Preventing Acts of God: Construction Accidents Caused by Outside Factors
September 20, 2017 —
Christopher G. Hill - Construction Law MusingsFor this week’s Guest Post Friday here at Musings, we welcome back Seth Smiley. Seth, a native of Baton Rouge, is the owner of Smiley Law Firm. He is admitted to practice in all state and federal courts in Louisiana and California. Seth Smiley is the son of a general contractor, and acquired valuable work experience in the construction industry prior to entering law school. He earned his J.D. from Loyola, New Orleans in 2009. In his practice, Seth handles all aspects of construction cases, from initial contracting all the way to final payment once work is complete. Other areas of focus include commercial lease disputes, personal injury, business formation, and insurance property damage claims. Seth loves to fight insurance companies. Seth is currently the primary author of the Smiley Law Blog. The blogs primary focus is to provide value for current and prospective clients regarding trending legal issues in which the attorneys at Smiley Law Firm cover.
There are several factors a construction team can control on a job site. The foreman can ensure scaffolding is secure and that all employees are properly trained, and all workers can take steps to ensure a reasonably safe work site. Accidents can and will happen despite the best efforts of those involved.
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Christopher G. Hill, The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Concerns About On-the-job Safety Persist
August 13, 2019 —
Joanna Masterson - Construction ExecutiveNearly 40% of workers are more concerned with on-the-job safety this year than they were last year, according to a 360training.com survey of a thousand people across several manual labor-intensive industries. Additionally, a quarter of workers worry every day about getting injured because of their job. That number goes up to 27% for workers in the construction and oil industries.
Slips, trips and falls were the top workplace safety concern (36%), followed by electrical hazards (13%), ergonomic problems (9%), vehicle/equipment accidents (7%) and falling objects (6%). For the construction industry specifically, electrical hazards were identified as the leading cause of concern.
Reprinted courtesy of
Joanna Masterson, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Construction Law Alert: Builder’s Alternative Pre-litigation Procedures Upheld Over Strong Opposition
April 01, 2014 —
Steven M. Cvitanovic and Whitney L. Stefko - Haight Brown & Bonesteel, LLPLast week, the Court of Appeal, Fifth Appellate District, was tasked with evaluating the enforceability of provisions in home purchase contracts containing alternative pre-litigation procedures which differ from the standard Right to Repair Act procedures. The Court of Appeal, in McCaffrey v. Superior Court of Fresno, et al. ultimately upheld the contractual provisions, and in overturning the trial court's decision, preserved the rights of builders to contract around certain requirements set forth in the Right to Repair Act.
The McCaffrey Group, Inc. constructed single-family homes in a Fresno development. Plaintiffs consisted of 24 homeowners within the development who brought suit against McCaffrey for construction defects in their homes. The homeowners were comprised of three categories: (1) the original purchasers who bought their homes from McCaffrey before January 1, 2003 and had a 2001 version of McCaffrey's contract; (2) the original purchasers who bought their homes from McCaffrey on or after January 1, 2003 and signed a 2003 version of McCaffrey's contract; and (3) the subsequent purchasers who did not buy their homes directly from McCaffrey, but purchased their homes subject to either the 2001 or 2003 version of McCaffrey's home purchase agreement.
Reprinted courtesy of
Steven M. Cvitanovic, Haight Brown & Bonesteel LLP and
Whitney L. Stefko, Haight Brown & Bonesteel LLP
Mr. Cvitanovic may be contacted at scvitanovic@hbblaw.com; Ms. Stefko may be contacted at wstefko@hbblaw.com
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A Landlord’s Guide to California’s New Statewide Rent Control Laws
May 18, 2020 —
Colton Addy - Snell & Wilmer Real Estate Litigation BlogApplicability of California’s Rent Control Laws: California Civil Code Sections 1946.2 and 1947.12 took effect on January 1, 2020, and implement statewide rent control in California for most residential properties. The rent control laws, however, do not apply to a rental property that was issued a certificate of occupancy in the last 15 years. (Civ. Code §§ 1947.12(d)(4), 1946.2(e)(7)). The statutes also do not apply to most single-family residences, provided that (a) the owner is not a real estate investment trust, a corporation, or a limited liability company where one of the members is a corporation, and (b) the required statutory language is included in the lease agreement for tenancies commencing or renewing on or after July 1, 2020. (Civ. Code §§ 1947.12(d)(5), 1946.2(e)(8)).
Annual Increases Permitted Under California’s Rent Control Laws: Commencing on January 1, 2020, unless otherwise permitted by California law, a Landlord cannot increase the gross rental rate for a rental unit over a continuous 12-month period more than the change in the regional cost of living index where the property is located plus 5%, and gross rental rate increases are subject to a maximum cap of 10% over a continuous 12-month period regardless of the change in the cost of living index. (Civ. Code § 1947.12(a)(1)). The gross rental rate is determined using the lowest rental amount charged in any month in the immediately preceding 12 months. (Id.) Any incentives, discounts, concessions, or credits are not taken into account. (Id.) Even if a rent increase does not exceed the amount permitted under the statute, a Landlord is prohibited from increasing rent more than twice in any continuous 12-month period. (Civ. Code § 1947.12(a)(2)).
Retroactive Applicability of Restrictions on Rent Increases: Although the statute took effect on January 1, 2020, the statute retroactively applies to all rent increases that occurred on or after March 15, 2019. (Civ. Code § 1947.12(h)(1)). If a landlord increased the rent amount more than the amount permitted under California Civil Code Section 1947.12(a)(1) after March 15, 2019, and prior to January 1, 2020, the rent amount on January 1, 2020, is reduced to the amount of the rent on March 15, 2019, plus the maximum permissible increase under California Civil Code Section 1947.12(a)(1). (Civ. Code § 1947.12(h)(2)). The Landlord does not have to refund the tenant any rent payments that were in excess of the permissible rent increase that the tenant made prior to January 1, 2020. (Id.)
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Colton Addy, Snell & WilmerMr. Addy may be contacted at
caddy@swlaw.com
Million-Dollar U.S. Housing Loans Surge to Record Level
July 30, 2014 —
Alexis Leondis – BloombergBanks are handing out mortgages of as much as $10 million to the wealthy in record numbers while first-time homebuyers struggle to get loans.
Erin Gorman, managing director at Bank of New York Mellon Corp., said she’s fielding more requests for home loans of at least $2 million than ever before. She recently provided a mortgage of more than $6 million for a client’s purchase of a second property in Colorado.
“These high-net-worth borrowers do act differently than first-time buyers, who borrow because they have to,” said Gorman, who serves as the national mortgage sales director at Bank of New York Mellon’s wealth management group based in Boston. “High-net-worth borrowers don’t have to borrow. They choose to, so they’re very strategic about what, why, and when they borrow.”
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Alexis Leondis, BloombergMs. Leondis may be contacted at
aleondis@bloomberg.net
Pennsylvania Commonwealth Court Holds that Nearly All Project Labor Agreements are Illegal
February 18, 2019 —
Wally Zimolong - Supplemental ConditionsIn what is nothing short of a monumental decision, on January 11, 2019, the Pennsylvania Commonwealth Court in Allan Myers L.P. v. Department of Transportation ruled that nearly all project labor agreements in Pennsylvania are illegal under the Commonwealth’s procurement code.
What are Project Labor Agreements?
In short, Project Labor Agreements (PLAs) are pre-hire agreements that set the working conditions for all employees of contractors working on a construction project. Typically, a PLA is entered into between an public or private construction project owner and certain local building trade unions. PLAs require the use of union labor that is to be hired exclusively through the hiring halls of the unions who are parties to the PLA. PLAs are controversial because, among other reasons, while not expressly excluding non-union contractors from performing work on the project, they require non-union firms to use union members instead of their regular employees.
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Wally Zimolong, Zimolong LLCMr. Zimolong may be contacted at
wally@zimolonglaw.com
Real Estate & Construction News Round-Up (12/07/22) – Home Sales, EV Charging Infrastructure, and Office Occupancy
December 26, 2022 —
Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law BlogThis week’s round-up explores decreasing home sales, electric vehicle charging stations, office occupancy levels, and more.
- With home sales dropping and more buyers abandoning their plans, forecasters have rarely disagreed as much as they are now regarding where the housing market is going next. (Nicole Friedman, Nick Timiraos, The Wall Street Journal)
- Contractors and construction technology firms are watching as skilled workers look for new jobs in a turbulent economy. (Matthew Thibault, Construction Dive)
- The ability to conveniently charge electric vehicles away from home is a top concern for many owners, indicating the strong need for an extensive and reliable external charging infrastructure. (Robert Charette, IEEE Spectrum)
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Pillsbury's Construction & Real Estate Law Team
Price Escalation Impacts
August 22, 2022 —
Denise Motta - Gordon & Rees Construction Law BlogThis Bulletin provides guidance to contractors, subcontractors, suppliers, and others to ensure compliance with contractual change order requirements in the event work on a construction project is impacted by price escalation.
Construction projects are being impacted by increased costs for most construction materials. The Producer Price Index shows a 69% increase in the cost of construction materials from March 2020 to March 2022. Many construction contracts do not address escalation or specifically exclude change orders for material escalation, leaving the risk of escalation of construction materials with the contractor, subcontractor, or suppliers.
Bid Protection Tips:
- Keep bids open for less than 30 days with a designated sunset date:
- Keeping your bids open for less than 30 days can help protect you from sudden changes in pricing and help maintain your bids’ competitive status.
- If asked to extend time a bid is open, reconfirm prices before agreeing.
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Denise Motta, Gordon Rees Scully Mansukhani, LLPMs. Motta may be contacted at
dmotta@grsm.com