Seattle Independent Contractor Ordinance – Pitfalls for Unwary Construction Professionals
October 09, 2023 —
Travis Colburn - Ahlers Cressman & SleightChapter 14.34 of the Seattle Municipal Code is a relatively new ordinance that can affect the parties to a construction contract for work performed within the City of Seattle’s city limits. The Independent Contractor Protection Ordinance (“ICPO”) was enacted to provide self-employed persons, or entities composed of not more than one person, regardless of corporate form, recourse for timely payment for work performed. The ICPO applies to contracts of $600[i] or more between an independent contractor and a hiring entity where the work, in whole or in part, is known to be performed within the City of Seattle’s city limits.[ii] The ICPO cannot be waived by parties to a contract.[iii]
Historically, the primary legal recourse for non-payment or late payment for work performed under a contract involves an expensive breach of contract action, and one reason the ICPO was enacted was to give greater protection to a growing number of Washington independent contractors who report problems with timely and accurate payment.
The ICPO affects “hiring entities” or any individual, partnership, association, corporation, business trust, or any entity, person or group of persons, or a successor thereof, that hires independent contractors to provide services within the scope of a hiring entity’s business or commercial activities. In the construction context, most general contractors, subcontractors, design professionals, and design consultants should be aware of this ordinance, as well as certain owners[iv] and development-side entities.
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Travis Colburn, Ahlers Cressman & SleightMr. Colburn may be contacted at
travis.colburn@acslawyers.com
Uniwest Rides Again (or, Are Architects Subject to Va. Code Section 11-4.1?)
October 16, 2018 —
Christopher G. Hill - Construction Law MusingsIn 2010, the Virginia Supreme Court held in Uniwest Const., Inc. v. Amtech Elevator Servs., Inc., that Va. Code Sec. 11-4.1 renders completely void and unenforceable any indemnification provision in a construction contract between a contractor and subcontractor that seeks to indemnify the indemnified party from its own negligent acts. In short, the Virginia Supreme Court stated that such overly broad provisions violate Section 11-4.1.
A recent case out of the Eastern District of Virginia Federal District Court examined a provision in a contract between a designer/architect and a contractor or owner on a project. In Travelers Indem. Co. of Conn. v. Lessard Design Inc. the Court examined the application of Section 11-4.1 to the following provision of a design contract where Lessard, the indemnitor, agreed to:
[i]ndemnify, defend and hold the Owner, Owner’s Developer, and Owner’s and Owner’s Developer’s wholly owned affiliates and the agents, employees and officers of any of them harmless from and against any and all losses, liabilities, expenses, claims, fines and penalties, costs and expenses, including, but not limited to reasonable attorneys’ fees and court costs relating to the services performed by the Architect hereunder . . .
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Christopher G. Hill, The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Colorado HB 13-1090: Concerning Payment of Amounts Due Under a Construction Agreement
February 21, 2013 —
David M. McLain — Higgins, Hopkins, McLain & Roswell, LLCOn January 17, 2013 Representative Fischer introduced House Bill 13-1090 into the Colorado House of Representatives. HB 1090 was assigned the House Business, Labor, Economic and Workforce Development Committee.
The bill, sponsored by Senator Tochtrop in the Senate, sets the following requirements for both private and public construction contracts:
The owner and contractor must make regular progress payments approximately every 30 days to contractors and subcontractors for work actually performed.
To receive the progress payments, the contractor and subcontractor must submit a progress payment invoice plus any required documents.
A contractor must pass on the progress payment to the subcontractor within 5 days or by the end of the billing cycle.
Interest accrues on unpaid progress payments.
A contract may extend a billing cycle to 60 days, but the contract must duly warn of this.
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David M. McLainmclain@hhmrlaw.com
Got Licensing Questions? CSLB Licensing Workshop November 17th and December 15th
November 15, 2017 —
Garret Murai - California Construction Law BlogA rare opportunity to hear it straight from the folks who process the applications . . .
CSLB Licensing Workshop Offers Helpful Information for Applicants
The Contractors State License Board (CSLB) is hosting free workshops for those looking to become a licensed contractor. Current licensees are encouraged to pass this information along to their workers and to those who might be interested in learning more about the application process.
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Garret Murai, Wendel Rosen Black & Dean LLP Mr. Murai may be contacted at
gmurai@wendel.com
How Many Bridges Does the Chesapeake Bay Need?
August 03, 2022 —
Ethan McLeod - BloombergSteve Kline, a 7th-generation Marylander, knows well the vacation tradition of driving across the twin spans of the Chesapeake Bay Bridge for trips to the beach resort of Ocean City. His grandfather, an ironworker, helped build the bridge’s first span, which opened in 1952.
He’s also very familiar with another seasonal rite: wading through the infamous miles-long traffic backups that last from Memorial Day through the end of summer.
But Kline, president of the nonprofit Eastern Shore Land Conservancy, is not on board with the state’s proposed multibillion-dollar fix — a new 4.3-mile-long crossing, to be built alongside the two current spans of the Bay Bridge. In April, the Maryland Transportation Authority (MDTA) announced it had received federal approval to use this route for a potential new, wider bridge that would be likely to eventually replace its older siblings, addressing the notorious summer bottlenecks for decades to come. And on June 10, at a press conference held near the bridge’s eastbound ramp, Maryland Governor Larry Hogan announced that he would commit $28 million in bridge toll revenue to fund the second phase of an environmental impact study on the idea.
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Ethan McLeod, Bloomberg
Winter COVID-19 Relief Bill: Overview of Key Provisions
January 04, 2021 —
White and Williams LLPIn a much needed holiday gift for businesses and individuals who continue to be affected by COVID-19, Congress finally approved a $900 billion aid package follow-up to the CARES Act (the Winter Covid-19 Relief Bill), the several trillion dollar stimulus that was enacted early in the pandemic. The bill, part of the larger annual spending bill, will hopefully be signed into law by President Trump in the coming days although the President has indicated his disappointment about the small amount of direct relief to individuals included in the bill. The bill was passed by both houses of Congress by a veto proof majority and is expected to become law whether or not the President chooses to exercise his veto power.
White and Williams has and will continue to provide more detailed updates on important components of the legislation, some of which address matters beyond COVID-19-related relief and support, including a new Paycheck Protection Program and tax deductibility of expenses paid for with PPP funds, extension and expansion of the employee retention tax credit, direct payments to individuals, additional unemployment assistance, restrictions on surprise medical billing, rental assistance and extension of the eviction moratorium, education funding, vaccine distribution, testing and tracing, and other healthcare funding. In the meantime, here is a brief overview of several pieces of the legislation:
Paycheck Protection Program
The Winter COVID-19 Relief Bill provides for $284 billion of funding for a new round of the popular Paycheck Protection Program (PPP), which was established by the CARES Act and allowed borrowers to receive forgivable loans to be used to retain employees and cover certain other basic operating expenses. New and existing businesses may participate in the program. However, eligibility for PPP Part II is more restrictive and targeted then the original PPP.
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White and Williams LLP
Trends: “Nearshoring” Opportunities for the Construction Industry
July 22, 2024 —
Jerry P. Brodsky & Roberto Hernandez - Peckar & Abramson, P.C.“Nearshoring” is a hot topic throughout Latin America and is receiving increasing attention in the United States. We offer this introduction to “Nearshoring” and the opportunities it presents for your reference.
“Nearshoring” has become increasingly relevant in the context of the globalized economy. This phenomenon describes relocating production and service operations to countries geographically close to consumer markets, instead of opting for more distant locations as in traditional “offshoring”, considering, as dominant criteria, production conditions and costs.
Mexico, for example, given its strategic geographic closeness to the United States and its highly skilled labor force, is an attractive location for companies in a wide range of industries which are considering relocation or construction of new facilities and seeking to optimize costs, maintain efficiency and mitigate supply chain risks.
Reprinted courtesy of
Jerry P. Brodsky, Peckar & Abramson, P.C. and
Roberto Hernandez, Peckar & Abramson, P.C.
Mr. Brodsky may be contacted at jbrodsky@pecklaw.com
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PCL Sues Big Bank for $30M in Claimed NJ Mall Unpaid Work
July 16, 2023 —
Mary B. Powers - Engineering News-RecordDenver-based PCL Construction Services sued JPMorgan Chase Bank in federal court earlier this month for $30 million in claimed unpaid work and interest related to construction of a $5-billion northern New Jersey mall and entertainment center that also faces other financial challenges since its COVID-19-impacted opening in 2019.
Reprinted courtesy of
Mary B. Powers, Engineering News-Record
ENR may be contacted at enr@enr.com
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