Seattle Washington Building Expert Directory

“Good Faith” May Not Be Good Enough: California Supreme Court to Decide When General Contractors Can Withhold Retention

March 22, 2018 — Erinn Contreras and Joy O. Siu – Construction & Infrastructure Law Blog
It is industry standard in California for owners of a construction project to make monthly payments to a contractor for work it has completed, less a certain percentage that is withheld as a guarantee of future satisfactory performance. This withholding is called a retention. Contractors generally pass these withholdings on to their subcontractors via a retention clause in the subcontract. Under such clause, if a subcontractor fails to complete its work or correct deficiencies in its work, the owner and the general contractor may use the retention to bring the subcontractor’s work into conformance with the requirements of the contract. When and how retention payments must be released are governed by, among other statutes, Civil Code section 8800 et seq. Specifically, Civil Code section 8814, subdivision (a), states that a direct contractor must pay each subcontractor its share of a retention payment within ten days after the general contractor receives all or part of a retention payment. Failure to make payments in accordance with Section 8814 can subject an owner or a contractor to a (1) two percent penalty per a month on the amount wrongfully withheld, and (2) claim for attorney’s fees for any litigation required to collect the wrongfully withheld retention payments. (Civ. Code, § 8818.) Reprinted courtesy of Erinn Contreras, Sheppard, Mullin, Richter & Hampton LLP and Joy Siu, Sheppard, Mullin, Richter & Hampton LLP Ms. Contreras may be contacted at econtreras@sheppardmullin.com Ms. Siu may be contacted at jsiu@sheppardmullin.com Read the court decision
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Lewis Brisbois Promotes 35 to Partnership

March 15, 2021 — Lewis Brisbois
Lewis Brisbois is proud to announce the promotion of 35 of its associates to partner. With these promotions, Lewis Brisbois’ total partnership comes to 933 across its 53 offices. The diverse class of newly promoted attorneys includes 15 women, which brings the total percentage of female partners at Lewis Brisbois to 33%. Los Angeles Managing Partner Jana I. Lubert expressed her excitement about the recent promotions, stating, “On behalf of the Management Committee, I congratulate these outstanding attorneys on their achievement. They have demonstrated an exceptional level of dedication to Lewis Brisbois and to our clients, especially during this difficult past year. I am particularly proud of the diversity that exists across this group.” Similarly, San Bernardino and Chief Diversity Partner Rima M. Badawiya shared her enthusiasm over the diversity of the new partners, explaining, “This group of exceptional attorneys, who have been promoted based upon their extraordinary performance, represents the diversity that exists throughout Lewis Brisbois and our commitment to advancing those who achieve at the highest level.” Read the court decision
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Reprinted courtesy of Lewis Brisbois

Nevada Senate Minority Leader Gets Construction Defect Bill to Committee

April 03, 2013 — CDJ STAFF
The Las Vegas Sun reports that Michael Roberson, the lead Republican in the Nevada Senate, managed to get his construction defect reform bill scheduled for a hearing. Previously, the Senate Democrats had determined that all bills pertaining to construction defect legislation would be heard by the Senate Judiciary Committee. However, Roberson managed to convince Kelvin Atkinson, the chair of the Senate Commerce and Labor Committee, to add his bill to the text a mortgage lending measure under consideration by that committee. Roberson had previously submitted his bill to the Judiciary Committee. Senator Tick Segerblom has not scheduled the bill for a hearing and is reported to be an opponent of the bill. While Roberson characterizes the bill as making things better for homebuilders, Segerblom sees it as making things worse for homeowners. “That’s not going to happen,” Seberblom told the Las Vegas Sun. Although the senate voted to send the bill to the Commerce and Labor committee, it still may not get a hearing. Segerblom said he did not know if the bill would be heard in his committee. “We’ve got 60 or more bills to hear and if there’s nothing new in there to change the world, I don’t know why we would hear it.” Atkinson said he has “no appetite to hear the bill.” Read the court decision
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A Quick Virginia Mechanic’s Lien Timing Refresher

February 27, 2023 — Christopher G. Hill - Construction Law Musings
As those who read Construction Law Musings on a regular basis know, mechanic’s liens are a big part of my construction law practice. These tricky and strictly enforced statutory collection tools are very powerful when correctly recorded and utterly useless if they aren’t recorded in a timely fashion and with the correct information contained within them. Couple that fact with recent changes to the mechanic’s lien form in 2019, and I feel the need to give a quick refresher. If you’ve kept up with Musings, you know about the two big numbers for Virginia mechanic’s lien timing, 90 and 150. These should be kept in mind for every general contractor, subcontractor, or supplier on any construction project in Virginia. Virginia Code Section 43-4 sets out the reasons to keep these numbers in mind. The code section sets out why you need to know these numbers. The 90 refers to the deadline for recording a lien. This number affects the right to a lien in Virginia. In order to preserve lien rights, a construction contractor must record the lien within ninety days of the last day of the last month in which the last work was performed or no later than ninety days from the date of completion of the project or other termination of work. The short version is that most general contractors on commercial projects have 90 days from the last work in which to record their lien and most subcontractors have 90 days from the last day of the last month of work. However, the best practice is to simply calculate the 90 days from the last work performed or material supplied to avoid issues and arguments between attorneys regarding timing. Read the court decision
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Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

Leaning San Francisco Tower Seen Sinking From Space

November 30, 2016 — The Associated Press (Jocelyn Gecker) – Bloomberg
San Francisco (AP) -- Engineers in San Francisco have tunneled underground to try and understand the sinking of the 58-story Millennium Tower. Now comes an analysis from space. The European Space Agency has released detailed data from satellite imagery that shows the skyscraper in San Francisco's financial district is continuing to sink at a steady rate — and perhaps faster than previously known. The luxury high-rise that opened its doors in 2009 has been dubbed the Leaning Tower of San Francisco. It has sunk about 16 inches into landfill and is tilting several inches to the northwest. A dispute over the building's construction in the seismically active city has spurred numerous lawsuits involving the developer, the city and owners of its multimillion dollar apartments. Engineers have estimated the building is sinking at a rate of about 1-inch per year. The Sentinel-1 twin satellites show almost double that rate based on data collected from April 2015 to September 2016. Read the court decision
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Reprinted courtesy of Bloomberg

Incorporate Sustainability in Building Design to Meet Green Construction Goals

September 25, 2018 — Norma Lehman - Construction Executive
A few miles outside the city limits of Austin, Texas, construction work is expected to soon begin on the Austin Ridge Bible Church’s tri-level, 80,000-square-foot building. The building will house a 2,500-seat sanctuary, classrooms and other spaces where congregants can gather for prayer and fellowship. When the project is completed, scheduled for the end of 2019, it will produce a worship place that will significantly reduce the building’s energy costs in the years ahead. Reprinted courtesy of Norma Lehman, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Tesla Finishes First Solar Roofs—Including Elon's House

August 02, 2017 — Tom Randall - Bloomberg
First the Model 3 electric car. Now the solar roof. In just one week, Tesla has challenged two distinct industries with radically new products. Tesla has completed its first solar roof installations, the company reported Wednesday as part of a second-quarter earnings report. Just like the first Model 3 customers, who took their keys last week, the first solar roof customers are Tesla employees. By selling to them first, Tesla says it hopes to work out any kinks in the sales and installation process before taking it to a wider public audience. “I have them on my house, JB has them on his house,” Musk said, referring to Tesla’s Chief Technology Officer J.B. Straubel. “This is version one. I think this roof is going to look really knock-out as we just keep iterating.” Read the court decision
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Reprinted courtesy of Tom Randall, Bloomberg

Indemnity Provision Prevails Over "Other Insurance" Clause

December 06, 2021 — Tred R. Eyerly - Insurance Law Hawaii
The Second Circuit predicted that the New York appellate courts would find the contractual indemnity provision prevailed over the application of an "other insurance" provisions. Cent. Sur. Co. v. Metro. Transit Auth., 2021 U.S. App. LEXIS 29860 (2nd Cir. Oct. 5,2021). Long Island Railroad (LIRR) contracted with general contractor Rukh Enterprises, Inc. to complete a railroad bridge lead paint removal and repainting project on Metropolitan Transit Authority property. Rukh hired subcontractor, East Coast Painting & Maintenance to complete certain lead-related work on the project. An employee of East Coast suffered an injury while working on the project. The employee sued LIRR and Rukh. A settlement in the underlying case was reached, implicating three of four policies - Admiral (primary for LIRR), Arch (CGL for Rukh), and Harleysville (primary for East Coast). Century Surety (excess liability for Rukh) did not contribute to the settlement and disclaimed all coverage. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

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