CAMBRIDGE MASSACHUSETTS BUILDING EXPERT
DIRECTORY AND CAPABILITIES

The Enforceability of “Pay-If-Paid” Provisions Affirmed in New Jersey

January 04, 2023 — Levi W. Barrett, Michael S. Zicherman & Brian Glicos - Peckar & Abramson, P.C.
On December 7, 2022, the Appellate Division affirmed the New Jersey Superior Court decision in Jersey Precast v. Tricon Enterprises, Inc. et al., finding that the “pay-if-paid” clause in a material supplier’s purchase order with a general contractor was binding and enforceable. While clauses conditioning a general contractor’s obligation to pay its subcontractors on the general contractor’s receipt of payment from the project owner are not unique – this is the first time that a court in New Jersey has affirmed this practice in a published opinion. [1] Background The general contractor, Tricon, sent Jersey Precast its standard form purchase order for the supply of prestressed box beams to fulfill a public improvement contract with Union County. The reverse side of the form purchase order contained standard terms and conditions, and included a pay-if-paid clause drafted by Michael Zicherman, a partner of Peckar & Abramson, P.C. While Jersey Precast provided some draft revisions to the terms and conditions, Tricon never signed the purchase order and the proposed revisions were never accepted. Significantly, Jersey Precast did not attempt to modify the pay-if-paid provision. It later developed that the construction of the project became impossible, and the beams fabricated by Jersey Precast were not used. Tricon invoiced Union County for the cost of the beams, but the County failed to make payment and refused to accept delivery of the beams. Reprinted courtesy of Levi W. Barrett, Peckar & Abramson, P.C., Michael S. Zicherman, Peckar & Abramson, P.C. and Brian Glicos, Peckar & Abramson, P.C. Mr. Barrett may be contacted at lbarrett@pecklaw.com Mr. Zicherman may be contacted at mzicherman@pecklaw.com Mr. Glicos may be contacted at bglicos@pecklaw.com Read the court decision
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Professor Senet’s List of 25 Decisions Every California Construction Lawyer Should Know:

January 17, 2022 — Ted Senet - Gibbs Giden

1. Aas v. Superior Court (2000) 24 Cal. 4th 627 – economic loss rule
2. Amelco Electric v. City of Thousand Oaks ( (2002) 27 Cal. 4th 228 – abandonment does not apply to public works – total cost theory is allowed
3. Beacon Residential Community Association v. Skidmore, Owings & Merrill (2014) 59 Cal. 4th 568 – architect liable in absence of privity
4. Cates Const., Inc. v. Talbot Partners (1999) 21 Cal.4th 28 – no tort recovery on bonds – performance bonds can cover contract warranties
5. Condon-Johnson & Associates, Inc. v. Sacramento Municipal Utility Dist., 149 Cal. App. 4th 1384 – liability for concealed conditions
6. Connolly Development, Inc. v. Superior Court of Merced County (1976) 17 Cal. 3d 803 – mechanic lien remedy is constitutional
7. Crawford v. Weather Shield Mfg. (2008) 44 Cal. 4th 541 – indemnity implies obligation to defend [now limited to commercial contracts under CCP 2782 (c)–(h)]

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Reprinted courtesy of Ted Senet, Gibbs Gidden
Mr. Senet may be contacted at tsenet@gibbsgiden.com

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Is it the Dawning of the Age of Strict Products Liability for Contractors in California?

March 30, 2016 — Garret Murai – California Construction Law Blog
It was the Age of Aquarius. And everything was changing. Politically, socially . . . and legally. Through the 19th Century the doctrine of caveat emptor, literally “let the buyer beware,” was the rule of law. Under the doctrine a buyer was expected to protect him or herself against both obvious and hidden defects in a product. It wasn’t until the late 1800s that U.S. courts began to impose implied warranties – for merchantability and fitness for a particular purpose – to protect consumers. But implied warranties were premised on their being a contract between the manufacturer and the user of a defective product, and by the mid 20th Century it was increasingly uncommon for consumers to purchase products directly from a manufacturer. 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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ETF Bulls Bet Spring Will Thaw the U.S. Housing Market

April 08, 2014 — Corinne Gretler – Bloomberg
Build it and they will come, if it’s not too chilly. Traders have turned bullish on a security that tracks home construction companies, appliance makers and furniture retailers as spring finally ends the harsh winter. As the SPDR S&P Homebuilders ETF (XHB) heads for its first weekly gain since February, investors are buying options betting that the rebound will keep going. The cost of bullish contracts has risen to the highest versus bearish ones in 2 ½ years. The ETF has gained 2.2 percent this week. The exchange-traded fund of companies such as Ryland Group Inc., Whirlpool Corp. and Home Depot Inc. has rebounded 8 percent after reaching its lowest level this year on Feb. 3 as investors attribute weakness in the housing market to winter weather. Between December and February, snow covered 1.42 million square miles of the continental U.S., the 10th-largest snow cover in records going back to 1966, according to the National Climatic Data Center. Read the court decision
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Reprinted courtesy of Corinne Gretler, Bloomberg
Ms. Gretler may be contacted at cgretler1@bloomberg.net

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U.S. Home Sellers Return for Spring as Buyers Get Relief

February 10, 2014 — Prashant Gopal – Bloomberg
Suzanne Baker and her siblings bought a foreclosed home in Atlanta two years ago, added a fourth bathroom, then waited for values to rebound before considering a sale. Now, she says, they’re ready to cash in. The family last month listed the four-bedroom house in the affluent Buckhead neighborhood for $710,000. It was purchased as an investment for about $375,000 in late 2011, before bulk buyers snapped up many of the area’s distressed homes, helping to drive up prices in Atlanta by more than 25 percent. “The market is back up,” Baker said. “We think we can make a good amount of profit so we’re going to try.” For two years, a shortage of sellers like the Bakers has propped up prices across the U.S. as shoppers jostled for a dwindling supply of houses. Now, as the market’s busiest season approaches, escalating values are spurring more listings as homeowners regain equity lost in the worst crash since the 1930s. While new-home construction at a third of its 2006 peak will keep inventory tight, the supply increase is poised to damp price gains while higher mortgage rates cut into demand. Read the court decision
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Reprinted courtesy of Prashant Gopal, Bloomberg
Mr. Gopal may be contacted at pgopal2@bloomberg.net

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Retrofitting Buildings Is the Unsexy Climate Fix the World Needs

November 19, 2021 — Marc Champion - Bloomberg
You may not have noticed unless you live in London, but protesters have been gluing their hands to the asphalt of the city’s thundering eight-lane M25 ring road, to the weirdly technocratic war cry of “Insulate Britain!” Frustrated commuters and the police officers who’ve had to peel these sticky activists from the road find them irritating. Yet they have a point. Among top producers of climate-harming emissions that world leaders plan to address at COP26 in Glasgow in November, buildings are the summit’s largely ignored Cinderella. Making homes and offices leak less heat and persuading the construction industry to give up its addiction to demolition and to energy-intensive materials such as concrete, plastics, and steel have so far proved less than appealing to governments in search of solutions to the climate challenge. Retrofitting is costly and disruptive for the voters who happen to live, in the U.K. alone, in the 28 million homes that need an upgrade. It also demands the systemic transformation of a fragmented industry that’s riddled with vested interests, says Stephen Good, chief executive of the Construction Scotland Innovation Centre along Glasgow’s southern underbelly. Read the court decision
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Reprinted courtesy of Marc Champion, Bloomberg

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AIA Releases Decennial 2017 Updates to its Contracts Suites

June 29, 2017 — Garret Murai - California Construction Law Blog
The American Institute of Architect’s (AIA) suite of design and construction documents are among the most popular industry form contracts. Every ten years the AIA reviews and updates its core documents, and early this Spring, announced the release of its updated contract documents. Among the new changes include:

• Communications Between Owners and Contractors: Expands the ability of owners and contractors to communicate directly while maintaining an architect’s ability to remain informed about communications that affect the architect’s services.
• Owners’ Financial Ability to Pay for Project: Clarifies provisions requiring owner to provide proof it has made financial arrangements to pay for project.
• Contractor Pay Application Requirements: Simplifies provisions for contractors to apply for, and receive, payments.

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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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Jarred Reed Named to the National Black Lawyers’ “Top 40 Under 40” List for Second Consecutive Year

August 07, 2023 — Lewis Brisbois
Madison County, Ill. (July 21, 2023) – Madison County Associate Jarred Reed was named to The National Black Lawyers (NBL) “Top 40 Under 40” list for the second year in a row. The NBL “Top 40 Under 40” recognizes the most talented Black attorneys under the age of 40 who have an outstanding reputation among peers, the judiciary, and the public. The honorees on this list are nominated from leading lawyers, current members, and Executive Committee members. “We feel so blessed to be able to call Jarred our colleague," said Madison County Managing Partner Jeffrey Bash. "He is a joy to work with and our clients are well served with him as part of their defense team.” Read the court decision
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Reprinted courtesy of Lewis Brisbois

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