Insights

Despite rising inflation, escalating material and construction costs, supply chain delays and general market uncertainty, the high-end residential construction market continues to experience record growth. According to recent statistics, the value of new private home construction projects in the United States is at a record high ($776 billion in 2021). Although we have written extensively about the market factors currently putting pressure on the construction industry, as well as some steps that can be taken to mitigate impact, this article will discuss additional questions that owners planning high-end residential construction should be asking.

The IRS has proposed regulations interpreting significant changes made by the SECURE (Setting Every Community Up for Retirement Enhancement) Act to how inherited IRAs and other retirement accounts can be treated by their beneficiaries, mostly relating to rules governing required minimum distributions (RMDs).

In the wake of the COVID-19 pandemic, many businesses across the country filed claims for business interruption coverage with their insurance carriers, most, if not all of which, were denied. Indeed, by the end of June 2021, a total of 1,937 business interruption lawsuits had been filed. In a recent opinion from Lee v. State Farm Fire & Casualty Co., 2022 IL App (1st) 210205, the Illinois Appellate Court addresses the business interruption due to COVID-19 claim for the first time, ultimately denying coverage.

With the COVID pandemic seemingly winding down, and with much of the world starting to reopen to pre-pandemic levels, owners and contractors are eager, now more than ever, to complete their current projects and start new ones.  Although many ongoing projects may have survived project closures and other pandemic-related hurdles during the past few years, problems still exist that may impact whether the project can get across the finish line.

The U.S. Equal Employment Opportunity Commission (EEOC) issued a technical assistance document on March 14, detailing recommended best practices for employers managing workers with caregiver responsibilities. 

Environmental, Social and Governance (ESG) issues are becoming crucial drivers of operational and investment decisions in both the public and private spheres, and the construction industry is no exception.  One area in particular where ESG and construction intersect is the use of sustainable design concepts and sustainable materials in construction projects.