Cambridge Massachusetts Building Expert Directory

Construction Defects Survey Results Show that Warranty Laws Should be Strengthened for Homeowners & Condominium Associations

March 29, 2017 — Nicholas D. Cowie - Maryland Condo Construction Defect Law Blog
The Community Associations Institute (“CAI”) recently partnered with its members and industry stakeholders to create a survey about construction deficiencies to learn how they impact homeowners and condominium associations. Click here to view the Construction Defects Report containing the details of the responses to the survey. Click here to see a video presentation summarizing the results of the Construction Defects Survey. This Community Associations Institute (“CAI”) Construction Defects Report demonstrates that many community associations do not discover construction deficiencies until after warranties have expired and/or fail to take the necessary actions to preserve their claims before the statutes of limitations runs. As a result, many homeowners and Condominium associations ended up using association funds to correct builder construction defects and damages caused thereby. Read the court decision
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Reprinted courtesy of Nicholas D. Cowie, Cowie & Mott
Mr. Cowie may be contacted at ndc@cowiemott.com

National Coalition to Provide Boost for Building Performance Standards

March 14, 2022 — Pam McFarland - Engineering News-Record
Energy efficiency advocates are hopeful that a new Biden administration coalition to promote and strengthen building performance standards could accelerate federal, state and local efforts to reduce carbon emissions from buildings. Reprinted courtesy of Pam McFarland, Engineering News-Record Ms. McFarland may be contacted at mcfarlandp@enr.com Read the full story... Read the court decision
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Portion of Washington State’s Prevailing Wage Statute Struck Down … Again

July 04, 2023 — Brett Hill & Mason Fletcher - Ahlers Cressman & Sleight
In 2018, the Washington Legislature amended its prevailing wages statute adopting S.S.B 5493 and codified as RCW 39.12.015(3). RCW 39.12.015(3) changed how the Washington State Department of Labor and Industries’ industrial statistician set the prevailing wages for employees on public works projects, from a county-by-county basis to a “geographic jurisdiction” basis established in collective bargaining agreements (“CBA”) or if multiple CBAs, the CBA with the higher wage would prevail. This change proved problematic for contractors since it allowed a minority of employees to determine the prevailing wage through side agreements and limited meaningful wage negotiations by industry trade groups. Contrary to the previous rule wherein wages were set by the average or majority wage rate in a certain county (which was normally the collectively bargained wage) and provided some flexibility to the industrial statistician in determining the prevailing wage, now, RCW 39.12.015(3)(a) directs the industrial statistician to “establish the prevailing rate of wage by adopting the hourly wage … paid for the geographic jurisdiction established in [CBAs],” removing flexibility, and requiring the inclusion of CBA (which could encompass multiple counties) wage rates as a part of the prevailing wage formula. Reprinted courtesy of Brett Hill, Ahlers Cressman & Sleight and Mason Fletcher, Ahlers Cressman & Sleight Mr. Hill may be contacted at brett.hill@acslawyers.com Mr. Fletcher may be contacted at mason.fletcher@acslawyers.com Read the court decision
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Checking the Status of your Contractor License During Contract Work is a Necessity: The Expanded “Substantial Compliance” under B&P 7031 is Here

June 05, 2017 — Ivo G. Daniele – Newmeyer & Dillion LLP News Alert
It is paramount that a contractor diligently maintains its license prior to and during the performance of any contract work. Failure to do so could result in barring a contractor from receiving payment and/or disgorgement of profits received under the construction contract. California Business and Professions Code section 7031 is part of the Contractors State License Law (Business & Prof. section 700 et seq.), and is both feared and loathed by all contractors performing work in the state of California. This draconian statute is known as the “Shield” and was enacted over 70 years ago for the singular purpose to bar all actions by contractors seeking compensation for unlicensed contract work – even precluding a contractor from enforcing his or her mechanic’s lien rights. However, a contractor could potentially avoid the harshness of B&P 7031 by establishing that he or she had substantially complied with the appropriate licensing requirements. SUBSTANTIAL COMPLIANCE WITH LICENSE REQUIREMENTS PRIOR TO 2017 AMENDMENT The substantial compliance exception is found in section B&P 7031(e), which authorizes the court to determine that there has been substantial compliance with licensure requirements, if the contractor has shown at an evidentiary hearing that he or she engaged in the unlicensed work had:

Been duly licensed as a contractor in this state prior to the performance of the act or contract;
Acted reasonably and in good faith to maintain the license;
Did not know or reasonably should not have known that he or she was not licensed when he or she performed the work; and
Acted promptly and in good faith to reinstate the license once it learned the license had lapsed.

Although not impossible, satisfying all four requirements of the exception was challenging for the contractor, specifically, requirement # (3) – the lack of knowledge that he or she was unlicensed during performance of work. SUBSTANTIAL COMPLIANCE POST 2017 Fortunately, Governor Brown heard the collective cry for relief and signed Assembly Bill 1793 (“AB 1793”) into law. The new bill revises the criteria for the court to determine if a contractor is in substantial compliance with the licensing requirements by deleting requirement # (3) in its entirety and modestly amending requirement # (4) to require the contractor to act promptly and in good faith to remedy the failure to comply with the licensure requirements upon learning of the failure. As a result, the substantial compliance exception under B&P 7031(e) reads as follows: (e) The judicial doctrine of substantial compliance shall not apply under this section where the person who engaged in the business or acted in the capacity of a contractor has never been a duly licensed contractor in this state. However, notwithstanding subdivision (b) of Section 143, the court may determine that there has been substantial compliance with licensure requirements under this section if it is shown at an evidentiary hearing that the person who engaged in the business or acted in the capacity of a contractor (1) had been duly licensed as a contractor in this state prior to the performance of the act or contract, (2) acted reasonably and in good faith to maintain proper licensure, and (3) acted promptly and in good faith to remedy the failure to comply with the licensure requirements upon learning of the failure. This new legislation has tempered the burden of proof born by the contractor in establishing substantial compliance, although be it minor in its modification, the fact of the matter remains the same – be diligent in maintaining your license during all phases of contract work. Ivo Daniele is a seasoned associate in the Walnut Creek office focusing his practice on commercial transactions and business and construction litigation. For questions regarding California Business and Professions Code section 7031, please feel free to contact Ivo Daniele at (925) 988-3222 or ivo.daniele@ndlf.com. About Newmeyer & Dillion For more than 30 years, Newmeyer & Dillion has delivered creative and outstanding legal solutions and trial results for a wide array of clients. With over 70 attorneys practicing in all aspects of business, employment, real estate, construction and insurance law, Newmeyer & Dillion delivers legal services tailored to meet each client’s needs. Headquartered in Newport Beach, California, with offices in Walnut Creek, California and Las Vegas, Nevada, Newmeyer & Dillion attorneys are recognized by The Best Lawyers in America©, and Super Lawyers as top tier and some of the best lawyers in California, and have been given Martindale-Hubbell Peer Review's AV Preeminent® highest rating. For additional information, call 949-854-7000 or visit www.ndlf.com. Read the court decision
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Insurer Has Duty to Defend Faulty Workmanship Claim

January 22, 2024 — Tred R. Eyerly - Insurance Law Hawaii
The magistrate judge recommended a determination that the insurer owed a defense to the subcontractor sued for faulty workmanship. Hanover Lloyds Ins Co. v. Donegal Mut. Ins. Co., 2023 U.S. Dist. LEXIS 180877 (W.D. Texas Oct. 5, 2023). Poe Investments, Ltd. entered into an agreement with Jordan Foster Construction, LLC for construction of an auto sales and service facility ("Facility"). Jordan hired multiple subcontractors, including Texas Electrical Contractors, LLC ("TEC"). Subsequently, Poe sold the Facility to 6330 Montana, LLC ("Montana"). Montana filed suit against Jordan for breach of express warranties, breach of contract, and negligence. Jordon filed a third-party complaint against its subcontractors, including TEC. Jordan alleged that TEC provided "defective and negligent construction work" while carrying out the provision and installation of electrical and fire alarm systems at the Facility. 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

Improvements to Confederate Monuments Lead to Lawsuits

October 22, 2013 — CDJ STAFF
Lawsuits concerning handicap access usually go toward obligating someone to provide access. But in Selma, Alabama, the city decided that handicap access to a Civil War memorial might not be all that important. The city of Selma hired KTK Mining to provide wheelchair accessibility to the city’s Memorial to the Confederate Dead and to increase security to a monument to the Confederate general Nathan Beford Forrest. After protests, the city revoked the building permit. KTM sued in federal court. The judge has ordered the two parties to a settlement contract. Read the court decision
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Start-up to Streamline Large-Scale Energy Renovation

August 07, 2018 — Aarni Heiskanen - AEC Business
An app from software provider GenieBelt will facilitate communications and strengthen cooperation when DGI-Byen, a 30,000 m2 business and leisure center in central Copenhagen, undergoes a large-scale energy renovation. SustainSolutions CEO Christian Niepoort expects that the tool will contribute to quality, safety, and time and cost savings. Electricians, carpenters, painters, masons, consultants, and architects; the more parties are involved, the more difficult it becomes to stick to the schedule when coordinating a whole host of supplier and contractor activities. Read the court decision
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Reprinted courtesy of Aarni Heiskanen, AEC Business
Mr. Heiskanen may be contacted at aec-business@aepartners.fi

Lending Plunges to 17-Year Low as Rates Curtail Borrowing

April 15, 2014 — Kathleen M. Howley, Zachary Tracer and Heather Perlberg – Bloomberg
Wells Fargo (WFC) & Co. and JPMorgan Chase & Co., the two largest U.S. mortgage lenders, reported a first-quarter plunge in loan volumes that’s part of an industry-wide drop off. Lenders made $226 billion of mortgages in the period, the smallest quarterly amount since 1997 and less than one-third of the 2006 average, according to the Mortgage Bankers Association in Washington. Lending has been tumbling since mid-2013 when mortgage rates jumped about a percentage point after the Federal Reserve said it might taper stimulus spending. A surge in all-cash purchases to more than 40 percent has kept housing prices rising, squeezing more Americans out of the market. That will help push lending down further this year, according to the association. Ms. Howley may be contacted at kmhowley@bloomberg.net; Mr. Tracer may be contacted at ztracer1@bloomberg.net; Ms. Perlberg may be contacted at hperlberg@bloomberg.net Read the court decision
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Reprinted courtesy of Kathleen M. Howley, Zachary Tracer and Heather Perlberg, Bloomberg

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