Another Colorado City Passes Construction Defects Ordinance
February 18, 2015 —
Beverley BevenFlorez-CDJ STAFFLone Tree, Colorado’s City Council passed an ordinance to distinguish its construction defect laws from the state’s, according to the Denver Business Journal. The city of Lakewood passed a similar ordinance last October.
The Denver Business Journal reported that the new “ordinance makes changes such as establishing time frames for notifying the builder of a construction defect, allowing the builder to inspect the property and allowing the builder to repair the problem, with the homeowners' agreement.”
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Contractors Liable For Their Subcontractor’s Failure To Pay Its Employees’ Wages And Benefits
November 01, 2022 —
Edward O. Pacer & David J. Scriven-Young - ConsensusDocsRecently, Illinois Governor J.B. Pritzker signed two House Bills that amend the Illinois Wage Payment & Collections Act, 820 ILCS 115 et. seq. (“Wage Act”), to provide greater protection for individuals working in the construction trades against wage theft in a defined class of projects. Pursuant to this new law, every general contractor, construction manager, or “primary contractor,” working on the projects included in the Bill’s purview will be liable for wages that have not been paid by a subcontractor or lower-tier subcontractor on any contract entered into after July 1, 2022, together with unpaid fringe benefits plus attorneys’ fees and costs that are incurred by the employee in bringing an action under the Wage Act. This new wage theft law follows several other states that have considered and passed similar legislation.
These amendments to the Wage Act apply to a primary contractor engaged in “erection, construction, alteration, or repair of a building structure, or other private work.” However, there are important limitations to the amendment’s applicability. The amendment does not apply to projects under contract with state or local government, or to general contractors that are parties to a collective bargaining agreement on a project where the work is being performed. Additionally, the amendment does not apply to primary contractors who are doing work with a value of less than $20,000, or work that involves only the altering or repairing of an existing single-family dwelling or single residential unit in a multi-unit building.
Reprinted courtesy of
Edward O. Pacer, Peckar & Abramson, P.C. (ConsensusDocs) and
David J. Scriven-Young, Peckar & Abramson, P.C. (ConsensusDocs)
Mr. Pacer may be contacted at epacer@pecklaw.com
Mr. Scriven-Young may be contacted at dscriven-young@pecklaw.com
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Preparing Your Business For Internal Transition
October 14, 2019 —
Stephen P. Katz, Esq. - ConsensusDocsWhen is it right to start thinking about succession planning and preparing a construction company for transition? Many would agree – in concept, at least – that serious thought regarding succession and transition planning should begin at a company’s inception and be revisited throughout its lifecycle, but as a practical matter, it is frequently not part of the mindset when growing a business. This article explores issues that construction company owners should consider in order to achieve smooth transition of ownership and control. We will address three critical questions:
- What happens to the business when an owner retires;
- In the event an owner(s) become disabled; and,
- Unplanned exit/owner pre-deceases her/his exit from the company
Owners who do not plan carefully for transition are often faced with the less than appealing option of liquidating their business for much less than its value, or by closing the business with no return upon that event. However, those who plan carefully can realize the value of their life’s work, pass the business to the next generation and see their legacy continue.
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Stephen P. Katz, Esq., Peckar & Abramson, P.C.Mr. Katz may be contacted at
skatz@pecklaw.com
No Damages for Delay May Not Be Enforceable in Virginia
January 08, 2024 —
Christopher G. Hill - Construction Law MusingsAnyone who reads Construction Law Musings with any regularity (thank you by the way) knows that the contract is king in most instances here in Virginia. Any commercial construction subcontractor in Virginia is likely also very familiar with so-called “no damages for delay” clauses in construction contracts. These clauses essentially state that a subcontractor’s only remedy for a delay caused by any factor beyond its control (including the fault of the general contractor), after proper notice to the general contractor, is an extension of time to complete the work. However, in 2015 the Virginia General Assembly passed a change in the law that precluded the diminishment of any right to claims for demonstrated additional costs prior to payment. This left open the question as to which types of “diminishment” would be barred by the statute.
The recent case out of the Eastern District of Virginia federal court, Strata Solar LLC v. Fall Line Construction LLC, added a bit of clarity.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Will the Hidden Cracks in the Bay Bridge Cause Problems During an Earthquake?
June 26, 2014 —
Beverley BevenFlorez-CDJ STAFFDespite a “no cracks” welding code and contract provision for the San Francisco-Oakland Bay Bridge, in 2008 Caltrans proceeded with the project despite welding cracks created by the Chinese firm hired to build the roadway, according to the Sacramento Bee. By the time the cracks had been discovered, the costs were at $6.5 billion and climbing, and fixing the cracks would be time-consuming and expensive.
However, there is some dispute as to rather the welding “cracks represent a hazard to the traveling public.”
“Examine history,” Brian Maroney, Caltrans’ chief engineer for the bridge, said in a recent interview by the Sacramento Bee. “… Caltrans reviewed major quakes around the globe and never found a case in which weld cracks caused bridge-roadway fractures.”
However, the Sacramento Bee reported that there was a case where welding cracks led to fractures. For instance, after the southern California earthquake in 1994 centered in Northridge, the Santa Clara River Bridge “suffered several fractures in steel girders. The breaks were traced to tiny cracks in welds, likely present before the quake, and worsened by vibrations of heavy trucks passing overhead. When the quake struck, the girders fractured.”
The Santa Clara bridge did not collapse. Sacramento Bee claimed it remained standing because the I-beam-shaped girders were “not fracture-critical.” However, the Bay Bridge’s “roadway consists of box-girder segments welded together. In effect, they create one contiguous, fracture-critical girder,” Abolhassan Astaneh-Asl, UC Berkeley engineering professor told the Sacramento Bee. “If welds crack and grow rapidly during a large quake, the entire roadway could fail.”
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Safety, Compliance and Productivity on the Jobsite
November 18, 2019 —
Matthew Ramage - Construction ExecutiveWith any project, managing a large contingency of workers—all with varying levels of security clearance—can be a logistical headache.
On the majority of construction sites, managers lack the resources to quickly and accurately identify all onsite personnel and ensure the right labor, equipment and materials are in the right place at the right time. Equally important, construction managers need to know if worker certifications are current and only allow access to authorized areas.
Multiple factors compound the need for better transparency across the workforce, including:
- Safety. Construction work is inherently dangerous. In 2017, nearly 1,000 fatalities occurred on construction sites. This means that the industry accounted for more than 20% of private sector fatalities across all industries.
- Regulatory. The Federal government has a heightened awareness of jobsite dangers and is targeting companies that are not making every effort to maximize the workers’ safety.
- Security. Sites in urban environments require round-the-clock protection from urban explorers, thieves and the general public.
- Employee wage disputes. Lawsuits and disputes over wages and hourly employment are increasing.
- Reduced productivity. It can be difficult to measure and track productivity in construction.
Reprinted courtesy of
Matthew Ramage, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Vacant Property and the Right of Redemption in Pennsylvania
April 06, 2016 —
Suzanne Prybella – White and Williams LLPIn Pennsylvania, pursuant to the Municipal Claims and Tax Liens Act (53 P.S. §7293(a)) (the Act), the owner of a property sold under a tax or municipal claim may redeem the sold property at any time within nine months after the date of acknowledgment of the sheriff's deed by, in general, paying the amount of the debt. However, there is a caveat contained in the Act with respect to vacant property, which states that “there shall be no redemption of vacant property by any person after the date of the acknowledgment of the sheriff's deed.” (53 P.S. §7293(c)). In Brentwood Borough School District v. HSBC Bank USA, N.A., 111 A.3d 807 (Pa. Commw. Ct. 2015), a case of first impression before the Commonwealth Court of Pennsylvania, the court addressed the definition of “vacant property” under the Act and the timing of a petitioner to invoke the right of redemption with respect to vacant property.
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Suzanne Prybella, White and Williams LLPMs. Prybella may be contacted at
prybellas@whiteandwilliams.com
Construction Litigation Roundup: “Wrap Music to an Insurer’s Ears?”
February 05, 2024 —
Daniel Lund III - LexologyThe general contractor on a New Orleans condominium construction project obtained a Contractor Controlled Insurance Program/CCIP policy or "Wrap-Up" policy for the job.
An accident occurred on the job when a construction elevator/hoist fell, injuring several workers. The elevator/hoist was provided by a subcontractor, pursuant to a rental agreement and related subcontract with the general contractor. Contained within the subcontract was a provision which states that the general contractor "has arranged for the Project to be insured under a controlled insurance program (the "CCIP" or "WrapUp"),” and that the CCIP shall provide "commercial general liability insurance and excess liability insurance, in connection with the performance of the Work at the Project site."
A third-party administrator for the wrap-up policy had been in communication with the subcontractor prior to the commencement of the work, “specifically advising that insurance coverage was not automatic” and providing the subcontractor with an enrollment form for the CCIP. Ultimately, the subcontractor “declined to comply with the request,” stating that the subcontractor would "not participate in paying any wrap insurance premiums" – because the subcontractor had its own insurance.
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Daniel Lund III, PhelpsMr. Lund may be contacted at
daniel.lund@phelps.com