Drafting or Negotiating A Subcontract–Questions To Consider
June 21, 2021 —
David Adelstein - Florida Construction Legal UpdatesWhen it comes to drafting and negotiating a subcontract, there are provisions that should be important to you from a risk assessment standpoint. From the subcontractor’s standpoint, below are questions you should ask, or issues you should consider, as you go through the subcontract. These are the same questions and issues that are also important to a contractor as the contractor will want to ensure these issues are included in the subcontract. By asking yourself these questions, you can check to see how the subcontract addresses these issues, and how the risk should be negotiated. Hopefully, you are working with counsel to make sure you understand what risk you are assuming and those provisions you want to try to push back on. Asking yourself these questions, or considering these questions, will help you go through the subcontract with a purpose based on the risk profile of the project and certain risk you don’t want to assume.
- Prime Contract –> Does the subcontract incorporate the prime contract? Make sure to request the prime contract since the subcontract will identify the prime contract as part of the Subcontract Documents and will require you to assume towards the contractor the same obligations the contractor is required to assume towards the owner.
- Scope of Work –> What is the scope of work? Is it clear. Make sure the scope is clear and you understand the scope.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Don MacGregor To Speak at 2011 West Coast Casualty Construction Defect Seminar
January 01, 2011 —
CDJ STAFF“Challenges for Experts in Construction Defect Claims and Litigation” will be held Thursday May 13, 2011 between 1:30 and 3:00 PM at this year’s West Coast Casualty Construction Defect Seminar. Among the various topics covered will be of Right to Repair/Opportunity to Repair statutes, improper testing methodologies, new challenges where a case involves a Wrap Policy, OCIPS, CCIPS, and other owner controlled insurance programs, as well as the need for realistic testing protocols for the party the expert is retained to represent.
During the presentation Mr. MacGregor will be working in connection with a group of construction and design experts each of which have extensive experience with construction defect and claims related litigation. This particular session is expected to attract a standing-room only crowd, drawing in excess of 1700 attendees.
The West Coast Casualty Construction Defect Seminar is the largest seminar of its type. This year’s event is scheduled for will take place on May 12 and 13, 2011, at The Disneyland Hotel and Resort. For more information regarding the years event please visit http://www.westcoastcasualty.com/dyncat.cfm?catid=3322
http://www.westcoastcasualty.com/dyncat.cfm?catid=3322
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Wilke Fleury Attorneys Highlighted | 2019 Northern California Super Lawyers
September 16, 2019 —
Wilke, Fleury, Hoffelt, Gould & Birney, LLPWilke Fleury is proud to announce that 14 of our astounding attorneys were featured in the Annual List of Top Attorneys in the 2019 Northern California Super Lawyers magazine.
Super Lawyers rates attorneys in each state using a patented selection process; they also publish a yearly magazine issue that regularly produces award-winning features on selected attorneys.
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Don’t Do this When it Comes to Construction Liens
September 07, 2020 —
David Adelstein - Florida Construction Legal UpdatesWhen it comes to preparing and recording a construction lien, this case is an example of what NOT TO DO! I mean it — this exemplifies what NOT TO DO! It is also a case study of why a party should always work with counsel in preparing a construction lien so that you can avoid the outcome in this case–your lien being deemed fraudulent.
In Witters Contracting Company v. West, 2020 WL 4030845 (Fla. 2d DCA 2020), homeowners hired a contractor to renovate their home under a cost-plus arrangement where the contractor was entitled to a 10% fee on construction costs. The contract also required extra work to be agreed in writing between the owner and contractor.
During construction a dispute arose. The contractor texted the owner that it will cancel the permit and record a $100,000 construction lien if the owner did not pay it $30,000. Shortly thereafter, the contractor’s counsel sent the homeowners a demand for $59,706 with back-up documentation. Less than a week later, the contractor recorded a construction lien for $75,000. The owners initiated a lawsuit against the contractor that included a claim for fraudulent lien. The contractor then amended its construction lien for $87,239.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Oregon to Add 258,000 Jobs by 2022, State Data Shows
March 26, 2014 —
Alison Vekshin – BloombergOregon expects to add 258,000 jobs by 2022, a 15 percent increase driven by the economic recovery in the construction industry and growth in health care, according to the Oregon Employment Department.
Construction industry employment is projected to rise 29 percent, the fastest of any industry, though short of pre-recessionary growth, the agency said March 12 in a statement.
The predictions “reflect several ongoing trends: continuing recovery from the Great Recession, particularly for the construction industry; a growing health-care sector, due in part to an aging population; continuing population growth; and the need for replacement workers due to baby-boomer retirements,” the agency said.
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Alison Vekshin, BloombergMs. Vekshin may be contacted at
avekshin@bloomberg.net
Settlement Agreement? It Ain’t Over ‘Til it’s . . . Final, in Writing, Fully Executed, and Admissible
April 12, 2021 —
Todd Likman - Colorado Construction LitigationAs litigators we have all been there: nearing the end of a hard-fought mediation that lasted all day. Your significant other texts to ask what is for dinner; daycare closes in thirty minutes; the dog needs to be let out. The mediator, a retired judge, gently reminds you of his prior commitment—a speaking engagement at a volunteer charity dinner event that night. Though the parties started the day at opposite ends of the spectrum, after numerous counteroffers, persistent negotiation, and mediation tactics, they finally strike a deal.
As the mediator prepares a document memorializing the terms of settlement, the parties wait with bloodshot eyes, and a sense of guarded accomplishment considering compromises were
made, but alas, an outcome seems certain. You text your significant other to indicate that you will pick something up for dinner on your way home.
Then, the mediator informs you that computer problems are preventing finalization and transmission of the document for signature. The mediator offers to send an e-mail setting forth the material settlement terms and asks each party to respond via e-mail to confirm the terms are correct, which the parties do. After a quick e-mail to your experts and case team asking them to cease trial preparation work, you leave for home.
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Todd Likman, Higgins, Hopkins, McLain & RoswellMr. Likman may be contacted at
likman@hhmrlaw.com
General Contractor Gets Fired [Upon] for Subcontractor’s Failure to Hire Apprentices
September 23, 2024 —
Garret Murai - California Construction Law BlogAs most public works contractors know, Labor Code section 1777.5 requires the hiring of apprentices on public works projects and, under Labor Code section 1777.7, violations are subject to civil penalties of up $100/day and up to $300/day days for repeated violations within a three-year period.
In
Lusardi Construction Co. v. Dept. of Industrial Relations, 102 Cal.App.5th (2024), a prime contractor learned the hard way that not only could it be penalized for its failure to hire apprentices but that it could also be liable for its subcontractor’s failure to hire apprentices. Forewarned is to be forearmed.
The Lusardi Construction Case
In 2014, general contractor Lusardi Construction Company hired subcontractor Pro Works Contracting to perform iron reinforcing work on a public works project owned by the San Marcos Unified School District.
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Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Mechanics Lien Release Bond – What Happens Now? What exactly is a Mechanics Lien and Why Might it Need to be Released?
January 04, 2021 —
William L. Porter - Porter Law GroupMechanics Lien Release Bond – What Happens Now? What exactly is a Mechanics Lien and Why Might it Need to be Released?
California law entitles unpaid contractors, subcontractors, and material suppliers to record a mechanics lien on property where they performed work or supplied materials. The mechanics lien attaches to the real property as a legal interest and secures the right to payment for the work performed and materials supplied. If payment is not forthcoming the mechanics lien allows the property where the work was performed and materials supplied to be sold under court order to satisfy the debt. It is a powerful remedy against owners and their agents who do not pay for work performed and materials supplied to improve the owner’s property.
A Mechanics Lien Release Bond Frees Property from a Mechanics Lien
Owners typically do not wish to have their property sold out from under them. Fortunately for owners, there is a method by which a mechanics lien can be substituted for another interest and sale of the property thereby avoided. This method is through the use of a mechanics lien release bond. California Civil Code §8424 allows a property owner or contractor effected by a mechanics lien to record a mechanics lien release bond equal to 125 percent of the lien amount with the County Recorder where the mechanics lien has been recorded. The effect of this is to substitute the mechanics lien release bond for the mechanics lien itself, thereby relieving the property from the possibility of that property being sold to satisfy the debt. Instead, any payment made will come from the release bond.
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William L. Porter, Porter Law GroupMr. Porter may be contacted at
bporter@porterlaw.com