Cambridge Massachusetts Building Expert Directory

Update Regarding New York’s New Registration Requirement for Contractors and Subcontractors Performing Public Works and Covered Private Projects

February 06, 2023 — Christopher B. Kinzel, K. Greer Kuras, Aaron C. Schlesinger - Peckar & Abramson, P.C.
Some significant changes are being made by chapter amendments (S.838 and A.984) to Section 220-i of New York’s Labor Law. Contractors and subcontractors bidding on public contracts and performing work on covered private projects will have two years (by December 30, 2024) to register with the Department of Labor, Bureau of Public Works, rather than one year. The amendments also remove the requirement that a contractor submit registration certificates for all its subcontractors at the time its bid is submitted; amend language with respect to notice and hearing requirements; require re-registration to occur not less than 90 days before expiration; and add language to require a monitor to oversee ongoing work if a contractor or subcontractor is found unfit. The stated purpose of the law is to help enforce New York’s prevailing wage and other worker protection laws. The DOL will create an online system through which contractors and subcontractors will have to answer questions and submit documents about:

the business entity and its owners and officers
unemployment and workers’ compensation insurance
any outstanding wage assessments
debarment under New York or federal law, or any other state’s laws
final determinations of a violation of any labor laws, employment tax laws, or workplace safety standards (including OSHA)
association or signatory to an apprenticeship program

Reprinted courtesy of Christopher B. Kinzel, Peckar & Abramson, P.C., K. Greer Kuras, Peckar & Abramson, P.C. and Aaron C. Schlesinger, Peckar & Abramson, P.C. Mr. Kinzel may be contacted at ckinzel@pecklaw.com Ms. Kuras may be contacted at gkuras@pecklaw.com Mr. Schlesinger may be contacted at aschlesinger@pecklaw.com Read the court decision
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Lease-Leaseback Battle Continues as First District Court of Appeals Sides with Contractor and School District

August 17, 2017 — Garret Murai - California Construction Law Blog
Earlier, we wrote about Davis v. Fresno United School District (2015) 237 Cal.App.4th 261, a Fifth District California Court of Appeals decision that sent shock waves through the school construction industry and raised questions regarding the use of California’s lease-leaseback method of project delivery (Education Code sections 17400 et seq.). California’s lease-leaseback method of project delivery provides an alternative project delivery method for public school districts than the usual design-bid-build method of project delivery. Under the lease-leaseback method of project delivery, a school district leases its property to a developer, who in turn builds a school facility on the property and leases it back to the school district. One of the benefits of the lease-leaseback method of project delivery is that school districts do not need to come up with construction funds to build school facilities since they pay for the construction over time through their lease payments to the developer. Critics, however, argue that because lease-leaseback projects do not need to be competitively bid, they are ripe for cronyism between developers and school districts. In Davis, a taxpayer successfully brought suit against the Fresno Unified School District challenging the propriety of a lease-leaseback project because the entirety of the District’s “lease payments” occurred while the project was being constructed and thus, successfully argued the taxpayer, there was no “true” lease of a facility since it was under construction. Read the court decision
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Reprinted courtesy of Garret Murai, Wendel Rosen Black & Dean LLP
Mr. Murai may be contacted at gmurai@wendel.com

Mexico Settles With Contractors for Canceled Airport Terminal

August 26, 2019 — Eric Martin - Bloomberg
Mexico City's airport authority settled a dispute with builders on an 85 billion peso ($4.45 billion) contract for the terminal at a new Mexico City airport that President Andres Manuel Lopez Obrador canceled a month before taking office. Grupo Aeroportuario Ciudad de la Mexico will pay 14.2 billion pesos, equivalent to 16.7% of the contract's total cost, to Constructora Terminal de Valle de Mexico, a consortium that includes Carlos Slim's Operadora Cicsa, the Communications and Transportation Ministry said in an emailed statement. The contracts represented 45% of the airport's total cost, the ministry said. Read the court decision
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Reprinted courtesy of Eric Martin, Bloomberg

New Florida Bill Shortens Time for Construction-Defect Lawsuits

September 06, 2023 — Jessica Zelitt - Construction Executive
On April 13, 2023, Florida Gov. Ron DeSantis signed Senate Bill 360 into law. This legislation alters the time period for bringing forward construction-defect lawsuits, as well as modifies the current private right of action against a contractor for violation of the Florida Building Code. First, SB 360 amends § 95.11(3)(c), Florida Statutes, to reduce the statute of repose from 10 years to seven years for actions founded on latent construction defects. The legislation also changes the manner in which this time period is calculated under both the seven-year statute of repose and the four-year statute of limitations for construction-defect cases. Under the prior statute, the time to commence an action began with the later of (i) the date of actual possession by the owner, (ii) the date of the issuance of a certificate of occupancy (CO), (iii) the date of abandonment of construction if not completed or (iv) the date of completion or termination of the contract. Reprinted courtesy of Jessica Zelitt, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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Ms. Zelitt may be contacted at jessica.zelitt@arlaw.com

No Coverage for Breach of Contract Claims Against Contractor

March 19, 2014 — Tred R. Eyerly – Insurance Law Hawaii
The U. S. District Court found there was no coverage for breach of contract claims against the contractor who walked off the job before completing the project. Pa. Nat'l Mut. Cas. Ins. Co. v. Snider, 2014 U.S. Dist. LEXIS 16920 (M.D. Ala. Feb. 11, 2014). The homeowners hired Jeff Beale to build their home for an approximate cost of $650,000. Beale said the job would take six to eight months and construction would be completed in early 2005. Construction did not begin, however, until April 2005. By 2005, the homeowners were becoming increasing displeased with Beale's progress. By March 2006, construction costs were approaching $800,000 and the home was not completed. The homeowners made progress payments on a monthly basis. Beale did not return to the home after April 2006 and another contractor was hired to complete the job. When the homeowners moved in, they discovered several construction defects, including a cracked retaining wall and water intrusion in many areas of the home. They paid over $150,000 to repair the defects, to complete work Beale left unfinished, and remove mold. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Montana Federal Court Holds that an Interior Department’s Federal Advisory Committee Was Improperly Reestablished

December 09, 2019 — Anthony B. Cavender - Gravel2Gavel
On August 13, 2019, in a case that may have an impact on the leasing of federal lands for energy development in the future, the U.S. District Court for the Missoula, Montana Division, issued a ruling in the case of Western Organization of Resource Councils v. Bernhardt, which involves the application of the Federal Advisory Committee Act (FACA) to the Department of the Interior’s Royalty Policy Committee. This advisory committee, initially established in 1995 to provide advice to the Secretary on issues related to the leasing of federal and Indian lands for energy and mineral resources production, is subject to the provisions of FACA, codified at 5 U.S.C. app. Sections 1-16. The plaintiffs challenged the operations of this advisory committee, which was reestablished for two years beginning in 2017, because it allegedly “acts in secret and works to advance the goals of only one interest: the extractive industries that profit from the development of public gas, oil, and coal.” More specifically, the plaintiffs alleged that this advisory committee violated FACA because: (a) it was not properly established as provided in the implementing GSA rules (which are located at 41 CFR Section 102-3); (b) did not provide public notice of its meetings and publicly disseminate its materials; (c) ensure that its membership was fairly balanced; and (d) failed to exercise independent judgment without inappropriate influences from special interests. Read the court decision
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Reprinted courtesy of Anthony B. Cavender, Pillsbury
Mr. Cavender may be contacted at anthony.cavender@pillsburylaw.com

No Coverage For Construction Defects Under Alabama Law

September 14, 2017 — Tred R. Eyerly - Insurance Law Hawaii
The federal district court found there was no coverage for alleged defects caused by the insured homebuilder. Canal Indem. Co. v. Carbin, 2017 U.S. Dist. LEXIS 126662 (N.D. Ala. Aug. 10, 2017). Carbin Construction filed suit against Aaron and Sherry Ford, asserting mechanic's and materialman's liens, and seeking sums allegedly due for work performed under a construction contract. The Fords filed a counterclaim, alleging that over a year had passed since Carbin was to complete construction, and that Carbin refused to do any further work on the house until he was paid an additional $11,771.43. The Fords further contended that Carbin had walked off the job after receiving 96.6 percent of the money owed under the contract although only 88 percent of the construction work had been completed. Carbin tendered the counterclaim to Canal. Canal then filed suit seeking a declaration that it had no duty to defend. Read the court decision
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Reprinted courtesy of Tred R. Eyerly - Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Elyria, Ohio, to Invest $250M to Halt Illegal Sewage into Black River

December 18, 2022 — Jim Parsons - Engineering News-Record
Elyria, Ohio, will invest nearly $250 million in capital improvement projects over the next 20 years to eliminate longstanding discharges of untreated sewage into the Black River, 10 miles upstream from Lake Erie. The plan is part of a consent decree negotiated with federal and state regulators following more than 1,000 illegal discharges from the city's sewer system into the river or its tributaries since 2011. Reprinted courtesy of Jim Parsons, Engineering News-Record ENR may be contacted at enr@enr.com Read the full story... Read the court decision
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