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Jonathan Kaiman of the Los Angeles Times reported recently on a developer, Broad Sustainable Building, that constructed a thirty-story building in Changsha, China, in 15 days (not including the foundation and tenant improvements) with the help of extensive prefabrication. The fascinating time-lapse video of the construction of the building is here on YouTube and has received several million hits.

According to the Times, the company contends its speedy construction methods are both safer and more economical, since most of the work is done in a factory and jobsite time is significantly reduced. The article notes that the company is looking to take its construction methods overseas, possibly even to the United States. Whether the company can overcome the building and labor code obstacles it would likely face in the U.S. remains to be seen, but keep an eye out for vacant lots that turn into skyscrapers overnight.

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The 21st edition of Pillsbury’s Newsletter: Perspectives on Real Estate features articles on green leasing, mineral rights, avoiding construction project failures and California’s post redevelopment agency landscape. Articles include:

The Spring 2012 Edition of Perspectives on Real Estate is edited by: Laura Hannusch, Peter Freeman, Christine Roch and Noa Clark and can be downloaded in its entirety by clicking here.

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You could be forgiven if you’ve missed some of the news concerning the new Tappan Zee Bridge project. This project is very much on Governor Cuomo’s front-burner and is moving right along at an impressive pace. Here is the Reader’s Digest version of some (relatively) current events.

In February, four groups consisting of the usual suspects were short-listed to design and build the new span. In a strange twist of fate, one of the short-listed groups includes Dragados which now employs the same Chris Ward who reportedly butted heads with Gov. Cuomo during his time as the Executive Director of the Port Authority.

Meanwhile, back in Albany, the State engaged consultant Jeffrey A. Parker & Associates, Inc. to figure out how to pay the $6 billion price tag. The State has requested $2 billion from the Federal Department of Transportation pursuant to the Transportation Infrastructure Finance and Innovation Act (TIFIA). So, assuming the feds allocate the requested $2 billion (a better bet than an Atlantic City slot machine given President Obama’s selection of the new bridge as one of fourteen projects to receive accelerated environment review – and Mr. Cuomo’s political affiliation), Mr. Parker must close a $4 billion funding gap. The administration has mentioned using pension fund investments, bonds and toll revenues. But, unless I missed something, nobody has officially suggested toll increases – yet.

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On February 21, 2012, the AGC announced that construction employment remains below peak levels in 329 out of 337 metro areas.

Not surprising, the hardest hit metro areas all took great advantage of the housing boom until the economic recession wiped out the demand – Phoenix-Mesa-Glendale, AZ, Lake Havasu City-Kingman, AZ, Riverside-San Bernardino-Ontario, CA, Las Vegas-Paradise, NV, and Chicago-Joliet-Naperville, IL experienced the greatest declines in construction employment as compared to peak levels. Although it appears that the housing industry is finally on the rebound, there are so many available homes and condominiums in these areas that a return to heavy residential construction is still years away.

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The construction industry is abuzz with talk of alternative funding mechanisms, specifically Public-Private Partnerships, aka PPP, aka P3s. The AGC PPP Task Force recently developed a White Paper to outline issues that contractors will confront with PPPs.  Contractors should be knowledgeable about PPPs – not just from a contractor’s perspective – but also from an entrepreneurial perspective.

As noted recently by our colleagues in Pillsbury’s Global Sourcing group:

“PPPs, if managed well by both SLGs [State and Local Governments] and service providers, can offer significant benefits to both parties, and ultimately the public-at-large. Realizing this potential will require changes in paradigms and behaviors on both sides of the table (SLGs acting more like businesses; service providers acting more like entrepreneurs). Those who are ready to embrace the future will be well-positioned to catch this building wave.”

The full article can be found here.  Are you in the best position to “catch the wave”?

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New York State’s Appellate Division, First Department, in VOOM HD Holdings LLC v. EchoStar Satellite L.L.C., recently adopted strict federal standards with respect to a party’s obligations to preserve documents prior to litigation. These standards were derived from the landmark Zubulake and Pension Committee opinions of Judge Shira Scheindlin of the United States District Court for the Southern District of New York. This is the first time that a New York appellate court has applied these standards to sanction a litigant for failing to suspend automatic data destruction practices once it “reasonably anticipated” litigation. The decision provides important clarity in the timing and scope of the preservation obligation. It also raises the bar for companies subject to the jurisdiction of New York state courts, many of whom had previously viewed the obligation to preserve as being triggered only by the commencement of litigation.

To learn more about this, click here to read the client alert that was written by Wayne Matus, John Davis and Aubrey Charette.

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An analysis performed by The Association of General Contractors reveals that Construction company employment rose in 28 states and the District of Columbia in 2011. While the increase in numbers is certainly encouraging, the AGC cautions that it is “too early to conclude that the industry is on a steady upswing.”  Especially with looming budget cuts and the potential resulting decrease in public construction.

The AGC’s press release can be accessed here.

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On January 17, 2012, the Supreme Court of the State of New York, Appellate Division, First Department, declined to follow and expressly overruled the insurance rule adopted in DiGuglielmo v. Travelers Prop. Cas., 6 A.D.3d 344 (N.Y. App. Div. 1st Dep’t 2004). The DiGuglielmo rule stated that “[a]n insurer is not required to disclaim on timelines grounds before conducting a prompt, reasonable investigation into other possible grounds for disclaimer.” Id. at 346.

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“In” and “out” of New York City that is. Roosevelt Island, in particular. Stanford withdrew its proposal to build a campus on New York City’s Roosevelt Island and a week later, the City agreed to provide 10 acres to Cornell plus $100 million in infrastructure improvements; Cornell will build a $2 Billion campus on that property. You can read Mayor Bloomberg’s quotes about it on Mayor Bloomberg’s company’s website here. (Surely there’s an antitrust violation somewhere in there.)

New Yorkers hope that the project will keep high tech software from fleeing to the suburbs. Bloomberg (the site — not the mayor) quotes the president of the New York City Economic Development Corporation as saying, “Software and applications need the kind of dense expertise that cities are full of.” If Pinsky is right, maybe Roosevelt Island will be the next Silicon Valley.

Cornell hired Skidmore, Owings & Merrell to design the project and it’s estimated that it will generate 20,000 construction jobs. It’s a bit early to say who the lucky 20,000 workers will be — or who their employer will be. Stay tuned.