Seattle Washington Building Expert Directory

A “Supplier to a Supplier” on a California Construction Project Sometimes Does Have a Right to a Mechanics Lien, Stop Payment Notice or Payment Bond Claim

October 01, 2014 — William L. Porter - The Porter Law Group
For purposes of seeking payment on a construction related project in the California construction industry, the proper legal classification of the party seeking payment is of key importance. Whether one in contract with a prime contractor is a subcontractor or a material supplier determines the availability for mechanics’ liens, stop payment notices and payment bond claims. Generally, those in contract with subcontractors have the ability to assert mechanics liens, stop payment notices and payment bond claims against the owner, general contractor and/or sureties. On the other hand, those who supply materials to material suppliers are generally not entitled to assert a mechanics lien, stop payment notice or payment bond claim. The “rule” has generally been stated as: “A supplier to a supplier has no lien rights.” However, this rule is not always true. The proper classification of an entity as either a subcontractor or a material supplier can be difficult. Simply because a prime contractor hires a licensed contractor to furnish labor, materials, equipment or services on a project does not mean that the party hired is actually a “subcontractor” as a matter of law. Conversely, even though a material supplier may not have a contractors’ license, he may still be classified as a subcontractor based on his scope of work. Based on recent case law, the method of determining whether an entity is a subcontractor or a material supplier has been clarified. The classification will depend on the scope of work that the hired party actually agreed to perform on the project. Read the court decision
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Reprinted courtesy of William L. Porter, The Porter Law Group
Mr. Porter may be contacted at bporter@porterlaw.com

White Collar Overtime Regulations Temporarily Blocked

November 23, 2016 — George Morrison – White and Williams LLP
On November 22, 2016, a Texas federal court issued a preliminary injunction that temporarily blocks the U.S. Department of Labor (DOL) from implementing and enforcing its revised white collar overtime regulations nationwide. The regulations were to take effect on December 1, 2016. For background on the DOL's Final Rule, see our alert, DOL Issues Final Rule Amending Overtime Exemptions Under FLSA. The decision was issued in a consolidated set of cases brought by 21 states and several business organizations. The cases challenge the changes to 29 C.F.R. Part 541, which defines the standards for evaluating whether employees are exempt executive, administrative, and/or professional employees. Under the current regulations, the minimum salary requirement for these exemptions is $455 per week. Under the revised regulations, the minimum salary would more than double to $913 per week. The Texas court found that the plaintiffs’ challenge to the final regulations has a substantial likelihood of success and that the plaintiffs have shown that they would be irreparably harmed if the rule was not enjoined. Read the court decision
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Reprinted courtesy of George Morrison, White and Williams LLP
Mr. Morrison may be contacted at morrisong@whiteandwilliams.com

“Rip and Tear” Damage Remains Covered Under CGL Policy as “Accident”—for Now.

September 01, 2016 — Michael Lindsay & Luke Mecklenburg – Snell & Wilmer Real Estate Litigation Blog
The Colorado Supreme Court has approved a settlement between the parties to an appeal of the 2012 Colorado Pool Systems v. Scottsdale Insurance Company Court of Appeals case, leaving that ruling intact. The ruling parses a fine line between uncovered costs of repairing defective work and covered costs of damage caused to nondefective work while repairing defective work. This nuanced opinion, which is now established Colorado law, is worth a second look. In Colorado Pool Systems, Inc. v. Scottsdale Insurance Company, the Colorado Court of Appeals determined that so-called “rip and tear” damage caused by a construction professional to nondefective work while correcting defective work is covered as an “accident” under standard Commercial General Liability insurance language. 317 P.3d 1262 (Colo. App. 2012). A pool company excavated and built a rebar frame in order to construct a pool, but it hired a subcontractor to pour the concrete. An inspector later noticed that some of the rebar was too close to the surface, and the pool company agreed to demolish and replace the pool after an agent of its insurer represented that this loss would be covered. But the agent was wrong, the insurer denied coverage, and litigation ensued. Reprinted courtesy of Michael Lindsay, Snell & Wilmer and Luke Mecklenburg, Snell & Wilmer Mr. Lindsay may be contacted at mlindsay@swlaw.com Mr. Mecklenburg may be contacted at lmecklenburg@swlaw.com Read the court decision
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Construction Contracts and The Uniform Commercial Code: When Does it Apply and Understanding the Pre-Dominant Factor Test

November 01, 2022 — Keith Sparks - Ahlers Cressman & Sleight PLLC
The Uniform Commercial Code (“UCC”) replaces the common law in many commercial transactions, providing provisions and a framework governing the conduct of business. The UCC attempts to develop uniformity among state laws on commercial matters as many of these contracts involve parties from different states. The UCC has been adopted in almost all states, including Washington, and substantially mirror each other throughout the country. The question that is most commonly presented, in the Construction law context, is when does the UCC apply and control? Read the court decision
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Reprinted courtesy of Keith Sparks, Ahlers Cressman & Sleight PLLC
Mr. Sparks may be contacted at keith.sparks@acslawyers.com

The Biggest Change to the Mechanics Lien Law Since 1963

December 08, 2016 — Wally Zimolong – Supplemental Conditions
The New Year will bring with it the biggest change to Pennsylvania’s Mechanics Lien Law since the current law was passed in 1963. These changes will impact owner, contractors, and subcontractors equally. However, the biggest benefits will probably be for real estate developers and other project owners. On December 31, 2016, Pennsylvania will go live with a website known as the State Construction Notices Directory. On that date, owners will have the option of making projects costing $1,500,000 or more “searchable projects.” An owner makes a project a searchable project by filing with the Notices Directory a “Notice of Commencement” before works begins. The Notice of Commencement must include the name, address, and email address of the contractor, full name and location of the searchable project, the county where the project is located, a legal description of the searchable property, and the name address, and email address of the searchable project owner. Importantly, the owner must also post a copy of this Notice of Commencement at the project site. Read the court decision
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Reprinted courtesy of Wally Zimolong, Zimolong LLC
Mr. Zimolong may be contacted at wally@zimolonglaw.com

It’s a Bird, It’s a Plane . . . No, It’s a Drone. Long Awaited FAA Drone Regulations Finally Take Flight

September 22, 2016 — Garret Murai – California Construction Law Blog
It’s a bird. It’s a plane. No, it’s a drone. Also known as an unmanned aerial vehicle (UAV) or unmanned aircraft (UA). And, technically, they’ve been around a long time, since at least 1849 when the Australians attacked Italy with unmanned balloons loaded with explosives. Even a young Marilyn Monroe, when she was known simply as “Norma Jean,” worked at a company called Radioplane making unmanned aircrafts during World War II. Since then, as technology has advanced, which, in turn, has made the cost of older technology go down, what was once old, is now new again. Drones are making regular appearances in the movies (think the Divergent Series: Allegiant). The paparazzi (who are apparently tired of getting punched in the face) are using them. And some day, perhaps very soon, they may just be delivering your packages (think Amazon Prime Air). One of the earliest adopters of drones outside the military, however, has been the construction industry which has used drones to track the progress of construction projects and conduct site surveys such as this one showing the progress of Apple’s new campus in Cupertino[.] Read the court decision
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Reprinted courtesy of Garret Murai, Wendel, Rosen, Black & Dean LLP
Mr. Murai may be contacted at gmurai@wendel.com

Repairs to Hurricane-damaged Sanibel Causeway Completed in 105 Days

February 12, 2024 — Marigo Farr - Engineering News-Record
Permanent repairs to the roadway portion of the Sanibel Causeway are substantially complete one year and four months after more than 6,000 Sanibel Island residents lost access to the mainland in the wake of Hurricane Ian. The Superior Construction and The De Moya Group joint-venture team, responsible for the work, say that all travel lanes are now permanently open to the island off Florida's southwest coast near Fort Myers. Reprinted courtesy of Marigo Farr, Engineering News-Record ENR may be contacted at enr@enr.com Read the full story... Read the court decision
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Dealing with Abandoned Property After Foreclosure

April 10, 2019 — Bremer Whyte Brown & O'Meara LLP
California landlords must follow very specific steps before disposing of property that is clearly abandoned, left on real estate which has been the subject of court proceedings such as eviction or foreclosure, or otherwise left behind. Following the statutory procedures relating to abandoned property protects landlords from potential liability for an improper “conversion.” Former tenants/owners and others “reasonably believed” to be owners of the apparently abandoned personal property must be given proper written notice of the right to reclaim the abandoned property. The tenant is presumed to be the owner of any “records” remaining on the property. The California Code of Civil Procedure provides a template for such notice. The notice to be provided to former tenants/owners must be in “substantially” the same form provided in the California Code of Civil Procedure and must contain the following information:

A description of the abandoned property in a manner reasonably adequate to permit the owner of the property to identify it;
The location where the tenant can claim the property;
The time frame that the tenant has to claim the property. The date specified in the notice shall be a date not less than fifteen (15) days after the notice is personally delivered or, if mailed, not less than eighteen (18) days after the notice is deposited in the mail;
A statement that reasonable storage costs will be charged to the tenant/owner and the tenant/owner must pay those costs before claiming the property; and

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Reprinted courtesy of Bremer Whyte Brown & O'Meara LLP

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