Seattle Washington Building Expert Directory

Overview of New Mexico Construction Law

June 25, 2019 — Walter F. Crowson - Snell & Wilmer Under Construction Blog
We’ve seen an uptick in out-of-state companies working on construction projects in New Mexico. The following is an overview of some of the nuances of New Mexico construction law about which companies may want to be aware. Construction Contract Issues Limitation of Liability Clauses are usually Enforceable, but Anti-Indemnity Clauses Are Not New Mexico courts have enforced limitation of liability clauses included in construction contracts. See Fort Knox Self Storage, Inc. v. W. Techs., Inc., 140 N.M. 233, 237 (N.M. Ct. App 2006). New Mexico law recognizes the difference between contracts that insulate a party from any and all liability and those that simply limit liability. Fort Knox Self Storage, Inc., 140 N.M. 233 at 237. An exculpatory clause immunizes a party from liability, whereas a limitation of liability clause merely curtails liability. Id. A limitation of liability clause has been held not to violate New Mexico public policy because the party “still bears substantial responsibility for its actions.” Id.; see also Cowan v. D'Angelico, 2010 WL 11493789, *6 (D. N.M. Apr. 26, 2010). Read the court decision
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Reprinted courtesy of Walker F. Crowson, Snell & Wilmer
Mr. Crowson may be contacted at wcrowson@swlaw.com

Turning Back the Clock: DOL Proposes Previous Davis-Bacon Prevailing Wage Definition

April 19, 2022 — David Chidlaw & Carina Novell - Sheppard Mullin Construction & Infrastructure Law Blog
On March 11, 2022, the Department of Labor (“DOL”) proposed reverting the definition of “prevailing wage” under the Davis-Bacon Act to a definition used over 40 years ago. According to the DOL, the proposal is meant to modernize the law and “reflect better the needs of workers in the construction industry and planned federal construction investments.”[1] Brief History Lesson The Davis-Bacon Act was enacted in 1931 and requires the payment of locally prevailing wages and fringe benefits on federal construction contracts. The law applies to workers on contracts in excess of $2,000 entered into by federal agencies and the District of Columbia for the construction, alteration, or repair of public buildings or public works.[2] From the 1930s to the early 1980s, the DOL used the following three-step process to define prevailing wage:

Any wage rate paid to a majority of workers.
If there was no wage rate paid to a majority of workers, then the wage rate paid to the greatest number of workers, provided it was paid to at least 30 percent of workers (i.e., the “30 percent rule”).
If the 30 percent rule was not met, the weighted average rate.

Reprinted courtesy of David Chidlaw, Sheppard Mullin and Carina Novell, Sheppard Mullin Mr. Chidlaw may be contacted at dchidlaw@sheppardmullin.com Ms. Novell may be contacted at cnovell@sheppardmullin.com Read the court decision
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Coverage Under Builder's Risk Policy Properly Excluded for Damage to Existing Structure Only

April 05, 2017 — Tred R. Eyerly – Insurance Law Hawaii
The Tenth Circuit affirmed the District Court's determination that there was no coverage under the builder's risk policy. Gerald H. Phipps, Inc. v. Travelers Prop. Cas. Co. of Am., 2016 U.S. App. LEXIS 2764 (10th Cir. Feb. 16, 2017). GH Phipps Construction Company (GHP) was hired to renovate and expand the University of Denver's library. GHP was completing installation of a new roof on the library when water from melting snow leaked into the building. The water damaged existing drywall and insulation in the stairwells and elevator shafts that GHP planned to preserve and update. Before the snow melt mishap, GHP had completed some preliminary work in the damaged areas to designate locations for future installation of mechanical, plumbing and electrical systems. But GHP had not yet installed any new materials, updated any lighting fixtures, or patched and painted any existing drywall in the damaged areas. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Labor Under the Miller Act And Estoppel of Statute of Limitations

May 08, 2023 — David Adelstein - Florida Construction Legal Updates
If you want a case that goes into history of the federal Miller Act, check out the Fourth Circuit Court of Appeal’s opinion in U.S. ex rel. Dickson v. Fidelity and Deposit Company of Maryland, 2023 WL 3083440 (4th Cir. 2023). While I am not going to delve into this history, it’s a worthwhile read. It is also a worthwhile read for two other points. First, it discusses what constitutes “labor” under the Miller Act. Second, it discusses doctrine of estoppel to prevent a surety from raising the statute of limitations to bar a Miller Act payment bond claim, which is a doctrine you do NOT want to rely on, as this case reinforces. Both of these points applicable to Miller Act claims are discussed below. This case dealt with a prime contractor renovating staircases that was terminated by the federal government. The prime contractor hired a professional engineer as its subcontractor to serve as its project manager and supervise labor on the project. The engineer/subcontractor also had “logistical and clerical duties, taking various field measurements, cleaning the worksite, moving tools and materials, and sometimes even watering the concrete himself.” Dickson, supra, at *1. Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

The Ghosts of Projects Past

December 17, 2015 — Craig Martin – Construction Contractor Advisor
Sean Minahan, one of my partners, and I were discussing a construction dispute the other day and we commented again and again about the significant organization required to get a construction project to completion. From the contracts, to the schedule, to the funding—everything has to be in lock step or there will be problems that could bring the project to a halt, or worse yet litigation. The same is true of construction claims. To present a claim effectively, it has to be simple. But, to make it simple will require substantial documentation and organization of all aspects of a claim. This point was driven home this week when I received Long International’s Construction Claims Analysis Checklist Long International. The Checklist is 11 pages long and identifies various aspects of a claim, from the simple to the complicated. Read the court decision
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Reprinted courtesy of Craig Martin, Lamson, Dugan and Murray, LLP
Mr. Martin may be contacted at cmartin@ldmlaw.com

Weyerhaeuser Leaving Home Building Business

November 13, 2013 — CDJ STAFF
The Washington-based timber giant, Weyerhaeuser, has announced that has sold off its homebuilding business. The division went by the name of WRECO (Weyerhaeuser Real Estate Company) and comprised five home builders, Maracay Homes, Pardee Homes, Quadrant Homes, Trendmaker Homes, and Winchester Homes. The division was bought by TRI Pointe Homes for about $2.7 billion of which $700 million was paid in cash. Weyerhaeuser intends to focus on their core business of timber products. Read the court decision
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Home Prices Rose in Fewer U.S. Markets in Fourth Quarter

February 12, 2014 — Prashant Gopal – Bloomberg
Prices for single-family homes rose in 73 percent of U.S. cities in the fourth quarter, fewer than in the previous three months, as surging values in the past two years started to reduce affordability. The median transaction price for an existing home climbed from a year earlier in 119 of 164 metropolitan areas measured, the National Association of Realtors said in a report today. In the third quarter, 88 percent of markets had increases. While tight inventories and improving employment are bolstering the housing recovery, home-price gains are poised to decelerate as an increase in mortgage rates from record lows cuts into affordability. Values have been rising faster than incomes, particularly in the West, the Realtors group said. Read the court decision
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Reprinted courtesy of Prashant Gopal, Bloomberg
Mr. Gopal may be contacted at pgopal2@bloomberg.net

Athens, Ohio, Sues to Recover Nearly $722,000 After Cyber Attack

January 21, 2025 — Jeff Yoders - Engineering News-Record
In November, Athens, Ohio, officials sent nearly $722,000 to a bank account they believed was set up by its contractor, Pepper Construction, to receive payment for its work on a fire station headquarters. The request was actually a sophisticated cyber attack that took advantage of a construction payment system that often does not allow clients processing invoices to directly know those behind the email addresses making the requests. Read the court decision
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Reprinted courtesy of Jeff Yoders, ENR
Mr. Yoders may be contacted at yodersj@enr.com

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