Fairfield Connecticut Building Expert Directory

AB5 Construction Exemption – A Checklist to Avoid Application of AB5’s Three-Part Test

February 18, 2020 — Blake Dillion - Payne & Fears LLP
Construction companies have a unique opportunity to avoid the application of the restrictive new independent contractors law that took effect this year. This article provides a checklist that will help construction companies determine whether their relationships with subcontractors qualify for this exemption. California’s Assembly Bill 5 (“AB5”), which went into effect Jan. 1, 2020, enacts into a statute last year’s California Supreme Court decision in Dynamex Operations West, Inc. v. Superior Court, 4 Cal. 5th 903 (2018), and the Court’s three-part standard (the “ABC test”) for determining whether a worker may be classified as an employee or an independent contractor. Certain professions and industries are potentially exempt from this standard, including the construction industry. The ABC test does not apply to the relationship between a contractor and an individual performing work pursuant to a subcontractor in the construction industry, if certain criteria are met. In order for the “construction exemption” to apply, the contractor must demonstrate that all of the following criteria are satisfied.

The subcontract is in writing;
The subcontractor is licensed by the Contractors State License Board and the work is within the scope of that license;
If the subcontractor is domiciled in a jurisdiction that requires the subcontractor to have a business license or business tax registration, the subcontractor has the required business license or business tax registration;
The subcontractor maintains a business location that is separate from the business or work location of the contractor;
The subcontractor has the authority to hire and to fire other persons to provide or assist in providing the services;
The subcontractor assumes financial responsibility for errors or omissions in labor or services as evidenced by insurance, legally authorized indemnity obligations, performance bonds, or warranties relating to the labor or services being provided; and
The subcontractor is customarily engaged in an independently established business of the same nature as that involved in the work performed.

The contractor must be able to establish each of the above criteria for the construction exemption to apply. If the contractor is successful, the long standing multi-factor test for determining independent contractor vs. employee status as described in S.G. Borello & Sons, Inc. v. Dep’t of Industrial Relations, 48 Cal. 3d 341 (1989) will apply. You should review your processes and procedures for engaging subcontractors to ensure that you can satisfy the above criteria. If you have questions about the application of AB5, the construction exemption, or the Borello factors, you should speak with an attorney. Read the court decision
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Reprinted courtesy of Blake A. Dillion, Payne & Fears
Mr. Dillion may be contacted at bad@paynefears.com

Navigating Abandonment of a Construction Project

March 02, 2020 — Bremer Whyte Brown & O’Meara
No construction or real estate developments goes completely as planned. Despite the expectation that modifications will likely be necessary to finalize a project, far too many parties suffer losses related to these projects. In California, abandonment of a project without legal excuse gives rise to a legal claim. An abandonment occurs if there was a material failure to complete any construction project or operation for the price stated in the contract or in any modification of the contact. If abandonment occurs, litigation likely follows. Disputes most commonly arise when the parties fail to retain a paper trail. Therefore, to limit litigation, document everything. Change orders can offer protection, but they must be in writing. Handshakes or oral promises are not sufficient. Rather, obtain written agreements signed by the contractor, and retain all documentation provided by the contractor, including invoices, receipts, work estimates and change orders. If the construction project has been abandoned, take photographs and/or videos of the job as it appears. To mitigate damages, preserve any leftover materials that a new contractor may be able to use. Read the court decision
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Reprinted courtesy of Bremer Whyte Brown & O’Meara

I.M. Pei, Architect Who Designed Louvre Pyramid, Dies at 102

July 01, 2019 — James S. Russell - Bloomberg
I.M. Pei, a dominant figure in American architecture for more than three decades who designed the Louvre’s crystal pyramid and the angular East Building of Washington’s National Gallery of Art, has died. He was 102. His son Li Chung Pei said on Thursday that his father had died overnight, the New York Times reported. Pei gave “this century some of its most beautiful interior spaces and exterior forms,” said the jury of the Pritzker Architecture Prize, which Pei won in 1983. Though reserved and supremely diplomatic, Pei’s face, always crowned by round thick-rimmed glasses, could break unexpectedly into a wide, dazzling smile. He approached clients with charm and a quick wit, and they usually succumbed happily. Read the court decision
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Reprinted courtesy of James S. Russell, Bloomberg

Sixth Circuit Finds No Coverage for Faulty Workmanship Under Kentucky Law

December 30, 2013 — Tred Eyerly — Insurance Law Hawaii
Following Kentucky law, the Sixth Circuit determined there was no coverage for a construction defect claim. Liberty Mut. Fire Ins. Co. v. Kay & Kay Contracting, LLC, 2013 U.S. App. LEXIS 23587 (6th Cir. Nov. 19, 2013). Walmart hired a contractor to build a new store. The contractor hired Kay and Kay to perform site preparation work and construct the building pad for the new store. After Kay and Kay completed the building pad and the store was erected, cracks were noticed in the building's walls. Walmart contended there was settling in the some of the fill areas. Kay and Kay denied liability, but demanded coverage under its CGL policy with Liberty Mutual. Read the court decision
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Reprinted courtesy of Tred Eyerly
Tred Eyerly can be contacted at te@hawaiilawyer.com

Veolia Agrees to $25M Settlement in Flint Water Crisis Case

February 19, 2024 — James Leggate - Engineering News-Record
Engineering firm Veolia North America agreed to a $25-million settlement to resolve a federal class action case related to its work for the city of Flint, Mich., during the city’s lead-in-water crisis, the company and attorneys for the plaintiffs announced Feb. 1. Veolia is the second engineering firm that worked for the city to settle with city residents, and the deal came ahead of a class-action trial scheduled to start later this month. Reprinted courtesy of James Leggate, Engineering News-Record Mr. Leggate may be contacted at leggatej@enr.com Read the full story... Read the court decision
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Strangers in a Strange Land: Revisiting Arbitration Provisions to Account for Increasing International Influences

July 16, 2023 — William Underwood - ConsensusDocs
Arbitration is nothing new. Neither is globalization. But the two are coming together in ways that have incrementally influenced the manner in which many arbitrations are now conducted. And this merits a re-examination of old arbitration clauses to account for some of these new influences. With that in mind, this article will examine some basic considerations when examining arbitration agreements within a construction industry that continues to see the increasing participation of foreign companies in domestic projects. Although this is not a comprehensive review of best drafting practices, nor is it a full survey of the differences between domestic and international arbitration, this article will nonetheless highlight a few basic concepts to keep in mind when reviewing arbitration clauses. As a basic starting point, the continuing globalization of the construction industry has led to distinct impacts on the ways in which parties conduct arbitrations in the United States. The increased participation of international companies in domestic construction projects has naturally led to the application of international legal concepts to domestic alternative dispute resolution. And the increasing prevalence of these international concepts has led to a number of important trends that can impact the way arbitrations are handled. Read the court decision
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Reprinted courtesy of William Underwood, Jones & Walker (ConsensusDocs)
Mr. Underwood may be contacted at wunderwood@joneswalker.com

World Green Building Council Calls for Net-Zero Embodied Carbon in Buildings by 2050

November 18, 2019 — Nadine M. Post - Engineering News-Record
The World Green Building Council’s latest maneuver in its war against greenhouse gas emissions is a rallying cry for embodied-carbon reduction in buildings that involves global collaboration, communication, education, innovation and regulation. WGBC’s ambitious aim is to get to net-zero EC in all new construction and renovations by 2050. Reprinted courtesy of Nadine M. Post, Engineering News-Record Ms. Post may be contacted at postn@enr.com Read the full story... Read the court decision
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The Drought Is Sinking California

August 19, 2015 — Jennifer Oldham – Bloomberg
Land in California’s central valley agricultural region sank more than a foot in just eights months in some places as residents and farmers pump more and more groundwater amid a record drought. The ground near Corcoran, 173 miles (278 kilometers) north of Los Angeles, dropped about 1.6 inches every 30 days. One area in the Sacramento Valley was descending about half-an-inch per month, faster than previous measurements, according to a report released Wednesday by the Department of Water Resources. NASA completed the study by comparing satellite images of Earth’s surface over time. “Groundwater levels are reaching record lows -- up to 100 feet lower than previous records,” Mark Cowin, the department’s director, said in a statement. “As extensive groundwater pumping continues, the land is sinking more rapidly and this puts nearby infrastructure at greater risk of costly damage.” Read the court decision
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Reprinted courtesy of Jennifer Oldham, Bloomberg

FAIRFIELD CONNECTICUT BUILDING EXPERT DIRECTORY AND CAPABILITIES