FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

When Your “Private” Project Suddenly Turns into a “Public” Project. Hint: It Doesn’t Necessary Turn on Public Financing or Construction

September 28, 2017 — Garret Murai - California Construction Law Blog
In 1931, during the Great Depression, the federal government enacted the Davis-Bacon Act to help workers on federal construction projects. The Davis-Bacon Act, also known as the federal prevailing wage law, sets minimum wages that must be paid to workers on federal construction projects based on local “prevailing” wages. The law was designed to help curb the displacement of families by employers who were recruiting lower-wage workers from outside local areas. Many states, including California, adopted “Little Davis-Bacon” laws applying similar requirements on state and local construction projects. California’s current prevailing wage law requires that contractors on state and local public works projects pay their employees the general prevailing rate of per diem wages based on the classification or type of work performed by the employee in the locality where the project is located, as well as to hire apprentices enrolled in state-approved apprentice programs and to make monetary contributions for apprenticeship training. 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

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Obama Asks for $302 Billion to Fix Bridges and Potholes

May 01, 2014 — Laura Litvan – Bloomberg
The Obama administration sent to Congress legislation that would provide $302 billion for road and transit projects over four years, a measure needed to keep the U.S. Highway Trust Fund from running dry. The Transportation Department proposal would boost the highway fund $87 billion above current levels to generate more money for deficient bridges and aging transit systems. The bill also addresses the General Motors Co. (GM) ignition-switch recall by raising almost 10-fold to $300 million the maximum fine on carmakers that fail to quickly recall deficient vehicles. Congressional transportation leaders in both parties have said they want to pursue six-year measures, though there is little consensus on how to finance the proposals. The Transportation Department has said the Highway Trust Fund -- which relies on gasoline and diesel-fuel taxes -- may not be able to meet its obligations as soon as this year. That risks leading states to slow or halt work in a recovering economy. Read the court decision
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Reprinted courtesy of Laura Litvan, Bloomberg
Ms. Litvan may be contacted at llitvan@bloomberg.net

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Want a Fair Chance at a Government Contract? Think Again

July 13, 2017 — Duane Craig - Construction Informer
If you’ve ever missed out on a government contract, part of the reason might have been because entrenched government contractors gained competitive advantages by under-paying their workers. The Fair Pay & Safe Workplaces executive order was nullified by Congress this year and much of the reporting by the business press presented just one side of the story. Here’s another perspective. When awarding federal contracts the government is supposed to consider each contractor’s compliance with labor laws related to pay, health and safety. But, there is a huge problem with enforcement on a government contract, according to Senator Elizabeth Warren and other observers.

• Some federal contractors frequently underpay their workers violating wage and hour laws. More than 300,000 workers were cheated out of pay while working under federal contracts in the last decade. There were 12,000 companies working on federal contracts that were doing the cheating.
• 692 federal contractors significantly violated federal labor laws, and then repeated the behavior, over and over. The repeat offenders receive millions in taxpayer dollars as they violated safety and health standards. Those violations caused a wide range of physical harm to workers. Dozens of workers died, and countless numbers were exposed to chemicals that cause long term health problems.

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Reprinted courtesy of Duane Craig, Construction Informer
Mr. Craig may be contacted at dtcraig@constructioninformer.com

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Bar Against Forum Selection Clauses in Construction Contracts Extended to Design Professionals

October 28, 2015 — Garret Murai – California Construction Law Blog
It’s a tactic as old as war itself. You can often gain a strategic advantage by selecting the location of battle. The same is true in litigation. But as the next case illustrates, when it comes to disputes between contractors (and design professionals), it isn’t always the combatants who dictate where the battle will be fought. Vita Planning and Landscape Architecture, Inc. v. HKS Architects, Inc. In Vita Planning and Landscape Architecture, Inc. v. HKS Architects, Inc., Case No. A141010, California Court of Appeals for the First District (September 25, 2015), Texas architecture firm HKS Architects, Inc. (“HKS”) was hired to provide architectural services. HKS’ design service agreement included a Texas forum selection clause which provided:

As a condition precedent to the institution of any action [or] lawsuit all disputes shall be submitted to mediation” and “[a]ll claim , disputes, and other matters in question between the parties arising out of or related to the Agreement . . . be resolved by the . . . courts in . . . Texas.”

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Reprinted courtesy of Garret Murai, Wendel Rosen Black & Dean LLP
Mr. Murai may be contacted at gmurai@wendel.com

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Preparing the Next Generation of Skilled Construction Workers: AGC Workforce Development Plan

November 08, 2017 — David R. Cook Jr. - Autry, Hanrahan, Hall & Cook, LLP
In August, Associated General Contractors (AGC) and Autodesk released the results of their 2017 Construction Workforce Shortage Survey. Of the more than 1,600 survey respondents, 70 percent said they are having difficulty filling hourly craft positions. Craft worker shortages are the most severe in the West, where 75 percent of contractors are having a hard time filling those positions, followed by the Midwest where 72 percent are having a hard time finding craft workers, 70 percent in the South and 63 percent in the Northeast. Tight labor market conditions are prompting firms to change the way they operate, recruit and compensate workers. Most firms report they are making a special effort to recruit and retain veterans (79 percent); women (70 percent), and African Americans (64 percent). Meanwhile, half of construction firms report increasing base pay rates for craft workers because of the difficulty in filling positions. Twenty percent have improved employee benefits for craft workers and 24 percent report they are providing incentives and bonuses to attract workers. Read the court decision
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Reprinted courtesy of David R. Cook, Autry, Hanrahan, Hall & Cook, LLP
Mr. Cook may be contacted at cook@ahclaw.com

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Eleventh Circuit Reverses Attorneys’ Fee Award to Performance Bond Sureties in Dispute with Contractor arising from Claim against Subcontractor Performance Bond

February 27, 2019 — CDJ STAFF
On October 26, 2018, the United States Court of Appeals for the Eleventh Circuit (the “Eleventh Circuit”) issued a decision which reversed an award of prevailing party attorneys’ fees to performance bond sureties in their dispute with a contractor arising from the contractor’s claim against a subcontractor’s performance bond. Had the lower court’s decision been affirmed, the performance bond sureties would have been able to recover prevailing party attorneys’ fees against the contractor even though they were not parties to the underlying subcontract and the subcontract did not contain a prevailing party attorneys’ fee provision. The underlying case is complicated and arose from the construction of Brickell CityCentre in Miami. Americaribe-Moriarty JV (the “Contractor”) asserted a claim against a performance bond procured by a defaulted subcontractor and issued by International Fidelity Insurance Company and Allegheny Casualty Company (collectively, the “Sureties”). The Sureties filed a declaratory judgment action against the Contractor in the United States District Court for the Southern District of Florida (the “District Court”), seeking a declaration that the Contractor failed to perfect its claim against the performance bond. Reprinted courtesy of Gary M. Stein, Peckar & Abramson and K. Stefan Chin, Peckar & Abramson Mr. Stein may be contacted at gstein@pecklaw.com Mr. Chin may be contacted at kschin@pecklaw.com Read the court decision
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Drone Operation in a Construction Zone

August 17, 2020 — Mark R. Berry & Freddy X. Muñoz - Peckar & Abramson
The potential uses of unmanned aircraft systems (UAS) in the construction industry continue to expand as new technologies enter the market and construction companies realize UAS can perform unique tasks at tremendous cost savings. The full technological capabilities of UAS are, however, limited by law for public safety reasons. UAS share airspace with traditional passenger, military and cargo aircraft, and are potential hazards for humans below. The risk of potential catastrophic collisions has led to a careful approach to the adoption of this technology. All U.S. airspace is exclusively regulated by the Federal Aviation Administration (FAA), and therefore, most drone regulation originates from this agency. Many states and localities have also enacted additional limits on UAS operations, and many of these nonfederal regulations are presently on unsure footing after a federal court ruling in Singer v. Newton invalidated a local regulation that conflicted with FAA regulations. What is clear is that all commercial UAS operations must comply with FAA regulations. Any drone operation conducted by any private company, even through use of an employee’s personal drone, would constitute commercial operation subject to regulation. Reprinted courtesy of Mark R. Berry, Peckar & Abramson and Freddy X. Muñoz, Peckar & Abramson Mr. Berry may be contacted at mberry@pecklaw.com Mr. Muñoz may be contacted at fmunoz@pecklaw.com Read the court decision
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Insureds Survive Motion to Dismiss Civil Authority Claim

September 29, 2021 — Tred R. Eyerly - Insurance Law Hawaii
After suffering business losses due to a hurricane, the insured's Civil Authority claim survived the insurer's motion to dismiss. Pathology Lab. v. Mt. Hawley Ins. Co., 2021 U.S. Dist. LEXIS 145129 (W.D. La. Aug. 3, 2021). Hurricane Laura devastated Lake Charles, Louisiana causing severe damage to the insured property as well as other properties within a mile of the insured property. All seven electrical transmission line corridors feeding Lake Charles were catastrophically damaged causing an extensive power outage. Government shutdown Orders prohibited the insureds' access to the Lab. The Orders were issued by the respective civil authorities both in anticipation of and as a result of damage and dangerous physical conditions expected from and actually resulting from Hurricane Laura and the continuation thereof. When the hurricane arrived, all businesses that were not essential to the recovery were ordered closed until electricity, water and sewer services were restored. As a result, the Lab was closed from August 27, 2020 toSeptember 8, 2020. The Lab sued for business income under the policy's Civil Authority provisions. Mt. Hawley moved to dismiss. Mt. Hawley argued that the Orders did not by their explicit terms close the Lab's business because closure was entirely dependent on the conditions of the described premises itself and whether it was safe to occupy. Mt. Hawley further argued that the mandatory Evacuation Order was issued in anticipation of property damage and therefore did not trigger coverage under the Civil Authority provision. 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

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