Expect the Unexpected (Your Design Contracts in a Post-COVID World)
April 18, 2023 —
Melissa Dewey Brumback - Construction Law in North CarolinaHave you adapted your post-COVID practice to better plan for the “unexpected” ? In particular, have you looked at–and revised– your professional services contracts to give yourself a little more breathing room for unaccounted issues that may arise? If not, no time like the present.
Don’t like that saying? How about ” a stitch in time saves nine?” No? Still nothing? What about a picture of something so completely unexpected it shocks you– say, a fireman commuting home, in fire-fighting regalia, on a tricycle? Okay, here you go…
Now that I have your attention– you should make it a practice to regularly review and update your professional services agreements, and you should consider issues such as:
- Does your agreement provide for extra compensation if you have to spend more time or a longer period providing construction administration services for material delays or labor shortages? If not, it should.
- Does your agreement have a well-written “act of God” provision– one that includes pandemic/epidemics as part of the “act of God” conditions in which a term may become void? If not, add it now!
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Melissa Dewey Brumback, Ragsdale LiggettMs. Brumback may be contacted at
mbrumback@rl-law.com
Washington Supreme Court Expands Contractor Notice Obligations
November 28, 2018 —
Brett M. Hill - Ahlers Cressman & Sleight BlogThe Washington State Supreme Court dealt another blow to public works contractors in Washington State. In a case recently issued by the court, Nova Contracting, Inc. v. City of Olympia, [1] the court expanded contractors’ obligations when providing notice on public works construction projects. The Nova Contracting case was the subject of a previous blog. The case involved Nova Contracting and the City of Olympia. Nova was the low bidder on the contract. Nova alleged that the City of Olympia did not want Nova to win the job and intentionally hindered Nova’s ability to perform the job. The facts alleged by Nova, which were covered in the previous blog, involved the City’s improper and apparently punitive rejection of submittals on the job and the City’s eventual wrongful termination of Nova. Of significance in the case is that Nova never actually began work on the job. All that Nova had done at the time of termination was begin mobilizing its equipment on site. The Court of Appeals found that Nova had alleged sufficient facts to establish that the City violated the duty of good faith and fair dealing by improperly rejecting Nova’s submissions and had breached the contract with Nova by improperly terminating.
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Brett M. Hill, Ahlers Cressman & Sleight PLLCMr. Hill may be contacted at
brett.hill@acslawyers.com
Punchlist: The News We Didn’t Quite Get To – May 2016
May 12, 2016 —
Garret Murai – California Construction Law BlogIf you’re a solar contractor make sure you don’t get burned. The California Contractors State License Board (“CSLB”) is taking a closer look at solar contractors as the industry grows in the Golden State. Only contractors holding a Class “A” Engineering, Class “B” General Contractor, or Class C-46 Solar license can perform solar construction and installation.
The CSLB has clarified that C-39 Roofing contractors can install installation as part of an overall roofing job. The CSLB considers such insulation work as “incidental and supplemental” under Section 831 of the California Code of Regulations and does not require a separate C-2 Insulation and Acoustical contractor license.
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Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
Economy in U.S. Picked Up on Consumer Spending, Construction
October 02, 2015 —
Shobhana Chandra – BloombergThe world’s largest economy expanded more than previously forecast in the second quarter, boosted by gains in consumer spending and construction that may help the U.S. withstand a global slowdown.
Gross domestic product rose at a 3.9 percent annualized rate, compared with a prior estimate of 3.7 percent, Commerce Department figures showed Friday in Washington. The median forecast of 76 economists surveyed by Bloomberg called for a 3.7 percent gain.
Strong hiring, cheaper gasoline and higher home prices will probably sustain household purchases, which account for about 70 percent of the economy. That helps bolster Federal Reserve Chair Janet Yellen’s view that the U.S. will overcome any fallout from cooling overseas markets and swings in global financial and commodity markets.
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Shobhana Chandra, Bloomberg
Good News on Prices for Some Construction Materials
June 28, 2021 —
ABC - Construction ExecutiveThe elevated price of softwood lumber, a major talking point during much of the pandemic, appears to have peaked in early May at more than $1,700 per thousand board feet. As of June 23, the price has fallen below $900 per board feet, down about 49% in less than two months.
That’s still an unusually lofty price by historic standards—prices remain almost twice as high as in February 2020—but the trend is very much in the right direction. Builders that had been hoarding lumber have now begun to sell from their own inventory, other builders have delayed lumber purchases in anticipation of lower prices and sawmill operators have been adding shifts, as well as expanding capacity, all of which puts downward pressure on prices.
Reprinted courtesy of
ABC, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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New LG Headquarters Project Challenged because of Height
January 24, 2014 —
Beverley BevenFlorez-CDJ STAFFThe new LG headquarters project in Englewood Cliffs, New Jersey, has been challenged by various environmental groups because of what the groups see “as a blight on the Hudson River landscape,” according to the New York Times. The problem isn’t the building itself, but the proposed height of the tower: LG “plans to construct eight stories, 143 feet total, in an area previously zoned for a maximum of 35 feet. The height restriction was first lifted through a variance, which has been challenged in State Superior Court in one of two lawsuits filed to protect the view. Subsequently the land was rezoned to allow for a taller building.”
Robert F. Kennedy Jr., the Natural Resources Defense Council, and a New Jersey conservation group are continuing to fight against the removal of the height restriction. “This is like if somebody tried to build a high-rise next to Yellowstone,” Mr. Kennedy said in an interview with the New York Times. “It’s a national issue.”
However, there is also local support for this project, “which LG has said will be environmentally sensitive and produce jobs,” reported the New York Times.
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Daiwa House to Invest 150 Billion Yen in U.S. Rental Housing
March 07, 2014 —
Kathleen Chu – BloombergDaiwa House Industry Co. (1925), Japan’s biggest homebuilder by market value, plans to invest 150 billion yen ($1.48 billion) in U.S. rental housing, three times more than it had aimed to allocate to overseas investments, to boost revenue.
Daiwa House will acquire and develop leasing properties in Texas and allocate the funds over the next three years, the Osaka-based company said in an e-mailed statement today. The homebuilder targets 50 billion yen of revenue in the U.S. by the year ending March 2019, it said.
Japan’s shrinking population has prompted the country’s homebuilders such as Daiwa House to seek new revenue sources. Texas is the most that Daiwa House is investing overseas for rental housing and compares with the 50 billion yen the company had announced for investments abroad in its mid-term plan in November.
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Kathleen Chu, BloombergMs. Chu may be contacted at
kchu2@bloomberg.net
California Contractors – You Should Know That Section 7141.5 May Be Your Golden Ticket
February 18, 2020 —
Amy L. Pierce, Mark A. Oertel & John Lubitz - Lewis Brisbois Bisgaard & Smith LLPUnder California’s Contractors’ State License Law, Cal. Bus. & Prof. Code §§ 7000 et seq., all contractors’ and subcontractors’ licenses expire two years from the last day of the month in which the license issued, or two years from the date on which the renewed license last expired. The Contractors State License Board (CSLB) sends licensees a renewal application 60 to 90 days prior to the date the license is set to expire.
Most contractors have various controls in place to make sure that the renewal application is timely filed and the required fee paid. Even so, we are only human and mistakes are made, and a renewal application filing deadline can be missed for a variety of reasons, e.g., the licensee’s mailing address has not been updated on the CSLB’s records, the individual responsible for filing the license renewal is out on leave, there has been a death in the family or a serious health issue, etc. Quoting Robert Burns, even “[t]he best-laid schemes of mice and men go oft awry” (To a Mouse, 1786).
General contractors should be cognizant of both their and their subcontractors’ license renewal obligations and deadlines.
If a licensee missed timely filing its renewal application, Business & Professions Code Section 7141.5may provide some relief. Section 7141.5 provides that the Registrar of Contractors,
“may grant the retroactive renewal of a license if the licensee requests the retroactive renewal in a petition to the registrar, files an application for renewal on a form prescribed by the registrar, and pays the appropriate renewal fee and delinquency fee prescribed by this chapter. This section shall only apply for a period not to exceed 90 days from the due date and only upon a showing by the contractor that the failure to renew was due to circumstances beyond the control of the licensee.”
Reprinted courtesy of Lewis Brisbois Bisgaard & Smith LLP attorneys
Amy Pierce,
Mark Oertel and
John Lubitz
Ms. Pierce may be contacted at Amy.Pierce@lewisbrisbois.com
Mr. Oertel may be contacted at Mark.Oertel@lewisbrisbois.com
Mr. Lubitz may be contacted at John.Lubitz@lewisbrisbois.com
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