Lisa Cappelluti | Gordon Rees Scully Mansukhani
Construction Partner Lisa Cappelluti recently joined a panel discussion highlighting the future of construction trends across the country which addressed future trends in national and regional construction projects as well as recent legal updates.
Construction project starts are now moving into both new types of projects and new technologies for building across the country. Office to residential conversions are happening in many urban centers which have lower commercial office space demands and great challenges meeting new home construction demands. Solar energy projects and data centers are leading the commercial construction booms across the country in many states. Construction technology is also seeing many new changes with the use of 3D printers for construction as well as the introduction of robotics in the field allowing for construction to continue despite labor shortages in many areas.
Weather related challenges also are impacting design for construction projects and manufacturers have introduced remote sensing technology for water loss and flooding issues as well as wildfire sensors in buildings. Other new weather technologies include use of cyclone-proof roofs and storm-resistant doors. New sustainability goals also have created materials options including low-carbon cement, cross-laminated timber and solar power energy systems as part of many new construction projects. The ability of our construction industry to adapt and modify itself to meet these changing needs allows it to evolve with the demands, maintaining its role as a vibrant part of our economy.
The past several years of challenges in material and labor shortages as well as new requirements for sustainable construction methods have acted as catalysts for the industry. Construction companies and manufacturers have been working hard to create solutions to these issues which include the introduction of new renewable construction materials and creative solutions to high labor demands such as the use of pre-fabricated building components which are easily transported and installed. On the legal side of these developments, we see the continued efforts to focus on safety. California has now implemented its balcony inspection and repair compliance statutes for residential apartment projects and homeowners association projects including detailed investigation specifications on elevated walkways and balconies which must be inspected in both new and older projects across the state. Arizona is proposing changes to its statute of limitations for construction defect claims to shorten the statute from 8 to 4 years for construction defect claims in a condominium projects. Shorter statutes will result in more frequent inspections and construction review obligations by owners and property managers.
Legal trends in California include increased liability for design professionals based on a recent decision finding liability for designers absent contractual privity in Lynch v. Peter & Associates, Inc., 104 Cal. App. 5th 1181 (2024). Construction companies and developers also favor arbitration over jury trials which continue to be the preferred venue for litigation in many states with statutory support at the federal and state level, as seen in many recent court decisions interpreting arbitration provisions and statutes. The California Supreme court issued a recent decision addressing waiver of the right to arbitration in Quach v. California Commerce Club, Inc., 16 Cal. 5th 562 (2024) which is a good reminder to make sure to seek arbitration early in the dispute rather than wait until after the state court action has been commenced. Arbitrations provide a speedier, streamlined resolution path which has a benefit to avoid expensive protracted litigation. These updates and trends show that the construction industry continues to grow and thrive in many ways and the future trends reflect the dynamic growth ahead.
When one of your cases is in need of a construction expert, estimates, insurance appraisal or umpire services in defect or insurance disputes – please call Advise & Consult, Inc. at 888.684.8305, or email experts@adviseandconsult.net.