Contractors May be Entitled to Both Prompt Payment Act Relief and Prejudgment Interest for a Cumulative 24%!
August 22, 2022 —
Margarita Kutsin - Ahlers Cressman & SleightThe Washington Prompt Payment Act, in Ch. 39.76 RCW and in RCW 39.04.250, ensures that contractors and subcontractors are promptly paid for their performance on public works contracts. Where a government entity or a prime contractor wrongfully withholds undisputed amounts due, that government entity or prime contractor must pay interest at a rate of 12% per annum.
Separately, prejudgment interest is awarded “based on the principle that a defendant ‘who retains money which he ought to pay to another should be charged interest upon it.’” Hansen v. Rothaus, 107 Wn.2d 468, 472, 730 P.2d 662 (1986) (quoting Prier v. Refrigeration Eng’g Co., 74 Wn.2d 25, 34, 442 P.2d 621 (1968)). The purpose is to “compensate the plaintiff for the use value of the money representing liquidated or determinable damages.” Id.
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Margarita Kutsin, Ahlers Cressman & SleightMs. Kutsin may be contacted at
margarita.kutsin@acslawyers.com
California Indemnity and Defense Construction Law Changes for 2013
April 03, 2013 —
William L. Porter, Esq. - Porter Law GroupDeath of “Type 1” Indemnity in California Construction
For many years the prevalence of the “Type 1” indemnity clause has been the subject of fierce debate within the construction industry. Subcontractors have complained that they are saddled with indemnity obligations that require them to indemnify contractors from construction-related claims for which these subcontractors are truly not responsible. In defense, contractors have argued that they must be entitled to the freedom to set contractual terms to best protect themselves and they point out that subcontractors are certainly free to negotiate better terms or turn down work.
After many years of debate and small legislative inroads in prohibiting Type 1 indemnity in residential projects and where it concerns the “sole negligence”, “willful misconduct” or the “design defects” of others, the California legislature has finally spoken broadly and definitively on the issue of Type 1 indemnity clauses in construction contracts. Under new Civil Code section 2782, beginning with contracts entered into on or after January 1, 2013, broad “Type 1” indemnity clauses shall be void and unenforceable in the context of both private and public construction projects in California. Civil Code section 2782 now makes it clear that subcontractors can no longer be required to indemnify against another’s active negligence in connection with construction contracts, whether public or private.
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William L. Porter, Esq.William L. Porter, Esq. can be contacted at
bporter@porterlaw.com
But Wait There’s More: Preserving Claims on Commonwealth Projects
February 07, 2018 —
Wally Zimolong - Supplemental Conditions BlogOn construction projects owned by the Commonwealth of Pennsylvania, a contractor may make a claim with the Board of Claims. But first, you must be aware of two limitations periods that could cause you to waive your claim if they are not met.
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Wally Zimolong, Zimolong LLCMr. Zimolong may be contacted at
wally@zimolonglaw.com
California Trial Court Clarifies Application of SB800 Roofing Standards and Expert’s Opinions
February 18, 2020 —
Scott Calkins & Anthony Gaeta - Collinsworth, Specht, Calkins & Giampaoli; Mark Chapman - Bert L. Howe & Associates, Inc.Collinsworth, Specht, Calkins & Giampaoli partners Scott Calkins and Anthony Gaeta obtained a trial victory when the jury returned a 12-0 defense verdict against one plaintiff homeowner, and awarded the other homeowner less than $2,000, an amount well below the defendant’s pre-trial CCP 998 Offers to Compromise. One of the main issues in the case was the application of SB800 roofing standards. Plaintiffs’ roofing expert testified in deposition no water entered the structure or passed through a moisture barrier [Civ. Code §896(a)(4)], and no materials had fallen off the roof [§896(g)(11)]. In an attempt to circumvent the applicable performance standards, Plaintiffs argued Civ. Code §869(g)(3)(A), also known as the ‘useful life’ exception, applied because the various components of the roof (nailing pattern, tiles, vents, etc.) were installed in such a manner so as to reduce the useful life of the roof. Following pre-trial motions and objections made during Plaintiffs’ direct examination, the Court ruled Section 896(g)(3)(A) did not apply to a conventional roof, as it is not a “manufactured product” as defined in §896(g)(3)(C). Plaintiffs’ roofing claims were summarily dismissed and Plaintiffs’ expert was prevented from testifying.
In contrast, the defense expert, Mark Chapman, was allowed to testify regarding his expert opinions as to the appropriate SB800 standard relative to each alleged defect and whether the standards were violated. The SB800 performance standards were included on the jury verdict form, and the jury found Mr. Chapman’s testimony compelling, which was a substantial factor in awarding only minor damages to one Plaintiff.
For more information, contact
Scott Calkins (scalkins@cslawoffices.com),
Anthony Gaeta (ageta@cslawoffices.com) or
Mark Chapman (mchapman@berthowe.com).
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Addenda to Construction Contracts Can Be an Issue
March 30, 2016 —
Christopher G. Hill – Construction Law MusingsWe’ve all been there. Your client either has a well drafted standard subcontract (with any luck in consultation with an experienced construction attorney) that it presents to its subcontractors and suppliers or your client is presented with a construction contract that has some provisions that it would prefer were either different or gone altogether.
In the first of these scenarios, your client often gets push back from a subcontractor to change certain provisions. Such a response is not necessarily a bad thing depending on the provisions that the potential subcontractor may have. The construction contract documents will govern the way that the project moves forward and will be strictly enforced in Virginia and elsewhere so some early give and take is not unusual or unwanted.
In the second scenario, your client is likely to be reading a fairly one sided document. The General Contractor has drafted the contract and is “north” of your client in the payment chain. Like it or not, they will in most instances leave it to you and your attorney to root out the particularly egregious on sided terms and seek to negotiate them to some sort of equality.
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Christopher G. Hill, Law Office of Christopher G. Hill, PCMr. Hill may be contacted at
chrisghill@constructionlawva.com
NY Estimating Consultant Settles $3.1M Government Project Fraud Case
November 23, 2020 —
Eva Fedderly - Engineering News-RecordVJ Associates, a Hicksville, N.Y., estimating consultant, has agreed to pay $3.13 million in civil and criminal penalties to settle charges that the firm overbilled and falsified hours on multiple federal and state government-funded transportation and other contracts in New York and Massachusetts, the U.S. Attorney's office in Boston announced on Oct. 29.
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Eva Fedderly, Engineering News-Record
ENR may be contacted at ENR.com@bnpmedia.com
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Beginning of the 2020 Colorado Legislative Session: Here We Go Again
February 10, 2020 —
David M. McLain – Colorado Construction LitigationThe 2020 Colorado legislative session started on Wednesday, January 8th. It seems like there will be plenty of issues this year to which home builders will want to pay close attention. On January 13th, Senators Fenberg, Foote, and Jackson sponsored SB 20-093, known as the “Consumer and Employee Dispute Resolution Fairness Act.”
For certain consumer and employment arbitrations, the act:
- Prohibits the waiver of standards for and challenges for evident partiality prior to a claim being filed and requires any waiver of such provisions after the claim is filed to be in writing;
- Provides that the right of a party to challenge an arbitrator based on evident partiality is waived if not raised within a reasonable time of learning of the information leading to the challenge but that such right is not waived if caused by the opposing party;
- Establishes ethical standards for arbitrators; and
- Requires specified public disclosures by arbitration services providers but includes protections for certain confidential information.
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David McLain, Higgins, Hopkins, McLain & RoswellMr. McLain may be contacted at
mclain@hhmrlaw.com
Estoppel Certificate? Estop and Check Your Lease
May 06, 2019 —
Lauren Podgorski - Snell & Wilmer Real Estate Litigation BlogIf you are leasing space in a building, there may come a time when you receive a request from your landlord to fill out and sign an estoppel certificate. Estoppel certificates are usually sent to tenants in connection with the sale or refinance of a building, and a third party may rely on the accuracy of the statements and information contained in the estoppel certificate in connection with that transaction. Estoppel certificates can range from a very simple, one-page document, to several pages.
I’ve received an estoppel certificate in the mail. What do I do now?
Consider the following:
Check your lease. Your lease may require you to deliver the signed estoppel certificate and may even give you a timeframe within which you are required to return it. A form of estoppel certificate may also be included in your lease as an exhibit. If you’ve previously agreed to a form of estoppel certificate in your lease, check to ensure the one you have received matches the form you previously agreed to and if it doesn’t make sure to review it carefully to make sure it is acceptable.
Review the estoppel certificate and confirm that all of the information is accurate. Be on the lookout for any terms or provisions that you did not agree to in your lease. If it seems like the landlord is trying to modify your lease, you likely do not need to consent to the change in this document. Cross off (or modify or delete, if you have an electronic copy) any information that is inaccurate. Fill in all blanks (if the blank is not applicable, write “N/A”), and if any exhibits are referenced in the body of the document, make sure they are actually attached.
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Lauren Podgorski, Snell & WilmerMs. Podgorski may be contacted at
lpodgorski@swlaw.com