for the foreseeable future.”

I would love to hear your thoughts and comments.

Chinese Drywall Crisis

2009-05-14T14:09:00.005-04:00

The Chinese Drywall crisis may reach epic proportions in the United States. No one yet knows how far reaching the problem is at this point. Although I have not yet heard of any litigation in Maryland, litigation has begun in some states, including Louisiana, Florida and North Carolina. The litigation will be complex and affects homeowners, subs, GC's, suppliers as well as the manufacturers. I will continue to monitor this issue and report back when there is more information.

In the meantime, click on the Title for a link to an article by Scott Wolfe for homeowners with Chinese Drywall installed in their homes.

Worried About Getting Paid?

2009-05-13T10:43:00.003-04:00

Are you a contractor worried about getting paid in these tough economic times? Click on the Title for a link to another favorite blogger of mine. She gives you some proposed contract language which could be useful.

Stimulus Bids Pour In

2009-05-11T15:16:00.002-04:00

Please click on the title link for an article from one of my favorite bloggers at GreenBuildingLawUpdate.com and Chris Cheatham about stimulus projects. Those of you bidding on such projects might find it useful.

Are You Positioned for BRAC?

2009-05-04T11:03:00.003-04:00

Maryland is in line to get a large amount of Base Realignment and Closure Plan (BRAC) money. Much of that money is going to be used for construction and renovation of buildings and infrastructure. Is your company well positioned to get a piece of the pie? From my perspective, so many of those in the construction industry can benefit from BRAC in Maryland, whether chasing BRAC money or not. The infusion of new people into the area can help all of us.

I've attached an article from the Baltimore Business Journal....

Green Building Insurance. Are you Protected?

2009-05-04T10:27:00.005-04:00

Any construction professionals interested in green construction should be aware of the risk associated with contracting to build a green building.

For example what if you contract to build a stucture that meets the certification process of an outside entitiy, such as US Green Building Counsel but cannot deliver the level specified? What is your liability? Will you be covered by insurance?

This is an emerging area which we will keep you up to date on but I have posted a link to an industry insider which is insightful on the subject.

ASHRAE Launches Commissioning Agent Certification

2009-04-30T11:01:00.004-04:00

For those of you interested in working LEED projects or any other project for that matter, you may find this helpful.

"ASHRAE Launches Commissioning Agent Certification The American Society of Heating, Refrigerating, and Air-Conditioning Engineers (ASHRAE) will offer a new exam, starting in June, for Commissioning Process Management Professionals. Intended to help building owners and others find qualified people to conduct project commissioning. "

This might be a great way to grow your business!

LEED v3: What does it mean for you?

2009-04-23T12:30:00.007-04:00

LEED v3 launches April 27, 2009. What does it mean for you?

Current LEED projects can be transferred from v2 to v3 between April 27 through October 26th free of charge. Projects that remain registered under version 2 will be unable to use the new version of LEED online.

For those of you considering doing LEED projects, registration for v3 begins April 27th.

There is a new credentialing system as well. You can no longer register for the LEED AP v2 Exam. What does that mean for current LEED AP's? There is a 2 part test which will be available Summer 09 and there will be new designations. Pratical experience on LEED projects will be required.

Check out all the info at the USGBC website!

Let me know what you think about the new v3!

2009-04-04T18:41:00.000-04:00

This Blog is under construction. Check back soon!