Fairfield Connecticut Building Expert Directory

Preliminary Notices: Common Avoidable But Fatal Mistakes

August 26, 2019 — William L. Porter - Porter Law Group
In the California building and construction industry, service of a “Preliminary Notice” is a prerequisite for Subcontractor and Supplier claims for payment through the Mechanics Lien, Stop Payment Notice and Payment Bond Claim process. Without proper drafting and service of a Preliminary Notice, these extremely valuable claims cannot be protected. Unfortunately, despite the vital importance of the Preliminary Notice, Subcontractors and Suppliers often make common self-defeating mistakes that make their Preliminary Notice efforts completely ineffective, resulting in loss of their claims rights. The purpose of this article is to list some of these common mistakes in the hope that the reader will avoid such mistakes, preserve the integrity of the Preliminary Notice, and protect the claims rights it makes available: Not Sending out the Preliminary Notice Within 20 Days After Supplying Labor or Materials: The protection of a Preliminary Notice begins 20 days before it sent out. This means that if a Subcontractor or Supplier claimant delivered $100,000 in materials on February 1, that same claimant must serve the Preliminary Notice on or before February 21 (the sooner the better), or the claimant will not be able to pursue an enforceable Mechanics Lien, Stop Payment Notice or Payment Bond claim for that $100,000. There are very few exceptions. Best practice: A Subcontractor or Supplier must send out the Preliminary Notice as soon as an agreement to provide work or materials to a California construction project is in place (See California Civil Code 8204). Read the court decision
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Reprinted courtesy of William L. Porter, Porter Law Group
Mr. Porter may be contacted at bporter@porterlaw.com

Colorado Homebuyers Must be in Privity of Contract with Developer to Assert Breach of Implied Warranty of Suitability

May 03, 2017 — Maggie Stewart - Colorado Construction Litigation
On April 17, 2017, the Colorado Supreme Court announced its decision in Forest City v. Rogers, No. 15SC1089, 2017 CO 23 (Colo. Apr. 17, 2017). The Court held that privity of contract is necessary for a homebuyer to assert a claim for breach of implied warranty of suitability against a developer. In other words, one must be a party to a contract to pursue a claim for breach of any implied warranty of suitability therein. Defendant Forest City was the developer of a mixed use property in Stapleton. Forest City subdivided the land and sold the vacant lot at issue to a professional builder, Infinity. Infinity then built a residence and sold it to the plaintiff, Tad Rogers. After moving into the home, Rogers came to believe that the water table beneath the house along with calcite leaching from the road material led to a buildup of calcite in the foundation drain, making the basement uninhabitable and causing the sump pump to work overtime. Rogers sued Forest City on various theories, including breach of the warranty of suitability. In particular, Rogers alleged that Forest City impliedly warranted to him that his lot was suitable for a home with a finished basement, when in fact it was not. He prevailed on this claim at the trial court level. Read the court decision
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Reprinted courtesy of Maggie Stewart, Higgins, Hopkins, McLain & Roswell, LLC
Ms. Stewart may be contacted at stewart@hhmrlaw.com

The Moving Finish Line: Statutes of Limitation and Repose Are Not Always What They Seem

June 01, 2020 — Kenneth E. Rubinstein & Nathan Fennessy - Construction Executive
Having an end date for risk is important to construction professionals who need to know when they can close their books and destroy files relating to old projects. While professionals typically look to the statute of limitations and repose, these deadlines can sometimes be harder to determine than one might think. State Laws Prohibiting Alteration of Statutes of Limitation Many contractors seek to control the extent of their risk by negotiating the length of their liability period. In some instances, contractors may seek to shorten the statute of limitations to protect against stale claims. While in other instances, owners periodically negotiate for longer periods to ensure that they will not be time barred from pursuing valid claims. While the majority of states enforce such contractual provision, a number of states hold such clauses unenforceable. In these instances, the state’s original statute of limitations will apply regardless of what the contract says. Reprinted courtesy of Kenneth E. Rubinstein & Nathan Fennessy, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved. Mr. Rubenstein may be contacted at krubinstein@preti.com Mr. Fennessy may be contacted at nfennessy@Preti.com Read the court decision
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The U.S. Flooded One of Houston’s Richest Neighborhoods to Save Everyone Else

December 01, 2017 — Shannon Sims - Bloomberg
“Next contestant, come on down.” On Oct. 6, in a bright courtroom in downtown Houston, Susan Braden, chief justice of the U.S. Court of Federal Claims, opens a preliminary hearing with a joke, beckoning a lawyer forward. Braden has flown in from Washington to oversee disputes involving the homes and businesses flooded in West Houston after Hurricane Harvey made landfall over Texas in late August. She has summoned attorneys interested in suing, to get their thoughts on how the proceedings should unfold. Almost 100 lawyers are present, combed and buzzing in anticipation of what promises to be some of the most complex and expensive litigation ever brought against the federal government. Observers speculate that thousands of plaintiffs could eventually join in, and that the total damages claimed could reach $10 billion or more, especially if the big energy and oil companies—whose presence in one section of West Houston gave it the nickname the Energy Corridor—sue over their flooded headquarters. Eighty suits, 11 of which are seeking class-action status, have been filed by homeowners against the federal government, though many of the Energy Corridor’s approximately 9,500 residents are still weighing their options, speed-dating lawyers by phone and at community meetings. Read the court decision
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Reprinted courtesy of Shannon Sims, Bloomberg

New OSHA Rule Creates Electronic Reporting Requirement

June 22, 2016 — John K. Baker & Kevin Conrad – White and Williams LLP
The United States Occupational Safety and Health Administration (OSHA) issued a Final Rule revising portions of its Recording and Reporting Occupational Injuries and Illnesses regulations (Recording and Reporting Regulations). The revisions take effect August 10, 2016. Employers subject to the new requirements have until July 1, 2017 to submit electronically the required information for calendar year 2016. OSHA will make electronically-submitted workplace-safety data for each reporting employer available publicly in an online database. Reprinted courtesy of John K. Baker, White and Williams LLP and Kevin Conrad, White and Williams LLP Mr. Baker may be contacted at bakerj@whiteandwilliams.com Mr. Conrad may be contacted at conradk@whiteandwilliams.com Read the court decision
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Coping with Labor & Install Issues in Green Building

October 08, 2014 — Beverley BevenFlorez-CDJ STAFF
Builder reported on the problem that builders have with using green techniques—finding skilled laborers and subs. “If a green product is not installed correctly it most likely won’t do its job,” building scientist Carl Seville said to Builder. Austin Trautman of Vali Homes told Builder that the biggest problem he had with his first net-zero prototype house was the HVAC work. “It’s actually a simpler system with straightforward installation, but they just couldn’t figure it out.” Cliff Majersik, executive director of the Institute for Market Transformation, said that teaching subs the new techniques is worthwhile: “Once you know how to do it, an energy-efficient house can even be less expensive to build.” Read the court decision
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Real Estate & Construction News Round-Up (03/01/23) – Mass Timber, IIJA Funding, and Distressed Real Estate

March 13, 2023 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
This week’s round-up explores how Infrastructure Investment and Jobs Act (IIJA) funding is being deployed, mass timber is on the rise as decarbonization efforts continue, and commercial real estate remains distressed.

With a flurry of high-profile projects, mass timber is gaining traction. (Jeffrey Steele, Commercial Property Executive)
Commercial real estate is experiencing high levels of distress, with multiple owners defaulting on loans across the country. (Ted Glanzer, The Real Deal)
Even with the recent downturn in cryptocurrency value, the metaverse real estate market is expected to continue to grow. (The Real Deal)

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Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team

Texas Public Procurements: What Changed on September 1, 2017? a/k/a: When is the Use of E-Verify Required?

October 11, 2017 — Timothy D. Matheny – Peckar & Abramson, P.C.
Every contractor that does business with the federal government is familiar with the requirement to use of E-Verify in order to document the employability of a contractor’s employees. But, when is a contractor required to use E-Verify in Texas? And, does this requirement to use E-Verify extend to the contractor’s subcontractors? All contractors and each of their subcontractors will be required to use E-Verify for a variety of goods and services contracts with state agencies. Failure to understand these requirements could lead to your company losing out on the award of the next Texas public procurement contract. Read the court decision
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Reprinted courtesy of Timothy D. Matheny, Peckar & Abramson, P.C.
Mr. Matheny may be contacted at tmatheny@pecklaw.com

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