Seattle Washington Building Expert Directory

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? Read the court decision
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Reprinted courtesy of Peckar & Abramson, P.C.

Gordon & Rees Ranked #4 of Top 50 Construction Law Firms in the Nation by Construction Executive Magazine

July 11, 2022 — GRSM Construction Team - Gordon & Rees Construction Law Blog
Gordon Rees Scully Mansukhani has been ranked as the No. 4 construction law firm in the nation by Construction Executive in the magazine’s 2022 ranking of The Top 50 Construction Law Firms™. As the only law firm with offices and attorneys in all 50 states, Gordon & Rees’ construction group (with over 150 construction lawyers) delivers maximum value to our clients by understanding their business and combining the resources of a full-service national firm with the local knowledge of a regional firm. Led by Allen Estes and Angela Richie, the construction lawyers at Gordon & Rees are uniquely situated to serve our construction clients. We have attorneys with professional training and practical experience in related fields such as engineering and construction management, as well as lawyers with leadership experience in various construction industry related trade associations, legal advisory committees and government agencies. “If a client is looking for a legal partner in multiple states who understands their business, Gordon & Rees is that partner,” said Angela Richie. Read the court decision
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Reprinted courtesy of GRSM Construction Team, Gordon Rees Scully Mansukhani

Ten Years After Colorado’s Adverse Possession Amendment: a brief look backwards and forwards

September 25, 2018 — Luke Mecklenburg - Snell & Wilmer Real Estate Litigation Blog
In response to national outrage over an infamous adverse possession case in Boulder, Colorado, in which a lawyer and a judge intentionally took their neighbors’ undeveloped land through adverse possession, the Colorado legislature amended the state’s adverse possession statute (C.R.S. § 38-41-101) to make the claim significantly harder to prove. It did this because it believed “there were insufficient ‘obstacles’ to establishing a claim for adverse possession under the existing law.”[1] Effective July 1, 2008, the amendment created a heightened burden of proof, additional element requirements, and the possibility of a losing defendant recovering money from successful plaintiffs for the value of the land they took and the taxes the defendant had paid on that land. The Boulder case eventually settled, but the resulting statutory amendments have drastically changed the landscape of Colorado’s adverse possession law. Ten years later, this blog post takes a brief look at the amended statute, the impact it has had, and questions that have yet to be resolved. Read the court decision
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Reprinted courtesy of Luke Mecklenburg, Snell & Wilmer
Mr. Mecklenburg may be contacted at lmecklenburg@swlaw.com

Corrective Action Protest Grounds for GSA Schedule Federal Construction Contractors

September 09, 2024 — Marissa L. Downs - The Dispute Resolver
A contract awarded, protested, terminated, appealed, then reinstated. It’s no secret that federal construction procurements are plagued with uncertainty. From delays, constructive suspensions, compromised supply chains, the litigation-laden critical path method, and the mandate for all construction materials used in federally funded projects for infrastructure to be produced in the United States under the Build America, Buy America Act (BABAA) (to name just a few traditional and emerging favorites), just one of these issues could fill the rest of anyone’s month with substantive research. To add one more, which is entirely unique to bid protests, federal contractors–including construction contractors–listed in a General Service Administration (GSA) Schedule may have new grounds to have a contract award reinstated that was terminated by a federal agency pending a GAO decision. GAO Protest An initial GAO protest filed by Deloitte & Touche LLP (Deloitte) argued that the National Geo-Spatial Intelligence Agency (Agency) wrongfully made an award to Kearney & Company, P.C. (Kearney) when the Agency: (1) improperly evaluated quotes; and (2) failed to conduct a proper best-value tradeoff analysis. At issue was a competed task order with Kearney under a GSA FSS multiple-award contract. Before the GAO issued an opinion, however, it held an unrecorded predictive-outcome conference with Deloitte and Kearney where the only mutual consensus was the likely ineligibility of all offerors for the relevant award. The Agency subsequently elected to take corrective action, terminating Kearney’s contract award for convenience, amending the solicitation to avoid issues (including undisputed issues) addressed in the GAO protest. After the Agency adopted their corrective action, the GAO protest was dismissed as academic and moot. Read the court decision
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Reprinted courtesy of Marissa L. Downs, Laurie & Brennan, LLP
Ms. Downs may be contacted at mdowns@lauriebrennan.com

Chicago Developer and Trade Group Sue City Over Affordable Housing Requirements

September 03, 2015 — Beverley BevenFlorez-CDJ STAFF
The Chicago Tribune reported that Hoyne Development and Home Builders Association of Greater Chicago are suing the city of Chicago, claiming that the “Affordable Requirements Ordinance is unconstitutional because it involves the taking of private party without ‘just compensation,’ violating the Fifth Amendment.” Shannon Breymaier, spokeswoman for Chicago Mayor Rahm Emanuel, however, disputes the claims, and told the Chicago Tribune in an email that the city planned to “defend the ordinance vigorously.” Read the court decision
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Fla. Researchers Probe 'Mother of All Sinkholes'

August 24, 2017 — Thomas F. Armistead - Engineering News-Record
It will take months to complete remediation of the largest sinkhole in Pasco County, Fla.’s recent history, county officials say. Seven houses have been lost or condemned since the sinkhole was reported at 7:21 a.m. on July 14. That day, two houses collapsed into the hole, which initially measured 225 ft long and 50 ft deep. As the cavity’s dimensions grew to between 260 ft and 180 ft, the county red-tagged five additional houses. Read the court decision
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Reprinted courtesy of Thomas F. Armistead, ENR
ENR may be contacted at ENR.com@bnpmedia.com

Georgia House Bill Addresses Construction Statute of Repose

May 04, 2020 — Jason Gropper - Autry, Hall & Cook, LLP
On March 2, 2020, by a unanimous vote, the House passed HB 968. This Bill seeks to clarify which civil actions are subject to Code Section 9-3-51, which is the eight-year statute of repose for deficiencies in connection with improvements to realty. If passed by the General Assembly, it would explicitly state that the statute of repose will not apply to breach of express warranties. If the Bill is passed, O.C.G.A § 9-3-51 would include a subsection that provides: “This Code section shall not apply to actions for breach of contract, including, but not limited to actions for breach of express contractual warranties.” Jason Gropper, Autry, Hall & Cook, LLP Mr. Gropper may be contacted at Gropper@ahclaw.com Read the full story... Read the court decision
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Best Practices in Construction– What are Yours?

November 26, 2014 — Craig Martin – Construction Contractor Advisor
The latest Engineering News Record had an interesting article on Best Practices in Construction written by Deron Cowan of Zurich Services Corporation. In the articles, Mr. Cowan emphasizes the importance of best practices and the methodology to develop them. As Mr. Cowan notes, best practices are intended to eliminate, reduce and manage risks and all construction companies should be fully engaged in correctly executing and accomplishing risk analysis to meet the demands of their practices. 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

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