The Corporate Transparency Act (CTA) was adopted to bring more openness into the business world by making companies disclose their true owners. This initiative aimed to thwart crimes like money laundering by removing the veil of anonymity that some business owners exploit. The law’s relatively straightforward path hit a major snag after a trial court ruling in Alabama found the CTA unconstitutional. Despite this, for anyone not directly involved in that lawsuit, the rules still apply as per the Financial Crimes Enforcement Network (FinCEN)’s directive. What is the CTA? For those not aware, the ..read more

Introduction As Virginia continues to establish itself as a central hub in the digital economy, data centers have become critical to supporting our extensive digital needs. These facilities are essential for cloud computing, internet services, and managing the vast amounts of data generated by businesses and consumers. The advent of artificial intelligence (AI) further highlights the strategic importance of these data centers. Companies like NVIDIA are at the forefront of the AI revolution, developing chips that power AI applications. This technology surge is driving unprecedented demand for d ..read more

We recently discussed the general construction market in 2024 by sector and the specific economic impacts at play in the construction market. We now turn to discussing some of the second order effects that these economic factors are having in the Washington, DC construction market here in April 2024. We will then raise some specific areas of legal concern implicated by current conditions. Major Commercial Property Owners Are Hurting Right Now Major commercial property owners are experiencing significant challenges. Vacancy rates have increased substantially over the last several years. Vacancy ..read more

Arlington County is pursuing measures to address the challenges of increasing office vacancy rates, influenced by changing work patterns and economic conditions. The county has implemented several strategic initiatives aimed at revitalizing its commercial real estate sector. These measures include adaptive reuse of obsolete buildings, enhancements to density allowances in Rosslyn, and updates to parking standards for compact cars. These initiatives were affirmed during the April 20, 2024, Board Meeting. Adaptive Reuse of Obsolete Buildings As part of its Commercial Market Resiliency Initiative ..read more

In our last article, we discussed the general state of the regional construction economy and how that applies to specific industry vertical markets. We now turn to specific national macro-economic trends and discuss how these trends in turn impact the current regional construction economy. As part of this dialogue, we also discuss how these specific trends point towards specific contract and risk management issues that need to be front and center right now. Supply Chain Disruptions and Their Legal Implications The entire economy suffered extensive global supply chain disruptions during COVID ..read more

At Bean, Kinney & Korman, my experience as a litigator has provided me with countless opportunities to observe the transformative power of arbitration in resolving disputes outside the traditional court system. Arbitration is a strategic choice for businesses. Arbitration comes in a variety of forms, each designed to cater to the specific needs and circumstances of the disputing parties. Let’s take a closer look at the diverse types of arbitration that businesses can leverage: Commercial Arbitration: The Business World’s Solution to Court Commercial arbitration is the quintessential forum ..read more

In a decision of significance for private schools and other tax-exempt organizations, the United States Court of Appeals for the Fourth Circuit (“Fourth Circuit”) decided recently that merely having 501(c)(3) tax status is not a form of “federal financial assistance” sufficient to subject a tax-exempt school or organization to compliance obligations under Title IX of the Education Amendments of 1972 (Title IX). Title IX prohibits discrimination based on sex in any education programs and activities that receive federal funds and financial assistance. Federal financial assistance typically consi ..read more

The ripple effects of a bankruptcy in the construction sector can be far-reaching, impacting not just the entity filing for bankruptcy but also its partners, including general contractors, subcontractors, suppliers, and owners. The financial stability of your construction business can be severely affected by the bankruptcy of a third party, regardless of its tier in the construction process. However, with the right tools and resources, you can protect your business from significant losses. Here are key strategies and resources to consider: Thorough Due Diligence Before entering into any agreem ..read more

The emergence of Northern Virginia, specifically Prince William County, as a burgeoning data center hub encapsulates a dynamic intersection of technological advancement and community response. This region, on track to surpass Loudoun County as the data center capital of the world, exemplifies the massive infrastructural and economic transformations driven by the digital era. With over forty-five existing data centers and potential expansion to 80 million square feet, Prince William County’s trajectory illustrates the immense scale of data center proliferation. However, this growth is not witho ..read more

In the fast-paced world of construction, managing financial risk is paramount for both general contractors and subcontractors. A critical aspect of this risk management is understanding the contractual mechanisms in place, particularly “Pay-if-paid” and “Pay-when-paid” clauses. These clauses can significantly impact the cash flow and financial stability of the parties involved. Here’s what you need to know about these clauses in Washington D.C., Virginia, and Maryland. Understanding the Clauses Pay-if-paid clauses create a condition precedent for payment to a subcontractor; payment is only due ..read more