More In-Depth Details on the Davis-Bacon Act Overhaul
November 06, 2023 —
Seth C. Wiseman & Angela M. Richie - Construction ExecutiveThe U.S. Department of Labor’s finalization of a
rule updating the Davis-Bacon Act, the federal law that governs how prevailing wages for federal construction projects can be determined, will have a significant impact on contractors and workers alike in the construction industry. The new rule, in effect, adopts the 30% rule, meaning that the prevailing wages must be equal to the wage paid to at least 30% of workers of a particular classification in a particular area. The new rule also implements a new anti-retaliation provision, specifically protecting construction workers who raise concerns about payment practices from adverse employment actions. The timing of this new rule is particularly significant for contractors, as it will likely raise the cost of labor for contractors at a time when the Infrastructure Investment and Jobs Act and the CHIPS Act are providing additional funding for federal projects across the country. Thus, it is important for all parties in the construction industry to understand the updated rule in order to evaluate the short-term impacts on their respective projects and long-term impact on their respective businesses.
Reprinted courtesy of
Seth C. Wiseman & Angela M. Richie, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Mr. Wiseman may be contacted at swiseman@grsm.com
Ms. Richie may be contacted at arichie@grsm.com
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“Freelance Isn’t Free” New Regulations Adopted in New York City Requiring Written Contracts with Independent Contractors
June 15, 2017 —
Kevin J. O'Connor - Peckar & Abramson. P.C.Attacks on employers for alleged misclassification of workers—particularly independent contractors—are continuing unabated, and the risk of liability for employers operating in New York City just increased. New York City has just adopted sweeping regulations requiring written contracts with certain freelancers and independent contractors. Anyone doing business in that jurisdiction should take notice and take action to comply with the law.
New York City’s “Freelance Isn’t Free Act,” N.Y.C. Administrative Code §§ 20-927 et seq. (“FIFA”) went into effect on May 15, 2017. This new law substantially regulates the relationship between a business and an independent contractor or “freelancer” working in New York City.
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Kevin J. O'Connor, Peckar & Abramson. P.C.Mr. O'Connor may be contacted at
koconnor@pecklaw.com
After More than Two Years, USDOT Rejects WSDOT’s Recommendation to Reinstate Non-Minority Women-Owned DBEs into DBE Participation Goals
February 24, 2020 —
Ellie Perka - Ahlers Cressman & Sleight PLLCFor the past several years, Ahlers Cressman & Sleight has been closely following news of Washington State Department of Transportation’s (“WSDOT’s”) exclusion of non-minority women-owned Disadvantaged Business Enterprises (“DBEs”)[1] from qualifying toward Condition of Award (“COA”) Goals on federally-funded projects. See ACS’s letter of January 9, 2014 and blog articles of June 2, 2017 and September 21, 2017.
In a striking—and long awaited—decision issued just days ago, USDOT rejected WSDOT’s recommendation to unwind the exclusion of non-minority women-owned DBEs from COA Goals, meaning women-owned DBEs in Washington remain excluded from DBE COA participation goals until September 2020.
As background, the DBE program is a program created by Congress with the goal of increasing women and minority-owned business participation in federally-funded transportation contracting. To withstand constitutional scrutiny, each state must tailor its program to the specific discrimination found to exist in that state.[2] To that end, every three years, WSDOT must conduct a “Disparity Study,” aimed at statistically measuring the “discrimination” in the marketplace.
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Ellie Perka, Ahlers Cressman & Sleight PLLCMs. Perka may be contacted at
ellie.perka@acslawyers.com
Hawaii Supreme Court Reaffirms an "Accident" Includes Reckless Conduct, Finds Green House Gases are Pollutants
November 18, 2024 —
Tred R. Eyerly - Insurance Law HawaiiAnswering certified questions from the federal district court, the Hawaii Supreme Court reaffirmed its prior holding that reckless conduct is an "occurrence' or accident. The court further held that green house gas (GHG) emissions were pollutants under liability policies. Aloha Petroleum, Ltd. v. National Union Fire Ins. Co. of Pittsburg, PA., et al., 2024 Haw. LEXIS 179 (Haw. Oct. 7, 2024). [Disclosure - our office was co-counsel on an amicus brief in this case filed on behalf of the United Policyholders].
The City and County of Honolulu and the County of Maui sued several fossil fuel companies, including Aloha Petroleum, Ltd., for climate change-related harms. The suits alleged that the fossil fuel industry knew beginning in the 1960s that its products would cause catastrophic climate change. Rather than mitigate their emissions, defendants concealed their knowledge of climate change, promoted climate science denial, and increased their production of fossil fuels. Defendants' actions, the complaints alleged, increased carbon emissions, which caused significant damage to the counties.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Architect Sues over Bidding Procedure
November 13, 2013 —
CDJ STAFFThe city of Louisville, Ohio is being sued by an architect who claims that city officials split projects into parts in order to circumvent state laws on public bidding. Rodney Meadows, the architect who filed the suit, also claims he is not motivated by any interest in working for the city. “I wouldn’t want to work with them,” he said. Nor is he seeking damages in the suit.
The project at contention is Louisville’s renovations of an existing building for the Police Department. The city has spent $328,692 on the renovations, but state law says that projects costing more than $25,000 or $50,000 (depending on other matters) must be put out for public bidding.
But city officials contend they haven’t broken the law. “A significant amount of work was done by our own people,” said E. Thomas Ault, the Louisville city manager.
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Design-Assist, an Ambiguous Term Causing Conflict in the Construction Industry[1]
December 02, 2019 —
John P. Ahlers - Ahlers Cressman & Sleight PLLC“Design-Assist” is one of the recent cost-saving trends being touted for construction projects and, in particular, construction projects utilizing alternative procurement methods. If an internet search for the term, “design-assist” is made, the result will be numerous construction industry articles and white papers lauding “design-assist” as a recent cost-saving trend in construction procurement. From a legal perspective, however, the term “design-assist” is notably absent from court opinions and most state licensing laws. With the exception of the ConsensusDocs, few standard form contracts even include the term “design-assist” in their text.
The ConsensusDocs agreement provides examples of the Constructor’s obligations to perform “assisting activities” (the term “design-assist” is not used) and states that, notwithstanding the performance of such “assisting activities” by the Constructor, the responsibility of the design remains with the Designer unless otherwise stated in the Contract:
- Article 4.5 DESIGN PROFESSIONAL’S RESPONSIBIITIES The Designer shall furnish or provide all design and engineering services necessary to design the Project in accordance with the Owner’s objectives … the Designer shall draw upon the assistance of Constructor and others in developing the design, but the Designer shall retain overall responsibility for all design decisions….
- Article 4.6 CONSTRUCTOR’S RESPONSIBILITIES [T]he Constructor shall assist the Designer in the development of the Project Plan and Project Design but shall not provide professional services which constitute the practice of architecture or engineering unless the Constructor needs to provide such services in order to carry out its responsibilities … or unless specifically called for by the Contract Documents.
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John P. Ahlers, Ahlers Cressman & Sleight PLLCMr. Ahlers may be contacted at
john.ahlers@acslawyers.com
Manhattan Gets First Crowdfunded Condos
September 03, 2015 —
David M. Levitt & Oshrat Carmiel – BloombergNew York’s first real estate project financed significantly though crowdfunding is set to open, a step forward for a nascent investing model that has yet to prove itself in commercial property.
AKA United Nations, an extended-stay hotel-condominium on East 46th Street near Second Avenue, will start taking guests Sept. 10. Sales of the suites have already begun. Of the $95 million it cost to buy and fix up the existing hotel, $12 million was raised from online pledges.
It’s “the first ever crowdfunded building in New York coming to completion, from A to Z,” said Rodrigo Nino, chief executive officer of Prodigy Network, which is gut-renovating the building with partners. Until now, “everything has been about promises.”
Reprinted courtesy of
David M. Levitt, Bloomberg and
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Coverage Denied for Faulty Blasting and Improper Fill
October 08, 2014 —
Tred R. Eyerly – Insurance Law HawaiiThe court found coverage was properly denied based on the subcontractor's failure to follow contract specifications in blasting at the job site. Westfield Ins. Co. v. Carpenter Reclamation, Inc., 2014 U.S. Dist. LEXIS 130752 (S.D. W. Va. Sept. 18, 2014).
Carpenter was hired by the Board of Education (BOE) to perform preliminary site clearing, demolition, rock excavation, and establishment of sub-grade for a building. Carpenter was to excavate to 3.5 feet below the floor subgrade so that plumbing and other utilities could be installed.
Carpenter, however, blasted to depths deeper than required, including some areas that were up to nine feet. The BOE sued, alleging over-blasting and having to pay the cost of remediating the problem, along with breach of contract issues.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com