Five "Boilerplate" Terms to Negotiate in Your Next Subcontract
November 08, 2017 —
James R. Lynch - Ahlers & Cressman PLLCWhether you negotiate your own subcontracts or rely on your lawyer to do the heavy lifting at contract time, a savvy subcontractor should understand the basic purpose of common subcontract provisions, and be prepared to negotiate for fair and commercially reasonable terms. While most sophisticated subcontractors are skilled at negotiating the core terms of a subcontract—scope of work, price, and time—a few simple but less obvious tweaks to common subcontract terms and conditions can go a long way to protect a subcontractor from unfair results when a dispute arises.
From the desk of an experienced construction lawyer, below are the first three of the top five “boilerplate” provisions that subcontractors too often overlook during contract negotiations, along with tips on language to include and to avoid.
Read the court decisionRead the full story...Reprinted courtesy of
James R. Lynch, Ahlers & Cressman PLLCMr. Lynch may be contacted at
jlynch@ac-lawyers.com
School District Practice Bulletin: Loose Lips Can Sink More Than Ships
April 08, 2014 —
Gregory J. Rolen – Haight Brown & Bonesteel LLPWe all understand how idle conversation and gossip can negatively impact relationships and workplace morale. But can they cause a school district to lose their lawyer? It is black-letter law that confidential communications between attorney and client are privileged, inadmissible, and cannot be later used against that client by third parties. However, under many circumstances confidential communications that occurred just outside the traditional attorney-client relationship can result in disqualification of counsel. In an environment when many educators become lawyers and education lawyers go from job to job and from client to client, care must be given to the context in which such communications occur.
I. The Ethical Duty of Confidentiality Is Broader Than the Attorney-Client Privilege.
Generally, every lawyer has a duty to refuse to disclose, and to prevent another from disclosing, a confidential communication between the attorney and client. (Fox Searchlight Pictures, Inc. v. Paladino (2001) 89 Cal. App .4th 294, 309; Evid. Code § 954.) The attorney-client privilege is statutory and permits the holder of the privilege to prevent disclosure, including testimony by the attorney, as to communications that are subject to the privilege. (Evid. Code §§ 952-955.)
The attorney’s ethical duty of confidentiality under Business & Professions Code section 6068(e) is broader than the attorney-client privilege. It extends to all information gained in the professional relationship that the client has requested be kept secret or the disclosure of which would likely be harmful or embarrassing to the client. (See Cal. State Bar Formal Opns. No. 1993-133, 1986-87, 1981-58, and 1976-37; Los Angeles County Bar Association Formal Opns. Nos. 456, 436, and 386. See also In re Jordan (1972) 7 Cal.3d 930, 940-41.) However, if the status of the person and the purpose of the conversation is unclear to the attorney, highly negative outcomes may result.
Read the court decisionRead the full story...Reprinted courtesy of
Gregory J. Rolen, Haight Brown & Bonesteel LLPMr. Rolen may be contacted at
grolen@hbblaw.com
Toolbox Talk Series Recap – Considerations for Optimizing Dispute Resolution Clauses
June 05, 2023 —
Michael Filbin - The Dispute ResolverIn the April 27, 2023 edition of Division 1's Toolbox Talk Series moderated by Manuel del Valle, Sergio Andre Laclau (Partner at Mello Torres) and Liza Akins (Senior Assistant GC and Division Counsel at ARCO Design/Build) offered the following strategies for drafting effective ADR clauses in construction contracts:
- Define the ADR process for various types of disputes.
Not all disputes on a construction project are the same, and the parties can tailor the ADR process to different situations. For example, the parties could choose to arbitrate complex disputes and resolve minor claims through mediation. Differentiating the ADR process between complex and minor disputes can save parties time and money.
While Liza prefers arbitration for complex claims because you can get a quick and final decision from an arbitrator experienced with construction disputes, she noted that arbitration costs can add up quickly. Therefore, if the dollar amount in dispute is relatively small, arbitration may not make sense financially. Mediation tends to be a comparatively cheaper and faster option.
Read the court decisionRead the full story...Reprinted courtesy of
Michael Filbin, Cozen O'ConnorMr. Filbin may be contacted at
mfilbin@cozen.com
New California Standards Go into Effect July 1st
July 01, 2014 —
Beverley BevenFlorez-CDJ STAFFGarret Murai on his California Construction Law Blog reminded readers that the California Building Energy Efficiency Standards and the New Listing Law Requirements goes into effect on July 1st of this year.
According to Murai, the new “California Building Energy Efficiency Standards include: (1) the 2013 California Energy Code, Part 6, (2) the 2013 California Administrative Code, Chapter 10, Part 1 and (3) the energy provisions of the 2013 CALGreen, Part II, Title, 25, of the California Code of Regulations.”
Furthermore, Murai pointed out that “Assemby Bill 44, which amended the Subletting and Subcontracting Fair Practices Act, also known as the Listing Law, was signed into law,” which requires prime contractors "to disclose the contractors license numbers of subcontractors performing work in excess of 0.5% of the prime contractor’s total bid or, in the case of bids for the construction of streets, highways, or bridges, in excess of 0.5% of the prime contractor’s total bid or $10,000, whichever is greater.”
Read the court decisionRead the full story...Reprinted courtesy of
“Details Matter” is the Foundation in a Texas Construction Defect Suit
March 01, 2012 —
CDJ STAFFThe Court of Appeals of Texas has ruled in the case of Barzoukas v. Foundation Design. Mr. Barzoukas contracted with Heights Development to build a house. He subsequently sued Heights Developments and “numerous other defendants who participated in the construction of his house.” Barzoukas eventually settled with all but two defendants, one who went bankrupt and Foundation Design, the defendant in this case. In the earlier phase, Barzoukas made claims of “negligence, negligent misrepresentation, fraud, fraudulent inducement, conspiracy, and exemplary damages in connection with the foundation.”
Foundation Design had been hired to install 15-foot piers to support the foundation. The engineer of record, Larry Smith, sent a letter to Heights Development noting that they had encountered hard clay stone when drilling. Smith changed the specifications to 12-foot piers. Initially, the City of Houston called a halt to work on the home when an inspector concluded that the piers were too shallow. Heights Development later convinced the city to allow work to continue. Subsequently, experts concluded that the piers were too shallow.
Foundation Design filed a motion for summary judgment. The trial court granted this, “without specifying the basis for its ruling.” Barzoukas contends the court was in error. Foundation Design contends that “Barzoukas failed to proffer competent evidence establishing that their conduct proximately caused damages.” Further, they did not feel that Smith’s letter gave “rise to viable claims for fraud and fraudulent inducement.”
One problem the court had was a lack of evidence. The court noted that “the purported subcontract is entirely missing” in the pleadings. The court has no contract between Bazourkas and Heights Development, nor one between Heights Development and either Foundation Design or Smith. The court underscored the importance of this, writing, “details matter.” They found that “the details are largely missing here.” Without the contract, the court found it impossible to determine if “Smith or an entity related to him agreed to indemnify Heights Development for damages arising from Smith’s negligent performance.”
As the material facts are in dispute, the appeals court found that there were no grounds for a summary judgment in the case. “Pointing to the existence of a contract between Heights Development and Barzoukas, or to the existence of a subcontract, is the beginning of the analysis ? not the end.”
Foundation Design and Smith also claimed that Barzoukas’s expert did not proffer competent evidence and that the expert’s opinions were conclusory. The trial court did not rule on these claims and the appeals court has rejected them.
Finally, Barzoukas made a claim that the trial court should not have rejected his argument of fraud and fraudulent inducement. Here, however, the appeals court upheld the decision of the lower court. “Barzoukas did not present evidence supporting an inference that Smith or Foundation Design made a purposeful misrepresentation.
The court remanded the case to the trial court for reconsideration. One member of the panel, Judge Charles Seymore, upheld the entire decision of the trial court. He dissented with the majority, finding that the economic loss rule foreclosed the claim of negligence.
Read the court’s decision…
Read the court decisionRead the full story...Reprinted courtesy of
Manhattan Condo Resale Prices Reach Record High
September 03, 2014 —
Oshrat Carmiel – BloombergPrices for previously owned Manhattan condominiums rose to a record last month even as an increase in the supply of units eased competition among buyers.
An index of resale prices climbed 1.1 percent from June to reach the highest level in data going back to 1995, StreetEasy.com, a New York real estate website, said in a report today. The inventory of condos on the market grew 5.4 percent from a year earlier, the biggest annual gain since October 2009.
The market is still tight, with the number of available condos about 16 percent below the five-year average for Manhattan. That will continue to drive up prices, according to StreetEasy, which projects a 0.4 percent increase for August.
Read the court decisionRead the full story...Reprinted courtesy of
Oshrat Carmiel, BloombergMs. Carmiel may be contacted at
ocarmiel1@bloomberg.net
Loaded Boom of Burning Tower Crane Collapses in Manhattan, Injuring Six
August 07, 2023 —
James Leggate - Engineering News-RecordThe boom of a tower crane, with its engine on fire, collapsed July 26 at a high-rise construction site in midtown Manhattan—hitting the face of the building across the street as it dropped its 16-ton load. City officials said they would investigate the mishap, which caused minor injuries to two firefighters and four others.
Reprinted courtesy of
James Leggate, Engineering News-Record
Mr. Leggate may be contacted at leggatej@enr.com
Read the full story... Read the court decisionRead the full story...Reprinted courtesy of
Construction Defects through the Years
July 31, 2013 —
CDJ STAFFBuilder has an article on the some building changes over the years that have led to construction defect problems. Is insulation evil? Well, that what some thought in the 1930s. Early attempts at insulating walls trapped moisture causing paint to peel. Then in the 1960s, the rise of aluminum wire lead to an even more serious problem: house fires.
And it continues. The plastic piping that was though to last forever when it was installed in the late 70s turned out to have about a decade of life. It’s a short forever. Eventually, polybutylene plumbing was forbidden by building codes.
The article has a series of building innovations that seemed like great ideas at the time, but were later found to be problematic.
Read the court decisionRead the full story...Reprinted courtesy of