SEATTLE WASHINGTON BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Where Mechanic’s Liens and Contracts Collide

July 02, 2018 — Christopher G. Hill - Construction Law Musings
Today at Construction Law Musings, we’re back to a discussion of mechanic’s liens. This past week, the Loudoun County Circuit Court here in Virginia had an opportunity to discuss the interaction between mechanic’s liens, contracts and the law of fixtures. In TWP Enters. v Dressel, the Court considered a provision of a contract between the TWP Enterprises, a supplier of materials to the construction project, and the builder for the defendant. The provision between the supplier and builder essentially stated that until such time as TWP’s materials were paid for in full, TWP kept title to them (check out the case link above for the full text of the provision). Needless to say, the builder did not pay and TWP filed a mechanic’s lien then sued to enforce that lien. The owners demurred to the complaint and asked the Court to dismiss the claim on several grounds, among them that the contractual provision described above precluded the enforcement of the lien because TWP retained title to the materials despite the fact that they had been incorporated into the structure of the building and were therefore part of the realty. Read the court decision
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Reprinted courtesy of Christopher G. Hill, The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

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Colorado Court of Appeals Defines “Substantial Completion” for Subcontractors’ Work so as to Shorten the Period of Time in Which They Can Be Sued

October 20, 2016 — David M. McLain – Colorado Construction Litigation Blog
Over the past few years, there has been a battle raging on in district courts and arbitration hearing rooms throughout Colorado regarding when a subcontractor’s work is to be deemed “substantially complete,” for purposes of triggering Colorado’s six-year statute of repose. C.R.S. § 13-80-104 states, in pertinent part:

Notwithstanding any statutory provision to the contrary, all actions against any architect, contractor, builder or builder vendor, engineer, or inspector performing or furnishing the design, planning, supervision, inspection, construction, or observation of construction of any improvement to real property shall be brought within the time provided in section 13-80-102 after the claim for relief arises, and not thereafter, but in no case shall such an action be brought more than six years after the substantial completion of the improvement to the real property, except as provided in subsection (2) of this section. * * * (2) In case any such cause of action arises during the fifth or sixth year after substantial completion of the improvement to real property, said action shall be brought within two years after the date upon which said cause of action arises.

C.R.S. § 13-80-104 (emphasis added). As the battle raged on at the trial court level, subcontractors and design professionals argued that their work should be deemed “substantially complete” when they finished their discrete scope of work within a project. Developers and general contractors, seeking to maintain third-party claims against the subcontractors and design professionals, typically argued either that the subcontractors’ and design professionals’ work should be deemed “substantially complete” upon the issuance of the final certificate of occupancy on the project, or upon the issuance of the final certificate of occupancy for the last building within a project on which the subcontractor or design professional worked. Trial court judges and arbitrators have been split on this issue, with perhaps a slight majority favoring one or the other approaches advocated by developers and general contractors, that the subcontractors’ and design professionals’ work is “substantially complete” upon the issuance of the last certificate of occupancy in a project (the minority view) or upon the issuance of the last certificate of occupancy for the last building within a project on which the subcontractor of design professional worked (the majority view). Read the court decision
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Reprinted courtesy of David M. McLain, Higgins, Hopkins, McLain & Roswell, LLC
Mr. McLain may be contacted at mclain@hhmrlaw.com

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Contract’s Definition of “Substantial Completion” Does Not Apply to Third Party for Purposes of SOL, Holds Court of Appeal

June 15, 2020 — Garret Murai - California Construction Law Blog
Those of you in the construction industry know that the two primary statutes of limitation are the 4-year year statute of limitations for patent defects and 10-year statute of limitations for latent defects. Both statutes begin to run on “substantial completion.” In Hensel Phelps Construction Co. v. Superior Court of San Diego, Case No. D076264 (January 22, 2020), the 4th District Court of Appeal examined whether the term “substantial completion,” as used in Civil Code section 941, which applies to residential construction, can be defined by the parties’ contract and applied to third-parties. The Hensel Phelps Case Hensel Phelps Construction Co. entered into a prime construction contract with the owner and developer of a mixed-use project in San Diego. Hensel Phelps was the general contractor on the project. The project included a residential condominium tower which would eventually be managed and maintained by Smart Corner Owners Association. Smart Corners was not a party to the contract. Read the court decision
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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

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America’s Infrastructure Gets a C-. It’s an Improvement Though

April 05, 2021 — Garret Murai - California Construction Law Blog
Every four years the American Society of Civil Engineers (ASCE) issues a report card assigning a letter grade to the nation’s infrastructure. ASCE issued their 2021 Infrastructure Report Card earlier this month. Our country’s grade in 2021? A disappointing C-. It’s an improvement though. When ASCE issued their 2017 Infrastructure Report Card we didn’t even pass the class with a grade of D+. In short, there’s room for improvement. A lot of room for improvement. C- is just the cumulative grade however. ASCE’s Report Card is divided into industry segments with grades assigned to each segment. Individual grades for some, but not all, of the segments include the following:

• Aviation: The nation’s airports received a grade of D+. According to the Report Card, terminal, gate and ramp availability are not meeting the needs of a growing passenger base which has increased from 964.7 million to 1.2 billion per year and a has a 10-year shortfall of $111 billion.

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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

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What You Need to Know About Home Improvement Contracts

July 30, 2019 — Garret Murai - California Construction Law Blog
Given the variety of problems that can arise on a construction project, from defects to delays, it’s difficult to draft a construction contract that addresses every possible problem exactly right. However, so long as you adequately address the “big three” of scope, price and time, it’s also difficult to draft a construction contract wrong. That is, with one exception. And that one exception, in California, is home improvement contracts. In 2004, the California State Legislature enacted the state’s Home Improvement Business statute (Bus. & Prof. Code §§7150 et seq.). Section 7159 of the statute sets forth what must be included in home improvement contracts. It’s a section that could have been written by Felix Unger of the Odd Couple. In addition to setting forth required language that must be included in a home improvement contract, it directs where that language is to be set forth in a home improvement contract, and even how it is to be presented, down to type sizes. Read the court decision
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Reprinted courtesy of Garret Murai, Wendel, Rosen, Black & Dean LLP
Mr. Murai may be contacted at gmurai@wendel.com

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Defining Construction Defects

February 04, 2013 — CDJ STAFF
Joseph M. Junfola has started a series at PropertyCasualty360.com on construction defect, and as is appropriate with an in-depth look, he starts by defining the central terms. What is a construction defect? What is a construction defect claim? Junfola notes that "there is no one uniform definition in all jurisdictions," and so he looks at the commonalities to "fashion at least a working definition." Nevada says that a construction defect "includes a defect in the design, construction, manufacture, repair or landscaping of a new residence, of an alteration of or an addition to an existing residence, or of an appurtenance." According to Florida it is "a deficiency in, or a deficiency arising of, the design, specifications, surveying, planning, supervision, observation of construction, or construction, repair, alteration, or remodeling of real property." He continues that a construction defect claim is "a claim for damages, i.e. money, arising out of a defect in construction, including defective design, faulty workmanship, and defective materials," but he notes that this is typically pursuant to the discovery of the problem within a given time. Read the court decision
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Contractors Can No Longer Make Roof Repairs Following Their Own Inspections

July 02, 2018 — Jason Feld & Alex Chazen - Kahana & Feld LLP
California law mandates that any person who conducts roof inspections for a fee can no longer effectuate the actual repairs to the same property. Effective January 1, 2018, Business & Professions Code Section 7197 (Unfair Business Practices) deems it to be an unfair business practice for a home inspector who charges a homeowner a monetary fee for inspecting the property, to perform or offer to perform additional repairs due to the inherent financial interest and conflict raised by identifying alleged defects necessitating repairs. The new law is a result of California AB 1357, which was signed into law on October 5, 2017. The goal of the new law is to disincentivize a roof inspector from creating a report for the sole purpose of obtaining a bid to perform those documented repairs. The roof contractor can perform repairs identified in their report only after a twelve month “cooling period” which provides the homeowner an opportunity to obtain multiple bids/estimates for repairs based upon the inspector’s report. The new law also discourages home inspectors from providing a list of contractors who provide monetary referral fees back to the home inspector upon receiving repair work from the homeowner based exclusively on the home inspection report. The California Business & Professions Code Section 7195(a)(1) defines a “home inspection” as a “non-invasive, physical examination, performed for a fee in connection with the transfer…of the real property…or essential components of the residential dwelling.” Home inspection includes “any consultation regarding the property that is represented to be a home inspection or any confusingly similar term.” Business & Professions Code section 7195(a)(2) further defines a “home inspection” as including energy efficiency and solar. A “home inspection report” is a written report prepared for a fee issued after an inspection. Business & Professions Code section 7195(c). It is noted that a home inspector does not have to be a licensed architect, professional engineer, or general contractor with a Class “B” license issued by the California Contractors State License Board, but “it is the duty of a home inspector who is not licensed as a general contractor, structural pest control operator, or architect, or registered as a professional engineer to conduct a home inspection with the degree of care that a reasonably prudent home inspector would exercise. Business & Professions Code section 7196. Reprinted courtesy of Jason Feld, Kahana & Feld LLP and Alex Chazen, Kahana & Feld LLP Mr. Feld may be contacted at jfeld@kahanalaw.com Mr. Chazen may be contacted at achazen@kahanafeld.com Read the court decision
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Ohio Supreme Court Case to Decide Whether or Not to Expand Insurance Coverage Under GC’s CGL Insurance Policies

August 14, 2018 — David Suggs – Bert L. Howe & Associates, Inc.
According to W. Matthew Bryant of Saul Ewing Arnstein & Lehr LLP, the Ohio Supreme Court will be deciding whether or not a general contractor's commercial general liability ("CGL") insurance policy may provide coverage for damage caused by a subcontractor's defective construction work. Bryant explained the status quo in Ohio: “Since 2012, Ohio has followed the rule that a CGL policy would not cover damage caused by a contractor to the contractor's own work.” That could change depending on how the Ohio Supreme Court rules in an upcoming case: “The Ohio Supreme Court will decide whether to affirm or overturn Ohio Northern University v. Charles Construction Services, Inc., 77 N.E.3d 538 (Ohio Ct. App. 2017) ("ONU"), an Ohio Court of Appeals decision holding that CGL coverage may exist for property damage caused by faulty work performed by the subcontractor of an insured general contractor.” Read the court decision
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