It is no secret that the licensing rules regulating engineers, architects, and other design professionals in New York are amongst the strictest in the nation. This strict regulatory framework has hampered the ownership desires of many design professional firms. On July 21, 2022, New York Governor Hochul signed into law an amendment to the DPC law that allows an ESOP to own 100% of a Design Professional Corporation (DPC) starting in July 2024.

New York State has significantly expanded the requirements covering disclosure of insurance-related information in commercial litigation commenced on or after December 31, 2021.

Governor Kathy Hochul signed the Comprehensive Insurance Disclosure Act into law on December 31, 2021, and signed a remedial law on February 24, 2022, to limit some of the more onerous and worrisome aspects of the new disclosure regime (together the “Act”).  The Act amends a subsection of the Civil Practice Law and Rules (“CPLR”) governing the scope of disclosure under CPLR 3101(f) and added certification requirements under CPLR 3122-b.

In recent weeks, there has been a long list of companies, from all industries spanning from construction/engineering to fashion and hospitality, that have announced that they are completely severing ties with Russia, while a host of others have announced a temporary halt. See Jeffrey A. Sonnenfeld, Over 400 Companies Have Withdrawn from Russia – But Some Remain, Yale School of Management (Updated Mar. 21, 2022), https://som.yale.edu/story/2022/over-400-companies-have-withdrawn-russia-some-remain?utm_campaign=mb. For those developers, EPC contractors, and design professionals (engineers and architects) who have construction projects in Russia, the question is, “How should we proceed?”

The New York City Department of Buildings (“DOB”) issued a notice of adoption of final rules for its Major Projects Development Program that will go into effect on May 1, 2022. According to the DOB’s press release, the intention of the Major Projects Development Program is “to help construction projects get off the ground safely and avoid work stoppages” by offering one-on-one consultation and support to owners of eligible projects.

Healthcare construction and design has changed dramatically as a result of  the events of the last 18 months, which will have a lasting impact on the industry, noted Jaimee Nardiello, Partner at leading construction law firm, Zetlin & De Chiara.

As part of Commercial Observer's 5th Annual Healthcare Construction Forum, Ms. Nardiello moderated a panel of industry experts who gave their unique perspectives on how the pandemic will change healthcare facilities and thus design in a post-covid world.

Topics discussed included building add-ons like airborne pathogen detectors, negative pressure rooms, and air handling systems, as well as how designers, managers, and construction teams can work together to build care-centered facilities.

On October 7, 2021, the New York City Council passed sweeping updates to the City’s building codes. The comprehensive revision to the Codes contains 600 major updates and thousands of smaller changes, intended to improve safety and incorporate the latest in building technologies.

The code revisions are the first holistic update to the entire set of NYC Administrative, Plumbing, Building, Mechanical and Fuel Gas Codes since 2014. The revisions were drafted by technical committees comprised of engineers, architects, attorneys, planners, tradespeople, representatives of the construction industry, labor, real estate industry, utility companies, as well as DOB and interagency stakeholders.

“New York City’s far-reaching climate laws will have a significant impact on developers, architects, engineers and the other members of the construction industry,” noted  Michael De Chiara, Senior Partner at Zetlin & De Chiara. Mr. De Chiara and a panel of industry experts expanded on the changes at a recent workshop on Contracts, Climate, & Compliance sponsored by the Building Energy Exchange’s Architect Advisory Council (AAC) in cooperation with AIA New York and ASHRAE New York.

The panel provided a detailed look at the legal risk and responsibility of high performance design and construction, as well as how to improve compliance with NYC climate legislation, including its forthcoming predicted energy use code (Local Law 32 of 2018) and the groundbreaking building carbon emission limits of 2019’s Local Law 97.

Tara Mulrooney, Partner at Zetlin & De Chiara, moderated a panel of industry experts at the Commercial Observer’s recent Life Science Forum. The panelists, representatives from different constituencies in the life sciences market, were:

• Susie Harboth, EVP, Business Operations Breakthrough Properties;
• Matthew Weir, EVP, Taconic Properties;
• Shara Ticku, CEO & Co-Founder, C16 Biosciences; and
• Peter Schubert, Design Partner, Ennead Architects.

The discussion focused on the unique needs of start-up and early stage life science companies and what developers, landlords and the City can do to make New York a destination for these enterprises.

In April of 2021, the New York City Department of Buildings (the “DOB”) announced five bills and sweeping updates to New York City Construction Codes related to construction safety.[1]  The simultaneous announcement of the New York City Council’s introduction of the legislation along with the revisions to the construction codes intend to further the objective of increasing the protections afforded to the general public and construction professionals on all construction sites throughout New York City. However, with the enactment of the new legislation and the comprehensive updates to the construction codes, there will be an increase in the obligations placed upon professionals within the industry and an inevitable impact on the industry as a whole.  This client alert serves to provide an overview of the legislation and highlight some of the major amendments and updates to the construction code.

Jaimee Nardiello, Partner and Patricia Harris, Special Counsel authored a chapter in the ABA published book,  Design Professional's Guide to Construction Law.

Chapter Abstract: The licensing of design professionals can be a confusing patchwork quilt of disparate state regulations. States have professional boards or registration agencies that handle licensing, disciplinary proceedings and other professional matters. Most states have separate legislation and supporting regulations for the design professions such as architecture and engineering.

New York City developers collectively sighed with relief when 200 Amsterdam, a mixed-use, high-rise building on Manhattan’s Upper West Side, was saved from the guillotine when a New York State intermediate appellate court reversed a lower court’s decision that retroactively revoked the developer’s building permit for an as-of-right development. The affirmance of the controversial ruling, issued by the New York County Supreme Court on February 27, 2020, would have resulted in the demolition of more than 20 top floors of the fully-constructed 668 feet high 55-story tower.

The New York City Council passed Local Law No. 97 of 2019 on April 18, 2019 and Local Law No. 147, amending Local Law No. 97, on June 26, 2019, both of which became effective as of November 15, 2019 (collectively “LL97”). LL97 ushers in a new era of stringent climate control regulations for the City, applicable to both existing buildings and new buildings. Though LL97’s emissions limitations do not begin until 2024, real estate owners and design professionals are already busy considering how the new limitations will impact current buildings, as well as those being contemplated for the future. This client alert intends to summarize LL97’s emission standards so that our clients may consider them when conceptualizing new projects and, where feasible and appropriate, recommend design elements and building systems to assist owners in meeting their new obligations.

The Metropolitan Transit Authority (“MTA”) recently published and implemented revised regulations relating to “Contractor” debarment. 

Due to the COVID-19 pandemic, the way we work--whether in an office or out in the field--has changed significantly, and in some cases in an extremely short amount of time--even overnight in some cases. Without available technology, this unprecedented shift would have been impossible. The abrupt, industry-wide transition to virtual working has led to a new understanding of the practicality and possibilities inherent in many new technologies. As construction sites throughout the U.S. begin reopening after shutdowns or ramping up after slowdowns or suspensions, these technologies may play an even larger role in a project's success.

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Cities with their dense populations, crowded public transportation systems and busy high-rise office buildings, present many challenges in the prevention of the spread of the COVID-19. As Governors across the country prepare for the return to the workplace, employers and building owners have embarked on plans for re-opening the office.

On May 5, 2020, Zetlin & De Chiara LLP hosted a webinar that discussed the Post Pandemic Office. The expert panel including, Mitch Simpler, Jaros, Baum & Bolles, Andrew Demming-Gardiner & Theobold, Joanna Frank-Center for Active Design, Christopher Sharples-SHoP Architects, and moderated by Z&D Partner Tara Mulrooney, offered its perspectives on what steps should be taken immediately and how offices might change in the future.

Cities with their dense population, crowded public transportation system and busy high-rise office buildings, presents many challenges in the prevention of the spread of the COVID-19. As Governors across the country prepare for the return to the workplace, employers and building owners have embarked on plans for re-opening the office.

On May 5, 2020, Zetlin & De Chiara LLP hosted a webinar that discussed the Post Pandemic Office. The expert panel including, Mitch Simpler-JB&B, Andrew Demming-Gardiner & Theobold, Joanna Frank-Center for Active Design, Christopher Sharples-SHoP Architects, and moderated by Z&D Partner Tara Mulrooney, offered its perspectives on what steps should be taken immediately and how offices might change in the future.

Following our webinar, COVID-19 Challenges to the Construction Industry, we assembled a Questions & Answers based upon questions participants posed and to issues we discussed.

On March 25, 2020, the U.S. Senate unanimously passed the $2.2 trillion Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”)- the largest economic aid package in our nation’s history. On March 27, 2020, the House of Representatives passed the CARES Act and on the same day, President Donald Trump signed it into law. This law, 880 pages long, provides much needed support for businesses across the country. The CARES Act provides significant new funding to small businesses in the United States for the period covering March 1, 2020 through December 31, 2020.

Despite advances in design and more stringent regulations, errors persist in the design process. The discovery of a potentially catastrophic design error after the completion and delivery of a project presents an array of ethical and legal issues for the design professional and attorneys who represent them. Ultimately, the questions before the design professional are whether he or she has an ethical or legal duty to warn of the error, and what must be done to satisfy that duty. 

For its buildings to reach new heights, New York City’s skyline has long depended on the acquisition and transfer of additional development rights. However, a recent challenge to the zoning and tax lot assemblage for 200 Amsterdam Avenue on Manhattan’s Upper West Side has led the NYC Department of Buildings (DOB) to reconsider a 40-year-old interpretation of the Zoning Resolution related to this process.

Despite advances in design and more stringent regulations, errors persist in the design process. The discovery of a potentially catastrophic design error after the completion and delivery of a project presents an array of ethical and legal issues for the design professional and attorneys who represent them. Ultimately, the questions before the design professional are whether he or she has an ethical or legal duty to warn of the error, and what must be done to satisfy that duty. 

As 2019 drew to a close, Governor Cuomo signed a bill on December 31st that had been passed by the New York State Legislature in June allowing certain New York City agencies to use the design-build project delivery system for construction projects.

Mock Mediation Led by Z&D"s Tim Hegarty Adds Dimension to Columbia University Course.

Some of the City's top real estate minds gathered at Ten Grand Street on October 31, 2019 for Commercial Observer's "5th Annual Brooklyn, Queens Forum." One of the questions they discussed was the impact of the loss of the Amazon HQ2.

“Lower Manhattan has re-emerged as a dynamic, thriving market as 24/7 live-work communities show their strength and desirability and property owners, landlords and builders work to enhance its appeal,” observed Jaimee Nardiello, Partner at Zetlin & De Chiara LLP, at Commercial Observer’s “3rd Annual Downtown Forum” on September 24th.

This article is written in Chinese, an English translation is forthcoming.

New York State’s $175 billion FY 2020 budget included several Metropolitan Transportation Authority (“MTA”) reforms. One of these reforms, the debarment provision (Bill No. A02009C/S01509-C, Section § 1279-h), allows the MTA to determine unilaterally that alleged “defaulting” contractors and consultants will be prohibited from bidding on future MTA contracts for a period of five years based on their performance on prior or current MTA projects.

Optimism was in the air at Commercial Observer’s 4th Annual Midtown Forum. Michael Zetlin, Senior Partner at Zetlin & De Chiara LLP, led a spirited discussion on Midtown development at a panel entitled “Midtown in Demand” on June 28, 2019.

After many years and much effort, New York has finally shed its reputation as being inhospitable to the biotech and life sciences industries, emerging as a leading incubator of firms on the cusp of revolutionizing healthcare and wellness.

“The risks are worth it and the rewards are there,” said Michael Zetlin, Senior Partner at Zetlin & De Chiara, launching a discussion on the evolving approach to retail at Commercial Observer’s “ 3rd Annual Retail Forum” on May 1, 2019.

Lower Manhattan’s residential and office markets may be thriving, but it could still use better planning and stronger flood protections against future storms in the wake of Superstorm Sandy, panelists said at Commercial Observer’s Downtown Forum.

Summer turned up the heat at Zetlin & De Chiara LLP where we were involved in two of the most prominent construction cases in the nation. With attorneys airborne between the East and West Coasts, the office has been busy on the ground with client matters, fielding questions from the press, speaking at industry events and supporting community and professional organizations. Even as the temperature outside cools, our high level of activity shows no signs of chilling.

Michael Zetlin, Co-Founding Partner at Zetlin & De Chiara LLP, spearheaded a constructive dialogue at Commercial Observer’s 4th Annual Brooklyn, Queens Forum at Industry City in Brooklyn earlier this month, where panelists pondered the proverbial “chicken and the egg” when it comes to Queens residential development and retail opportunities.