How Algorithmic Design Improves Collaboration in Building Design
June 18, 2019 —
Aarni Heiskanen - AEC BusinessDesign, like everything else in a construction project, is a collaborative effort. Even with digital tools, collaboration across design disciplines is not yet optimal. An experimental project thus set out to test whether algorithmic design could help streamline the interaction between architects and structural engineers.
Design data originating from an architect is used in several engineering tools for visualization, analysis, and calculation. Ideally, changes in the architect’s design would propagate automatically across all the software. Unfortunately, the process is in fact mostly manual. Hence, the design data is seldom, if ever, in perfect sync on all systems.
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi
Cybersecurity “Flash” Warning for Construction and Manufacturing Businesses
April 05, 2021 —
Jeffrey M. Dennis - Newmeyer DillionOn March 23, 2021, the FBI’s Cyber Division issued a “Flash” warning for several business sectors, including industrial, commercial, manufacturing and construction businesses. The FBI is warning that a strain of ransomware, known as “Mamba,” has been used to weaponize a widely-used encryption software known as DiskCryptor. Mamba works through the open-source DiskCryptor program to encrypt a company’s operating system and demand ransom payment. This new ransomware attack is a threat to any business which employs DiskCryptor, specifically manufacturing and construction companies.
What Should I Do?
If your company utilizes DiskCryptor, the FBI suggests a number of recommendations to mitigate and ward off any ransomware attack. Most of these suggestions fall within the guidelines of proper cyber hygiene, and include (but are not limited to) the following:
- Regularly back up data, as well as copies of data;
- Segment your network;
- Request administrator credentials to install software;
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Jeffrey M. Dennis, Newmeyer DillionMr. Dennis may be contacted at
jeff.dennis@ndlf.com
Fall 2024 Legislative Update:
October 28, 2024 —
Joshua Lane - Ahlers Cressman & Sleight PLLCReview of (a) RCW 60.30.010-020, (b) RCW 49.17.530, (c) RCW 19.95.020, (d) RCW 39.116.005, et seq., (e) RCW 36.70B.080, and (f) RCW 39.12.010 and .13
While much of the focus on the recent legislative updates has been on RCW 39.04.360, a number of other legislative changes may also have significant impacts on Washington’s construction industry. Six of these changes are summarized below.
A. RCW 60.30.010 and .020 (SSB 6108) – Concerning Retainage on Private Construction, Effective June 6, 2024
Last year, ESSB 5528 imposed restrictions and obligations related to retainage and timing of final payment on private (non-public works) projects. It capped retainage at 5%, required prompt payment on final payments, and required owners to accept a retainage bond on private construction projects, excluding single-family residential construction less than 12 units.
This year, SSB 6108 adds suppliers to the statutes (RCW 60.30.010 and 0.020) pertaining to retainage on private construction projects.
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Joshua Lane, Ahlers Cressman & Sleight PLLCMr. Lane may be contacted at
joshua.lane@acslawyers.com
My Employees Could Have COVID-19. What Now?
March 23, 2020 —
Amy R. Patton, Leila S. Narvid, Matthew C. Lewis, Robert Tadashi Matsuishi & Sarah J. Odia - Payne & FearsUpdated Guidance as of March 19, 2020.
You are concerned about potentially sick employees in the workplace. One employee is off work sick for a couple of days, and then wants to return to work. Another plans to return to work after a week of travel. Another appears to be sick at work. They are coughing, sneezing, and appear to be short of breath. You are concerned they may have COVID-19. What can you do? You're not the only one concerned -- your other employees are, too.
Your public-facing employees want to wear masks to protect themselves. One employee tells you he doesn’t want to touch anything that others in the office have touched. What are your obligations to these employees?
Below, we address questions relating to keeping employees safe from COVID-19 in the workplace without violating the Americans with Disabilities Act (ADA) or employee privacy laws.
Can I require an employee returning from days away from work due to illness to report the symptoms the employee was experiencing that kept him/her out of work?
Short answer: yes, so long as the questions are limited to whether the employee has had flu-like symptoms. Though the ADA prohibits asking employees questions related to an employee disability, COVID-19 (like the seasonal flu) likely does not rise to the level of a disability, so asking an employee about flu-like (or COVID-19-like) symptoms is unlikely to elicit information related to a disability. The Equal Employment Opportunity Commission (EEOC) has taken the position that an employer may ask if an employee is experiencing flu-like symptoms if the employee reports being ill during a pandemic.
Reprinted courtesy of Payne & Fears attorneys
Amy R. Patton,
Leila S. Narvid,
Matthew C. Lewis,
Robert Tadashi Matsuishi and
Sarah J. Odia
Ms. Patton may be contacted at arp@paynefears.com
Ms. Narvid may be contacted at ln@paynefears.com
Mr. Matthew may be contacted at mcl@paynefears.com
Mr. Robert may be contacted at rtm@paynefears.com
Ms. Odia may be contacted at sjo@paynefears.com
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Newmeyer Dillion Secures Victory For Crown Castle In Years-Long Litigation With City Council Of Piedmont Over Small Cell Wireless Telecommunications Sites
December 30, 2019 —
Newmeyer DillionNewmeyer Dillion, a prominent business and real estate law firm, is pleased to announce that, on November 18, 2019, the City Council of the City of Piedmont unanimously voted to approve the installation of 17 small cell wireless telecommunications sites by Newmeyer Dillion client Crown Castle NG West LLC, the leading provider of shared communications infrastructure in the United States. This victory ends a long-running legal dispute over Crown Castle's small cell wireless network, which was vehemently opposed by Piedmont residents and previously rejected by the City Council, prompting Newmeyer Dillion to bring a lawsuit against the city in 2017.
The dispute began in 2016 when Crown Castle filed an application with the City Council of the City of Piedmont to build nine small cell wireless sites designed to provide critical wireless telecommunications coverage in Piedmont. In October 2017, the Council denied the network, rejecting some of the proposed sites or approving others with onerous conditions.
Newmeyer Dillion's Government, Land Use and Environmental practice group filed a lawsuit on behalf of Crown Castle in the United States District Court for the Northern District of California in November 2017, challenging the Council's decision. Drawing from the language established in the Telecommunications Act of 1996, the lawsuit alleged that Piedmont's ordinances established an unreasonably high bar of approval, unlawfully prohibiting telecommunications services in the city.
The city quickly requested a court-supervised settlement, which was approved by the City Council in December 2018 and allowed Crown Castle to reapply to build 17 small cell wireless telecommunications facilities. The unanimous City Council approval came after extensive mediation work between the two parties.
"We are excited that our years-long efforts have culminated in this major win for Crown Castle, allowing them to build out critical telecommunications infrastructure in the City of Piedmont," said Michael Shonafelt, partner at Newmeyer Dillion. "With the growing national need for robust telecommunications networks that can handle voice communication and modern data demands, approvals such as this are significant, not just for the community the network serves, but for the viability of the national telecommunications network as a whole. Our team is proud to be using our multidisciplinary, business-oriented approach to successfully advise clients navigating these issues."
About Newmeyer Dillion
For 35 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 corporate, privacy & data security, employment, real estate, construction, insurance law and trial work, 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.newmeyerdillion.com.
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How Small Mistakes Can Have Serious Consequences Under California's Contractor Licensing Laws.
February 15, 2018 —
Eric Reed - Myers, Widders, Gibson, Jones & Feingold, LLPIn construction, some risks have nothing to do with how well a contractor executes a project. Licensing problems is one of these risks. Even a brief lapse caused by an unintentional administrative error can give the CSLB grounds to discipline a contractor, or enable a customer to seek disgorgement and other remedies provided by Business and Professions Code section 7031. This article discusses five tips for mitigating the liabilities associated with licensing problems.
Tip 1: Take workers' compensation insurance very seriously. Workers’ compensation insurance problems can trigger license suspension in California. Business and Professions Code section 7125.4 calls for automatic suspension if a contractor cannot provide proof of workers’ compensation insurance for any period of time. This is particularly serious for residential remodelers who claim exemption for workers’ compensation but are later discovered – usually during litigation with a homeowner – to have “off the books” workers helping them. Courts can declare the contractor retroactively unlicensed under these circumstances and order it to disgorge,
i.e., to pay back, every penny paid by the customer for the entire project (even for materials). (Bus. & Prof. Code, § 7031, subd. (b);
Wright v. Issak (2007) 149 Cal.App.4th 1116.) The contractor will also find itself unable to collect any amounts owed to it by the customer. (Bus. & Prof. Code, § 7031, subd. (a).)
Tip 2: Watch out for licensing confusion after a merger or acquisition. The economic downturn of 2008 and 2009 resulted in consolidation throughout the building industry. The newly merged or acquired entities often allowed redundant licenses to expire, assuming they could complete all pending projects under the umbrella of the acquiring company's license. Many learned this was a mistake the hard way. Armed with the California Supreme Court's opinion in
MW Erectors, Inc. v. Niederhauser Ornamental & Metal Works Co., Inc. (2005) 36 Cal.4th 412, customers began refusing to pay invoices and demanding disgorgement under Business and Professions Code section 7031 because the original contractor did not maintain licensure “at all times.” Many of these customers succeeded.
Tip 3: If a license suspension has occurred or is imminent, prepare to prove substantial compliance. Section 7031(a) and (b) give a disgruntled or indebted customer every incentive to capitalize on a contractor's licensing problems. Subdivision (e) is where a contractor must turn to protect its interests if this happens. It allows the contractor to prove “substantial compliance” with licensing requirements and avoid (a)’s and (b)’s sharp edges if it can show the following:
(1) The contractor “had been duly licensed as a contractor in this state prior to the performance of the act or contract”;
(2) It “acted reasonably and in good faith to maintain proper licensure”; and
(3) It “acted promptly and in good faith to remedy the failure to comply with the licensure requirements upon learning of the failure.”
The Court of Appeal confirmed in
Judicial Council of California v. Jacobs Facilities, Inc. (2015) 239 Cal.App.4th 882 that a contractor, upon request, is entitled to a hearing on these three factors before it is subjected to disgorgement under Section 7031(b). The legislature amended Section 7031 shortly after the Court of Appeal published this case. The Assembly’s floor analysis went so far as to directly quote the opinion’s observation that penalizing a construction firm for “technical transgressions only indirectly serves the Contractors Law’s larger purpose of preventing the delivery of services by unqualified contractors.” (Assem. Com. on Bus. and Prof., Off. of Assem. Floor Analyses, analysis of Sen. Holden's No. 1793 (2015-2016 Reg. Sess.) as amended August 2, 2016, p. 2.) This echoed an industry consensus that clarifying the law was needed to ensure that properly licensed and law-abiding construction firms were not “placed at fatal monetary risk by malicious lawsuits motivated by personal gain rather than consumer protection.” (Assem. Com. on Judiciary, com. on Assem. Bill No. 1793 (2015-2016 Reg. Sess.), pp. 6-7.)
Unfortunately, existing law does not give many examples of what it means to act “reasonably and in good faith to maintain proper licensure” or to act “promptly and in good faith” to fix license problems. A practical approach is for a contractor to work backwards by assuming it will need to prove substantial compliance at some point in the future. Designated individuals within the organization should have clear responsibility over obtaining and renewing the proper licenses and should keep good records. If necessary, these designees can testify about the contractor's internal policies and their efforts to fix licensing problems when they arose. For example, if the suspension resulted from not providing the CSLB proof of workers’ compensation insurance, the designee can testify about the cause (a broker miscommunication, transmission error,
etc.) and produce documents showing how he or she worked promptly to procure a certificate of insurance to send CSLB. Saved letters, emails, and notes from telephone calls will provide designees and their successors with an important resource months or years down the line if a dispute arises and the contractor is required to reconstruct the chronology of a licensing glitch and prove its due diligence.
Tip 4: Don't sign new contracts unless all necessary licenses are active and any problems are resolved. A recently-formed contractor should not begin soliciting and signing contracts until all required licenses are confirmed as “active.” The first requirement of substantial compliance – being “duly licensed as a contractor in this state prior to the performance of the act or contract” – cannot be met by a contractor that first obtains its license mid-project. (Bus. & Prof. Code, § 7031, subd. (e)(1);
Alatriste v. Cesar’s Exterior Designs (2010) 183 Cal.App.4th 656.) A licensed contractor should also consider refraining from signing new contracts if there is any reason to believe its license might be suspended in the near future – especially if the suspension will be retroactive. Having a suspension on record at the time of contracting may complicate the question of whether the contractor was “duly licensed . . . prior to performance” for the purposes of substantial compliance.
Tip 5: Any judgment against a contractor can cause license suspension if not handled promptly and correctly. The Business and Professions Code authorizes the CSLB to suspend the license of a contractor that does not pay a construction related court judgment within 90 days. The term “construction related” is interpreted to include nearly all types of disputes involving a contractor. (16 Cal. Code Reg. 868;
Pacific Caisson & Shoring, Inc. v. Bernards Bros. Inc. (2015) 236 Cal.App.4th 1246, 1254-1255.) This means a contractor should treat a judgment against it for unpaid office rent, for example, as one carrying the same consequences as one arising from a construction defect or subcontractor claim. The contractor should also not assume that filing an appeal, or agreeing with the other side to stay enforcement, automatically excuses the 90-day deadline in the eyes of the CSLB. It does not. A contractor must notify the CSLB in writing before this period expires, then post bond for the amount of judgment, if it wishes to delay payment for any reason. (Bus. & Prof. Code, § 7071.17, subd. (d).) A suspension may result if it does not. This applies even to small claims judgments.
Recent case law and the 2016 amendments to Business and Professions Code section 7031 provide some solace to those caught in the dragnet of California's licensing laws. But avoiding these problems altogether is preferable. Consider licensing the foundation of a successful business and deserving of the same attention as the structures a contractor builds.
Eric R. Reed is a business and insurance litigator in the Ventura office of Myers, Widders, Gibson, Jones & Feingold, LLP.
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Eric Reed, Myers, Widders, Gibson, Jones & Feingold, LLPMr. Reed may be contacted at
ereed@mwgjlaw.com
Seven Proactive Steps to Avoid Construction Delay Disputes
September 29, 2021 —
Michael Pink - Construction ExecutiveDelays, cost overruns and disputes have long been part of the commercial construction industry, making the work of reactive forensic analysis by consultants and attorneys a necessary component. Yet many internal practices and issues within construction companies strongly correlate with projects that result in legal disputes and financial losses. There are seven proactive steps that can help companies minimize losses and claims.
Prepare a Cost- and Resource-Loaded Critical Path Method Schedule
This is the first step any contractor can take to establish and document a manpower plan, a timeline and an intended flow for its work. Doing so is beneficial for two reasons: it will become the basis for measuring impacts and variances to both cost and schedule in a delay, dispute or claim setting; and it will serve as a great project management resource or tool. Without thinking through manpower, durations and workflow in great detail at the beginning of the project, contractors put themselves at risk of becoming delayed and blowing the budget.
Reprinted courtesy of
Michael Pink, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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New York Supreme Court Building Opening Delayed Again
September 24, 2014 —
Beverley BevenFlorez-CDJ STAFFSI Live reported that the opening of the new state Supreme Court building in St. George, New York is delayed again due to problems with the air-conditioning and elevator systems. Delay, however, is not new to this project, which was originally expected to be completed over a decade ago.
Initial delay was introduced “with the finding of remains from a 19th-century burial ground at the site, a former municipal parking lot, and more recently, with construction set-backs and other tie-ups,” according to SI Live.
When completed, the new “building will boast 14 courtrooms, jury assembly, hearing and deliberation rooms, judges' chambers and court offices. There will also be holding cells for prisoners.”
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