Demanding a Reduction in Retainage
April 01, 2015 —
Craig Martin – Construction Contractor AdvisorOne of the attendees of the Goldleaf Surety presentation asked a great question about reducing retention under the Nebraska Construction Prompt Pay Act, Nebraska Revised Statutes, 45-1201-45-1211. He wanted to know whether there was any way to reduce and recover retainage during the project. The short answer is retainage should be reduced half way through the project, but there is no right to recover retainge for work performed during the first half of the project.
Retainage in Nebraska
Under section 45-1204 of the Prompt Pay Act, a contractor may withhold up to 10% retainage. A contract that allows for greater retainage is not enforceable.
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Craig Martin, Lamson, Dugan and Murray, LLPMr. Martin may be contacted at
cmartin@ldmlaw.com
Good-To-Know Points Regarding (I) Miller Act Payment Bonds And (Ii) Payment Bond Surety Compelling Arbitration
December 22, 2019 —
David Adelstein - Florida Construction Legal UpdatesEvery now and then I come across an opinion that addresses good-to-know legal issues as a corollary of strategic litigation decisions that are questionable and/or creative. An opinion out of the United States District Court of New Mexico, Rock Roofing, LLC v. Travelers Casualty and Surety Company of America, 2019 WL 4418918 (D. New Mexico 2019), is such an opinion.
In Rock Roofing, an owner hired a contractor to construct apartments. The contractor furnished a payment bond. The contractor, in the performance of its work, hired a roofing subcontractor. A dispute arose under the subcontract and the roofer recorded a construction lien against the project. The contractor, per New Mexico law, obtained a bond to release the roofer’s construction lien from the project (real property). The roofer then filed a lawsuit in federal court against the payment bond surety claiming it is entitled to: (1) collect on the contractor’s Miller Act payment bond (?!?) and (2) foreclose its construction lien against the lien release bond furnished per New Mexico law.
Count I – Miller Act Payment Bond
Claiming the payment bond issued by the contractor is a Miller Act payment bond is a head scratcher. This claim was dismissed with prejudice upon the surety’s motion to dismiss. This was an easy call.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Now Available: Seyfarth’s 50 State Lien Law Notice Requirements Guide (2023-2024 Edition)
December 23, 2023 —
Seyfarth Shaw LLPSeyfarth’s Construction team is pleased to announce the release of our 2023-2024 edition of the 50 State Lien Law Notice Requirements Guide. The Guide provides the general time requirements for filing lien notices in each state, plus Washington, DC.
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Seyfarth Shaw LLP
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Housing Starts Plunge by the Most in Four Years
May 20, 2015 —
Bloomberg(Bloomberg) -- Housing starts plummeted in February by the most since 2011 as plunging temperatures and snow became the latest hurdles for an industry struggling to recover.
Work began on 897,000 houses at an annualized rate, down 17 percent from January and the fewest in a year, the Commerce Department reported Tuesday in Washington. The pace was slower than the most pessimistic projection in a Bloomberg survey of 81 economists.
“Today’s report leaves me a little concerned,” said Michelle Meyer, deputy head of U.S. economics at Bank of America Corp. in New York. “While the initial reaction is to dismiss much of the drop because of the bad weather, the level of home construction continues to be depressed.”
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Bloomberg News
Waive Not, Want Not: Waivers and Releases on California Construction Projects
February 18, 2015 —
Garret Murai – California Construction Law BlogCalifornia is one of a handful of states (12 to be exact) which have statutory mandated waiver and release forms for construction projects.
So here’s what you need to know before you sign one (or two, or three).
What are California’s statutory waiver and release forms?
California has four statutory waiver and release forms for construction projects.
Which form applies depends on two things: (1) whether it is for progress payments or final payment; and (2) whether it is provided before or after you have been paid.
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Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
A Court-Side Seat: A FACA Fight, a Carbon Pledge and Some Venue on the SCOTUS Menu
November 02, 2020 —
Anthony B. Cavender - Gravel2GavelIn this summary of recent developments in environmental and regulatory law, venues are challenged, standing is upheld, statutory exemption is disputed and more.
THE U.S. SUPREME COURT
Change Must Come from Within … Maryland?
As the new term begins, the Court has agreed to review BP PLC v. Mayor and City Council of Maryland, a decision of the U.S. Court of Appeals for the Fourth Circuit which held that a climate change damages case filed against many energy companies must be heard in the state courts of Maryland and not the federal courts. The petitioners argue that the federal office removal statute authorizes such removal, and the Fourth Circuit’s contrary decision conflicts with rulings from other circuit courts.
THE FEDERAL COURTS
Where Is the Fund in That?
On September 25,2020, in U.S. House of Representatives v. Mnuchin, et al., the U.S. Court of Appeals for the District of Columbia held that the lower court should not have dismissed a lawsuit filed by the U.S. House of Representatives challenging the Executive Branch’s transferal of appropriated funds to the Department of Defense to build a physical barrier along the southern border of the United State. The case is More than $8 billion is at stake, a sum that had been transferred from various federal accounts not involved with building the wall. The appeals court held that the lower court should not have dismissed this lawsuit because the House of Representatives had standing to bring this lawsuit even if the U.S. Senate was not involved with this litigation. Accordingly, the case was returned to the lower court for additional findings, with the appeals court noting that the Constitution’s Appropriation’s Clause serves as an important check on the Executive Branch.
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Anthony B. Cavender, PillsburyMr. Cavender may be contacted at
anthony.cavender@pillsburylaw.com
Colorado House Bill 19-1170: Undefined Levels of Mold or Dampness Can Make a Leased Residential Premises Uninhabitable
April 03, 2019 —
Steve Heisdorffer - Colorado Construction LitigationOne of the 407 bills the Colorado legislature is considering as of the date of this blog post is House Bill 19-1170, the Residential Tenants Health and Safety Act, which can be found at https://leg.colorado.gov/bills/hb19-1170 and clicking on the link for the recent bill text. The bill passed the House on February 26 and is in the Senate for consideration. The bill currently adds two substantive conditions to those conditions that make a residential premises uninhabitable. One is the lack of functioning appliances that conformed to applicable law when installed and that are maintained in good working order. The second is “mold that is associated with dampness, or there is any other condition causing the premises to be damp, which condition, if not remedied, would materially interfere with the health or safety of the tenant…,” referred to here as “the mold or dampness provision.” The bill also amends various procedural provisions of Colorado law to make enforcement by a tenant easier and broadens tenant remedies. The bill grants jurisdiction to county and small claims courts to grant injunctions for breach. This article focuses on the mold or dampness provision.
The mold or dampness provision is vague and will likely lead to abuse. First, there is mold everywhere. While expert witnesses routinely testify about the level of exposure that is unacceptable, no generally accepted medical standards for an unacceptable level of mold exposure currently exist, and each person reacts to mold differently. There is no requirement in the bill that mold exposure exceed levels that are generally considered harmful by experts in the field, or even in excess of naturally occurring background levels. Second, some sources estimate that there are over 100,000 different species of mold. No harmful effects have been shown for many species of mold, while other species of mold are considered harmful.
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Steve Heisdorffer, Higgins, Hopkins, McLain & RoswellMr. Heisdorffer may be contacted at
heisdorffer@hhmrlaw.com
Colorado Construction-Defects Reform Law Attempt Expected in 2015
January 14, 2015 —
Beverley BevenFlorez-CDJ STAFFAccording to the Denver Post, another attempt to change Colorado’s construction defect laws to spur condo development is likely this term. Reform supporters are encouraged by the city of Lakewood’s ordinance, Denver Post reported: “"A patchwork around the state on this issue is not the way to go," Rep. Brian DelGrosso, R-Loveland, said. "Hopefully, the Lakewood measure will spur the conversation this year."
Lakewood’s “measure gives builders a ‘right to repair’ faulty work before facing legal action and requires that a majority of home owners approve legal action before it is taken.”
However, “Nancy Stockton, president of the homeowners association at the Vallagio at Inverness in Arapahoe County, said following Lakewood's example statewide would only make it that much harder to hold builders accountable for the quality of their work.”
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