Public Contract Code 9204 – A New Mandatory Claims Process for Contractors and Subcontractors – and a Possible Trap for the Unwary
March 22, 2017 —
Alex R. Baghdassarian & Joseph S. Sestay – Peckar & Abramson, P.C.New California legislation affecting public works contractors was adopted pursuant to Assembly Bill 626, sponsored by the Union Trade Contractors Association of California and endorsed by various trade and contractor associations including the AGC. AB 626, which was intended to assist contractors in presenting claims against public agencies, affords new opportunities, and some potential pitfalls, to contractors and subcontractors submitting claims to public owners.
The legislation, codified at California Public Contract Code (PCC) section 9204, is effective for public works contracts entered into after January 1, 2017. All public entities (including the CSUS and the UC system), other than certain Departments of the State (CalTrans, High-Speed Rail Authority, Water Resources, Parks and Recreation, Corrections and Rehabilitation, General Services and the Military) are bound by the provisions of PCC Section 9204. PCC 9204 establishes a mandatory pre-litigation process for all claims by contractors on a public works project. It is an attempt to address the reluctance of public owners to promptly and fairly negotiate change orders on projects, putting some teeth to the mandate of existing law under PCC Section 7104, which precludes public owners from shifting to the contractor the risk of addressing differing subsurface and/or concealed hazardous site conditions.
Reprinted courtesy of
Alex R. Baghdassarian, Peckar & Abramson, P.C. and
Joseph S. Sestay, Peckar & Abramson, P.C.
Mr. Baghdassarian may be contacted at abaghdassarian@pecklaw.com
Mr. Sestay may be contacted at jsestay@pecklaw.com
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Woman Files Suit for Property Damages
January 15, 2014 —
Melissa Zaya-CDJ STAFFDebra Lovejoy filed suit on December 5th 2013 in Virginias Kanawha Circuit Court claiming that her home sustained damaged after a highway was built near her property, according to The West Virginia Record. The West Virginia Water Company, Carpenter Reclamation Inc., and the West Virginia Department of Transportation-Division of Highways were named in the suit.
“Lovejoy claims Carpenter disturbed the contours of the surface, thereby weakening the support for the bank extending along the highway,” reports Kyla Asbury of The West Virginia Record. Asbury continues: “As a result, the bank has slipped significantly over time, according to the suit.” Lovejoy claims the bank needs to be repaired in order to prevent it from further slips, and is pursuing compensation.
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Useful Life: A Valuable Theory for Reducing Damages
March 29, 2017 —
Brooke E. Beebe, Esq. - Florida Construction Law NewsThe situation is one all too familiar to construction defect litigants. A homeowner contracts with a roofing contractor to install a new roof with a life expectancy of ten years.[1] After only five years, the homeowner brings a claim for construction defects in the roof alleging that the roof requires complete replacement due to water intrusion. The homeowner seeks damages for the full replacement cost of the roof. However, under a “useful life” theory, the homeowner would not be entitled to damages for the full amount of the replacement cost. Instead, the homeowner would be entitled to one-half of the cost of the replacement roof, taking into account the fact that he or she had been deprived of only five, rather than ten, years of use. “Useful life” is best understood as the expected length of time that a newly built construction element can be reasonably anticipated to last, subject to routine maintenance and ordinary wear and tear. The “useful life” theory holds that granting the homeowner damages for the full replacement cost of the roof would result in unjust enrichment to the homeowner, who had contracted for a roof with a ten-year, rather than a fifteen-year, useful life.
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Brooke E. Beebe, Cole, Scott & Kissane, P.A.Ms. Beebe may be contacted at
brooke.beebe@csklegal.com
Alleged Defective Water Pump Leads to 900K in Damages
January 13, 2014 —
CDJ STAFFA lawsuit filed by Liberty Mutual on behalf of their client, Turner Construction, alleges that defects in the installation of a water pump lead to $900,000 in costs for a building in New Jersey. They are seeking compensation from Triangle Plumbing. Law360 quotes the complaint, which states “as a result of Triangle’s failure to provide a complete, functional plumbing system at the property as required by the subcontract agreement, Triangle has breached the specific scope of work provision of the subcontract agreement.”
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Can’t Get a Written Change Order? Document, Document, Document
August 29, 2018 —
Todd M. Heffner - Smith CurrieMost construction contracts require that any changes to the work be made formally, in writing, via a change order, work directive, or similar written document. Frequently, however, changes to the work or extra work are communicated orally by the architect, engineer, or owner’s representative, instead of in writing. What is the contractor to do in such a situation? The best option is follow the provisions of the contract and demand a written change order before performing changed work. Unfortunately, the realities of construction sometimes make it impossible to get the changes in the proper format in a timely manner. Savvy contractors will maintain schedule and produce written documentation of the change in lieu of a formal change order or directive. But many contractors will simply proceed with the changed work, relying on the owner, architect, or engineer to do the right thing and stand by their oral instructions.
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Todd M. Heffner, Smith CurrieMr. Heffner may be contacted at
tmheffner@smithcurrie.com
Rescission of Policy for Misrepresentation in Application Reversed
August 17, 2017 —
Tred R. Eyerly - Insurance Law HawaiiThe California Court of Appeal reversed the trial court's issuance of summary judgment to the insurer, finding that the insured did not make misrepresentations when applying for a policy to cover rental property. Duarte v. Pacific Spec. Ins. Co., 13 Cal. App. 5th 45 (2017).
Duarte rented his house to Jennifer Pleasants. Duarte gave her a 45-day notice to quit in February 2012, but she did not leave. Two months later, Duarte applied for landlord-tenant coverage with Pacific. The application was submitted electronically and Pacific issued a policy to Durate the same day.
In June 2012, Pleasants filed a lawsuit against Duarte, alleging ten causes of action arising from habitability defects which began in 2009. The suit claimed Pleasants had notified Duarte about the defects, she had suffered emotional distress and physical injury, and over paid rent, and had out-of-pocket expenses.
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Tred R. Eyerly - Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
How to Protect the High-Tech Home
March 19, 2015 —
Beverley BevenFlorez-CDJ STAFFRemodeling explained how the new high-tech home gadgets can be vulnerable to “digital or actual break-ins” without the right security in place. Though it isn’t clear how often home hacking is occurring.
"I haven't heard of any major hackers breaking into many houses at one time, and the likelihood that someone will try to break into your house by unlocking your door instead of smashing the window is probably low," Tim McInerney, director of product marketing for Savant told Remodeling. "But as devices get more popular and clear winners start to emerge, you may see more and more of those kinds of attacks. When there's a million of one type of connected thermostat out there, that creates more chances for hackers to test the connections and catch someone off-guard."
Remodeling includes tips on making your home more secure, including changing the default device password, creating multiple networks, and consider hard-coding the hardware address.
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Why A.I. Isn’t Going to Replace Lawyers Anytime Soon
April 18, 2023 —
Amir Kahana - Kahana FeldIn a recent article entitled, “A.I. Is Coming for Lawyers, Again” the New York Times explored the longstanding idea that the legal profession is most at risk of being disrupted by A.I. The article claimed that: “There are warnings that ChatGPT-style software, with its humanlike language fluency, could take over much of legal work.” And that: “Law is seen as the lucrative profession perhaps most at risk from the recent advance in A.I. because lawyers are essentially word merchants.”
The problem with these predictions is that they are based on a fundamental misunderstanding of what lawyers do, which is primarily to provide sound advice and formulate sophisticated strategy. All the wordsmithing in the world won’t make a bad case good, or vice versa. Lawyers do not have a Jedi mind trick. We analyze the facts, we make the best arguments possible under the circumstances, we advise our clients on their prospects, and we come up with a strategy for an optimal outcome, which almost always includes a path towards settlement. We are strategists and trusted advisors. Not wordsmithers.
This is not anything ChatGPT or current A.I. can do, or even come close to doing. And how do I know that? Because in a recent Wall Street Journal article, experts on self-driving cars explain that A.I. is nowhere close to being able to drive a car autonomously. In an article entitled “When Will Cars Be Fully Self-Driving?” the experts explain that the main impediment to fully autonomous vehicles is how dumb A.I. is. As one of the leading experts explains, fully autonomous cars “would require human-level artificial intelligence, and there is no commonly accepted theory on how to get there. As long as there is no human-level AI, autonomous mobility will be limited.”
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Amir Kahana, Kahana FeldMr. Kahana may be contacted at
akahana@kahanafeld.com