2023 Executive Insights From Leaders in Construction Law
June 12, 2023 —
Construction ExecutiveIf a major project is interrupted or canceled, are there any laws that provide protection for unpaid contractors that have performed work?
Angela Richie
Partner, Co-Chair, Construction Practice Group
Gordon Rees Scully Mansukhani
With the current volatility and uncertainty in the economy, project interruptions and cancellations are on the rise; hence, you need to take steps now to make sure you have a method to get paid for the work you have performed.
For private projects, make sure you have followed the pre-lien notification requirements for the state in which the project is located before you start work, if they are required. Then, be sure to follow the lien notice and lien filing requirements for the state. Each state is different, so you want to be ready with the appropriate documentation in advance of the project interruption or cancellation.
Reprinted courtesy of
Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Real Estate & Construction News Round-Up (08/24/22) – Local Law 97, Clean Energy, and IRA Tax Credits
September 26, 2022 —
Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law BlogThis week’s round-up features the intersection of real estate and energy efficiency, including state efforts surrounding clean energy legislation, Inflation Reduction Act tax credits, hotel & hospitality sectors creating sustainable initiatives to reduce carbon emissions, and more.
- In New York City, building owners try to figure out how to pay for upgrades needed to comply with regulations outlined in Local Law 97 that are intended to fight climate change. (Jane Margolies, The New York Times)
- Maryland, Massachusetts, and New York approve clean energy legislation, enacting laws to promote electric vehicles as well as wind and solar energy. (ACEEE)
- The Inflation Reduction Act (IRA), signed into law by President Biden this week, includes expanded tax credits expected to pivot building owners and property developers to make upgrades geared towards energy efficiency. (Jack Rogers, Globe St.)
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Pillsbury's Construction & Real Estate Law Team
How to Remove a Mechanics Lien from Your Property
March 21, 2022 —
Hannah Kreuser - Porter Law GroupIt sometimes happens that a contractor or material supplier records a mechanics lien on your property that becomes expired. Other times, the mechanics lien may be wrong, invalid and unenforceable for some reason, serving no legitimate purpose. The contractor or material supplier may be reasonable and release the mechanics lien once these issues are brought to its attention, but the contractor or material supplier may very well refuse to release the mechanics lien when requested. When this happens, what are your options?
In California, there are various ways to bring this type of mechanics lien to a court’s attention in the hopes that the court will cause it to be released. Three of the more common methods are: (1) a petition under California Civil Code (“CCC”) § 8480; (2) a petition under California Code of Civil Procedure (“CCP”) § 765.010; or (3) a Lambert motion. This article will briefly discuss each of these methods.
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Hannah Kreuser, Porter Law GroupMs. Kreuser may be contacted at
hkreuser@porterlaw.com
Meet the Forum's ADR Neutrals: TOM NOCAR
March 25, 2024 —
Marissa L. Downs - The Dispute ResolverCompany: Hahn Loeser & Parks, LLP
Office Location: Columbus, Ohio
Email: tnocar@hahnlaw.com
Website: https://www.hahnlaw.com/professionals/j-thomas-nocar/
Law School: The Ohio State University Moritz College of Law
Types of ADR services offered: Arbitration and Mediation
Affiliated ADR organizations: AAA Construction Panel
Geographic area served: Nationwide
Q: Describe the path you took to becoming an ADR neutral.
A: I am a former builder turned construction attorney. I spent 26 years building before going to law school. I’ve worn every hat in the industry—D/B business owner, owner’s rep, CM at risk, GC, design/builder, subcontractor, and vendor at some point in my prior career. I chose to adapt these experiences to a law career in 2009 with the focus of practicing construction law. Now I commonly represent commercial builders and developers. AAA added me to the Construction Roster in 2022.
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Marissa L. Downs, Laurie & Brennan, LLPMs. Downs may be contacted at
mdowns@lauriebrennan.com
2023 Construction Law Update
January 04, 2023 —
Garret Murai - California Construction Law BlogAs we approach 2023 we want to wish you and yours a happy holiday season.
A total of 1,726 bills were introduced during the second half of the 2021-2022 legislative session of which 997 were signed into law. This compares with the 2,421 bills introduced during the first half of the 2021-2022 of which 770 were signed into law. Among the legislation taking effect in 2023 are new laws applying to contractors include new workers’ compensation laws (even if you don’t have employees), a continuation of a record number of new housing affordability laws as well as environmental laws aimed at climate change, and, of course, as we see nearly every year, new procurement authorizations.
Licensing
AB 1747 – Authorizes the Contractors State License Board to issue penalties of up to $30,000 for the willful or deliberate disregard of state or local laws relating to the issuance of building permits.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Construction Safety Technologies – Videos
November 02, 2017 —
Aarni Heiskanen - AEC BusinessSmart hard hats, drone imaging, indoor positioning, and augmented reality are some of the technologies that can make construction sites safer.
Construction remains one of the most dangerous industries. In the USA, one in ten construction workers are injured every year. According to ILO, there are at least 60,000 fatal accidents on construction sites around the world every year, one in every 10 minutes. Investments in safety will certainly pay off.
Culture, behavior, and attitudes have a great impact on construction safety. Technology can help, but only if it is used properly and consistently. Here’s a collection of recent videos that explain and demonstrate how digital technology can advance construction safety.
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
info@aepartners.fi
Brief Overview of Rights of Unlicensed Contractors in California
September 10, 2014 —
William M. Kaufman – Construction Lawyers BlogUnder California Contractor’s State License Law enumerated in Business and Professions Code Sections 7000 to 7191, a contractor may not “bring or maintain” any action for compensation for performing any act or contract for which a license is required unless the contractor was duly licensed “at all times” during performance. Bus & Prof Code Section 7031(a).
What does this mean and who does it include?
This is a question that often has to be answered on a case by case basis. Basically, California does not want unlicensed contractors to be able to get paid for work that should be performed by a licensed contractor. The law has set forth some general parameters. General contractors, subcontractors, and master developers must be licensed. However, suppliers, manufacturers, laborers and equipment lessors are exempt and do not need a contractor’s license. Essentially, those parties that merely furnish material or supplies without fabricating them into, or consuming them in the performance of work, do not need to be licensed. Bus & Prof Code Section 7052.
There are sever fines and penalties for those who improperly perform construction work without a license. A contract between any contractor and an unlicensed subcontractor is a misdemeanor. Lack of a license bars all actions in law or in equity for collection of compensation for the performance of work requiring a license. There are very few exceptions to this rule. A “savvy” unlicensed contractor cannot simply avoid these requirements by “subbing” out all the work to licensed contractors. Any person who uses the services of an unlicensed contractor may file a court action or cross-complaint to recover all payments made to the unlicensed contractor. In addition, a person who uses the services of an unlicensed contractor is a victim of a crime and eligible for restitution of economic losses regardless of whether that person had knowledge that the contractor was unlicensed. Bus. & Prof Code Sections 7028, 7028.16. It goes without saying that performing work without a license on projects is a bad idea.
Reprinted courtesy of
William M. Kaufman, Lockhart Park LP
Mr. Kaufman may be contacted at wkaufman@lockhartpark.com, and you may visit the firm's website at www.lockhartpark.com
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Project-Specific Policies and Products-Completed Operations Hazard Extensions
May 31, 2021 —
Jeremiah M. Welch - Saxe Doernberger & Vita1. Understanding the “Products-Completed Operations Hazard”
ISO commercial general liability (“CGL”) policies use the term “products-completed operations hazard” (“PCOH”) to define a category of risk which is treated specially by certain exclusions within the policy and often subject to separate limits of insurance. In construction, we think about PCOH as being about coverage for completed work.
Bodily injury and property damage arising out of completed work is a significant construction risk. Most construction contracts include warranty and indemnity obligations for completed work. All states allow lawsuits to be brought alleging bodily injury or property damage because of completed work based on common law. Contract and common law claims are subject to statutes of limitation – laws which define the time in which suits must be brought. Most states provide exceptions to their statutes of limitation for common law claims – the most common example is an extension to file a lawsuit based on a latent defect until the defect is discovered. Most states also have “statutes of repose” – laws that set a date after which suit may no longer be brought, no matter what the circumstances are. A construction contractor, therefore, has potential liability until the statute of repose period has expired. Thus, a contractor looks to ensure that it has coverage for the PCOH for its full statute of repose liability period.
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Jeremiah M. Welch, Saxe Doernberger & VitaMr. Welch may be contacted at
JWelch@sdvlaw.com