After Sixty Years, Subcontractors are Back in the Driver’s Seat in Bidding on California Construction Projects
September 22, 2016 —
William L. Porter – Porter Law Group BulletinFor almost the last sixty years, the standard for bidding on California construction projects has been governed by the landmark case of Drennan v. Star Paving (1958) 51 Cal.2d 409; which generally states that the contractor bidding to perform work for a project owner is entitled to rely on the bids of subcontractors in formulating its own bid to do the work. Under the equitable legal doctrine of “promissory estoppel”, which serves as the foundation of the Drennan case, even though there was no actual “contract” between the contractor and subcontractor at the time of bid, the contractor was entitled to enforce the subcontractor’s bid in reliance on this doctrine. For bidding purposes, promissory estoppel serves as an equitable substitute for an actual contract. The courts have, since that time, allowed promissory estoppel to act as a substitute for the contract in public bidding because, in equity, when a contractor “reasonably” relies on a subcontractor’s bid in formulating its own bid, it would be unjust to allow the subcontractor to withdraw a bid on which the contractor had relied in submitting its own successful bid.
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William L. Porter, Porter Law GroupMr. Porter may be contacted at
bporter@porterlaw.com
Hunton Insurance Practice Again Scores “Tier 1” National Ranking in US News Best Law Firm Rankings
December 05, 2022 —
Hunton Insurance Recovery BlogOn November 3, 2022, US News announced its
annual law firm rankings, where Hunton Andrews Kurth LLP garnered the highest (Tier 1) ranking among national insurance law practices. Hunton’s insurance team also received Tier 1 honors for “Insurance Law” in three regions (Washington, DC, Atlanta and San Francisco) and Tier 2 honors for “Litigation – Insurance” in Washington, DC. US News ranks law firms in tiers from 1 (highest) to 3 (lowest) based on quantitative data that speaks to general demographic and background information on the practice group, attorneys and other data that speaks to the strengths of a law firm’s practice, as well as qualitative client feedback about:
- the practice group’s expertise,
- responsiveness,
- understanding of a business and its needs,
- cost-effectiveness,
- civility, and
- whether the client would refer another client to the firm.
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Hunton Andrews Kurth LLP
Lease-Leaseback Battle Continues as First District Court of Appeals Sides with Contractor and School District
August 17, 2017 —
Garret Murai - California Construction Law BlogEarlier, we wrote about Davis v. Fresno United School District (2015) 237 Cal.App.4th 261, a Fifth District California Court of Appeals decision that sent shock waves through the school construction industry and raised questions regarding the use of California’s lease-leaseback method of project delivery (Education Code sections 17400 et seq.).
California’s lease-leaseback method of project delivery provides an alternative project delivery method for public school districts than the usual design-bid-build method of project delivery. Under the lease-leaseback method of project delivery, a school district leases its property to a developer, who in turn builds a school facility on the property and leases it back to the school district. One of the benefits of the lease-leaseback method of project delivery is that school districts do not need to come up with construction funds to build school facilities since they pay for the construction over time through their lease payments to the developer. Critics, however, argue that because lease-leaseback projects do not need to be competitively bid, they are ripe for cronyism between developers and school districts.
In Davis, a taxpayer successfully brought suit against the Fresno Unified School District challenging the propriety of a lease-leaseback project because the entirety of the District’s “lease payments” occurred while the project was being constructed and thus, successfully argued the taxpayer, there was no “true” lease of a facility since it was under construction.
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Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
Chambers USA Names Peckar & Abramson to Band 1 Level in Construction Law; 29 P&A Lawyers Recognized as Leading Attorneys; Six Regions and Government Contracts Practice Recognized
July 08, 2024 —
Peckar & Abramson, P.C.Peckar & Abramson, P.C. (P&A) is pleased to announce that Chambers USA has recognized the firm at the Band 1 level nationwide in Construction Law. P&A stands alone in being named a Band 1 firm in Construction Law nationally and has been named in the position every year since Chambers USA began awarding the recognition. The firm was also recognized nationally in Government Contracts: Highly Regarded.
P&A’s offices in New York, New Jersey, Florida, and Texas were ranked Band 1 in Construction Law, and the Firm’s California, Illinois, and Washington, DC practices were also highly rated. Additionally, 29 of P&A’s construction lawyers were named leading construction lawyers in their respective jurisdictions – more than any other construction law practice in the country.
As demonstrated by its consistent Chambers USA Rankings, Peckar & Abramson has earned a national reputation for exceptional legal advocacy, representing construction industry members domestically and internationally.
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Peckar & Abramson, P.C.
Winners Announced in Seattle’s Office-to-Residential Call for Ideas Contest
July 10, 2023 —
Ryanne Mathisen - Ahlers Cressman & Sleight PLLCOn June 7, 2023, the City of Seattle announced three winners of its Office to Residential: Call for Ideas contest for which it received a total of 13 submissions. Hybrid Architecture, LLC, took first place; Gensler, Seattle Office Project Team took second; and the Miller Hull Partnership took third. Seattle’s Department of Construction and Inspections will study the submissions and determine what legislative and regulatory modifications would be necessary to support and further these proposals and other future office-to-residential conversion projects.
Seattle will also be holding a series of exhibitions over the coming weeks where project submissions will be available to the public. On June 14, 2023, from 5:30 PM to 7:30 PM, a reception will be hosted by the Seattle Architecture Foundation and the City at the American Institute of Architects. The gallery will also be open to the public from 10:00 AM to 5:00 PM on June 21, 28, and July 5. After June 14, 2023, those interested can access contest submissions at the
project website.
Seattle’s primary goal with this contest was to provide a vision for the future of downtown and begin charting a concrete path to getting there. Since working from home has become more common following the COVID-19 pandemic, vacancy rates in many office buildings have risen sharply, while housing availability and affordability remain ongoing issues. If Seattle can show a realistic—and profitable—path to converting commercial office spaces into residences, it would be addressing both problems, killing two birds with one stone.
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Ryanne Mathisen, Ahlers Cressman & Sleight PLLCMs. Mathisen may be contacted at
ryanne.mathisen@acslawyers.com
Have the Feds Taken Over Arbitration?
September 25, 2023 —
Christopher G. Hill - Construction Law MusingsAll of us in construction have run into mandatory arbitration clauses in our contracts. These clauses are more or less desirable based upon the size of project and other factors that will provide a topic for another post here at Musings or in my class at Solo Practice University (and likely both).
In drafting and considering the usefulness of these clauses, make sure that you keep in mind that the Federal Arbitration Act applies to actions in federal court. In short, the FAA gives parties to a contract containing an arbitration clause the absolute right to a stay of a law suit pending arbitration.
While this seems obvious, a recent U. S. Supreme Court decision expanded the universe of people that can demand such a stay. In Arthur Andersen LLP v. Carlisle, et. al., the Court stated that any person who is allowed to enforce a contract under state law can obtain such a stay. In short, if a person can make an argument that they have some sort of right to enforce a contract’s terms, that person can get a stay, at least until a court says otherwise.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Real Estate & Construction News Roundup (4/24/24) – Omni Hotels Hit with Cyberattack, Wisconsin’s Low-Interest Loans for Home Construction, and Luxury Real Estate Sales Increase
May 20, 2024 —
Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law BlogIn our latest roundup, alternative lenders take the lead in CRE loans, construction workers worry about artificial intelligence, prospective homeowners express concerns about climate risks, and more!
- Even as overall real estate sales fell 4% nationwide in the first quarter, luxury real estate sales increased more than 2%, posting their best year-over-year gains in three years. (Robert Frank, CNBC)
- As many banks cut back from commercial real estate loans amid rising interest rates and a regional banking crisis that exploded in early 2023, a number of alternative lenders jumped in to lead the way. (Andrew Coen, Commercial Observer)
- Workers in construction and other industries are worried about artificial intelligence, and it’s keeping their companies from moving forward more decisively with the surging technology. (Matthew Thibault, Construction Dive)
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Pillsbury's Construction & Real Estate Law Team
Create a Culture of Safety to Improve Labor Recruitment Efforts
September 12, 2022 —
Grant Robbins - Construction ExecutiveThe commercial construction industry must rely on skilled labor to survive. Skilled labor, however, is hard to come by. In fact, many construction firms report projects being delayed because of shortages in the workforce.
Part of the problem is training. Few companies have the time, resources or opportunities to train new construction workers. But the biggest reason for the labor shortage in the construction industry is simply a lack of people joining the trades. Decades ago, construction was a respected career choice. Over the years, however, the pressure to get into a four-year college has created negative perceptions of working in the trades.
Some commercial construction companies choose to work with fewer crews as a result of the lack of skilled labor, therefore limiting the number of jobs they can handle. The labor shortage in the construction industry has simply made it nearly impossible to find subcontractors to adequately staff upcoming projects (one survey found that 35% of contractors had to turn down jobs due to a lack of skilled laborers). This then leads to hikes in construction costs and delays in scheduling, which can take a major toll on business.
Reprinted courtesy of
Grant Robbins, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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