Using Lien and Bond Claims to Secure Project Payments
March 01, 2021 —
Jonathan Cheatham - Construction ExecutiveWhile suing in court for payment on a construction project is nothing new, the very notion of non-payment tends evokes images of hard-working contractors and subcontractors, working with tight margins, owed payment for services rendered and materials. Fortunately, for general contractors and subcontractors in the construction industry, there are better remedies for securing payment on a project before it becomes a bigger issue.
Construction projects, especially large public ones, usually include a dizzying array of general contractors, subcontractors and independent contractors, sometimes numbering more than a hundred entities. The inter-connected groups of companies working toward the goal of project completion require competent construction management in order to stay on time and on budget for completion. One of the project owner’s key tools used to ensure the process runs smoothly is the use of payment bonds and surety bonds.
Payment Bonds
Payment bonds ensure that contractors and subcontractors get paid for work performed in accordance with contract conditions. Disputes can occur before, during and even after the completion of work. Injunctive lawsuits, which contemplate the stoppage of work, would be detrimental to completing a public or private construction project of substantial size. Rather than having such minor disputes derail the entire project, the aggrieved party’s remedy is to file a claim against the payment bond, which offers a solution designed to keep the issue separate from the project’s completion. The payment bond also allows the project owner to transfer risk.
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Jonathan Cheatham, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Coping with Labor & Install Issues in Green Building
October 08, 2014 —
Beverley BevenFlorez-CDJ STAFFBuilder 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.”
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NLRB Finalizes Rule for Construction Industry Unions to Obtain Majority Support Representational Status
September 23, 2024 —
Aaron C. Schlesinger - Peckar & Abramson, P.C.On July 26, 2024, the National Labor Relations Board (“NLRB”) issued its Fair Choice – Employee Voice Final Rule (“Final Rule”), which takes effect September 30, 2024. The Final Rule eases the process for unions in the construction industry to convert their status as collective bargaining representative of bargaining unit employees from Section 8(f) to 9(a) of the National Labor Relations Act (“Act”) simply by placing certain recognitional acceptance language in their collective bargaining agreements. As a result, construction industry employers should review their collective bargaining agreements prior to signing to determine if such language exists.
Section 9(a) Non-Construction Industry Employers
In most industries, not including construction, union recognitional status as collective bargaining representative of the employer’s employees is governed by Section 9(a) of the Act. In order for a Union to obtain recognitional status under Section 9(a), the union must either: (1) file a petition with the NLRB showing support of 30% of the proposed bargaining unit via employee executed authorization cards and win an election of 51% of the employees in the proposed bargaining unit who actually vote; or (2) by reaching an agreement with the employer that the union possesses employee executed authorization cards from 51% of the proposed bargaining unit, which has been confirmed by a neutral arbitrator pursuant to a card count. Once such status is achieved, the union and employer are required to meet and bargain towards reaching a collective bargaining agreement covering the terms and conditions of employment of the union represented employees. A Section 9(a) union cannot have its recognitional status revoked absent the loss of majority support of the employees it represents.
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Aaron C. Schlesinger, Peckar & Abramson, P.C.Mr. Schlesinger may be contacted at
aschlesinger@pecklaw.com
The Roads to Justice: Building New Bridges
August 23, 2021 —
Aileen Cho - Engineering News-RecordFormer U.S. Dept. of Transportation Secretary Anthony Foxx grew up on “the wrong side of the tracks.”
“My home was a stone’s throw from Interstates 85 and 77,” recalls Foxx, who grew up in Charlotte, N.C., and served as DOT Secretary from 2013-17 under President Barack Obama. “The airport was nearby. Planes flew at low altitude over our house. Whether or not I was using the system, I sure heard and saw a lot of it.” Desirable areas to live were far away from transportation infrastructure, “and the property values of those living near these projects was diminished.”
Reprinted courtesy of
Aileen Cho, Engineering News-Record
Ms. Cho may be contacted at choa@enr.com
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An Upward Trend in Commercial Construction?
March 28, 2012 —
Melissa Brumback, Construction Law in North CarolinaYear-end economic indicators demonstrate that private commercial construction may be increasing in 2012, primarily as demand grows for new projects built in the United States.
According to an article in Businessweek, the Architecture Billings Index held at 52 in December, indicating a modest expansion in the market. The American Institute of Architects said that the commercial and industrial component of the number climbed to 54.1 in December, the highest in 10 months.
The monthly survey of U.S.-based architecture firms is one of the main indicators of nonresidential construction, and these numbers suggest that modest improvement may be on the horizon.
The information is confirmed by data from the Census Bureau that shows that spending on lodging, office, commercial and manufacturing buildings grew 8.2 percent in November to $9.2 billion from a year ago. These types of commercial and industrial projects are historically canaries in the mine and are usually the first part of the industry to improve as the economy expands.
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Reprinted courtesy of Melissa Dewey Brumback of Ragsdale Liggett PLLC. Ms. Brumback can be contacted at mbrumback@rl-law.com.
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$24 Million Verdict Against Material Supplier Overturned Where Plaintiff Failed to Prove Supplier’s Negligence or Breach of Contract Caused an SB800 Violation
November 21, 2017 —
Jon A. Turigliatto, Esq. & Chelsea L. Zwart, Esq. – Chapman Glucksman Dean Roeb & Barger BulletinOriginally published by CDJ on March 16, 2017
Acqua Vista Homeowners Assoc. v. MWL Inc. (2017) 2017 WL 371379
COURT OF APPEAL EXTENDS GREYSTONE HOMES, INC. v. MIDTEC, INC., HOLDING THAT CIVIL CODE §936 CREATES A NEGLIGENCE STANDARD FOR CLAIMS AGAINST MATERIAL SUPPLIERS BROUGHT UNDER SB800.
The Fourth District California Court of Appeal recently published its decision Acqua Vista Homeowners Assoc. v. MWI, Inc. (2017) 2017 WL 371379, holding that claims against a material supplier under SB800 (Civil Code §895 and §936) require proof that the SB800 violation was caused by the supplier's negligence or breach of contract.
Civil Code §936 states in relevant part, that it applies "to general contractors, subcontractors, material suppliers, individual product manufacturers, and design professionals to the extent that the general contractors, subcontractors, material suppliers, individual product manufacturers, and design professionals caused, in whole or in part, a violation of a particular standard as the result of a negligent act or omission or a breach of contract .... [T]he negligence standard in this section does not apply to any general contractor, subcontractor, material supplier, individual product manufacturer, or design professional with respect to claims for which strict liability would apply."
Reprinted courtesy of
Jon A. Turigliatto, Esq., Chapman Glucksman Dean Roeb & Barger and
Chelsea L. Zwart, Esq., Chapman Glucksman Dean Roeb & Barger
Mr. Turigliatto may be contacted at jturigliatto@cgdrblaw.com
Ms. Zwart may be contacted at czwart@cgdrblaw.com
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Congratulations to Nicole Whyte, Keith Bremer, John Toohey, and Tyler Offenhauser for Being Recognized as 2022 Super Lawyers!
February 07, 2022 —
Dolores Montoya - Bremer Whyte Brown & O'Meara LLPBWB&O is proud to announce that Partners Nicole Whyte, Keith Bremer, John Toohey, and Tyler Offenhauser have been named as 2022 Southern California’s Super Lawyers! We are also honored to share that Nicole Whyte is included in two of the top lists, Top 50 Women Lawyers in Southern California and Top 50 Lawyers in Orange County!
Super Lawyers is a rating service of outstanding lawyers from more than 70 practice areas who have attained a high degree of peer recognition and professional achievement. The patented selection process includes independent research, peer nominations, and peer evaluations. Each candidate is evaluated on 12 indicators of peer recognition and professional achievement. During the final selection process, only lawyers in the top 5% of the total lawyers in the state are selected to the Super Lawyers list.
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Dolores Montoya, Bremer Whyte Brown & O'Meara LLP
Western Specialty Contractors Branches in San Francisco and Cleveland Take Home Top Industry Honors
January 03, 2022 —
Western Specialty Contractors(St. Louis, MO, Dec. 21, 2021) Western Specialty Contractors Branches in San Francisco, CA and Cleveland, OH are ending the year's fourth quarter on a high note, with each receiving a top industry award.
In October, Western's San Francisco Branch was named a 2021 International Concrete Repair Institute (ICRI) Project of the Year Award Finalist (Historic Category) for renovation and repurposing of the SMUD Museum of Science and Curiosity in Sacramento, CA. Western's Cleveland Branch was honored in December with the Institute of Real Estate Management (IREM) Northern Ohio Chapter's Industry Partner of the Year Award.
About Western Specialty Contractors
Family-owned and operated for more than 100 years, Western Specialty Contractors is the nation's largest specialty contractor in masonry and concrete restoration, waterproofing and specialty roofing. Western offers a nationwide network of expertise that building owners, engineers, architects, and property managers can count on to develop cost-effective, corrective measures that can add years of useful life to a variety of structures including industrial, commercial, healthcare, historic, educational and government buildings, parking structures, and sports stadiums. Western is headquartered in St. Louis, MO with 30 branch offices nationwide and employs more than 1,200 salaried and hourly professionals who offer the best, time-tested techniques and innovative technology. For more information about Western Specialty Contractors, visit www.westernspecialtycontractors.com.
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