Posts Tagged ‘bond’

BY ANDREW LAVALLEE, FASLA

Warranties on plantings often seem reasonable. Until they aren’t.

FROM THE FEBRUARY 2019 ISSUE OF LANDSCAPE ARCHITECTURE MAGAZINE.

 

Most landscape architects are familiar with specifications about plant warranties. We often apply them without much thought because many consider it to be an industry standard practice. A typical plant warranty, usually lasting one or two years, requires the contractor to replace plantings that have died or appear to show unsatisfactory growth. Standard specification language often seems reasonable and enforceable. Until it isn’t—especially a few months after you thought the job was complete, or worse, after the end of the stated warranty period when the client calls upset that some of the plants are looking bad or are outright dead. Now comes the hard part. Whose responsibility is it if plants don’t succeed? Aren’t the dead or dying plants supposed to be covered by the warranty? If not, what was the warranty actually supposed to cover? These are all good questions that are symptomatic of a larger problem in the landscape industry. (more…)

Read Full Post »

BY BRADFORD MCKEE

FROM THE FEBRUARY 2018 ISSUE OF LANDSCAPE ARCHITECTURE MAGAZINE.

Image by Jocelyn Augustino [Public domain], via Wikimedia Commons.

In November, Moody’s Investors Service, the bond rating agency, released a cautionary report on climate change. Looking ahead, the report said, the effects of what it describes as climate trends and climate shocks are sure to become a “growing negative credit factor” for states, localities, or utilities that don’t appear to be responding to potential climate change effects through mitigation or adaptation. Cities and others issue bonds to borrow money for building things such as infrastructure or schools. They need investors to know they’re a good risk. Moody’s came out to say that it has begun deciding, based on climate resilience among a matrix of other factors, whether a given risk is good or bad. “If you’re exposed,” one Moody’s analyst told Bloomberg, “we know that.”

The other of the two biggest rating agencies, Standard & Poor’s, is also keenly onto climate (it and Moody’s together run 80 percent of the bond rating business). It released a report in October to explain how municipal bond issuers will be affected by climate impacts. Like Moody’s, S&P specified two theaters of risk: the sudden extreme event, such as a hurricane, and “more gradual changes to the environment affecting land use, employment, and economic activity that support credit quality.”

This may all seem very back-office in the design world, and for now it is. It is also, critically, moving to the fore as the federal stance on climate change and its many hazards is not only in retreat but in vicious denial. Trump administration appointees, who are like drones for industry, are ordering the removal of references to climate change in agency communications. The administration is also purging our government of good-faith, (more…)

Read Full Post »

%d bloggers like this: