Construction Spending Highest Since April 2009
October 25, 2013 —
CDJ STAFFThe Commerce Department has announced that construction spending has increased by 0.6 percent, but that modest gain puts it at the highest it has been in four and a half years. The last time construction spending was this high was April 2009.
The rise in construction spending is due to increases in both public and private construction project. Public construction was up, despite a decrease in spending by the federal government. Private residential construction is at a five-year high.
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Construction Calamity: Risk Transfer Tips for Contractors After a Catastrophic Loss
August 17, 2020 —
William S. Bennett - Saxe Doernberger & Vita, P.C.From structural collapses to fires, the construction industry has experienced a number of high-profile catastrophes over the past decade. These disasters test the mettle of even the most experienced risk professionals and the strongest insurance programs. Issues can arise in all facets of the company’s contracts and insurance policies, and dealing with the aftermath is an extensive and demanding process that can involve many players.
As overwhelming as the task may seem, however, it is possible for general contractors to get through the disaster with minimal uncovered exposure if proper steps are taken. By understanding some of the exposures a general contractor faces after a catastrophic loss and implementing key risk transfer strategies from the outset of a project, risk professionals can minimize the impact of a loss on the company in the short and long term.
Understanding Possible Risk Exposures
When a catastrophic loss occurs, contractors face a wide array of potential exposures. Unfortunately, many large catastrophic losses involve serious bodily injuries and even loss of life. If such a tragedy occurs, the general contractor can reasonably expect to be named in a flurry of personal injury and wrongful death lawsuits. Depending on the scope of the project and the area associated with the loss, the catastrophe may also prompt a wide range of bystander claims, from dust inhalation to emotional distress.
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William S. Bennett, Saxe Doernberger & Vita, P.C.Mr. Bennett may be contacted at
wsb@sdvlaw.com
Decades of WCC Seminar at the Disneyland Resort
May 03, 2018 —
Beverley BevenFlorez-CDJ STAFFOne of the many perks of attending the West Coast Casualty Construction Defect Seminar each year is its location at the Disneyland Hotel. What better excuse to take an afternoon or day or two to visit the happiest place on Earth? Prior to 2001, attendees only had the Disneyland Park to explore. But the beginning of 2001 brought the addition of the California Adventure Theme Park and Downtown Disney. Now when you want a break you can take a stroll through Downtown Disney and shop, eat, or watch some street performers. While California Adventure still has plenty for children to do, it also caters to the twenty-one-and-over-but-still-child-at heart with wine tasting and craft beers available at the park. Disneyland remains a fixture for nostalgia with the Sleeping Beauty Castle, but has updated itself with its addition of Star Wars and Marvel attractions.
West Coast Casualty has special Disneyland ticket rates for attendees. Please see their
invitation for more details.
If you’re interested in one of Disneyland Resort’s sit-down restaurants, a reservation is highly desirable. You may
make your reservation online or call Disney Dining at (714) 781-DINE. Staying at the Disneyland Resort? Disney provides their hotel guests with preferred access reservations (call Disney Dining for more information). If you’re looking for a fine dining experience, you’ll enjoy Carthay Circle Restaurant at California Adventure, Catal Restaurant at Downtown Disney, Napa Rose at the Grand Californian Hotel, or Steakhouse 55 at the Disneyland Hotel. If you’re a sports fan, check out ESPN Zone in Downtown Disney. For a one-of-a-kind Disney experience, have lunch or dinner at the Blue Bayou at Disneyland, where the dining room is located within the Pirates of the Caribbean ride.
You may also want to check Disneyland Resort’s
Entertainment schedule. For a live musical show (included in the cost of admission to California Adventure Park), check out Frozen – Live at the Hyperion. For an illuminating experience, you’ll want to stay for the Paint the Night Parade at the California Adventure Park, which features one million brilliant lights and many of your favorite Disney characters. If you’re a Pixar lover, you won’t want to miss Disneyland Park’s Together Forever – A Pixar Nighttime Spectacular. It’s a fireworks display like only Disney can create, including dazzling projections, pyrotechnics and music from the movies.
If you wish to skip the crowds and just relax, then
the Madara Spa at Disney’s Grand Californian Hotel may be your choice. The Madara Spa theme is “the mystery of the East meeting the science of the West with boundaries ceasing to exist.”
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Nevada Supreme Court Declares Subcontractor Not Required to Provide Pre-Litigation Notice to Supplier
September 24, 2014 —
Beverley BevenFlorez-CDJ STAFFAccording to the Traub Lieberman Straus & Shrewsberry LLP blog on Construction Law, even though the Nevada Revised Statutes Annotated (NRS) Chapter 40 requires a general contractor “to provide pre-litigation notice (followed by an opportunity to repair) to a subcontractor or supplier the general contractor believes to be responsible” for the issue prior to filing suit, the Nevada Supreme Court “determined that NRS Chapter 40 imposes no such requirement upon a subcontractor.”
In Barrett v. Eighth Judicial District Court, “the court reasoned that ‘while the statutes’ and, indeed, chapter’s purpose is, in part, to allow defendants an initial opportunity to repair, the Legislature chose to carry out that purpose in the manner provided by the statutes, and [the Supreme Court] will not read into the statutes a notice requirement between a subcontractor and another subcontractor or supplier where none exist.’”
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Employees Versus Independent Contractors
February 23, 2017 —
Chadd Reynolds – Autry, Hanrahan, Hall & Cook, LLPAre the workers you employ on the job site considered employees or independent contractors? This is an important distinction that contractors and subcontractors must understand for many purposes, including federal taxes. The classification of your workers can affect their federal income, social security, and Medicare taxes, and the type of benefits they can receive.
When determining whether workers should be classified as employees or independent contractors, courts generally look at three key factors: behavioral control, financial control, and the relationship of the parties.
Behavior Control
Behavior control concerns the business’s right to direct or control how the worker does its work. A worker is likely to be considered an employee when the business maintains behavior control. Such control can be exercised by giving instructions. This would include instructions on how, when, or where to do the work, what tools or equipment to use, who to hire to help with the work, or where to purchase the supplies to be used. Behavioral control can also occur through training. If the business provides training to tell the worker to do the work in a certain manner then the worker is more likely to be an employee.
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Chadd Reynolds, Autry, Hanrahan, Hall & Cook, LLPMr. Reynolds may be contacted at
reynolds@ahclaw.com
Wisconsin Supreme Court Holds that Subrogation Waiver Does Not Violate Statute Prohibiting Limitation on Tort Liability in Construction Contracts
October 21, 2019 —
Gus Sara - The Subrogation StrategistIn Rural Mut. Ins. Co. v. Lester Bldgs., LLC 2019 WI 70, 2019 Wisc. LEXIS 272, the Supreme Court of Wisconsin considered whether a subrogation waiver clause in a construction contract between the defendant and the plaintiff’s insured violated Wisconsin statute § 895.447, which prohibits limitations of tort liability in construction contracts. The Supreme Court affirmed the lower court’s decision that the waiver clause did not violate the statute because it merely shifted the responsibility for the payment of damages to the defendant’s insurance company. The waiver clause did not limit or eliminate the defendant’s tort liability. This case establishes that while
§ 895.447 prohibits construction contracts from limiting tort liability, a subrogation waiver clause that merely shifts responsibility for the payment of damages from a tortfeasor to an insurer does not violate the statute and, thus, is enforceable.
In Rural Mutual, the plaintiff’s insured, Jim Herman, Inc. (Herman), entered into a contract with Lester Buildings, LLC (Lester) to design and construct a barn on Herman’s property. The contract included a provision that stated the following:
Both parties waive all rights against each other and any of their respective contractors, subcontractors and suppliers of any tier and any design professional engaged with respect to the Project, for recovery of any damages caused by casualty of other perils to the extent covered by property insurance applicable to the Work or the Project, except such rights as they have to the proceeds of such property insurance and to the extent necessary to recover amounts relating to deductibles of self-insured retentions applicable to insured losses. . . . This waiver of subrogation shall be effective notwithstanding allegations of fault, negligence, or indemnity obligation of any party seeking the benefit or production [sic] of such waiver.
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Gus Sara, White and WilliamsMr. Sara may be contacted at
sarag@whiteandwilliams.com
OSHA Releases COVID-19 Guidance
June 15, 2020 —
L. Stephen Bowers & Joshua Tumen - White and Williams LLPThe United States Department of Labor’s Occupational Safety and Health Administration (OSHA) ensures safe and healthful working conditions for employees by setting and enforcing standards and by providing training, outreach, education and assistance.
The COVID-19 outbreak has increased demand for N95 filtering face piece respirators (N95 FFRs), limiting availability for workers in healthcare and emergency response. On April 3, 2020, OSHA issued interim guidance for employers to combat the supply shortages of N95 FFRs and to comply with the respiratory protection standard (29 CFR § 1910.134). This guidance will remain in effect until further notice and applies in all industries.
Employers must continue to manage their respiratory protection programs and be mindful of N95 FFR shortages. Specifically, employers should identify and evaluate respiratory hazards in the workplace, and develop and implement written respiratory protection programs. Businesses should reassess their engineering controls, work practices, and administrative controls to identify any changes they can make to decrease the need for N95 FFRs. Some examples provided in the guidance include using portable local exhaust systems or moving operations outdoors. Employers may also consider temporarily suspending non-essential operations, to the extent such operations are not already suspended due to state mandates.
Reprinted courtesy of
L. Stephen Bowers, White and Williams LLP and
Joshua Tumen, White and Williams LLP
Mr. Bowers may be contacted at bowerss@whiteandwilliams.com
Mr. Tumen may be contacted at tumenj@whiteandwilliams.com
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2017 California Employment Law Update
January 13, 2017 —
Evelin Y. Bailey - California Construction Law BlogBelow are some of the new laws going into effect this year that affect the construction industry. Unless otherwise noted, the laws go into effect on January 1, 2017.
Public Works and Prevailing Wages
You can read more about the new laws—AB 326, AB 1926 and SB 954—relating to public works and prevailing wages in an earlier blog post.
Employment Contracts
Choice of Forum and Choice of Law. Under SB 1241, an employer cannot require an employee who primarily works and resides in California to agree to file a lawsuit or bring a claim in another state when the claim arises in California. This is usually referred to as the choice of forum clause.
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Evelin Y. Bailey, Wendel Rosen Black & Dean LLP Ms. Bailey may be contacted at
ebailey@wendel.com
