Fairfield Connecticut Building Expert Directory

“Pay When Paid” Provisions May Not Be Dead, at Least Not Yet

August 24, 2020 — Garret Murai - California Construction Law Blog
Sophisticated contractors know that in California contractual “pay when paid” provisions are enforceable but that “pay if paid” provisions are not. “Pay If Paid” v. “Pay When Paid” Provisions A “pay if paid” provision is one in which a higher tier party agrees to pay a lower tier party “if” it is paid in turn by a still higher party. Most commonly they are found in subcontracts between general contractors and subcontractors and provide that the general contractor will pay the subcontractor “if” the general contractor is paid by the project owner. However, they can also be found in subcontracts between higher and lower tiered subcontractors and between subcontractors and material suppliers and equipment lessors. In California, such provisions, which create a condition precedent to payment, namely, a condition that must precede payment to a lower tiered party, are void as a matter of law. Read the court decision
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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

Fire Damages Unfinished Hospital Tower at NYU Langone Medical Center

December 15, 2016 — Jeff Rubenstone – Engineering News-Record
A fire broke out Dec. 14 at a hospital tower under construction at NYU Langone Medical Center in New York City. The blaze sent a column of thick black smoke up through the Manhattan skyline. Read the court decision
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Reprinted courtesy of Jeff Rubenstone, Engineering News-Record
Mr. Rubenstone may be contacted at rubenstonej@enr.com

Is Arbitration Final and Binding?

July 02, 2018 — Jeanne M. Harrison - Smith Currie
Parties involved in a dispute may face a choice between arbitration and litigation. Previous articles in this series have discussed various factors that can influence that choice. One generally perceived advantage of arbitration is finality. But how final and binding is an arbitration award? The answer is governed primarily by the Federal Arbitration Act. The Federal Arbitration Act

Valid
Irrevocable; and
Enforceable, except on legal or equitable grounds for the revocation of a contract.

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Reprinted courtesy of Jeanne M. Harrison, Smith Currie
Ms. Harrison may be contacted at jmharrison@smithcurrie.com

Critical Materials for the Energy Transition: Of “Rare Earths” and Even Rarer Minerals

September 12, 2022 — Robert A. James, Ashleigh Myers, Shellka Arora-Cox & Amanda G. Halter - Gravel2Gavel Construction & Real Estate Law Blog
As the world pursues ambitious net-zero carbon emission goals, demand is soaring for the critical materials required for the technologies leading the energy transition. Lithium may be the most well-known of these inputs due to its usage in batteries for vehicles and consumer electronics, but roughly 50 other minerals are central to energy transition technologies. During the coming years, producers, manufacturers and end-users will be increasingly exposed to the roles played by “rare earth” elements (roughly, atomic numbers 57 to 71), platinum group metals, and other materials. The reasons for this heightened interest are simple—even if the underlying environmental, political and technological forces at play are complex:

Lower-carbon technologies use different materials than carbon-intensive technologies. The mineral requirements of power and mobility systems driven by renewable, nuclear, hydrogen and fusion energy are profoundly different from those forming the backbone of fossil fuel systems. Minerals such as lithium, nickel, copper, cobalt, and rare earth elements are vital for electric vehicles (EVs), batteries, fuel cells, electricity grids, wind turbines, smart devices, and many other essential and proliferating civilian and military technologies. For example, an offshore wind plant needs 13 times more mineral resources than a gas power plant of a similar size.

Reprinted courtesy of Robert A. James, Pillsbury, Ashleigh Myers, Pillsbury, Shellka Arora-Cox, Pillsbury and Amanda G. Halter, Pillsbury Mr. James may be contacted at rob.james@pillsburylaw.com Ms. Myers may be contacted at ashleigh.myers@pillsburylaw.com Ms. Arora-Cox may be contacted at shellka.aroracox@pillsburylaw.com Ms. Halter may be contacted at amanda.halter@pillsburylaw.com Read the court decision
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Not in My Kitchen – California Supreme Court Decertifies Golden State Boring Case

November 26, 2014 — Roger Hughes – California Construction Law Blog
On November 11, 2014, the California Supreme Court rejected the recent California Court of Appeals decision Golden State Boring & Pipe Jacking, Inc. v Eastern Municipal Water District, 228 Cal.App.4th 273 (2014) which we wrote about earlier by “decertifying” it (meaning that lawyers cannot cite to the case as legal precedent) The decertification removed a decision that added substantially to the confusion as to when an action on a payment bond is timely filed. Even though the decision was determined in accordance with pre-2014 statutes, the case was relevant precedent for construction attorneys when determining time deadlines for filing a claim on a bond. Background In July of this year, the California Court of Appeals for the Fourth Appellate District upheld a trial court’s granting of summary judgment against a project subcontractor Golden State Boring & Pipe Jacking, Inc. (GSB) who sued Safeco Insurance Company (Safeco) for unpaid contract amounts on a project payment bond issued by Safeco. Both at the trial level and on appeal Safeco successfully argued that GSB’s action on its payment bond claim was time barred by former California Civil Code Sections 3249 (now Section 9558), because it was filed more than six month after the period in which stop notices may be filed as provided by California’s Civil Code Section 3184 (now Section 9558). Read the court decision
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Reprinted courtesy of Roger Hughes, Wendel Rosen Black & Dean LLP
Mr. Hughes may be contacted at rhughes@wendel.com

Construction Mezzanine Financing

March 29, 2017 — Tim Davis & Steven Coury - White and Williams LLP
Construction mezzanine lending is on the rise and more development deals are getting done with a capital stack that includes mezzanine debt in addition to the traditional components of sponsor equity and senior mortgage debt. Below are important issues and concepts to bear in mind when structuring the financing of a construction project that includes a mezzanine debt component. Funding Sequence Funding Sequence When will the proceeds of the mezzanine loan be advanced? In some instances, the mezzanine loan proceeds will be advanced only after all of the borrower’s equity has been contributed to the construction of the project. In other instances, the borrower’s equity and the mezzanine loan proceeds go in either pari passu or simultaneously at another ratio. If the equity is not entirely contributed in advance, the mezzanine lender may require that the uncontributed equity be held by the mezzanine lender or held in a pledged account. The mezzanine lender may also further mitigate the risk of non-funding of the equity by requiring an equity funding guaranty (as discussed below). Additionally, when will the mezzanine loan proceeds be advanced in relation to the senior mortgage loan proceeds? Will the entire mezzanine loan be advanced prior to any senior mortgage loan advance or will they be advanced pari passu? Depending on the business deal, the mezzanine loan agreement will need to reflect how and when the equity, the mezzanine debt, and the mortgage debt will be advanced. Reprinted courtesy of Tim Davis, White and Williams LLP and Steven Coury, White and Williams LLP Mr. Davis may be contacted at davist@whiteandwilliams.com Mr. Coury may be contacted at courys@whiteandwilliams.com Read the court decision
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Buy Clean California Act Takes Effect on July 1, 2022

July 25, 2022 — Garret Murai - California Construction Law Blog
The Buy Clean California Act (BCCA) – Public Contract Code section 3500 et seq. – requires state agencies to consider the carbon content of the following products when awarding contracts:

Structural steel;
Concrete reinforcing steel;
Flat glass; and
Mineral wool board insulation.

It is anticipated that additional products may be added through future legislation. Read the court decision
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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

Explore Legal Immigration Options for Construction Companies

August 29, 2022 — Megan R. Naughton - Construction Executive
Although the visa options are limited, there are some that can be explored by construction companies in the United States, including the following. H-1B The H-1B visa category may be available for construction positions that require at least a bachelor’s degree in a specific field such as civil engineering, construction management or accounting. The timing can be challenging if an employer is looking to hire a recent graduate or someone outside of the United States for a role because of the H-1B lottery but can work well if the candidate is already in H-1B status and working for another company. These visas are site-specific, so they may need amending if a worker is moved from one site to another. H-2B The H-2B visa category is an option if the construction work is seasonal in nature and recurs each year, and if the company can plan its specific needs sufficiently far in advance. Timing is difficult with these; they require proving a shortage of U.S. workers and are subject to a lottery system like the H-1B. Reprinted courtesy of Megan R. Naughton, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Read the court decision
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FAIRFIELD CONNECTICUT BUILDING EXPERT DIRECTORY AND CAPABILITIES