Legal Implications of Technological Innovations in the Construction Industry
Robots used to be only found in children's cartoons set in science-fiction television, movies, and novels. However, technological innovations have impacted nearly every industry, including the construction industry. These technologies have numerous benefits, but also come with a unique twist on existing legal areas of concern. Companies using cutting-edge technology should review their existing contracts to ensure they contain adequate protection against issues that may arise.
Drone Usage. Unmanned aerial vehicles (commonly referred to as drones) are being utilized by construction companies to perform everything from pre-inspection surveys to inspecting welds in hard to reach places. It is not hard to imagine future use cases for drones to deliver tools and materials to workers during the workday in lieu of cranes and elevators.
Construction contracts where a general contractor or a subcontractor will be using drones should clearly delineate in the scope of work section or within work specifications as to when drones are allowed, and for what purpose. For example, consider the hypothetical inspection of a weld fifteen stories up on the outside of the superstructure of a new high-rise. If not specified in the contract, the inspector may make the decision to forego a physical inspection by a human in favor of a video inspection for safety or economic reasons. So long as such an inspection is not legally precluded in that jurisdiction, it would be a tough battle in court over whether such an action was standard or custom for the industry or the location, which may shift over time.
Contracts with the drone operation company should also contain indemnity provisions against damage to persons or property in the event the drone crashes as well as making sure insurance provisions adequately address the risks arising from drone usage. Additional concerns requiring proof of licensure of the drone operator with the Federal Aviation Administration and compliance with all applicable federal, state, and (to the extent not preempted) local statutes, rules, and regulations relating to drone usage.
3-D Printing. Additive manufacturing (commonly known as 3-D printing) is being used to create intricate parts in manufacturing and has been used in several states to create entire buildings. Raw materials are laid down or "printed" in accordance with the CAD blueprints and the end result are finished products. Typically, 3-D printed buildings are made from concrete, which lends itself to the printing process, but as the technology progresses we may see various materials become widely utilized.
When considering whether to use 3-D printing in all or portions of a construction project, the areas of concern are not that dissimilar from existing construction contract concerns. The contract should be drafted with the applicable building codes and regulations in mind. Certain localities may prohibit buildings made from one material or another, or may impose additional licensure, zoning variances, or permits for construction outside the historical construction process.
It is also important to pay close attention to the intellectual property indemnification language. The blueprints used within this process are often proprietary, and you want to ensure the builder has the legal right to use the drawings, and contain an strong indemnification provision in the event the builder does not. If you're the builder, you want to ensure that the blueprints remain your property after the work is complete.
The construction industry stands to benefit greatly from not only drones and 3-D printing, but other areas of rapidly advancing technology such as artificial intelligence in logistics. By taking proactive steps to reduce risks in their contracts, construction companies can minimize legal exposure while maximizing technology's potential.
For more information, contact Michael Micsky at 814/870-7717 or mmicsky@mijb.com.
Article featured in the Manufacturer and Business Association's September 2024 Business Magazine
Legal Advice Disclaimer: The information presented on this website serves solely as general guidance and should not be construed as legal advice by MacDonald, Illig, Jones & Britton LLP as a replacement for seeking personalized legal counsel from a qualified attorney. MacDonald, Illig, Jones & Britton LLP does not assume liability for the accuracy or reliability of content hosted on any third-party websites accessible through links provided on this site.