Dallas August 2021 – Key Take Aways
- Per the group’s consensus, almost all projects are picking back up and everyone is very busy with both ongoing and new projects. The real estate market is “hot right now”, multi-family projects are “hot as ever” and have not slowed down at all even with construction prices still higher than normal. Industrial projects are “through the roof”.
- The town of Forney is “exploding” and it’s “one of the hottest industrial markets in the country” with a lot of multi-family, retail projects and industrial projects either currently in progress or soon to be starting new projects.
- Lumber prices are slowing coming back down to the “new normal”, but roofing materials, PVC pipes, and other construction materials have not come back down yet and there is no telling when that will happen.
- Laila Assanie, Senior Business Economist with the Federal Reserve Bank of Dallas shared the following:
- Due to the new Delta Variant, they are seeing an impact overall on the economy.
- Job activity was a bit strong in July, showing 7.1% growth, seemed to be coming along very well in the Texas economy.
- They are expecting that August will show a slowdown in employment also due to COVID.
- Kimber Davison provided a presentation on Construction & Real Estate-Focused Legislation in 2021 Texas Legislature Update. She described some of the Bills that were passed:
- Senate Bill 219 – Design Defect Bill: This Bill represents a major change in Texas law that should have substantial positive effects for contractors which, under prior law, may have had exposure to damages caused by a design defect not caused by the contractor and for which the contractor otherwise has no recourse against the responsible design professional. This bill goes into effect September 1, 2021. As with other construction-related legislation over the past several decades, this bill will not apply retroactively but instead will apply only to contracts entered into on or after September 1, 2021. Application of the law to subcontractors is based not on the subcontract date, but upon the date into which the prime contract was entered.
- Senate Bill 6: Omnibus COVID Pandemic Liability Bill: This Bill modifies current laws to allocate certain protections to parties engaged in commerce in connection with and in response to COVID-19. Subject to certain exceptions, the bill sets forth that a physician, healthcare provider, or first responder is not liable for an injury, including economic and noneconomic damages, or death arising from care, treatment or failure to provide care or treatment during the time in which a disaster declaration is in effect.
- House Bill 19: Reform Litigation Abuse Over Commercial Construction Accidents: The Bill strengthens the Civil Practice and Remedies Code by ensuring legitimate evidence directly relevant to causation and injuries arising from a commercial vehicle accident is presented to jurors without prejudice. When a commercial vehicle operator is sued after a crash, the driver would have to be proven liable in court before a case could be brought against their employer.
- Senate Bill 968: Limitations on Construction and Related Services: Senate Bill prohibits the presiding officer of a governing body of a political subdivision (mayors/county judges) from issuing an order shutting down commercial construction during a pandemic.
- House Bill 3069: Statute of Repose for Public Works (reduced to 8 years from 10 years: This Bill was enacted to shorten the statute of repose from 10 years to 8 years for public projects. Generally, this change only applies to projects that commence on or after the effective date of this Act. Projects which were commenced prior to the effective date of the Act will continue to be governed by the prior 10-year statue of repose. Unlike many bills that do not take effect until September 1, 2021, this bill takes effect immediately upon signature by the Governor.
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