Condo-mania

"Condo-mania" and what it means to you is well set out in the March 2006 ABA Forum on the Construction Industry newsletter, Under Construction. See William Quatman's timely article, Condo-mania has its Risks. This is not futuristic; but, rather, it is a real time issue for all in the industry to consider. As insurance becomes more difficult to obtain generally, one should consider project specific options as well as other risk management options and programs.

Contract Licensing Deadlines Extended in Georgia

Governor Perdue has now signed into law the bill passed in March that extends the deadline for applications for residential and general contractor licensing by exemption from examination to December 31, 2006. (The original date had been June 30, 2006.)

The date on which all contractors in Georgia must be licensed is now extended to January 1, 2008.

Multi-Phase Developments and New Stormwater Management Rules

EPA's new stormwater management rules (known as NPDES Phase II) are likely to cause headaches for multi-phased real estate development projects that are under construction. As we understand it from a client alert sent out by Stimmel Asociates, P.A., underground stormwater management systems used in the past to avoid losing buildable areas to ponds are no longer acceptable under the new rules. So even though one or more phases of construction may be complete, the developer could be required to add stormwater management ponds that will result in loss of units, land and density.

Insurance and Bonding

Navigating the waters of insurance and bonding requirements for a large project can be extremely challenging, and fraught with danger, particularly in a litigious climate. Most substantial non-residential or high-risk mixed-use projects require sophisticated analysis up front so that a project's risk is fairly and appropriately allocated among the multiplicity of parties to the deal. Wrap programs, CGL, additional insureds, mold and hazardous substances exclusions - these are all terms and phrases heard today in connection with large projects. Add to these the demands of traditional bonding, or availability and use of "Subguard" products, and this complicated assortment of coverage options points to one thing: add an insurance or risk manager professional to your project team from day one. This consultant can assess coverage needs, pricing, availability, and allocation. The upfront investment should yield long-term benefits and maximize chances for a successful project.

Georgia General Assembly Bills

In a recent client alert David Roberts highlighted notable bills passed by the Georgia General Assembly this session that potentially impact design, construction and development. These bills have yet to be signed into law. The client alert can be found here.