CSLB Joint Venture Licenses – Providing Contractors With The Means To Expand Their Businesses
April 28, 2016 —
David A. Harris – Haight Brown & Bonesteel LLPCalifornia’s Business and Professions Code requires contractors to be licensed by the Contractors State License Board (“CSLB”). The CSLB issues licenses in 44 different classifications which are separated into three categories: “A” licenses are for general engineering contractors, “B” licenses are for general building contractors, and “C” licenses are specialty licenses that cover everything from installing boilers to installing ornamental metal.
Performing construction work without a license or without the requisite license is a misdemeanor and can lead to the imposition of fines and in certain instances, jail time. (California’s Business and Professions Code Section 7028(a).) While potential imprisonment is unlikely, contractors are frequently fined, or prohibited from filing suit to collect money for their work. Perhaps most onerous, a contractor who is unlicensed, or working with a suspended license or the wrong license, can be forced to return all of the money it was paid for its work. (See our alert:Performing Work with a Suspended CSLB License Costs Big: Subcontractor Faces $18,000,000 Disgorgement.)
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David A. Harris, Haight Brown & Bonesteel LLPMr. Harris may be contacted at
dharris@hbblaw.com
Ensuring Efficient Arbitration of Construction Disputes Involving Mechanic’s Liens
February 18, 2020 —
Robert G. Campbell & Trevor B. Potter - Construction ExecutiveThere may be tension between the enforcement of statutory mechanic’s lien claims when a contractual dispute resolution provision calls for arbitration. Once the parties are in arbitration, it may not be clear whether the arbitrator has authority to make factual determinations regarding amount and validity of mechanic’s liens, and whether courts are bound by these determinations. This uncertainty stems from the fact that in most states a mechanic’s lien can only be enforced by a court of competent jurisdiction. Indeed, many mechanic’s liens statutes define foreclosure as a “judicial process,” and courts generally have exclusive jurisdiction to issue orders foreclosing on real property1.
The risk for contractors and owners is that they will spend time and money re-litigating factual issues related to proving elements of a mechanic’s lien claim, including the proper lien amount, timeliness and other prerequisites. Without a clear understanding of what issues and elements are arbitrable, the parties run the risk that an arbitrator will rule on certain elements only to find out during post-arbitration lien foreclosure proceedings that the arbitrator lacked authority to make determinations on those elements. Questions therefore arise whether a court will enforce the arbitrator’s determinations and whether the parties must relitigate mechanic’s lien issues creating a further risk of inconsistent rulings.
These risks can be minimized through arbitration provisions which address these issues, express requests in arbitration demands and by ensuring that arbitration awards contain explicit determinations of mechanic’s liens issues.
Reprinted courtesy of
Robert G. Campbell & Trevor B. Potter, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Mr. Potter may be contacted at tpotter@coxcastle.com
Mr. Campbell may be contacted at rcampbell@coxcastle.com
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Insurer Obligated to Cover Preventative Remediation of Construction Defects
November 06, 2013 —
CDJ STAFFA recent Texas construction defect case gets covered on a blog post on the web site of Manatt, Phelphs & Phillps, LLC. In the case, the home builder built homes using EIFS which later had problems with mold, mildew, and structural damage. The home builder remediated all of the homes in the project, not just those that had experienced problems with the EIFS.The home builder’s insurers refused to cooperate. Various insurers settled with the home builder, leaving only Markel America Insurance Company.
Markel refused coverage on the grounds that proactively replacing the EIFS to preclude damage meant that there was no damage for their policy to cover. The policy also read that “no insured, except at their own cost, [may] voluntary make any payment, assume any obligation, or incur any expense,” unless Markel agreed to it. But the Texas Supreme Court ruled that “Markel failed to prove that it was prejudiced in any way by the home builder’s settlements,” which was a necessary condition for the cited clause. The Texas Supreme Court ruled that Markel was obligated to indemnify the home builder.
The court also concluded that the damage occurred during the coverage period and that “all 465 houses at issue suffered property damage during the policy period.”
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Real Estate & Construction News Roundup (6/4/24) – New CRE Litmus Tests, Tech Integration in Real Estate and a Jump in Investor Home Purchases
July 02, 2024 —
Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law BlogIn our latest roundup, big bank exposure to CRE lending grows, concerns for the construction industry abound, U.S. hotel securitized loans come due, and more!
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Pillsbury's Construction & Real Estate Law Team
You’re Only as Good as Those with Whom You Contract
April 17, 2019 —
Christopher G. Hill - Construction Law MusingsI have been beating the drum of the need to have a solid construction contract as the basis for your construction project and contractor/subcontractor/supplier relationships. I have also emphasized that communication early and often is one of the best ways to assure a smooth project. However, the sad truth is that even with the best contract drafted with the assistance of an experienced construction attorney, if the other party to the contract simply decides not to perform, whether that is through unjustified non-payment or simple refusal to complete a scope of work without reason, it will be an expensive proposition to force compliance or be compensated for the monetary damage caused by such actions.
It is this often unmentioned truth relating to any contract, including those that construction professionals in Virginia deal with on a daily basis, that makes having a good knowledge of those with whom you plan to contract is key to a successful (read profitable) construction project. Of course be sure that any contractor or subcontractor you contract with has the basics of propoer insurance, the right experience and of course a contractor’s license with the proper specialty or specialties. These basics will get you most of the way to assuring that those that contract with you at least are responsible in business. Another key component, if you can find this information out, is the financial wherwithall of the other party. For a General Contractor, this means both sides of the equation: Owner and Subcontractors. For a Subcontractor, the key is the Contractor, but any other information you can get on the Owner is helpful (though this can be difficult) particularly in the face of a “pay if paid” clause.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Colorado Defective Construction is Not Considered "Property Damage"
September 12, 2022 —
Saxe Doernberger & Vita, P.C.In the July 5, 2022, case of Indian Harbor Ins. Co. v. Houston Casualty Co., the United States District Court for Colorado addressed the issue of whether damage to defectively installed balconies is considered “property damage” under Colorado law, requiring payment by a commercial general liability policy.
Facts of the Case
The case stems from a construction project where a subcontractor improperly installed balconies on an apartment complex. The owner of the project secured commercial general liability (CGL) coverage through an OCIP insured by Houston Casualty Company (HHC). The OCIP insured the general contractor and subcontractors. The general contractor also purchased a subcontractor default insurance policy insured by Indian Harbor.
All parties agreed that the subcontractor improperly installed portions of various balconies, including flashing, water-proof sealing, and water-resistant barriers, among other defects with the installation process. The parties also agreed that other portions of the balconies were properly installed. However, in order to repair the defects in the installations, every bit of each balcony had to be torn off and re-constructed.
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Saxe Doernberger & Vita, P.C.
Top Talked-About Tech at the 2023 ABC Joint Tech Summit
May 15, 2023 —
Grace Arnold - Construction ExecutiveAt the
2023 ABC Joint Tech Summit in Tysons Corner, Virginia, on April 27, there was talk, of course, of various construction technologies, including AI, VR, autonomous vehicles, impairment detection, digital twins, blockchains and Spot the Robot Dog. All this different tech, however, was discussed for the same two reasons: safety and efficiency.
While some companies are just discovering the vast uses for and benefits of smart technology in construction, other companies are already well into adoption and implementation. Here is a breakdown of some of the contech showcased at the Joint Tech Summit, which was presented by four ABC chapters: Chesapeake Shores, Greater Baltimore, Metro Washington and Virginia.
AUTONOMOUS MACHINES
The talk of the Tech Summit was Spot the Robot Dog from
Boston Dynamics. Spot can walk, run, crawl, climb stairs and tortuous terrain, right itself from a fall, return to its charging port when its battery runs low and is compatible with a variety of add-ons, like 360 cameras. Spot is controlled via tablet and can be programmed to run on its own, allowing for increased worker and jobsite safety and productivity.
Reprinted courtesy of
Grace Arnold, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Shoring of Problem Girders at Salesforce Transit Center Taking Longer than Expected
November 14, 2018 —
Nadine M. Post - Engineering News-RecordThe Transbay Joint Powers Authority announced on Oct. 10 that emergency remedial work at the 4.5-block-long Salesforce Transit Center in San Francisco, on the closed Fremont Street between Howard and Mission streets, will continue into early next week. The block, which crosses under the hub, will reopen to traffic and the public on Wednesday, Oct. 17, rather than Oct. 12, as previously announced, says TJPA. The transit center itself, which opened in August, is temporarily closed.
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Nadine M. Post, ENRMs. Post may be contacted at
postn@enr.com