Structure Tone pleads guilty to charge of arranging inflated subcontractor bills

Structure Tone, a global construction services firm with annual revenues of over $3 billion, will pay a $55 million forfeiture after pleading guilty to felony charges. The lawsuit in the State Supreme Court, in Manhattan, alleged that the New York-based firm had its subcontractors, including electrical, drywall, and plumbing subs, inflate bills for the company's clients. The work in question included jobs for Bank of America, Moody's, Proskauer Rose, Bloomberg, and other customers from 2005 to 2009.

A report in the New York Times indicates that Structure Tone pled guilty to one count of falsifying business records in the first degree, a felony. David Szuchman, the chief of investigations for the district attorney, says Structure Tone became aware of the investigation in 2010 and put new safeguards in place; Szuchman's office continues to monitor the firm's business records and will do so for three years.

When functioning as a CM, Structure Tone asked subs to put unnecessary contingencies in an addendum called "Rider B," which was unknown to Structure Tone's clients. Execs also asked for discounts from subs on lump sum contracts, when the firm was working as a GC.

The company issued a statement as follows:

“The record-keeping issues, which form the basis of this agreement, date back to the period 2005 to 2009, and we have fully cooperated with authorities from the beginning. The financial position of our company — which generates $3 billion annually in revenue — continues to be strong. Long before this process began, we strengthened our compliance protocols to improve transparency.”

LPA Architects conducted a post-occupancy evaluation, or POE, of the eSTEM Academy, a new high school specializing in health/medical and design/engineering Career Technical Education, in Eastvale, Calif. The POE helped LPA, the Riverside County Office of Education, and the Corona-Norco Unified School District gain a better understanding of which design innovations—such as movable walls, flex furniture, collaborative spaces, indoor-outdoor activity areas, and a student union—enhanced the education program, and how well students and teachers used these innovations.

Rider Levett Bucknall's Construction Cost Index rose again in the first quarter of 2021

Market Data | Jul 8, 2021

Encouraging construction cost trends are emerging

In its latest quarterly report, Rider Levett Bucknall states that contractors’ most critical choice will be selecting which building sectors to target.

Interior designer Creative License International fashioned this community room for P83, a 250-unit rental community in Peoria, Ariz. 2021 Multifamily Amenities study

Multifamily Housing | Jul 7, 2021

Make sure to get your multifamily amenities mix right

One of the hardest decisions multifamily developers and their design teams have to make is what mix of amenities they’re going to put into each project. A lot of squiggly factors go into that decision: the type of community, the geographic market, local recreation preferences, climate/weather conditions, physical parameters, and of course the budget. The permutations are mind-boggling.

Industrial Facilities | Jul 2, 2021

A new approach to cold storage buildings

Cameron Trefry and Kate Lyle of Ware Malcomb talk about their firm's cold storage building prototype that is serving a market that is rapidly expanding across the supply chain.

Since May 2020, spending on nonresidential construction has been on a downward trend.

Contractors | Jul 1, 2021

Nonres construction spending down again in May

And the industry is still beset with labor and materials issues that could impede future growth

A post-pandemic ‘new normal’ for apartments, Grimm + Parker, Building Design+Construction 2021 Exercise area

Multifamily Housing | Jun 30, 2021

A post-pandemic ‘new normal’ for apartment buildings

Grimm + Parker’s vision foresees buildings with rentable offices and refrigerated package storage.

Resiliency | Jun 24, 2021

Oceanographer John Englander talks resiliency and buildings [new on HorizonTV]

New on HorizonTV, oceanographer John Englander discusses his latest book, which warns that, regardless of resilience efforts, sea levels will rise by meters in the coming decades. Adaptation, he says, is the key to future building design and construction.