WARN Act Exceptions in Response to COVID-19
April 13, 2020 —
Yvette Davis & Kyle R. DiNicola - Haight Brown & BonesteelCalifornia’s WARN Act requires employers of certain covered establishments to provide 60 days written notice of any mass layoff, relocation, or termination. This notice is required to be given to employees and the Employment Development Department. An employer’s failure to comply with this requirement can result in being held liable for back-pay and value of the cost of any benefits to which the affected employee(s) may have been entitled for up to a maximum of 60 days.
Due to the COVID-19 crisis and emergency circumstances in which many employers now find themselves, the Governor of California has issued Executive Order N-31-20, which temporarily suspends the 60-days advance notice requirement and the provisions that impose liability and penalties on an employer for the duration of the COVID-19 emergency.
Reprinted courtesy of
Yvette Davis, Haight Brown & Bonesteel and
Kyle R. DiNicola, Haight Brown & Bonesteel
Ms. Davis may be contacted at ydavis@hbblaw.com
Mr. DiNicola may be contacted at kdinicola@hbblaw.com
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Bremer Whyte Brown & O’Meara LLP Attorneys to Speak at the 2016 National Construction Claims Conference
September 01, 2016 —
Beverley BevenFlorez-CDJ STAFFBremer Whyte Brown & O’Meara, LLP (BWBO), announced that Keith G. Bremer, Founding Partner and John H. Toohey, Partner, will be speaking at the CLM National Construction Claims Conference being held September 28-30th this year. More than 500 professionals will gather at the conference location, the Manchester Grand Hyatt in San Diego, California.
According to BWBO’s release, “the CLM will hold the most comprehensive construction claims conference ever. In addition to addressing construction defect claims, conference sessions will also address facets of construction-related claims including construction site accidents/injuries, coverage issues, subcontractor issues, and new technologies. Sessions will also address issues on the national, regional, and state levels.”
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Bay Area Counties Issue Less Restrictive “Shelter in Place” Orders, Including for Construction
May 04, 2020 —
Garret Murai - California Construction Law BlogThe short story: Construction can resume. The long story: Construction can resume beginning Monday, May 4, 2020,
with extensive and detailed restrictions.
Six Bay Area Counties Loosen Shelter-in-Place Restrictions Including Allowing Construction to Resume
Earlier this week, six Bay Area counties and the City of Berkeley issued new orders requiring the use of face coverings when in public. The six Bay Area counties, which also happen to be the first counties in the nation to issue shelter-in-place orders, are Alameda, Contra Costa, Marin, San Francisco, San Mateo and Santa Clara.
When do the revised shelter-in-place orders take effect?
The revised shelter-in-place orders take effect at 11:59 p.m. on May 3, 2020 and will remain in effect until 11:59 p.m. on May 31, 2020 unless extended, rescinded, superseded, or amended. Thus, effectively, the new orders take effect on Monday, May 4, 2020.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Locating Construction Equipment with IoT and Mobile Technology
May 13, 2019 —
Aarni Heiskanen - AEC BusinessIt can take hours, or even days, to find a specific scissor lift on a large construction site – multiply that with hundreds of machines on the site and, then, you grasp the scale of the dilemma. Three companies joined forces to test an IoT solution that could fix the problem, cost-efficiently.
Ramirent is a construction equipment rental and service firm that operates in nine European countries. It uses digital tools and services to add value to its customers and improve the efficiency of construction operations. In November 2018, Ramirent, SRV, and Kaltiot completed a test on promising technology that is used to locate construction equipment indoors. The experiment took place in Helsinki and was partly funded by the national KIRA-digi digitalization project.
Setting up the Test
Tomi Anttila, Development Manager at Ramirent Finland Oy, explained that they chose scissor lifts as a test subject for a particular reason: “They are an essential tool in construction. Whenever you have to work flexibly above the floor level – doing HVACE installations, for example – you need a movable lift. On our test site, REDI, there were over 150 lifts at any moment.”
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi
Paycheck Protection Flexibility Act Of 2020: What You Need to Know
July 20, 2020 —
Amy R. Patton & Rana Ayazi - Payne & FearsOn June 5, 2020, President Trump signed into legislation the bipartisan bill titled the Paycheck Protection Program Flexibility Act of 2020 (PPPFA). The PPPFA modifies the Paycheck Protection Program, which was first introduced under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). The modifications provide borrowers more control over the use of funds and make it easier to obtain forgiveness. The following is a summary of the key changes.
1. Extended Maturity Date From 2 Years to 5 Years
Under the CARES Act, the minimum maturity date for loan amounts after the forgiveness period was not defined. The Small Business Administration (SBA) then released an Interim Final Rule clarifying that the minimum maturity date was two years. The PPPFA has extended the term to five years: “The covered loan shall have a minimum maturity of 5 years and a maximum maturity of 10 years from the date on which the borrower applies for loan forgiveness under that section.”
2. Extension of Covered Period From Eight Weeks to a Maximum of 24 Weeks
Under the CARES Act, the covered period of the loan (i.e., the time period in which you may spend the loan funds) was February 15, 2020 to June 30, 2020, an eight-week period. The PPPFA extended the covered period to 24 weeks from the origination date of the loan, or December 31, 2020, whichever is earlier.
Reprinted courtesy of
Amy R. Patton, Payne & Fears and
Rana Ayazi, Payne & Fears
Ms. Patton may be contacted at arp@paynefears.com
Ms. Ayazi may be contacted at ra@paynefears.com
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Colorado Construction Defect Action Reform: HB 17-1279 Approved by Colorado Legislature; Governor’s Approval Imminent
June 05, 2017 —
Erik G. Nielsen - Snell & Wilmer Legal AlertColorado developers frequently cite Colorado’s Construction Defect Action Reform Act (CDARA) as an obstacle to building new condominiums in the state. Developers contend that the law makes it too easy for condo boards to sue developers for workmanship issues, however trivial. As a result, Colorado has seen significant growth in the development of rental apartments, while development of new, for-sale, multi-unit housing, has declined in the state. In 10 years, new condo development in Colorado dropped from 20 percent to just 3 percent of total new-housing starts. Recognizing this issue, Governor Hickenlooper and the Colorado Legislature have taken an interest in reforming CDARA by, among other things, making it more difficult for condo boards and associations to sue construction professionals. Well on its way to becoming law, HB 17-1279 does exactly that.
After the enactment of HB 17-1279, the executive boards of homeowners’ associations (HOA) in common interest communities will have to satisfy three broad elements before bringing suit against a construction professional on behalf of the community’s individual unit owners.
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Erik G. Nielsen, Snell & WilmerMr. Nielsen may be contacted at
egnielsen@swlaw.com
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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Florida “Property Damage” caused by an “Occurrence” and “Your Work” Exclusion
July 23, 2014 —
Scott Patterson - CD CoverageIn J.B.D. Construction, Inc. v. Mid-Continent Casualty Co., * Fed.Appx. *, 2014 WL 3377690 (11th Cir. 2014), claimant property owner Sun City contracted with insured general contractor J.B.D. for the construction of a fitness center. The fitness center was to be physically connected to an existing Sun City building. J.B.D. utilized subcontractors for some of the work. Shortly after completion, leaks developed in the fitness center’s roof, windows and doors which J.B.D. attempted to fix. After Sun City refused to make the final contract payment, J.B.D. sued Sun City for contract amounts owed. Sun City counterclaimed for the construction defects, alleged damage to the fitness center and other property. J.B.D. tendered defense of the counterclaim to its CGL insurer Mid-Continent. After Mid-Continent failed to agree to defend, J.B.D. settled with Sun City, paying Sun City $182K. Following several demands from J.B.D. for reimbursement of defense costs and the settlement amount, Mid-Continent tendered the defense costs minus a deductible. J.B.D. then sued Mid-Continent for breach of duties to defend and indemnify. On cross motions for summary judgment, the federal district trial court entered judgment for Mid-Continent, finding no duties to defend or indemnify. On appeal, the Eleventh Circuit reversed on the duty to defend while affirming on the duty to indemnify. Applying Florida law, the court first held that the defective work, including the defective installation of the fitness center’s windows, doors, and roof, did not constitute “property damage.” Thus, the costs to repair or replace the defective work did not constitute damages because of “property damage.” The court next held that, while damage to other portions of the fitness center would constitute “property damage” caused by an “occurrence,” all such “property damage” fell within the “your work” exclusion.
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Scott Patterson, CD Coverage