New Change Order Bill Becomes Law: RCW 39.04.360
July 08, 2024 —
Brett M. Hill - Ahlers Cressman & Sleight PLLCA new statute (RCW 39.04.360) became effective on June 6, 2024, and it applies to extra work performed by contractors and subcontractors on public and private projects in Washington State. The intent of the original bill was to allow contractors and subcontractors to get paid sooner for undisputed additional work. The statute does not apply to private residential projects of 12 units or less. The statute allows for recovery of interest for contractors/subcontractors at 1% per month (12% per year) on the value of the additional work if the statute is violated.
Here are the requirements of the new statute:
- Public and private owners must issue a change order for the undisputed amount of additional work performed by a contractor, subcontractor, or supplier no later than 30 days after the work is satisfactorily completed and the change is requested by the contractor.
- General contractors, and subcontractors with lower-tier subs, must issue a change order to their subcontractors impacted by the change within 10 days after receipt of the approved change order from the owner/upper-tier contractor.
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Brett M. Hill, Ahlers Cressman & Sleight PLLCMr. Hill may be contacted at
brett.hill@acslawyers.com
Falling Crime Rates Make Dangerous Neighborhoods Safe for Bidding Wars
March 19, 2015 —
Heather Perlberg, Prashant Gopal and John Gittelsohn – Bloomberg(Bloomberg) -- LaTasha Gunnels was outbid four times before she snagged a home in Anacostia, the southeast Washington, D.C. neighborhood that comes with a discount because of its reputation for drugs and crime.
The 35-year-old nurse said the area, in a section of the city across a river from Capitol Hill known for its historically high murder rates, is changing rapidly. Buyers like Gunnels, priced out of costlier spots, helped lift values 21 percent in the Anacostia area in 2014, the biggest surge of any D.C. neighborhood, according to data provider Real Estate Business Intelligence.
“I’m not going to sugarcoat it -- crime is still there -- but police officers are on every single corner and nobody has bothered me yet,” Gunnels said. “What I’m paying for my mortgage, people are paying for one-bedroom apartments in other parts of D.C.”
Reprinted courtesy of Bloomberg reporters
Heather Perlberg,
Prashant Gopal, and
John Gittelsohn
Ms. Perlberg may be contacted at hperlberg@bloomberg.net
Mr. Gopal may be contacted at pgopal2@bloomberg.net
Mr. Gittelsohn may be contacted at johngitt@bloomberg.net
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A Landlord’s Guide to California’s New Statewide Rent Control Laws
May 18, 2020 —
Colton Addy - Snell & Wilmer Real Estate Litigation BlogApplicability of California’s Rent Control Laws: California Civil Code Sections 1946.2 and 1947.12 took effect on January 1, 2020, and implement statewide rent control in California for most residential properties. The rent control laws, however, do not apply to a rental property that was issued a certificate of occupancy in the last 15 years. (Civ. Code §§ 1947.12(d)(4), 1946.2(e)(7)). The statutes also do not apply to most single-family residences, provided that (a) the owner is not a real estate investment trust, a corporation, or a limited liability company where one of the members is a corporation, and (b) the required statutory language is included in the lease agreement for tenancies commencing or renewing on or after July 1, 2020. (Civ. Code §§ 1947.12(d)(5), 1946.2(e)(8)).
Annual Increases Permitted Under California’s Rent Control Laws: Commencing on January 1, 2020, unless otherwise permitted by California law, a Landlord cannot increase the gross rental rate for a rental unit over a continuous 12-month period more than the change in the regional cost of living index where the property is located plus 5%, and gross rental rate increases are subject to a maximum cap of 10% over a continuous 12-month period regardless of the change in the cost of living index. (Civ. Code § 1947.12(a)(1)). The gross rental rate is determined using the lowest rental amount charged in any month in the immediately preceding 12 months. (Id.) Any incentives, discounts, concessions, or credits are not taken into account. (Id.) Even if a rent increase does not exceed the amount permitted under the statute, a Landlord is prohibited from increasing rent more than twice in any continuous 12-month period. (Civ. Code § 1947.12(a)(2)).
Retroactive Applicability of Restrictions on Rent Increases: Although the statute took effect on January 1, 2020, the statute retroactively applies to all rent increases that occurred on or after March 15, 2019. (Civ. Code § 1947.12(h)(1)). If a landlord increased the rent amount more than the amount permitted under California Civil Code Section 1947.12(a)(1) after March 15, 2019, and prior to January 1, 2020, the rent amount on January 1, 2020, is reduced to the amount of the rent on March 15, 2019, plus the maximum permissible increase under California Civil Code Section 1947.12(a)(1). (Civ. Code § 1947.12(h)(2)). The Landlord does not have to refund the tenant any rent payments that were in excess of the permissible rent increase that the tenant made prior to January 1, 2020. (Id.)
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Colton Addy, Snell & WilmerMr. Addy may be contacted at
caddy@swlaw.com
Seattle’s Newest Residential Developer
March 13, 2023 —
Michael J. Yelle - Ahlers Cressman & SleightOn February 14, 2023, Seattle voters passed Initiative 135, creating the “Seattle Social Housing Developer” (“Public Developer” or “PD”) and the initiative was signed into law by Mayor Bruce Harrel on March 1, 2023.
[1] With this initiative, voters created Seattle’s newest housing developer. The PD aims to develop, own, and maintain housing in the City of Seattle.
[2] In addition, the PD also intends to retrofit acquired properties to increase energy efficiency and bring them into compliance with accessibility standards.
[3] Contractors, subcontractors, and suppliers may see this as an opportunity to compete for and build everything from new multi-unit housing to handrail installation projects. This post will explore some of the basics of contracting with a public corporation like the Public Developer and what contractors may want to consider in their business planning.
What is the PD?
The Public Developer is a political subdivision of the State of Washington, like a port or fire district.
[4] The Public Developer is not an agency or department of the City of Seattle. In this way, it is like Seattle Public Schools (SPS) because both SPS and the PD operate within the City of Seattle, but have (or will have) their own staff, procurement rules, and standard contracts distinct from the City’s. Like SPS, the PD can also enter construction and supply contracts, sue, and be sued.
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Michael J. Yelle, Ahlers Cressman & Sleight
The Families First Coronavirus Response Act: What Every Employer Should Know
April 06, 2020 —
Donald A. Velez, Karissa L. Fox & Sarah K. Carpenter - Smith CurrieSmith Currie provides this update regarding the Families First Coronavirus Response Act as part of its continuing effort to monitor developments concerning the Coronavirus disease (“COVID-19”) and provide guidance as to potential issues that may arise in businesses across the United States.
On March 18, 2020, President Trump signed into law the Families First Coronavirus Response Act (the “Act”), which contains provisions requiring certain private employers to provide paid leave to employees who cannot work because of Coronavirus, expanding Family and Medical Leave Act coverage, providing for federal tax credits to affected employers, and providing eligible states the ability to further fund their unemployment trust fund accounts. The Act is effective as of April 2, 2020 and will remain in place through December 31, 2020.
Below, we provide a summary of the Act and several of its key components, including the Emergency Family and Medical Leave Expansion Act (“EFMLEA”), the Emergency Paid Sick Leave Act, and the Emergency Unemployment Insurance Stabilization and Access Act.
Reprinted courtesy of Smith Currie attorneys
Donald A. Velez,
Karissa L. Fox and
Sarah K. Carpenter
Mr. Velez may be contacted at davelez@smithcurrie.com
Ms. Fox may be contacted at klfox@smithcurrie.com
Ms. Carpenter may be contacted at skcarpenter@smithcurrie.com
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Homeowners Sue Over Sinkholes, Use Cash for Other Things
January 06, 2012 —
CDJ STAFFQuoting one homeowner as saying that his house “can fall in the ground for all I care, I made my money,” the Tampa Bay Times looks at the issue of sinkhole claims in Florida. Homeowners “have paid off mortgages, put in pools, replaced roofs, or otherwise used money from sinkhole claims to do something besides fix sinkhole damage.
It’s been tough for insurance companies. Citizens Property Insurance took in $32 million in premiums for sinkhole coverage in 2010, but paid out $245 million in sinkhole claims. The Tampa Bay Times notes that some of those claims come from settling problems caused by their repairs, including one settlement of $350,000 for repairs to a house worth $39,000.
One couple, after receiving $217,000 from Citizens, sold the house to a company that bought unrepaired sinkhole homes for $190,000. The home has been sold since and remains unrepaired.
Sometimes the preferred solution by the insurance company isn’t the cheapest either. One couple was informed that Citizens was going to spend $150,000 to have the hole filled with grout. After they settled with the insurance company, they fixed the problem by installing steel piers, at a cost of about $45,000.
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Construction Litigation Roundup: “I Never Had a Chance”
May 29, 2023 —
Daniel Lund III - Lexology“I never had a chance.”
Such was the plea of a general contractor to a Maryland federal court after having been terminated for failure to perform.
“The Agreement provides no express right to cure,” found the court, weighing in on the contractor’s wrongful termination claim. Indeed, the contract was also very clear on termination, allowing for termination for cause on numerous bases, including a common catchall: if the contractor “persistently fails to perform the provisions of this Agreement.”
In advance of the actual date of termination, the owner wrote to the contractor, in accordance with the contract: “Notice is also given that seven days from the date of this correspondence, [owner] will exercise its [termination] rights under Section 13.2.2.2 of the Contract." The communication from the owner contained no discussion of allowing the contractor an opportunity to cure its alleged default.
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Daniel Lund III, PhelpsMr. Lund may be contacted at
daniel.lund@phelps.com
Congratulations to BWB&O’s 2023 Super Lawyers Rising Stars!
June 26, 2023 —
Bremer Whyte Brown & O'Meara LLPBWB&O is excited to announce Partner
Courtney Serrato and Associates
Andrew Arakelian,
Pamchal Deylami, and
Brian Taylor have been selected in the 2023 Southern California Super Lawyers list as Rising Stars for their work in Family Law and Civil Litigation. To read Super Lawyers’ digital publication, please click
here.
Super Lawyers is a rating service of outstanding lawyers from more than 70 practice areas who have attained a high degree of peer recognition and professional achievement. The objective of Super Lawyers’ patented multiphase selection process is to create a credible, comprehensive, and diverse listing of outstanding attorneys that can be used as a resource for attorneys and consumers searching for legal counsel. Please join us in congratulating Courtney, Andrew, Pamchal, and Brian on achieving this level of recognition!
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Bremer Whyte Brown & O'Meara LLP