Preliminary Notices: Common Avoidable But Fatal Mistakes
August 26, 2019 —
William L. Porter - Porter Law GroupIn the California building and construction industry, service of a “Preliminary Notice” is a prerequisite for Subcontractor and Supplier claims for payment through the Mechanics Lien, Stop Payment Notice and Payment Bond Claim process. Without proper drafting and service of a Preliminary Notice, these extremely valuable claims cannot be protected. Unfortunately, despite the vital importance of the Preliminary Notice, Subcontractors and Suppliers often make common self-defeating mistakes that make their Preliminary Notice efforts completely ineffective, resulting in loss of their claims rights. The purpose of this article is to list some of these common mistakes in the hope that the reader will avoid such mistakes, preserve the integrity of the Preliminary Notice, and protect the claims rights it makes available:
Not Sending out the Preliminary Notice Within 20 Days After Supplying Labor or Materials:
The protection of a Preliminary Notice begins 20 days before it sent out. This means that if a Subcontractor or Supplier claimant delivered $100,000 in materials on February 1, that same claimant must serve the Preliminary Notice on or before February 21 (the sooner the better), or the claimant will not be able to pursue an enforceable Mechanics Lien, Stop Payment Notice or Payment Bond claim for that $100,000. There are very few exceptions. Best practice: A Subcontractor or Supplier must send out the Preliminary Notice as soon as an agreement to provide work or materials to a California construction project is in place (See California Civil Code 8204).
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William L. Porter, Porter Law GroupMr. Porter may be contacted at
bporter@porterlaw.com
Delays and Suspension of the Work Under Fixed Price Government Contract
July 22, 2024 —
David Adelstein - Florida Construction Legal UpdatesHere is an interesting fact pattern and case decided by the Civilian Board of Contract Appeals dealing with (1) force majeure type events and epidemics (Covid-19); (2) suspension of the work; and (3) delays. These are three topics important to all contractors including federal contractors.
In Lusk Mechanical Contractors, Inc. v General Services Administration, 2024 WL 1953697, CBCA 7759 (CBCA 2024), a contractor entered into a fixed price contract with the government to repair, replace, and modernize site and building systems at a federal building. The contractor commenced work right before Covid-19. When Covid-19 hit, the government issued the contractor a two-week suspension of work notice on March 27, 2020. The suspension of work allowed off-site administrative work to continue but suspended on-site physical work. The government extended the suspension of work three more times. The contractor could resume work on the exterior on June 1, 2020, but was not permitted to resume work on the interior until July 20, 2020. On the same date that the contractor was able to commence interior work, it submitted a modification for delay caused by the suspension – 64 days for the time period the entire site shutdown, and 51 days for the interior work shutdown.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Wendel Rosen’s Construction Practice Group Receives First Tier Ranking
January 28, 2015 —
Garret Murai – California Construction Law BlogWe try to limit our narcissism here at Wendel Rosen but every once in a while we toot our own horn. Lawyers are, after all, a rather sad, competitive, yet insecure bunch (i.e., we eat this stuff up).
We’re proud to announce that Wendel Rosen’s Construction Practice Group has received a first tier ranking in U.S. News & World Reports’ Best Law Firms for 2015. This is the second year the Construction Practice Group has received a first tier ranking. Yay us!
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Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
Lewis Brisbois Ranks Among Top 25 Firms on NLJ’s 2021 Women in Law Scorecard
July 25, 2021 —
Jana Lubert - Lewis BrisboisLewis Brisbois has been ranked among the top 25 law firms included in the National Law Journal's (NLJ) 2021 Women in Law Scorecard (Women’s Scorecard), moving up from 27th place to 23rd place this year. In addition, of the top 25 firms in the Women’s Scorecard, Lewis Brisbois had the highest number of female minority partners.
The Women’s Scorecard is produced as part of the annual NLJ 500 firm head count report, and only the largest 350 firms are eligible to be included on the scorecard. A firm’s score is determined by adding the percentage of female attorneys and percentage of female partners. Diversity staffing counts were based on a firm’s average full-time attorneys in 2020, excluding contract and temporary attorneys.
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Jana Lubert, Lewis BrisboisMs. Lubert may be contacted at
Jana.Lubert@lewisbrisbois.com
Just Because You Record a Mechanic’s Lien Doesn’t Mean You Get Notice of Foreclosure
September 15, 2016 —
Christopher G. Hill – Construction Law MusingsAs longtime (or new readers for that matter) know, mechanic’s liens are near and dear to my heart here at Construction Law Musings. These powerful tools to collect for your hard work on a construction project are great when prepared and recorded in the very specific fashion required by the Virginia legislature and courts. In most situations, if done properly, a mechanic’s lien gives you some security and priority for your construction claim that you would not have with a simple judgment lien.
Despite the power of a properly perfected and enforced mechanic’s lien (and the fact that the end result of a full mechanic’s lien suit that remains unsettled is in fact a foreclosure), a recent case in the Eastern District of Virginia, Weinberg v. J.P. Morgan Chase, et. al., (thanks for the head’s up on this case to the folks at the Construction Payment Blog) held that under Virginia statute mechanic’s lien holders are not entitled to notice of foreclosure. In the Weinberg case, the plaintiff, a pro se lien claimant that recorded two different liens, one pre-foreclosure and one post-foreclosure, and who had not received notice of the intervening foreclosure, argued, among other things, that he should have been given notice of the foreclosure on the deed of trust on the property by J. P. Morgan Chase.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Agile Project Management in the Construction Industry
January 09, 2023 —
Mohammad Saki - AEC BusinessThe linear workflows used in the construction industry, such as the RIBA plan of work, have a history of starting when the previous phases end. The stages in these workflows are often distinct and sequential, and it might be difficult or expensive to go back after a stage is finished. Design reviews are required in this method, which is also known as the “Waterfall,” and they must be completed before moving on to the next level.
Cross-phase iterations are a rare symptom of problems, and the majority of design specifications will be locked early to prevent rework. Additionally, common planning and scheduling methods for the construction industry, like the Critical Path Method (CPM) and Program Evaluation and Review Technique (PERT), lack the ability to represent feedback and iteration in projects because they only permit one-way progression.
As a result, these processes have come under fire for being a linear paradigm that encourages a fragmented approach to project management, and the need for a more iterative procedure has increased.
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Mohammad Saki, AEC Business
Largest Per Unit Settlement Ever in California Construction Defect Case?
October 28, 2011 —
CDJ STAFFBusinessWire reports that the Chelsea Court Homeowners Association has settled their construction defect case for $5.4 million. That works out to $169,000 per unit, which BusinessWire describes as “California’s largest per-unit recovery known to be on record to date.”
Most of the money in the settlement is coming from insurance companies for the builder and thirteen subcontractors. Issues included roof and window leaks, deck failures, and unsafe walkways.
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School District Client Advisory: Civility is not an Option, It is a Duty
May 13, 2014 —
Gregory J. Rolen - Haight Brown & Bonesteel LLP“I could not but wonder at the Queen’s unprecedented civility, until I realized with a flush of shame that it was my own improved behavior that motivated hers. So it is that we in life determine our own treatment.” - Catherine Gilbert Murdock
I. We Must Actively Encourage Board Civility
Over 20 years of experience representing public entities has taught me there is nothing more important than civility. On April 11, 2014, I was a featured presenter on, "How to Keep School Boards Out Of Trouble!" My initial focus was to educate the board members about open meeting laws, public records, and conflict provisions. Instead, I began by addressing board "civility." The discussion became animated. The audience was transfixed, appalled, and even amused at my examples of how uncivilized board behavior led to lawsuits, bad press, wasted resources and low morale. One attendee asked me to define civility. I meekly responded, "The Golden Rule?" "Disagreeing without being disagreeable?" My answers were inadequate. I then had a humbling epiphany. As an education law specialist, and the General Counsel of one of the largest, most diverse school districts in California, I needed to do more to foster civility among the board members I served. I had underestimated the destructive effects of incivility on my district, my colleagues, and my community.
On some level I realized that the coarsening of the discourse was taking its toll. However, I was so involved in performing my duties; I forgot to do my job. I should have taken a step back and implemented training, policies, initiatives and protocols to promote civility. I realize that it is unfortunate that we have to establish standards for adult interactions, especially for people who have promised to place service over self. As I learned, you can never fully anticipate human interactions or the complexities of the human condition. That is why I believe proactive measures to promote civility are so critical. This is not being nice for the sake of being nice. But instead, it is an absolutely vital component of effective governance. Therefore, in this essay I will discuss civility and its importance to school boards and districts. I will address the deleterious effects of board incivility. More importantly, I hope to present no-nonsense methods to cultivate civility. It is my sincere desire that others will learn from my experiences, and this time I want to do better!
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Gregory J. Rolen, Haight Brown & Bonesteel LLPMr. Rolen may be contacted at
grolen@hbblaw.com