SEATTLE WASHINGTON BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Construction Bidding for Success

May 22, 2023 — The Hartford Staff - The Hartford Insights
When construction companies develop a history of successful projects, they often consider bidding on larger projects. However, larger projects can carry greater risks. If your company has successfully completed numerous $10 million projects and is considering a bid on a $100 million project, there are several factors to consider before submitting a proposal. That is because bidding on the wrong project could potentially put you out of business. “When a contractor bids a larger project, there is a greater financial risk,” says Tim Holicky, a senior executive underwriter at The Hartford. There are more subcontractors to manage and additional materials to purchase, which all leads to greater financial risk. Read the court decision
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Reprinted courtesy of The Hartford Staff, The Hartford Insights

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Is Construction Heading Off the Fiscal Cliff?

December 20, 2012 — CDJ STAFF
After a period of growth, the construction industry lost 20,000 jobs in November, based on the federal jobs data. Damon Scott of New Mexico Business Weekly suggests that contractors may have laid off employees in anticipation of the “fiscal cliff.” Ken Simpson, the chief economist of the National Association of Home Builders said in a press release that “it is discouraging that construction employment is still struggling after three years of expansion in the overall economy.” Read the court decision
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California Contractors – You Should Know That Section 7141.5 May Be Your Golden Ticket

February 18, 2020 — Amy L. Pierce, Mark A. Oertel & John Lubitz - Lewis Brisbois Bisgaard & Smith LLP
Under California’s Contractors’ State License Law, Cal. Bus. & Prof. Code §§ 7000 et seq., all contractors’ and subcontractors’ licenses expire two years from the last day of the month in which the license issued, or two years from the date on which the renewed license last expired. The Contractors State License Board (CSLB) sends licensees a renewal application 60 to 90 days prior to the date the license is set to expire. Most contractors have various controls in place to make sure that the renewal application is timely filed and the required fee paid. Even so, we are only human and mistakes are made, and a renewal application filing deadline can be missed for a variety of reasons, e.g., the licensee’s mailing address has not been updated on the CSLB’s records, the individual responsible for filing the license renewal is out on leave, there has been a death in the family or a serious health issue, etc. Quoting Robert Burns, even “[t]he best-laid schemes of mice and men go oft awry” (To a Mouse, 1786). General contractors should be cognizant of both their and their subcontractors’ license renewal obligations and deadlines. If a licensee missed timely filing its renewal application, Business & Professions Code Section 7141.5may provide some relief. Section 7141.5 provides that the Registrar of Contractors,

“may grant the retroactive renewal of a license if the licensee requests the retroactive renewal in a petition to the registrar, files an application for renewal on a form prescribed by the registrar, and pays the appropriate renewal fee and delinquency fee prescribed by this chapter. This section shall only apply for a period not to exceed 90 days from the due date and only upon a showing by the contractor that the failure to renew was due to circumstances beyond the control of the licensee.”

Reprinted courtesy of Lewis Brisbois Bisgaard & Smith LLP attorneys Amy Pierce, Mark Oertel and John Lubitz Ms. Pierce may be contacted at Amy.Pierce@lewisbrisbois.com Mr. Oertel may be contacted at Mark.Oertel@lewisbrisbois.com Mr. Lubitz may be contacted at John.Lubitz@lewisbrisbois.com Read the court decision
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Judge Tells DOL to Cork its Pistol as New Overtime Rule is Blocked

November 23, 2016 — Evelin Y. Bailey – California Construction Law Blog
Earlier this year we informed you that the federal Department of Labor intended to raise the minimum salary for individuals classified as executive, administrative, and professional (“white collar”) exempt employees. The result? About 4.2 million workers classified as exempt would become eligible for overtime pay on December 1, 2016, the effective date of the new rule. Businesses would need to pay $47,476 starting on December 1, 2016 to maintain the exempt status of workers. However, a combination of business groups and states sued to invalidate the regulation, requesting expedited and emergency injunctive relief. On November 22, 2016, a federal district court in Texas granted the emergency motion for a preliminary injunction barring the DOL from enforcing its new overtime rule. The injunction will remain until the resolution of this legal challenge to the rule. Read the court decision
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Reprinted courtesy of Evelin Y. Bailey, California Construction Law Blog
Ms. Bailey may be contacted at ebailey@wendel.com

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County Officials Refute Resident’s Statement that Defect Repairs Improper

August 27, 2014 — Beverley BevenFlorez-CDJ STAFF
Manatee County, Florida officials stated that “they are confident construction defects at the Willowbrook subdivision being fixed by the builder KB Home are being properly supervised and repaired,” according to the Bradenton Herald. However, a resident told the Bradenton Herald previously that “mold remediation isn’t being done properly and good wood was being installed over rotted wood.” John Barnott, director of the Manatee County Building & Development Services Department told the Bradenton Herald that the county building chief has been at the site “every week, three or four times a week.” Carroll Dupre, the county building chief, stated that the development “looks real good.” The commissioner, Vanessa Baugh, stated that she had not received any complaints from Willowbrook residents and that “she was ‘not pleased with the implications of the article.’” Read the court decision
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California Supreme Court Holds that Prevailing Wages are Not Required for Mobilization Work, for Now

October 18, 2021 — Garret Murai - California Construction Law Blog
In the midst of the Great Depression the federal government enacted the Davis-Bacon Act (40 U.S.C. section 32141 et seq.) to help workers on federal construction projects. Under the Davis-Bacon Act, minimum wages must be paid to workers on federal public works projects based on local “prevailing” wages. At the time, the goal of the law was to help curb the displacement of families by employers who were recruiting lower-wage workers from outside local areas. A darker history suggests that it was also intended to discourage minority workers from competing with unionized white workers. Fast forward to today. Many states, including California, adopted “Little Davis-Bacon” laws applying similar requirements on state and local public works projects. California’s prevailing wage law (Labor Code section 1720 et seq.) requires contractors on state and local public works projects pay their workers 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. Over the years, labor unions have sought to expand the definition of what constitutes a “public works project” from private residential developments receiving public funding (generally, prevailing wages required) to off-site fabrication of materials at permanent facility for a public works project (no prevailing wages required) to enforcement mechanisms such as making a general contractor liable for prevailing wage violations of its subcontractors (yes, indeedy, see Labor Code section 1775). Read the court decision
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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

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Structural Engineer Found Liable for Defects that Rendered a Condominium Dangerously Unsafe

June 22, 2016 — Paul R. Cressman, Jr. – Ahlers & Cressman Construction Law Blog
On May 3, 2016, the Washington State Court of Appeals affirmed a jury’s verdict in favor of a condominium HOA against a structural engineer for $1,149,332 in damages.[1] The project in question was The Pointe, an upscale condominium building in Westport, Washington. The developer was Dodson-Duus, LLC. The architect was Elkins Architects (“Elkins”). The structural engineer was Engineers Northwest, Inc. (“ENW”). ENW contracted with Elkins for the structural engineering work. Birds flying past 3 construction cranesBoth the design and construction of the building suffered from defects. In particular, the lateral force resistance system was insufficient to withstand a large seismic event. The defects included improperly nailed shear walls, weak connections between shear walls and floor joists, improperly-sized floor sheathing, a weak second-floor diaphragm, and omitted hold-downs connecting shear walls to a steel beam. The use of gypsum sheathing also created a risk of corrosion to the building’s steel structure. Evidence tied each of these defects to some aspect of ENW’s structural calculations and designs. Evidence also tied omission of the hold-downs to the contractor’s construction decisions. Read the court decision
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Reprinted courtesy of Paul R. Cressman, Jr., Ahlers & Cressman PLLC
Mr. Cressman may be contacted at pcressman@ac-lawyers.com

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Atlanta Office Wins Defense Verdict For Property Manager On Claims By Vendor, Cross-Claims By Property Owner

January 08, 2024 — Lewis Brisbois Newsroom
Atlanta, Ga. (December 18, 2023) – Atlanta Partner Adi Allushi and Associate Cecilia Walker recently secured a defense verdict for a national property management corporation on claims brought by a vendor and cross-claims lodged by the property owner. Lewis Brisbois’ client is a national corporation, over a century old, that managed over 140 properties with 40,000 units. In 2019, the client entered the Georgia market managing three apartment complexes owned by a hedge fund in New York. The owner terminated without cause the client within six months, and several vendors – including the plaintiff, who was a remedial services provider – were not paid during the last few months and the transition period. The plaintiff sued the owner for the unpaid services, as well as an incorrect entity it believed to be the client. The owner cross-claimed against the client for fraudulent misrepresentations. Based on the misnomer statute, the court granted default judgment against the client. Read the court decision
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Reprinted courtesy of Lewis Brisbois

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