Cambridge Massachusetts Building Expert Directory

Assembly Bill 1701 Contemplates Broader Duty to Subcontractor’s Employees by General Contractor

August 17, 2017 — Richard H. Glucksman, Esq. & Chelsea L. Zwart, Esq. – Chapman Glucksman Dean Roeb & Barger
AB 1701 recently passed the Assembly and is pending in the Senate’s Labor and Industrial Relations and Judiciary Committees. The Bill, if signed by the Governor, would create a new section in the California Labor Code (Section 218.7) making “direct contractors” – defined as a contractor “making or taking a contract in the state for the erection, construction, alteration, or repair of a building, structure, or other private work” – liable for wages a subcontractor or sub-subcontractor fails to pay to its employee for work included in the general contractor’s contract with the project owner. Under the new law, direct contractors would be liable for up to one year from the date of completion of the work for unpaid wages, fringe benefits, health and welfare benefits, and pension fund contributions, including interest and state tax payments owed to a subcontractor’s employee. The employee, however, would not be able to recover penalties or liquidated damages from the general contractor. AB 1701 would give the employee, Labor Commissioner, or a joint labor-management cooperation committee the right to enforce the direct contractor’s liability through a civil action. It would also extend to third parties who are owed fringe or other benefit payments or contributions on the employee’s behalf. Pursuant to the proposed language of the new statute, a prevailing plaintiff in such an action would be entitled to their reasonable attorneys’ fees and costs, including expert witness fees. Although Labor Code § 218.7 would impose certain obligations on the subcontractor to provide the direct contractor with relevant project and payroll records, the subcontractor’s failure to comply with those obligations does not relieve the direct contractor from liability. Impact AB 1701’s apparent purpose is to protect employees, an undeniably important legislative goal. However, if passed, the bill could greatly increase general contractors’ exposure when subcontracting work and their cost of doing business. Especially because the new law would not impact existing laws requiring a direct contractor to timely pay a subcontractor. As a result, many coalitions against AB 1701 stress the halting effect this could have on the construction industry as a whole, particularly private construction, which is not as heavily regulated as public works. CGDRB will continue to monitor this Bill and provide updates as developments occur. Reprinted courtesy of Richard H. Glucksman, Chapman Glucksman Dean Roeb & Barger and Chelsea L. Zwart, Chapman Glucksman Dean Roeb & Barger Mr. Glucksman may be contacted at rglucksman@cgdrblaw.com Ms. Zwart may be contacted at czwart@cgdrblaw.com Read the court decision
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PSA: Latest Updates from AGC-VA on COVID Rules (UPDATED)

June 14, 2021 — Christopher G. Hill - Construction Law Musings
The recent changes in masking requirements and COVID-related restrictions have prompted questions and concerns throughout the construction industry. We understand your questions and continue to work closely with the Department of Labor and Industry (DOLI) and the Safety and Health Codes Board. Here is what we know at this point:

The Governor’s second order terminates the state of public emergency as of May 28, 2021. At that point, the DOLI Safety and Health Codes Board will have 2 weeks to meet and decide whether to rescind, modify, or continue the Final Permanent Standard for Prevention of Covid-19. Companies should continue to follow the standard until further notice.
UPDATE: At present, the emergency order does not expire before June 30, unless amended or otherwise changed. Therefore, the two-week period to announce a meeting of the SCHB to review the permanent COVID-19 standard does not begin until July 1, though the meeting can occur after the two-week period. AGCVA has joined other groups in pushing for a meeting as soon as possible.

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Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

Update Relating to SB891 and Bond Claim Waivers

June 10, 2015 — Christopher G. Hill – Construction Law Musings
Several bills were passed and will go into effect on July 1, 2015 that affect the construction industry here in Virginia. The most interesting of these was an amendment to the mechanic’s lien statutes relating to waivers of lien rights. As I posted in March, SB891 amended the mechanic’s lien statute, Va. Code Section 43-3, to remove proactive waivers of lien and bond rights. This bill has been signed into law with a minor modification. Read the court decision
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Reprinted courtesy of Christopher G. Hill, Law Office of Christopher G. Hill, PC
Mr. Hill may be contacted at chrisghill@constructionlawva.com

Wildfire Is Efficient Proximate Cause of Moisture Reaching Expansive Soils Under Residence

November 05, 2014 — Tred R. Eyerly - Insurance Law Hawaii
The court considered whether a wildfire (covered risk) or moisture in the soils (excluded risk) was the cause of damage to the insureds' home. Encompass Ins. Co. v. Berger, 2014 U.S. Dist. LEXIS 142870 (C.D. Cal. Oct. 7, 2014). In May 2009, the Jesusita Fire caused damage to the insureds' home and surrounding area. The west wall of the house was burned, causing damage to a bedroom. A shed, hot tub, wooden decks and some vegetation, including eucalyptus trees, were damaged. The insureds submitted a claim to Encompass. Eventually, Encompass spent $400,000 repairing the property. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Seattle Council May Take a New Look at Micro-Housing

April 15, 2015 — Beverley BevenFlorez-CDJ STAFF
According to the Puget Sound Business Journal, “there’s remorse at [Seattle, Washington’s] City Hall over last year’s controversial decision to make it more onerous and costly to build ultra-affordable micro-housing.” City Council President Tim Burgess stated that the council “may ‘very well’ take up the micro-housing issue again as it works with Mayor Ed Murray on a long-term program to develop more housing.” This comes after Murray “announced a goal of building and preserving 50,000 housing units over the next 10 years.” Read the court decision
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No Bad Faith In Filing Interpleader

August 19, 2015 — Tred R. Eyerly – Insurance Law Hawaii
The Eighth Circuit determined that filing an interpleader action in the face of multiple claims against the policy holder did not constitute bad faith. Purscell v. Tico Ins. Co., 2015 U.S. App. LEXIS 10438 (8th Cir. June 22, 2015). Ben Purscell's vehicle collided with another vehicle, in which Tim and Amy Carr were riding. The Carrs were injured, and Purscell's passenger, Amy Priesendorf, was killed. Before the accident, Priesendorf had stretched her leg over and put her foot on the accelerator, on top of Purscell's foot. As the other car approached, Purscell swerved to avoid an accident, but the two vehicles collided. Purscell had a policy with Infinity Assurance Insurance Company. The policy limited liability to $25,000 per person and $50,000 per accident for bodily injury. Infinity put the full $50,000 per accident limits on reserve, with $25,000 designated to Priesendorf's fatality and $25,000 designated to the Carrs. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Barratt Said to Suspend Staff as Contract Probe Continues

January 26, 2017 — Jack Sidders - Bloomberg
Barratt Developments Plc suspended at least three more employees within its London business as part of an ongoing probe into potential misconduct in the awarding of contracts, according to two people familiar with the decision. The people asked not to be named because a police investigation is ongoing. The suspensions follow that of London regional managing director Alastair Baird, who was arrested in October. He was released on bail until April, along with a 47-year-old woman, according to a Metropolitan Police spokesman, who was unable to immediately respond to a request for comment. Read the court decision
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Reprinted courtesy of Jack Sidders, Bloomberg
Mr. Sidders may be followed on Twitter @JackSidders

Building Inspector Refuses to State Why Apartments Condemned

August 06, 2014 — Beverley BevenFlorez-CDJ STAFF
In Lockport, New York, “more than two dozen tenants have been locked out of their apartment building…but they have yet to find out why,” according to WIVB news. Brian Belson, Lockport’s building inspector, condemned the building and ordered the tenants to leave, providing only 15 minutes advanced warning. Once all of the tenants were out, the first floor windows and doors were boarded up. At first, tenants were told that they would be able to return in a few days, but now they are being told it could be weeks. However, WIVB News reported that Brian Belson has not returned any of their phone calls, so they have “filed a Freedom of Information request at Town Hall, seeking that information.” Belson has five days to respond to the request. Read the court decision
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