A lot of our family, friends and colleagues have had a very difficult half-decade. Hurricane Katrina’s effects are fading, but they aren’t gone. Just from my own personal experience in the legal profession, I can see the storm’s impact lingering as the subject of on-going litigation.

The city is, however, making it along. And I feel quite lucky to have a great staff, great clients and great family and friends, who without which, Wolfe Law Group could not be the success it is today. Thanks to all of you.

Click on any photo in the main window to see description. For great professional photos, see this story from Boston.com.

Construction Outlook is Optimistic

The construction market in New Orleans has managed to largely avoid the national recession, giving Hurricane Katrina a silver lining.  As four years have now passed since the storm, many are wondering:  can the construction boom continue?

Fortunately for regional contractors, the answer seems to be yes.

In July, we reported at the Construction Law Monitor that the Army Corps of Engineers were seeking more contractors to perform federal levee projects.   Just last week, the Corps reported more good news for infrastructure projects in Louisiana stating plans to spend $1 billion to restore wetlands.

And while much has already been spent to rebuild the Crescent City, on Katrina’s anniversary President Obama vowed to speed the nation’s recovery effort.  In the New York Times article covering the topic, it was reported that the government has freed up “hundreds of millions of dollars in assistance that has not been distributed.”

Legal Information About Public Works Projects

There’s a lot to be optimistic about in the South Louisiana construction industry…but, most heavy spending projects are publicly funded.   Those who have experience working on public projects aren’t concerned about this, but many companies who ordinary focus on private work may be shaking in their boots.    There’s no need to be concerned.

While public contracts certainly have unique requirements and details, it doesn’t need to be foreign territory.   Here are some blog posts here at the Construction Law Monitor to help the private contractor better understanding public contracting:

• The Public Contracting Category.   You can start by reading the articles posted in the “Public Contracting” category.
• The Stimulus Package and Your Construction Business.   This blog posts discusses the difference between public and private contracts, and explains how your company can get federal and public work.
• E-Verify.   A hot topic in federal contracting, your company should read and learn about the new e-verify requirements when preparing work on a federal contract.

While the rest of the nation’s construction industry and real estate market has steadily suffered over the past 12 months, in New Orleans real estate prices hold firm and the construction industry is ‘booming.’   Here is a quote from the Seattle Times article about the NOLA construction market, and even a quote from local contractor Landis Construction:

The recovery dollars are paying for projects large and small, including an $800 million replacement of the damaged “twin span” bridges over Lake Pontchartrain and thousands of homes being fixed under the state-administered Road Home program. The Army Corps of Engineers continues to use contractors to strengthen the levee system. In working-class neighborhoods such as the Ninth Ward, laborers are pounding away on small-scale renovations.

“Katrina was a horrible nightmare, but the reality is that, for the construction industry, it’s been a blessing,” said Theresa Leger, a vice president of Landis Construction, a local firm that has remained busy since the hurricane.

The New York Times article looked at the city’s sustaining economy from a different angle; as evidence that a stimulus package can work to improve economic conditions.

The article calls the federal government’s $51 billion injection into post-Katrina Louisiana an “unintended trial rune” of the $787 billion national stimulus bill.

And what are the results?

The New York Times says the results are good – and especially for the construction industry.  Here’s a quote from the piece:

State economists specifically mention what one called “the ongoing building boom” from federal dollars as a main reason for the numbers. Largely a result of the damage caused by Hurricane Katrina, construction projects have not dried up as they have elsewhere, and a few can even be seen in downtown New Orleans.

Construction has “really hung in there and done very well,” said Loren Scott, an emeritus professor of economics at Louisiana State University. “In most states construction is way down, but in ours it has been up.” The relatively low unemployment rate in Louisiana “tells you that the stimulus can have an effect,” Mr. Scott said.

Read more about the Stimulus Package and how it relates to the Construction Industry on the Construction Law Monitor here.

Construction on jails, police and fire stations, playgrounds, theaters and mixed-income housing developments — all battered by the 2005 floods — has started or will start this year, as public federal funds finally were unleashed from bureaucratic tangles, Mayor Ray Nagin said in an interview with USA TODAY.

“You’re going to be able to see, touch and feel it,” Nagin said. “We’re really headed into a year of unprecedented construction.”

Certainly this is exciting news for contractors in Southeast Louisiana, who experienced a surge of work in the aftermath of Hurricane Katrina, but has since succumbed to the rigors of the national recession.

The news of Katrina-related aid coming to the region is icing on top of the cake for the Louisiana construction industry, who is looking forward to a large amount of stimulus cash being spent in the state’s infrastructure.

Just this weekend there was news out of Baton Rouge that despite previous resistance, Governor Bobby Jindal would likely be accepting all stimulus aid.  The state launched a stimulus spending website, http://www.stimulus.la.gov/, and identified the first LA project to use stimulus funds (the long awaited Larose bridge).

How Do You Take Advantage of The Stimulus?

If your company is interested in taking advantage of the planned stimulus projects it must get familiar with public contracting, Davis-Bacon prevailing wage requirements, the public bidding process and more.

A great resource to learn more the requirements and strategies of public contracting is Mike Purdy’s Public Contracting Blog.

With more than 29 years of public contracting and procurement experience, Mike helps government agencies and businesses develop contracting strategies, solve contracting problems, and get better informed on a wide variety of public contracting and procurement issues.  His consulting company, Mike Purdy & Associates, is based out of Seattle, WA.

Here at the Construction Law Monitor, we provide commentary and insight on the legal components of government contractor (state and federal).  You can read posts related to public contracting through the category Public Contracting here.

Last month (Feb. 2009), we posted a particularly helpful article for businesses unfamiliar with the public contracting process called “The Stimulus Package and Your Construction Business.”

The article briefly breaks down the legal and practical differences between public and private work, and outlines the basics for contractors interested in preparing their company to bid on public jobs.

Unfortunately, the Army Corps of Engineers and other authorities concede that there’s very little they can do to mitigate the risk, advising residents of these areas to buy flood insurance and be prepared for evacuations.

Having offices in New Orleans, LA, and experiencing the devastation of Hurricane Katrina, Wolfe Law Group brings a unique perspective to the issue.

Here are some legal considerations:

• Flood Insurance.   The authorities recommend getting it, and there really isn’t a reason to procrastinate.  Compared to other insurance products, flood insurance is fairly inexpensive, and in the event of a flood-loss, it will be very necessary.   Your other insurance policies will very likely exclude flood damage, and flood damage – unlike earthquake or wind damage – usually completely ruins everything in its path.
• After a flood loss, document your damages and be very through in your insurance claim.   Take pictures and inventories of everything, and offer your insurance adjuster the chance to see the damages first hand.
• Contractors:  flooded areas bring a large amount of contracting work.   Be careful of getting ahead of your company financially, however.  While work may be in abundance, the money to pay for that work could get tied up in insurance disputes or just the length of the claim process.   Be careful about doing too much work without payment.
• Property Owners:  Be very aware of post-disaster fraud.