Seattle Washington Building Expert Directory

Show Me the Money: The Good Faith Dispute Exception to Prompt Payment Penalties

March 13, 2023 — Garret Murai - California Construction Law Blog
California has a number of prompt payment penalty statutes on the books. Among them is Civil Code section 8800 which requires project owners on private works projects to pay progress payments to direct contractors within 30 days after demand for payment pursuant to contract or be subject to prompt payment penalties of two percent (2%) per month on the amount wrongfully withheld. Like California’s other prompt payment penalty statutes, however, there is an important carve out: If there is a good faith dispute between the project owner and the direct contractor the project owner may withhold up to 150% of the dispute amount and not be subject to prompt payment penalties. And that, my friends, is a higher-tiered party’s “get out of jail free” card. In a case of first impression, the 1st District Court of Appeals, in Vought Construction Inc. v. Stock (2022) 84 Cal.App.5th 622, examined whether a project owner’s claim for liquidated damages constitutes a good faith dispute under Civil Code section 8800. Read the court decision
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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

2023 Construction Law Update

January 04, 2023 — Garret Murai - California Construction Law Blog
As 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. Read the court decision
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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

Homebuilding Held Back by Lack of Skilled Workers

June 28, 2013 — CDJ STAFF
Home construction in Michigan could surge by thirty-seven percent this year, if the workers are there to build these houses. Aaron Rigozzi, the owner of Semper Fi Construction, told the Detroit Free Press that at the height of the boom he had fourteen employees whose wages reached $25 an hour. Now his firm has filed for bankruptcy and has only three employees. The top wage is $16 an hour. He also has the problem of people whose skills are less than what they claim. “You can hire people and they say they can do this or that, but they really can’t.” The Home Builders Association of Michigan says that this is stretching out the time to complete a new house by months, and leading homeowners who are looking for a contractor stranded for weeks. In 2012, more home permits were taken out than in any year since 2008. Read the court decision
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Reprinted courtesy of

Failure to Comply with Sprinkler Endorsement Bars Coverage for Fire Damage

July 31, 2013 — Tred Eyerly, Insurance Law Hawaii
Despite its application stating otherwise, the insured's failure to install a sprinkler system in its building barred coverage for extensive damage caused by fire.American Way Cellular, Inc. v. Travelers Prop. Cas. Co. of Am., 2013 Cal. App. LEXIS 425 (Cal. Ct. App. May 30, 2013). American Way contacted a broker, A&J, regarding liability and property coverage. A&J sent American Way an application for a policy with Travelers. The application indicated American Way had a sprinkler system and fire detectors in its building. Travelers issued a policy with a Protective Safeguards Endorsement For Sprinkler Locations and Restaurants. The endorsement stated that as a condition of the insurance, the insured was required to maintain a sprinkler system. An exclusions section said the insurer would not pay for loss caused by fire if there was no sprinkler system. Read the court decision
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Reprinted courtesy of Tred Eyerly
Tred Eyerly can be contacted at te@hawaiilawyer.com

Thinking About a Daubert Motion to Challenge an Expert Opinion?

February 06, 2023 — David Adelstein - Florida Construction Legal Updates
When you receive an expert opinion, one of the first things you are considering is whether it is worth filing a Daubert motion / challenge. A Daubert motion is a generally a pretrial motion you are using to challenge the admissibility of the expert opinion. Keep in mind this deals with the admissibility, not the credibility, of the expert opinion. A Daubert motion is based on three prongs that must be answered: 1) is the witness qualified to render the expert opinion?; 2) is the expert’s opinion reliable?; and 3) is the expert’s opinion relevant?. A Daubert motion is premised after Federal Rule of Evidence 702 that provides: A witness who is qualified as an expert by knowledge, skill, experience, training, or education may testify in the form of an opinion or otherwise if:

the expert’s scientific, technical, or other specialized knowledge will help the trier of fact to understand the evidence or to determine a fact in issue;
the testimony is based on sufficient facts or data;
the testimony is the product of reliable principles and methods; and
the expert has reliably applied the principles and methods to the facts of the case.

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

Why a Challenge to Philadelphia’s Project Labor Agreement Would Be Successful

February 22, 2018 — Wally Zimolong – Supplemental Conditions
There is a common misconception that all Philadelphia Public Works projects must be performed pursuant to a project labor agreement with various members of the Building and Construction Trades Council. This common misconception is even shared by the current Mayoral administration, who I saw in a recent court filing testified under oath that “project labor agreements are required for all construction projects in Philadelphia with a value of at least five million dollars.” (As is discussed below this is flat out false.) No one has yet to step forward to challenge Philadelphia’s project labor agreement scheme. However, if someone did, I think the challenge would be successful for three reasons. First, contrary to the Mayor’s representative’s statement, there is no requirement that all projects in excess of $5 million be subject to a project labor agreement. Second, Philadelphia’s project labor agreement excludes signatories to collective bargaining agreements with the United Steel Workers (USW) from participating, which violates public bid laws. Third, the exclusion of the USW, also gives rise to a challenge that federal labor law preempts the project labor agreement. A. Background on the Philadelphia PLA. Under a project labor agreement (PLA), a contractor wishing to perform work on a project agrees to be bound by the terms and conditions of employment established by the public owner and certain construction unions. Each PLA varies, but typically PLA’s will require a contractor’s employees to become members of a union – if they are already not members – in order to work on a project or will require a contractor to hire labor from a union hiring hall. PLA’s are controversial because they exclude non-union contractors from performing work on a project subject to a PLA, unless of course that contractor agrees to become “union” for purposes of that project. For reasons beyond this blog post, a merit shop contractor would be crazy to do that. The “Philadelphia PLA” that Mayor Kenney believes is required for all public projects over $5 million was instituted by Mayor Nutter through a 2011 Executive Order(Executive Order No. 15-11, Public Works Project Labor Agreements). Read the court decision
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Reprinted courtesy of Wally Zimolong, Zimolong LLC
Mr. Zimolong may be contacted at wally@zimolonglaw.com

Can an Architect, Hired by an Owner, Be Sued by the General Contractor?

September 10, 2014 — Craig Martin – Construction Contractor Advisor
As is often the answer in this blog, maybe. And, it will likely depend on which state’s law is applied. Over the last few weeks, courts around the country have reached differing conclusions on whether a general contractor may sue an architect that it did not hire. Here’s the situation: The owner hires an architect to draft plans for a project. The project is then put out for bid and the owner hires a general contractor for the work. The general contractor and architect do not enter into a contract with each other. If, during construction, the general contractor finds fault with the plans, it may seek Request for Information and Change Orders, to shore up the perceived problems with the plans. Ultimately, the general contractor may sue the architect to recover damages it suffered in completing the project. 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

Public-Private Partnerships: When Will Reality Meet the Promise?

October 09, 2018 — Richard Fechner, GHD - Engineering News-Record
The promise of public-private partnerships (P3s) seems irresistible. The $4.5-trillion that the American Society of Civil Engineers says the U.S. must spend on at-risk infrastructure by 2025 is a backlog beyond the collective means of local, state and federal governments to fund and deliver. Read the court decision
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Reprinted courtesy of Richard Fechner, GHD, ENR
ENR may be contacted at ENR.com@bnpmedia.com

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