Construction Industry Groups Challenge DOL’s New DBRA Regulations
December 16, 2023 —
Bret Marfut - The Construction SeytLess than a month after taking effect, the Department of Labor’s (“DOL”) broad changes to the regulations implementing Davis-Bacon and Related Acts (“DBRA”) are facing legal challenges in two federal courts. These newly-filed lawsuits could change things for those trying to navigate the new regulatory landscape. Contractors on DBRA-covered contracts should keep an eye out for developments.
On October 23, 2023, DOL’s final rule updating the regulations implementing DBRA became effective. The first major overhaul of its kind in forty years, the final rule made sweeping changes to the regulations governing payment of prevailing wages on most federally-funded construction contracts.
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Bret Marfut, SeyfarthMr. Marfut may be contacted at
bmarfut@seyfarth.com
Contractors Board May Discipline Over Workers’ Comp Reporting
November 06, 2013 —
CDJ STAFFCalifornia recently passed AB 1794, which authorized the Employment Development Department to share information it received on new hires with other agencies. The bill also allows the Contractors State License Board to audit members based on this information to determine if contractors are engaging in workers’ compensation fraud.
Writing on the Cumming & White construction litigation blog, Iman Reza notes that “the new law is intended to deter contractors from cutting corners in underreporting employees.” The CSLB will be able to discipline contractors who seek to gain an illegitimate competitive advantage by circumventing the law.
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Common Construction Contract Provisions: No-Damages-for-Delay Clause
March 16, 2017 —
David Cook & Chadd Reynolds - Autry, Hanrahan, Hall & Cook, LLP BlogIn continuing our series on common contract provisions found in construction contracts, this post highlights no-damages-for-delay clauses.
Parties to a contract – particularly a construction contract – may agree that the performance of the contract must occur within a set amount of time. When a party is delayed in performing a contract, it may incur additional costs due to the delay. In most circumstances, unless the parties agree otherwise, the delayed party would be entitled to an extension of time to perform the contract. But it may also seek to recover the additional costs resulting from the delay.
A no-damages-for-delay clause attempts to prevent the delayed party from recovering those additional costs. In construction contracts, an upstream party, such as an owner or prime contractor, typically relies on a no-damages-for-delay clause when presented with a delay claim by a downstream party, such as a subcontractor.
Reprinted courtesy of
David Cook, Autry, Hanrahan, Hall & Cook, LLP and
Chadd Reynolds, Autry, Hanrahan, Hall & Cook, LLP
Mr. Cook may be contacted at cook@ahclaw.com
Mr. Reynolds may be contacted at reynolds@ahclaw.com
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A Property Tax Exemption, Misapplied, in Texas
June 18, 2019 —
Anthony B. Cavender - Gravel2GavelIn an important ruling for Texas businesses, the Texas Supreme Court has unanimously ruled that the TCEQ misapplied the Texas property tax’s exemption for specified pollution control equipment.
Since 1993, the Texas Constitution has included a provision which authorizes the Texas Legislature to exempt from ad valorem taxation “all or part of real and personal property used … wholly or partly … for the control or reduction of air, water or land pollution.” This provision is implemented by Section 11.31 of the Texas Tax Code, which is administered by the Texas Commission on Environmental Quality. (See the rules at Title 30, Chapter 17 of the Texas Administrative Code.) If the Executive Director of the TCEQ determines that the equipment is used wholly or partly for pollution control, he issues a “positive use determination”; in the event it does not, the Executive Director issues a “negative use determination and rejects the application for the exemption. In 2007, Section 11.31 was amended at 11.31 (k) to list several items of equipment that are presumed to be pollution-control equipment, including “heat recovery steam generators” or HRSGs. This equipment is used by powerplants to reduce nitrogen oxide emissions that are the product of generation of electricity. Several applications were submitted to the TCEQ by the Brazos Electric Power Cooperative, seeking a tax exemption for its HRSG units. In July 2012, the TCEQ denied these applications, with the flat declaration that HRSGs are not pollution-control equipment—“they are used solely for production.” The Brazos Cooperative sued the Commission, and on May 3, 2019, in the case of Brazos Electric Power Cooperative, Inc. v. TCEQ, the Texas Supreme Court issued a unanimous opinion reversing the Commission, and the lower court (the Eight Court of Appeals, sitting in El Paso) that affirmed the Commission’s action.
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Anthony B. Cavender, PillsburyMr. Cavender may be contacted at
anthony.cavender@pillsburylaw.com
Bond Principal Necessary on a Mechanic’s Lien Claim
September 07, 2020 —
Christopher G. Hill - Construction Law MusingsAs anyone that reads this construction law blog knows, mechanic’s liens are a big part of the Virginia landscape for a construction attorney like me.
One option for dealing with a mechanic’s lien here in Virginia that we have not discussed but so often is the ability to “bond off” a lien. In short, the Virginia statute allows a party to essentially substitute a bond valued at a court set multiple of the principal amount of the mechanic’s lien for the memorandum. In exchange, the lien is released of record. Any enforcement action can still proceed with security for the claimant and the property owner feeling better about things because there will be no lien on the title to the land.
In many ways this process provides an easier path to resolution for both owner and claimant. First of all, the claimant does not have to deal with a bank or other interest holders in the property (though a recent case discussed below reminds us that certain other parties are necessary). Second of all, the owner does not have the cloud on the title of a mechanic’s lien that may have been filed by a subcontractor over which he has no control.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Contractor Beware: Design-Build Firms Must Review Washington’s Licensing Requirements
October 16, 2018 —
John Krawczyk - Ahlers Cressman & Sleight PLLCDesign-build contracting is a method of project delivery where the contractor provides both architectural/design and building services to the owner. Yet rarely do firms perform both design and building work in equal measure. Rather, in many instances, firms perform the vast majority of their work on the building side while advertising and providing design services for smaller projects using in-house architects.
Regardless of the volume of design-build contracting a firm performs, any firms practicing this method of project delivery must be aware of Washington State’s registration requirement under RCW 18.08.420(1), and specifically the condition that a “designated architect” must serve as a partner, manager or director of the firm’s governing structure.
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John Krawczyk, Ahlers Cressman & Sleight PLLCMr. Krawczyk may be contacted at
john.krawczyk@acslawyers.com
Under the Hood of U.S. Construction Spending Is Revised Data
January 06, 2016 —
Vince Golle – BloombergHere’s one key takeaway from the Commerce Department’s report Monday on U.S. construction spending. The
0.4 percent decrease in November, which itself was weaker than the most pessimistic Bloomberg survey forecast, was accompanied by downward revisions to prior months. The combination suggests some economists may revise down their fourth-quarter GDP tracking forecasts.
* October construction spending rose 0.3 percent, compared with a prior estimate of 1 percent, while September outlays advanced 0.2 percent versus a previous estimate of a 0.6 percent gain
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Vince Golle, Bloomberg
Cities' Answer to Sprawl? Go Wild.
December 06, 2021 —
Chris Malloy - BloombergIn a neighborhood of right-angled stone, stucco and brick buildings not far from Milan’s central train station, two thin towers stand out. Green and shaggy-edged, they look like they’re made of trees. In fact, they’re merely covered in trees — hundreds of them, growing up from the towers’ staggered balconies, along with 11,000 perennial and covering plants, and roughly 5,000 shrubs.
The greenery-festooned towers, called the Bosco Verticale, or Vertical Forest, are residential buildings in a broader-than-usual sense. The 18- and 26-story structures are “a home for trees that also houses humans and birds,” according to the website of architect Stefano Boeri, who has built tree-covered buildings elsewhere and is working on similar projects in Antwerp, Belgium, and Eindhoven in the Netherlands.
The Bosco Verticale is an example of urban rewilding, the growing global trend of introducing nature back into cities. There are consequences to the pace of today’s urban growth, which is the fastest in human history, including loss of biodiversity, urban heat islands, climate vulnerability, and human psychological changes. The U.S. Forest Service estimates that some 6,000 acres of open, undeveloped space become developed each day. Globally, past urban planning decisions like the prioritization of the car have given rise to cities that, but for scattered parks, tend to be divorced from nature. Rewilding aims to make cities better and more sustainable for people, plants, and animals.
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Chris Malloy, Bloomberg