Notice of Completion Determines Mechanics Lien Deadline
August 13, 2019 —
William L. Porter - Porter Law GroupThe California Mechanics Lien is one of the most valuable collection devices available to contractors, subcontractors and suppliers who are unpaid for work performed and materials supplied in relation to a California Private Works project. The mechanics lien allows the claimant to sell the property where the work was performed in order to obtain payment. The process starts with the recording of a mechanics lien in the office of the County Recorder where the property in question is located. As noted below, certain deadlines must be met.
Know Your Mechanics Lien Filing Deadlines Generally
Working within deadlines is absolutely crucial to preserving mechanics lien rights under California law. The deadlines differ, depending on whether you are a ”direct” contractor, also known as “original” or “prime” contractor (one who contracts directly with the property owner) or a subcontractor or material supplier. The primary differences are that, the direct contractor is only required to serve the “Preliminary Notice” on the Construction Lender (Civil Code section 8200-8216), whereas the subcontractor and material supplier must serve not only the Construction Lender, but also the Owner and Direct Contractor (see Civil Code section 8200(e)). Another difference is that a direct contractor has a longer period of time in which to record a mechanics lien after a valid “notice of completion” or a “notice of cessation” has been recorded (Civil Code sections 8180-8190), (60 days for original contractors as compared to 30 days for subcontractors and suppliers – See Civil Code sections 8412 and 8414). A further general description of the rules is as follows:
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William L. Porter, Porter Law GroupMr. Porter may be contacted at
bporter@porterlaw.com
From the Ashes: Reconstructing After the Maui Wildfire
November 27, 2023 —
Grace Calengor - Construction ExecutiveOn Tuesday, Aug. 8, a wildfire on the Hawaiian island of Maui ravaged the town of Lahaina, killing nearly 100 people and stranding thousands of survivors, many of whom remain displaced today. The loss of life makes this the deadliest American wildfire on record, while the material cost in property damage has been estimated at upwards of $5 billion.
The response to the disaster has involved firefighters and other emergency personnel—and also engineering and construction professionals. One of them is Tam Kim, director of operations for West Maui Construction Inc., a civil contractor on the island. Originally from Oregon, Kim fell in love with Hawaii when he visited on a surfing vacation; eventually he took his technology background and helped found a startup company on Maui in 2008. Eight years later, the startup relocated to Oahu, but Kim stayed on Maui to forge a different path, one that would lead him somewhere he never imagined.
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Grace Calengor, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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How to Drop a New Building on Top of an Old One
December 05, 2022 —
Kriston Capps - BloombergFaçadectomy. That’s the tongue-in-cheek term for a widely unloved architectural compromise that developers sometimes strike: saving the historic veneer of an existing building while demolishing and replacing its internal structure. Façade preservation is especially popular in Washington, DC, where a federal cap on the height of buildings and the strength of the preservationist cause locally makes the case for adapting existing structures, even at great expense.
Façadism is rarer where cheaper tear-downs are possible, but over the last 40 years, this trend hit its stride on the East Coast. Prominent examples include the Spanish Embassy in DC and the Penn Mutual tower in Philadelphia.
A new condo tower in Boston’s South End isn’t a typical façadectomy. The development at 100 Shawmut Avenue looks as if a glassy modern building had been plopped down on top of an old warehouse. According to Tom Schultz, associate for The Architectural Team, the Boston-area firm behind the project, the case for incorporating a six-story warehouse into a new residential project wasn’t merely aesthetic. The site and structure lent itself to building up.
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Kriston Capps, Bloomberg
What to Look for in Subcontractor Warranty Endorsements
February 03, 2020 —
David M. McLain – Colorado Construction LitigationWith increasing frequency in the construction defect cases we defend, we are seeing commercial general liability insurance policies with “subcontractor warranty” endorsements. Also known as contractor or subcontractor special conditions, these endorsements could have severe and negative consequences for builders that do not comply with their requirements. In researching for this article, I reviewed six different endorsements used by six different carriers, all of which contained some or all of the following requirements:
- The builder must have signed subcontract agreements with its subcontractors that require subcontractors to hold harmless, i.e., defend and indemnify, the builder for “bodily injury” or “property damage” claims caused by their negligence.
- The subcontractors must maintain their own insurance with limits equal to or greater than the limits in the builder’s own policy, with limits of at least $1 million per occurrence.
- The subcontractors’ insurance must not exclude the work being performed for the builder, e.g., the excavator’s policy cannot exclude earth movement claims, the subcontractor’s policy cannot exclude residential construction.
- The subcontractors must maintain their own workers’ compensation and/or employer’s liability insurance.
- The subcontractors must provide the builder with an endorsement or a certificate of insurance indicating that the builder has been added to the subcontractors’ insurance as an additional insured.
- The subcontractors must provide the builder with an endorsement or a certificate of insurance indicating that their insurance carriers have agreed to provide waivers of subrogation in favor of the builder.
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David McLain, Higgins, Hopkins, McLain & RoswellMr. McLain may be contacted at
mclain@hhmrlaw.com
Contractor’s Assignment of Construction Contract to Newly Formed Company Before Company Was Licensed, Not Subject to B&P 7031
October 04, 2021 —
Garret Murai - California Construction Law BlogAdd one more to the Business and Profession Code section 7031 archives. In Manela v. Stone, Case No. B302660 (July 1, 2021), the 2nd District Court of appeal held that Section 7031 did not apply to a contractor licensed as a sole proprietor who assigned his contract to his newly formed company although at the time of the assignment the contractor’s individual contractor’s license had not yet been reissued to the incorporated company.
The Manela Case
On January 4, 2015, John Stone doing business as Stone Construction Company entered into a home remodeling contract with Yosef and Nomi Manela. At the time, Stone had held a contractor’s license since 1982.
On February 11, 2015, after work on the project had begun, Stone formed JDSS Construction Company, Inc., and filed a fictitious business name using the same name Stone Construction Company. Stone applied to the Contractors State License Board to have his contractor’s license issued from himself personally to his new corporation. On March 15, 2015, while waiting for the CSLB to reissue his contractor’s license, Stone entered into an assignment agreement between himself and his new company assigning the Manela construction contract. The assignment agreement was signed by Stone in his personal capacity and as President of JDSS Construction. The assignment agreement was not signed by the Manelas.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
NYC Building Explosion Kills Two After Neighbor Reports Gas Leak
March 12, 2014 —
Michelle Kaske and Henry Goldman, BloombergFifteen minutes after a New York City resident reported the pervasive smell of gas in her East Harlem neighborhood, a massive explosion destroyed two buildings, killing two people and injuring at least 18. Utility workers arrived too late.
The explosion at 1644 and 1646 Park Ave., near 116th Street, reported about 9:30 a.m., was heard miles away and turned into a five-alarm fire. Windows were blown out as far as 10 blocks away, and cars across the street were wrecked. The blast sent debris onto adjacent elevated train tracks, halting commuter rail service in and out of Grand Central Terminal. Minor wounds were too numerous to count, said Frank Gribbon, a spokesman for the New York City Fire Department.
“This is a tragedy of the worst kind,” Mayor Bill de Blasio said during a news conference near the scene. He said residents are still missing from the buildings, which had a total of 15 units, and crews would search for them when the fire is extinguished.
Ms. Kaske may be contacted at mkaske@bloomberg.net; Mr. Goldman may be contacted at hgoldman@bloomberg.net
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Michelle Kaske and Henry Goldman, Bloomberg
Illinois Attorney General Warns of Home Repair Scams
November 27, 2013 —
CDJ STAFFAfter storms damaged homes in Illinois, Lisa Madigan, the state’s Attorney General, warned consumers “to be cautious and on alert for scammers trying to take advantage of people in need of assistance.” Ms. Madigan noted that home repair scammers go into areas with storm damage convince homeowners to pay more than they should to repair storm damage.
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Illinois Law Bars Coverage for Construction Defects in Insured's Work
September 24, 2014 —
Tred R. Eyerly – Insurance Law HawaiiApplying Illinois law, the Seventh Circuit determined there was no coverage for faulty workmanship causing property damage to the insured's project. Nautilus Ins. Co. v. Board of Directors of Regal Lofts Condominium Ass'n, 2014 U.S. App. LEXIS 16250 (7th Cir. Aug. 21, 2014).
The developer converted a vacant building into a condominium. The construction was completed in 2000. The Condominium Board took control of the condo association on July 27, 2000. As early as May 2000, one homeowner was aware of water damage problems in the building. Other complaints surfaced. An investigation found that the exterior brick masonry walls were not fully waterproofed, which caused leaks. The investigation further showed that deteriorated conditions had likely developed over many years, even prior to the condominium conversion, but the present water penetration was caused by the inadequate restoration of the walls to a water-tight condition.
The underlying action was filed against the developer for failure to properly construct the exterior walls. The developer's carrier, Nautilus, denied coverage. In an amended complaint, the Board added a count of negligence. Again, Nautilus denied coverage. The Board's second amended complaint alleged that the developer's negligence had caused damage to personal property within the building, in addition to the interior of the building and the building itself. For the third time, Nautilus denied coverage and filed for declaratory relief.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com