Articles Posted in Construction Generally

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The IRS issues anticipated guidance providing relief to developers facing delays related to COVID-19. In the recent alert, “IRS Extends Continuity Safe Harbor for Renewable Energy Projects,” colleague Jorge Medina, discusses how the guidance also provides some clarity on the impact of supply chain disruptions on equipment orders placed later in 2019, primarily associated with solar and fuel cell companies, by addressing the application of the “3½ month rule” in light of COVID-19 and providing a new safe harbor.

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Over the past few months, construction projects in most states have carried on because construction was deemed essential and projects were exempted from government orders that closed businesses. In the jurisdictions that halted construction operations, state and local authorities are now easing those restrictions and allowing construction to resume. In “Safety Measures for Construction Projects During the COVID-19 Pandemic,” colleagues Laura Bourgeois LoBue and Jose L. Lua-Valencia discuss just how different construction sites will be than they were a few months ago under this new normal.

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This week, the Cybersecurity & Infrastructure Security Agency (CISA) issued Version 3.1 of its Guidance on the Essential Critical Infrastructure Workforce. For the most part, CISA’s Guidance 3.1 did not change from Version 3.0 as it relates to construction. However, CISA added a few construction-related services to “Essential Critical Infrastructure”:

  • “Workers who support the construction and maintenance of electric vehicle charging stations.”
  • “Engineers performing or supporting safety inspections.”
  • Workers supporting “the sale, transportation, and installation of manufactured homes.”
  • “Workers in retail and non-retail businesses—and necessary merchant wholesalers and distributors—necessary to provide access to hardware and building materials …”

For a more in-depth look at the CISA Guidance related to construction see Pillsbury alert Commercial Construction during COVID-19: CISA Expands its Guidance.

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The Procurement Integrity Act (PIA) governs disclosing or obtaining procurement information, engaging in employment discussions with government officials, and the payment and receipt of compensation to a former government official. In “New Procurement Integrity Act Decision Reminds Contractors of Its Scope and the Potential Remedies for a Violation,” colleagues John E. Jensen, Alex D. Tomaszczuk, Robert Starling discuss the question of whether an offeror has knowingly obtained “contractor bid or proposal information or source selection information” during a procurement, in violation of the PIA, is very fact-specific.

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Pillsbury is tracking the impact on construction projects of COVID-19-related orders and guidance from CISA, and in all 50 states and the District of Columbia. See our Updated COVID-19 Construction Chart.

 

 

 

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This past week, multiple states extended States of Emergency or Stay at Home Orders, while simultaneously issuing orders regarding reopening their states.  Because construction was deemed essential in the majority of the states, many re-opening orders have very little direct impact.  However, even in states where construction was never ordered to cease, orders have nevertheless included construction in their reopening focus.  For example, the District of Columbia established a ReOpen DC Advisory Board, and included a Real Estate and Construction Committee.  Kentucky issued “Requirements for Construction Businesses” to open and remain open as the state reopens.  And in Pennsylvania, where construction was previously halted, the Governor issued an order allowing construction to resume in certain counties.

For more details on orders and guidance in all 50 states and the District of Columbia, see our Updated COVID-19 Construction Chart.

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For America’s economic recovery to move forward with relatively few hitches, liability limits are essential. History has shown how easily the mere threat of lawsuits by aggressive tort lawyers can derail critical recovery efforts. The White House and Congress should therefore work together to establish effective and appropriate liability limits. By modifying existing statutes that limit liability in a way that assures both fewer frivolous tort suits and effective pandemic mitigation and recovery policies, Washington will have done its part to prevent unscrupulous lawyers from needlessly hindering the economic recovery that Americans so desperately need. Colleague Brian Finch discusses key considerations in the whitepaper, Liability Protections Are Critical to Ensuring Economic Recovery originally posted on The Heritage Foundation.

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As seen in our Updated COVID-19 Construction Chart, many states saw action – or intentional inaction – this past week as it relates to COVID-19-related governmental orders. Continue Reading ›

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Boston Mayor Martin J. Walsh first limited construction in the City of Boston to essential work on March 17. This pause in non-essential construction has been extended indefinitely by order of the Boston Public Health Commission on April 24. On April 27, Mayor Walsh confirmed that he will not re-open the City on May 4, the date the Commonwealth is scheduled to re-open (Massachusetts Governor Charlie Baker extended his stay-at-home order on April 28 to May 18). In “City of Boston, Massachusetts Extends Construction Moratorium,” partner Paul Shapses discusses how non-essential construction is not presently permitted in Boston, but draft best practice guidelines and an associated contractor certificate identify the way forward for owners and contractors.

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Like almost everything in the COVID-19 crisis, the construction landscape changes daily. Pillsbury has updated its analysis of the impacts to construction projects as a result of orders in the 50 states and Washington, DC.

Continue Reading ›