Philadelphia Metropolitan Area Real Estate Law Blog

According to the Philadelphia Business Journal, construction activity in the Philadelphia region increased in March, with nonresidential construction increasing by 96 percent from last March. In terms of dollars, $197.7 million in contracts were reported last year, compared to $387.1 this year. Residential building reportedly increased by 57 percent to $281.2 million, compared to last March's $179 million. Substantial increases were seen in construction projects involving commercial, manufacturing, educational and religious properties, going from $163.9 million to $323.1 million.

With the increase of construction projects in the Philadelphia area, there is also an increase in the possibility of construction contract disputes. A number of issues can come up with such contracts, including indemnity provisions, insurance, contractor and subcontractor issues, surety bonds, waivers of subrogation, and so on. A great number of construction contract disputes, however, arise from using standard contracts and changing only the details of the contracting parties.

The Philadelphia Inquirer reports that landscaping contractors will be replacing roughly 3,400 trees in Norristown and four other Philadelphia suburbs which were lost in development projects. The effort, which will reportedly cost $2.2 million, is being funded by the Pennsylvania Infrastructure and Investment Authority, and the Delaware Valley Regional Planning Commission and the Pennsylvania Horticultural Society are partners in the project. The goal is to help manage storm-water runoff, revitalize neighborhoods, and improve air quality.

The municipalities selected for planting trees were chosen because of the presence of large streams and rivers, as well as sewers than struggle with overflow. It is hoped that the project will encourage neighborhood improvement in the communities benefiting from it.

Last week, a dispute between Philadelphia Councilwoman Maria Quinones-Sanchez and the Norris Square Civic Association reportedly arose when Quinones-Sanchez introduced a measure that would permit only single-family housing to be built in one section of the Norris Squire neighborhood.

The zoning change-which was approved 5-2-will put an end to the group's plan to develop a 15-unit mixed-income housing cooperative over the summer. The development is set to go up on the campus of what was formerly St. Boniface Church. That property now houses a charter school and a day-care center, and an employment-training center is set to be build there as well.

Last month, Mayor Nutter met with US Airways chief executive Doug Parker on the issue of expanding the Philadelphia International Airport. At issue are plans to build a fifth runway. The massive project is opposed by Southwest Airlines, the airport's second largest carrier, though airport feels the project to be necessary.

The Philadelphia construction project was conceived because of the airport's persistent delays and increasingly insufficient capacity. The city proposes, in addition to the fifth runway, to lengthen two existing runways and add new terminal and parking facilities. The expansion is expected to cost $6.4 billion over a period of 13 years. The city is reportedly already negotiating a contract with an engineering firm to lead the project management for the expansion, though not everybody agrees that a new runway is necessary.