FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Lease-Leaseback Fight Continues

June 01, 2020 — Garret Murai - California Construction Law Blog
It’s like the rematch between Rocky Balboa and Apollo Creed. In the right corner we have the California Taxpayers Action Network. In the left corner, Taber Construction, Inc. The title in contention: Construction of California’s Lease-Leaseback Program and, specifically, whether a construction firm can provide both pre-construction services as well as perform construction or, whether doing so, would be an impermissible conflict of interest under the Lease-Leaseback Law. In their first appellate court match, California Taxpayers Action Network argued that a lease-leaseback arrangement between Taber Construction and the Mount Diablo Unified School District, whereby the District agreed to lease the site to Taber Construction one dollar (which is permissible) and to pay Taber a “guaranteed project cost” of $14,743,395 comprised of “tenant improvement payments” totaling $13,269,057 prior to the District taking delivery of the project (which was the issue in dispute) and six “lease payment amount[s]” of $345,723 plus interest paid in 30-day intervals, violated the Lease-Leaseback Law because the bulk of the payments by the District to Taber Construction occurred during construction rather than during the lease-term which could only “truly” occur after the District took delivery of the project. The 1st District Court of Appeal sided with Taber Construction, and in doing so created an appellate court split with the 5th District Court of Appeal’s decision in Davis v. Fresno Unified School District, 237 Cal.App.4th 261 (2015), which held that contractor who received all payments prior to turnover of the project to the district violated the Lease-Leaseback 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

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Trial Date Discussed for Las Vegas HOA Takeover Case

February 04, 2014 — Beverley BevenFlorez-CDJ STAFF
Jeff German of the Las Vegas Review-Journal reported that Justice Department attorneys filed papers January 28th demanding the trial involving 11 defendants charged in a scheme to take over the Las Vegas Valley homeowners associations to be held no later than September 2nd. The prosecutors claimed “they have gone out of their way to ease the burden on the defense as they have turned over mountains of evidence in the past year.” However, the defense attorneys allege that they need “at least a year and likely more time” to go through the “more than 3 million pages of documents” and to create a trial strategy, according to German. The defense “asked for an initial late January 2015 trial date.” The case involves charges against “lawyers, former police officers and corrupt board members” for “packing HOA boards to gain legal and construction defect contracts for themselves.” Read the court decision
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Reprinted courtesy of

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Nevada Bill Aims to Reduce Legal Fees For Construction Defect Practitioners

March 21, 2011 — CDJ STAFF

Assemblyman Ira Hansen and twelve additional members of Nevada’s Assembly are sponsoring Assembly Bill 285. AB 285 Revises provisions governing an award of attorney’s fees in causes of action for constructional defects. Existing law generally provides that a claimant may recover reasonable attorney’s fees as part of the claimant’s damages in a cause of action for constructional defects. (NRS 40.655)



This bill removes this provision and instead authorizes a court to award reasonable attorney’s fees to a prevailing party involved in such a cause of action if an independent basis for the award exists pursuant to existing law which authorizes a court to award attorney’s fees in certain circumstances, or Rule 68 of the Nevada Rules of Civil Procedure, which provides for the payment of reasonable attorney’s fees by an offeree who rejects an offer and subsequently fails to obtain a more favorable judgment.



In an AP report published in Business Week it is suggested that the target objective of legislators centers on what it refers to as Nevada’s "Rampant construction defect lawsuits".



According to Business Week "The suits bring in hundreds of millions of dollars for lawyers and have put construction companies out of business. Hansen says fewer construction firms mean higher prices for Nevada consumers."



Click Here To Read Full Text and Revisions of Assembly Bill 285

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Prison Contractors Did Not Follow the Law

October 15, 2013 — CDJ STAFF
Under Iowa law, nearly ninety-percent of the construction workers for the new state prison in Fort Madison should have been Iowa residents. But according to reports obtained by the Des Moines Register, about fifty percent of the workers were from other states. The law responds to a similar one in Illinois that requires that most workers on public projects must be Illinois residents. Many of the out-of-state employees live on the other side of the Mississippi River and, according to Ryan Drew of the Southeast Iowa Building and Construction Trades Council, are part of a broader Illinois-Iowa community, shopping at Iowa retailers. Read the court decision
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New ConsensusDocs 242 Design Professional Change Order Form Helps Facilitate Compensation for Changes in Design Services

November 05, 2024 — Brian Perlberg - ConsensusDocs
ConsensusDocs is publishing a new ConsensusDocs 242 Change in Services and Compensation, a change order for design services by a design professional. In the design and construction industry, one thing is certain – change. The work scope included in basic design services an architect or engineer provides occurs somewhat regularly. Previously, ConsensusDocs did not have a standard contract document for changing design professionals’ prices. As a result of user feedback, the ConsensusDocs Contract Content Advisory Council (CCAC) drafted this new architect/engineer change order. The CCAC unanimously approved the new contract document and publication is set for October 14, 2024. The document will be available for most ConsensusDocs subscribers. The full, owner, design-professional, and short-form subscription packages will include the document. A subscription package can be purchased through ConsensusDocs here. The design professional change order helps owners of construction projects keep track of additional services their design professionals perform. The design professional must provide itemized labor breakdowns for each invoice. The new ConsensusDocs 242 has options for compensation to be actual hours at the billing rate or a lump sum. The new contract document form also has a table for the remaining project deliverables and their respective due dates. Read the court decision
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Reprinted courtesy of Brian Perlberg, ConsensusDocs Coalition
Mr. Perlberg may be contacted at bperlberg@ConsensusDocs.org

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Appellate Court of Maryland Construes Notice Conditions of A312 Performance Bond in Favor of Surety

January 02, 2024 — Joel P. Williams - White and Williams LLP
The Appellate Court of Maryland issued a reported opinion in a case construing an American Institute of Architects (“AIA”) A312 performance bond. In Wildewood Operating Company, LLC v. WRV Holdings, LLC, et al. 2023 Md. App. LEXIS 720 (Oct. 30, 2023), the Appellate Court of Maryland held that a performance bond surety was discharged from liability where the owner/obligee failed to give the surety notice of the contractor’s default termination until after a third party had completed the work. The project concerned the construction of an assisted living facility in St. Mary’s County, Maryland. The owner, Wildewood Operating Company, LLC, entered into an A312-2010 performance bond with Clark Turner Construction, LLC, as contractor, and First Indemnity of America Insurance Company, as surety. When Clark Turner failed to complete certain stormwater management work adjacent to the site, Wildewood, Clark Turner, and other parties entered into a Work Agreement to address completion of the work. The surety was not a party to the Work Agreement. Read the court decision
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Reprinted courtesy of Joel P. Williams, White and Williams LLP
Mr. Williams may be contacted at williamsj@whiteandwilliams.com

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Wildfires Threaten to Make Home Insurance Unaffordable

January 10, 2018 — Christopher Flavelle – Bloomberg
More frequent and intense wildfires are making it harder for homeowners to find and keep insurance in California, a state regulator warned Thursday. Read the court decision
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Reprinted courtesy of Christopher Flavelle, Bloomberg

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Updates to AIA Contract Applications

January 07, 2025 — Anand Gupta - Construction Law Zone Blog
The construction industry often relies on contract forms drafted by the American Institute of Architects (AIA). These AIA forms include agreements between owners, designers, consultants, contractors, subcontractors, and construction managers. Some prefer to use the forms in the stock form, but others prefer to modify the language to their benefit. These modifications can be made in Microsoft Word and uploaded into AIA’s current web-based system, ACD5, to create redlines against the standard AIA forms (Checked-Drafts) and final clean versions without the “DRAFT” watermarks. Law firms and clients keep repositories of these modified templates for future projects. A common issue with modifying documents offline in Microsoft Word and passing the documents back-and-forth between different email and document management systems is that the metadata of the forms becomes corrupted. AIA technical support then must reset the metadata, which takes hours or days. This delay can pose challenges to clients when they are up against a deadline. Read the court decision
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Reprinted courtesy of Anand Gupta, Robinson+Cole
Mr. Gupta may be contacted at agupta@rc.com

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