Supplement to New California Construction Laws for 2019
January 08, 2019 —
Daniel F. McLennon - Smith CurrieA representative of the Contractors State License Board would like to emphasize a benefit of SB 1042 not mentioned in the report below that Smith Currie published recently. Importantly, the new law allows the CSLB to work with licensees, resolve complaints informally, and avoid a full Administrative Procedure Act hearing brought by the California Attorney General’s office. If the CSLB and licensee are unable to resolve a citation informally, the licensee is still entitled to the APA hearing. Contractors receiving CSLB citations are wise to avail themselves of this process.
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Daniel F. McLennon, Smith CurrieMr. McLennon may be contacted at
dfmclennon@smithcurrie.com
Scaffolding Purchase Suggests No New Building for Board of Equalization
July 30, 2014 —
Beverley BevenFlorez-CDJ STAFFEmployees at California’s Board of Equalization spoke out against the Brown administration after the state purchased new scaffolding for the defect-riddled building, rather than finding a new facility, reported the Sacramento Bee. The existing scaffolding was leased for $10,000 per month, but the lease expired, prompting the purchase of new scaffolding for about $100,000.
The board’s Chairman Jerome Horton stated “that while the change may make financial sense in the short term, it sends a signal that the Department of General Services intends to keep Equalization’s 2,200 or so employees in the troubled building,” according to the Sacramento Bee.
Building problems include “toxic mold, defective elevators, leaking windows, corroded wastewater pipes, floods, and exterior glass panels that spontaneously break or pop off.” So far, $2.3 million has been paid “in connection with building-related employee injury claims” along with $60 million in repairs. However, an additional $115 million is estimated to completely fix the defects.
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Scary Movie: Theatre Developer Axed By Court of Appeal In Prevailing Wage Determination Challenge
July 19, 2017 —
Steven M. Cvitanovic & Omar Parra - Haight Brown & Bonesteel LLPThe First Appellate District of the California Court of Appeal recently held that the construction of a movie theater, which was performed in furtherance of a city’s redevelopment agenda, constitutes a “public work” within the meaning of California’s prevailing wage law. Cinema West, LLC v. Christine Baker, No. A144265, (Cal. Ct. App. June 30, 2017).
Like many California cities, the City of Hesperia (the “City”) endeavored to revitalize its downtown. In furtherance of this goal, the City acquired vacant property in its downtown with the hope of turning it into a new city hall, a public library, and “complimentary retail, restaurant, and entertainment establishments.” After completing construction of the civic buildings, the City entered into discussions with Cinema West, LLC (“Cinema West”) for the construction of a “state-of-the-art cinema experience.”
Under the agreement with the City, Cinema West agreed to purchase the property from the City at fair market value, obtain financing for the construction costs, and build and maintain the movie theater. The City, on the other hand, agreed to provide Cinema West with an interest-bearing loan forgivable over ten years, and to construct an adjacent parking lot “for use by Cinema West... as a parking lot for the movie theater.” The City, moreover, agreed to issue Cinema West a one-time payment as consideration for the operating covenant.
Reprinted courtesy of
Steven M. Cvitanovic, Haight Brown & Bonesteel LLP and
Omar Parra, Haight Brown & Bonesteel LLP
Mr. Cvitanovic may be contacted at scvitanovic@hbblaw.com
Mr. Parra may be contacted at oparra@hbblaw.com
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California Plant Would Convert Wood Waste Into Hydrogen Fuel
January 10, 2022 —
James Leggate - Engineering News-RecordA climate-focused tech company announced plans to open a $100-million plant outside Bakersfield, Calif., to convert wood waste into hydrogen fuel to prevent the material from emitting greenhouse gases. There has been no construction contract award, to date.
Reprinted courtesy of
James Leggate, Engineering News-Record
Mr. Leggate may be contacted at leggatej@enr.com
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First-Time Homebuyers Make Biggest Share of Deals in 17 Years
February 22, 2018 —
Prashant Gopal – BloombergMillennials are playing homeownership catch-up.
First-time buyers rushed into the market last year, making 38 percent of all U.S. single-family home purchases, the biggest share since 2000, data released Thursday by Genworth Mortgage Insurance show. The 2.07 million new or existing homes bought by first-timers was 7 percent more than in 2016, according to the insurer, part of
Genworth Financial Inc.
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Prashant Gopal, Bloomberg
Hunton Insurance Recovery Partner Michael Levine Quoted on Why Courts Must Consider the Science of COVID-19
March 15, 2021 —
Latosha M. Ellis & Matt Revis - Hunton Insurance Recovery BlogOne year into the COVID-19 pandemic, courts have issued hundreds of rulings in COVID-19 business interruption lawsuits, many favoring insurers. Yet those pro-insurer rulings are not based on evidence, much less expert opinion evidence. For insurers, ignorance is bliss.
Despite early numbers in federal courts favoring insurers (state court decisions actually favor policyholders), the year ahead holds promise for policyholders. Fundamental science is the key. Indeed, as researchers continue to broaden their knowledge about COVID-19, it has become increasingly clear that scientific evidence supports coverage for policyholders’ claims.
Reprinted courtesy of
Latosha M. Ellis, Hunton Andrews Kurth and
Matt Revis, Hunton Andrews Kurth
Ms. Ellis may be contacted at lellis@HuntonAK.com
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Corrective Action Protest Grounds for GSA Schedule Federal Construction Contractors
September 09, 2024 —
Marissa L. Downs - The Dispute ResolverA 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.
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Marissa L. Downs, Laurie & Brennan, LLPMs. Downs may be contacted at
mdowns@lauriebrennan.com
Is Your Home Improvement Contract Putting You At Risk?
February 10, 2020 —
Hannah Kreuser - Porter Law GroupIf you are like many contractors, odds are that your home improvement contract (HIC) is not compliant with California law, putting you at risk for disciplinary action, voiding of the contract, and even criminal prosecution.
Generally, the laws allow parties to contract how they wish. However, California HICs are an exception and California Business and Professions Code (BPC) requires much in the way of content, form and formatting for a HIC to meet the legal requirements. This is because California has written its laws to provide broad protections to homeowners when it comes to construction work performed at their residence. However, in attempting to promote this goal, the laws surrounding HICs have produced requirements that are confusing and fail to account for the realities of a home improvement project, making it difficult and uncomfortable for contractors to comply.
A HIC is required for home improvement projects that change a residence or property. Specifically, the law defines a “home improvement” as “the repairing, remodeling, altering, converting, or modernizing of, or adding to, residential property and shall include, but not be limited to, the construction, erection, replacement or improvement of driveways, swimming pools, including spas and hot tubs, terraces, patios, awnings, storm windows, landscaping, fences, porches, garages, fallout shelters, basements, and other improvements of the structures or land which is adjacent to a dwelling house.” (BPC section 7151.) A HIC is not required for new residential construction; for work priced at $500 or less; the sale, installation, and service of a fire alarm or burglar system; or a service and repair contract (which has its own requirements).
When a HIC is used, BPC section 7159 specifies certain content, form, and format requirements, all of which must be followed to produce a compliant HIC. While this article will not discuss all of these requirements, it will discuss some of the problems commonly seen in HICs.
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Hannah Kreuser, Porter Law GroupMs. Kreuser may be contacted at
hkreuser@porterlaw.com