Federal Government Partial Shutdown – Picking Up the Pieces
February 27, 2019 —
Jacob W. Scott - Now that the partial shutdown has ended (though with the specter of another just around the corner), contractors are asking, “What now?” and “What did that cost me?” Although every case is fact-specific, following are some guidelines for moving forward after the shutdown.
Following up on our previous guidance, contractors should make sure that any court, board, or agency filings made during the shutdown were received and properly docketed. If there is any question whether a filing was received, file it again as soon as possible with proof of the earlier attempt to file. The busiest tribunals, such as the federal courts, the Court of Federal Claims, the Boards of Contract Appeals, and the Government Accountability Office, remained open, or at least open to accept filings, and all indications are that filings made during the shutdown were received and acknowledged. But for some of the other tribunals or agencies, such as the Small Business Administration (“SBA”) Office of Hearings and Appeals and the SBA Office of Government Contracting and Business Development, prudence dictates double-checking that all filings were received. In many cases, non-statutory deadlines have been or will be adjusted by the court, board, or agency.
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Jacob W. Scott, Smith CurrieMr. Scott may be contacted at
jwscott@smithcurrie.com
New Change Order Bill Becomes Law: RCW 39.04.360
July 08, 2024 —
Brett M. Hill - Ahlers Cressman & Sleight PLLCA new statute (RCW 39.04.360) became effective on June 6, 2024, and it applies to extra work performed by contractors and subcontractors on public and private projects in Washington State. The intent of the original bill was to allow contractors and subcontractors to get paid sooner for undisputed additional work. The statute does not apply to private residential projects of 12 units or less. The statute allows for recovery of interest for contractors/subcontractors at 1% per month (12% per year) on the value of the additional work if the statute is violated.
Here are the requirements of the new statute:
- Public and private owners must issue a change order for the undisputed amount of additional work performed by a contractor, subcontractor, or supplier no later than 30 days after the work is satisfactorily completed and the change is requested by the contractor.
- General contractors, and subcontractors with lower-tier subs, must issue a change order to their subcontractors impacted by the change within 10 days after receipt of the approved change order from the owner/upper-tier contractor.
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Brett M. Hill, Ahlers Cressman & Sleight PLLCMr. Hill may be contacted at
brett.hill@acslawyers.com
Holding the Bag for Pre-Tender Defense Costs
February 02, 2017 —
John J. Kozak, Esq. - Florida Construction Law NewsFor a variety of reasons, additional insureds (and even named insureds) under commercial general liability policies will sometimes wait months, and even years, to tender the defense of a claim or lawsuit, incurring significant legal fees in the interim. When the claim finally is tendered, a dispute often arises over who should pay the pre-tender defense costs. Surprisingly, there is very little Florida legal authority specifically dealing with this issue. However, the recent federal 11th Circuit Court of Appeals case of EmbroidMe.com, Inc. v. Travelers Property Casualty Co. of America, No. 14-10616, 2017 U.S. App. LEXIS 368 (11th Cir. Jan. 9, 2017), applying Florida law, addresses the issue head-on and provides CGL carriers with a large hammer in refusing to pay pre-tender fees.
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John J. Kozak, Esq., Cole, Scott & Kissane, P.A.Mr. Kozak may be contacted at
john.kozak@csklegal.com
Will Protecting Copyrights Get Easier for Architects?
November 28, 2022 —
Scott L. Baker - Los Angeles Litigation BlogLike any creative business, architects rely on their intellectual property. Their designs are at the center of their work. For example, as we discussed in a previous post, many architects nowadays focus on creating new ways for their building designs to be environmentally friendly and sustainable.
However, nearly every form of intellectual property faces the risk of theft or infringement in the business world.
Architects face unique challenges with their copyrights – as well as risks.
Copyright Issues in the Architecture World
One of the biggest issues, of course, is that there are many aspects of building designs that architects
cannot protect by copyright. This is simply because various details are fundamental in the construction of every building. One person cannot own the rights to such a common design.
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Scott L. Baker, Baker & AssociatesMr. Baker may be contacted at
slb@bakerslaw.com
COVID-19 Response: California Occupational Safety and Health Standards Board Implements Sweeping New Regulations to Prevent COVID-19 in the Workplace
December 14, 2020 —
Peter Shapiro, Drake Mirsch & Jade McKenzie - Lewis BrisboisOn November 19, 2020, the California Occupational Safety and Health Standards Board (OSHSB) proposed sweeping and significant new emergency standards to reduce employee exposure to COVID-19. These standards have been accepted by the Office of Administrative Law and are effective as of November 30, 2020. Accordingly, it is critical that employers familiarize themselves with these new requirements and begin to implement these standards as quickly as possible.
The standards include COVID-19 prevention in the workplace, multiple COVID-19 infections and outbreaks in the workplace, “major” COVID-19 outbreaks in the workplace, prevention in employer provided housing, and prevention in employer-provided transportation to and from work. They apply to all California employers and places of employment, except places with one employee who does not have contact with others, employees working from home, or employees in specified health care facilities, services or operations when covered by section 5199.
COVID-19 Prevention Program
Employers are required to establish, implement, and maintain an “effective” written COVID-19 Prevention Program. Under the Program, an employer is responsible for developing a system for communicating about COVID-19, identifying and evaluating COVID-19 hazards, investigating and responding to COVID-19 cases, correcting COVID-19 hazards, providing training and instructions to employees regarding COVID-19, ensuring all employees are physically distanced, providing face coverings, implementing policies regarding personal protective equipment and recordkeeping, ensuring COVID-19 cases are excluded from the workplace, and prohibiting symptomatic employees from returning to work unless certain requirements are met.
Reprinted courtesy of
Peter Shapiro, Lewis Brisbois,
Drake Mirsch, Lewis Brisbois and
Jade McKenzie, Lewis Brisbois
Mr. Shapiro may be contacted at Peter.Shapiro@lewisbrisbois.com
Mr. Mirsch may be contacted at Drake.Mirsch@lewisbrisbois.com
Ms. McKenzie may be contacted at Jade.Mckenzie@lewisbrisbois.com
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Indiana Court of Appeals Holds That Lease Terms Bar Landlord’s Carrier From Subrogating Against Commercial Tenant
April 03, 2019 —
Gus Sara - The Subrogation StrategistIn Youell v. Cincinnati Ins. Co., 2018 Ind. App. LEXIS 497 (2018), the Court of Appeals of Indiana considered whether a landlord’s carrier could bring a subrogation claim against a commercial tenant for fire-related damages when the lease, which did not reference subrogation, explicitly required the landlord to maintain fire insurance coverage for the leased premises. The court held that subrogation was barred because the provision requiring the landlord to maintain fire insurance established an agreement to provide both parties with the benefits of insurance. The Youell case establishes that, in Indiana, if the lease explicitly states that the landlord will maintain fire casualty insurance for the building, the lease evidences an agreement by the parties to shift the risk of loss to the insurer. This agreement bars a landlord’s insurance carrier from subrogating against a commercial tenant in the event of a casualty.
In 2013, the building owner, Greg Dotson, began leasing a commercial building to Robert Youell for his tire business, Best One Giant Tire, Inc. (collectively, Youell). The lease agreement required that the landlord maintain fire and extended coverage insurance on the building and the leased premises. The lease also required the tenant to purchase fire and extended coverage insurance for its personal property. The lease did not mention subrogation. Dotson obtained a property insurance policy through Cincinnati Insurance.
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Gus Sara, White and Williams LLPMr. Sara may be contacted at
sarag@whiteandwilliams.com
Compliance with Building Code Included in Property Damage
February 07, 2018 —
Tred R. Eyerly – Insurance Law HawaiiA Circuit Court in Florida issued a final judgment determining that the insured's obligation to comply with building code provisions was included in the property damage experienced. Pin-Pon Corp. v. Landmark, Am. Ins. Co., No. 312009CA012244 (Fla. Cir. Ct. Dec. 28, 2017). The decision is here.
At trial, the plaintiff's architect testified that the total pricing for the code upgrades was $6.2 million. On appeal, the appellate court ruled that plaintiff's Exhibit 98, an Upgrade Insurance Claim, was improperly admitted as a business record. The appellate court stated that the jury may have considered Exhibit 98 in determining the amount of code upgrade damages. Therefore, the verdict was reversed and remanded for a trial on the code upgrade damages only.
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Tred R. Eyerly, Insurance Law HawariiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Bright-Line Changes: Prompt Payment Act Trends
September 16, 2024 —
Stephanie L. Cooksey - Peckar & Abramson, P.C.Untimely payment by the owner for contract work and additional work on construction projects can place an unfair financial burden on contractors and subcontractors. Most states have attempted to eliminate or mitigate this inequity in construction contracting through Prompt Payment Acts that govern payment deadlines and provide remedies for untimely payment. This article addresses the legislative trends aimed at minimizing the risk of non-payment, overdue payment, and withholding retainage in favor of downstream parties to a construction contract.
Fortifying Contractor Protections with “Bright-Line” Language
Over the last decade, states have been tightening prompt payment laws by replacing broad, general statutory language with bright-line rules. What is a bright-line rule? A specific or definite figure, a quantifiable marker—i.e., something owners, contractors, subcontractors, and suppliers should be aware of. Practically speaking, the more bright-line a prompt payment statute is, the greater the likelihood it will affect a construction project in your state.
A standard form construction contract, if not reviewed carefully, can create conflicts or confusion if it gives a party more leeway on payment deadlines than the applicable Prompt Payment Act. For example, consider an owner-issued Construction Change Directive (“CCD”) that requires a contractor to commence additional work immediately while a formal change order is negotiated. Consequently, a CCD can push financial burdens downstream, whether inadvertently or not, and may conflict with statutory payment deadlines. Nevertheless, an owner can be justified in its utilization of a CCD to maintain the project schedule. How should the parties competing interests be resolved?
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Peckar & Abramson, P.C.