Regulatory Round Up: A Review of Emerging Issues Impact A/E Firms
Insurance Claims
Conspiracy to Fake Injuries Claimed by New York Contractors and Insurer Lawsuit
In recent years, insurers have begun using racketeering laws to combat fraudulent claims. Richard Korman of Engineering News Record has details.
Florida Engineers Combats Fraudulent Insurance Reports.
Edgewater, Florida engineer George Miles has filed more than a dozen complaints against other engineers for making false claims in insurance claims litigations. Insurance Journal takes a look at Miles’ endeavors.
State of Rhode Island sues 13 Engineering, Construction, and Inspection Firms over Washington Bridge
On December 11, 2023 the 195 West span of the Washington Bridge linking East Providence and Providence was abruptly shut down over safety concerns. The State claims that multiple issues leading to the closure were not reported to the Department of Transportation going back to 1992. The Rhode Island Current has more.
Glass in Sports Complex Soil Leads to Lawsuit
Lewandowski Engineers is currently being sued by the Village of Ottawa Hills, Ohio after finding glass in the soil of a newly completed sports complex. The Village alleges the engineering firm was negligent for not finding the debris on the new soccer and lacrosse fields. It is believed that the glass came from greenhouses that were located on the property since the 1900s.
Industry Trends
Renewable Energy Projects Still Moving Forward
Changes in Presidential Administrations often mean changes in policy priorities. Many developers have suspended renewable energy projects anticipating less support from the incoming Trump Administration. However, there is still strong support for such projects in the Northeast. ENR reports.
Tornado Resilience Added to IBC
The 2024 Internation Building Code includes a section for tornado resilience for critical structures such as schools and hospitals, a first for the IBC. ASCE 7 Chapter 32 will require these structures to withstand a tornado with EF 2 windspeeds (111-135 mph). The NIST began the process of developing the new standard within days of a 2011 EF 5 tornado hitting Joplin, Mo. and killing 161. Furthermore, Scientific American in 2023 published an article finding Tornado Alley is moving eastward into Kentucky, Tennessee, and southern Illinois and Indiana.
Economic Outlook
Engineering Firms See Growth for Quarter, Year
The U.S. Census Bureau released new data showing that A/E firm revenues grew 9.1% year over year and 1.2% from the second to third quarter. This is the highest year over year growth since 2022, but the second consecutive quarter of slowing growth reflecting an overall slower economy. ACEC has more.
ACEC Shows Strong Optimism
ACEC’s Research Institute found strong optimism across all fields of engineering earlier this year. Executives, however, were concerned about a lack of well-qualified applicants.
Strong Jobs Data Lessens Probability of Fed Rate Cut
December’s 256,000 job gain far outpaced the expected 160,000 for the month leading to speculation that the Fed is unlikely to further cut interest rates. Early in 2024 the Federal Reserve had signaled that as many as six rate cuts may occur throughout the year, but the pace of the economy remained stronger than expected over the course of the year leading to fewer cuts.
AIA Sees improvement for Architecture Firms
October marked the first time in nearly two years that Architecture firms saw an uptick in billing according to AIA software provider Deltek. Furthermore, AIA announced in November that 41% of firms expect to see a year over year increase of net revenue in 2025. Falling interest rates, increased workload and an increase in requests for new projects are major factors contributing to the positive view.
STUCKEY INSURANCE focuses on providing Professional Liability and Employee Benefits for Architects, Engineers, Accountants and Attorneys in Arizona. Please call us if you would like to schedule a consultation for your other insurance needs.
Legal Disclaimer: This message does not and is not intended to contain legal advice, and its contents do not constitute the practice of law or provision of legal counsel. The sender cannot be held accountable for actions related to its receipt.
