Seattle Washington Building Expert Directory

“Pay When Paid” Provisions May Not Be Dead, at Least Not Yet

August 24, 2020 — Garret Murai - California Construction Law Blog
Sophisticated contractors know that in California contractual “pay when paid” provisions are enforceable but that “pay if paid” provisions are not. “Pay If Paid” v. “Pay When Paid” Provisions A “pay if paid” provision is one in which a higher tier party agrees to pay a lower tier party “if” it is paid in turn by a still higher party. Most commonly they are found in subcontracts between general contractors and subcontractors and provide that the general contractor will pay the subcontractor “if” the general contractor is paid by the project owner. However, they can also be found in subcontracts between higher and lower tiered subcontractors and between subcontractors and material suppliers and equipment lessors. In California, such provisions, which create a condition precedent to payment, namely, a condition that must precede payment to a lower tiered party, are void as a matter of law. Read the court decision
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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

Toronto Contractor Bondfield Wins Court Protection as Project Woes Mount

May 27, 2019 — Scott Van Voorhis - Engineering News-Record
A Toronto area contractor at the center of a series of delays to major projects in Ontario, including a $139-million hospital expansion, has won court protection from its creditors. The Ontario Superior Court earlier this month granted Bondfield Construction Co.’s application for protection, court records show. Read the court decision
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Reprinted courtesy of Scott Van Voorhis, ENR

Construction of New U.S. Homes Declines on Plunge in South

July 23, 2014 — Victoria Stilwell – Bloomberg
Housing starts unexpectedly declined in June to a nine-month low, led by a record plunge in the South that shows the construction industry must still overcome hurdles before it can contribute more strongly to U.S. economic growth. Work began on 893,000 homes at an annualized rate, down 9.3 percent from a 985,000 pace in May that was weaker than previously estimated, according to figures from the Commerce Department issued today in Washington. Other reports showed manufacturing was gaining steam this month and fewer Americans filed claims for jobless benefits last week as consumer sentiment hovered near this year’s high. A shortage of buildable lots and experienced construction workers, higher prices and mortgage rates that have climbed from record lows mean residential real estate will struggle to help the world’s largest economy. The figures, along with a decline in building permits, corroborate Federal Reserve Chair Janet Yellen’s view that progress in the housing market has been “disappointing.” Read the court decision
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Reprinted courtesy of Victoria Stilwell, Bloomberg
Ms. Stilwell may be contacted at vstilwell1@bloomberg.net

Home-Rentals Wall Street Made Say Grow or Go: Real Estate

July 23, 2014 — Heather Perlberg and John Gittelsohn – Bloomberg
Alexander Philips joined the rush to buy foreclosed U.S. homes four years ago, spending $40 million on houses in California and Nevada to operate as rentals. Now his firm, Twinrock Partners LLC, is getting ready to sell. “We didn’t want to be the last one standing when the music stopped,” Philips, 38, said in a telephone interview. “We view this as a trade, not as a business.” The U.S. home-rental industry, transformed over the past two years by Wall Street-backed companies that were built on the rubble of the housing crash, is poised to be reshaped again as landlords like Philips get out. Corporate owners with limited capital or deadlines to repay investors are now selling houses in bulk, or one by one, after a 26 percent surge in prices from a March 2012 low. For bigger firms, swallowing smaller competitors is among the best opportunities for growth as they shift their focus to managing scattered properties. Ms. Perlberg may be contacted at hperlberg@bloomberg.net; Mr. Gittelsohn may be contacted at johngitt@bloomberg.net Read the court decision
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Reprinted courtesy of Heather Perlberg and John Gittelsohn, Bloomberg

EPA Seeks Comment on Clean Water Act Section 401 Certification Rule

July 19, 2021 — Karen Bennett - Lewis Brisbois
The Environmental Protection Agency (EPA) announced that it will revise a 2020 final rule clarifying requirements for water quality certification under the Clean Water Act (CWA). 85 Fed. Reg. 42210 (June 2, 2021). CWA Section 401 requires states and tribes to certify that any discharges associated with a federal permit will comply with applicable state or tribal water quality requirements. In an effort to eliminate 401 certification being used as a tool for delaying or imposing conditions unrelated to protecting water quality on federal permits, the 2020 rule established limits on the scope and timeline for review and required any conditions on certification to be water-quality related. State and Tribal governments and environmental groups challenged the rule, arguing it constrained state and tribal decision-making authority by limiting the term “other appropriate requirements of State law” in CWA Section 401(d) to “water quality requirements” and “point source discharges.” With EPA’s decision to revise the rule, many believe these same scope and timing limitations will be targets for change. Clients with experience, positive or negative, under the 2020 rule should consider submitting comments by the August 2, 2021 deadline. Read the court decision
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Reprinted courtesy of Karen Bennett, Lewis Brisbois
Ms. Bennett may be contacted at Karen.Bennett@lewisbrisbois.com

Can Businesses Resolve Construction Disputes Outside of Court?

August 19, 2024 — Scott L. Baker - Los Angeles Litigation Blog
Time is of the essence in any construction project. So, if a dispute arises at any point, business owners generally wish to avoid the chance of a time-consuming case going to court. Can California construction businesses manage these disputes effectively outside of court? It is possible in some cases. Business owners should carefully consider these three steps. 1. Go Back to the Contract Even if the contract is at the center of the dispute, it is important to refer to any details regarding dispute resolution included within the document. It is common for contracts to have some form of a dispute resolution clause. In such a case, both parties should follow the steps outlined in that agreement. Read the court decision
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Reprinted courtesy of Scott L. Baker, Baker & Associates
Mr. Baker may be contacted at slb@bakerslaw.com

NLRB Broadens the Joint Employer Standard

September 17, 2015 — Craig Martin – Construction Contractor Advisor
Perhaps in anticipation of Labor Day, the National Labor Relations Board issued its ruling in Browning-Ferris Indus. of Cal. d/b/a BFI Newby Island Recyclery, establishing an easier standard for unions to prove that a joint employer relationship exists. This will make it easier for unions to make the upstream company, like a parent company, liable for unfair labor practices, even if the upstream company had no direct involvement. Some Background BFI runs a recycling plant and contracts with Leadpoint to provide workers to sort garbage in the recycling plant. The staffing agreement specifically stated that Leadpoint was the sole employer of the personnel it supplied and Leadpoint handled supervision of the employees, not BFI. Leadpoint’s employees sought to unionize and an election was held. The union filed a petition seeking a determination that Leadpoint and BFI were a joint employers. 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

Indiana Court Enforces Contract Provisions rather than Construction Drawing Markings

January 14, 2015 — Beverley BevenFlorez-CDJ STAFF
Timothy J. Abeska, a vice-chair of Barnes & Thornburg LLP’s Construction Law Practice Group, analyzed Goodrich Quality Theaters, Inc. v. Fostcorp Heating and Cooling, Inc., 16 N.E.3d 426 (Ind. Ct. App. 2014), which “provides an example of a court enforcing contract provisions rather than markings on construction drawings that are inconsistent with contract requirements.” The case evolved from a dispute on a construction of an IMAX theater, when the general contractor did not understand the architect’s markings for non-standard joist girders, and ordered standard joist girders, per the contract. The error created delays and other problems, which led to payment disputes and mechanic’s liens against the project. Abeska stated that “[t]his case shows the importance of making sure all documents which comprise a construction contract are consistent with each other, as courts will enforce contracts negotiated by the parties. The case also demonstrates that litigation is not a quick process, as the Court of Appeals Opinion was issued more than seven years after the project was completed.” Read the court decision
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