What You Need to Know About Enforcement Actions by the Contractors State License Board
April 15, 2015 —
Garret Murai – California Construction Law BlogI questioned whether to even write this post.
Because, of course, YOU would never find yourself hightailing it out of town with the California Contractor’s State License Board (“CSLB”) sniffing down your tail pipes.
Then again, mistaken identities occur all the time. So, here’s what you need to know if the CSLB mistakes you for one of “those” contractors.
What violations are subject to CSLB enforcement actions?
The CSLB can take enforcement actions based on any one of numerous violations set forth under the California Business and Professions Code (“B&P Code”), including:
1.
B&P Code §7107: Abandonment of a construction project or operation without legal excuse.
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Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
Effective Allocation of Damages for Federal Contract Claims
October 25, 2021 —
Dirk D. Haire, Joseph L. Cohen & Jane Han - ConsensusDocsFederal construction contracts law generally recognizes four basic methods for pricing damages: (1) Actual Cost Method (ACM); (2) Total Cost Method (TCM); (3) Modified Total Cost Method (MTCM); and (4) Jury Verdict Recovery Method (JVRM). In practice, it is difficult to obtain significant recoveries on TCM and JVRM claims, and only marginally easier on MTCM claims. That is because the courts and boards that hear federal government contracts cases have developed a clear preference for the ACM. Despite this preference, many contractors do not have systems in place to maximize their opportunity to recover damages under the ACM. This article introduces various strategies for tracking and allocating damages during project performance in a manner that will support an ACM analysis if a federal construction claim is litigated.
Background: Four Basic Methods for Pricing Damages
The four methods for pricing damages are described, below:
1. Actual Cost Method
The actual cost method claims damages based on records of “actual costs” that were documented during the performance of the contract. All additional costs must be separately recorded from the costs incurred in the normal course of contract performance. Because contractors provide the court or board with documented underlying expenses under the actual cost method, courts and boards prefer this method. However, the actual cost method may not always be feasible where a contractor is confronted with drastic changes early and often in a project.
Reprinted courtesy of
Dirk D. Haire, Fox Rothschild LLP,
Joseph L. Cohen, Fox Rothschild LLP and
Jane Han, Fox Rothschild LLP
Mr. Haire may be contacted at dhaire@foxrothschild.com
Mr. Cohen may be contacted at jlcohen@foxrothschild.com
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Evacuations in Santa Barbara County as more Mudslides are Predicted
March 14, 2018 —
Dave Suggs – CDJ StaffAlene Tchekmedyian’s LA times article “Storm triggers evacuations in Santa Barbara County: 'Don't be fooled into thinking that this can’t happen again',” warns of the deadly potential of mudslides following the devastation that occurred in January that caused 21 fatalities and damaged homes in Montecito.
Debris flow could be triggered by rainfall rates predicted to exceed half and inch per hour. In some areas as much as seven-tenths of an inch of rain per hour are possible because of a chance of thunderstorms.
Mandatory evacuations began Monday to protect residents from the fast-moving storm that is predicted to be worse than January’s. Santa Barbara county officials asked that people help spread the word of the evacuation to everyone in their community. They also created an interactive map to help residents determine their risk level.
Matilija Canyon and North Fork in Ventura County are under voluntary evacuation orders. Areas at the highest risk include Thomas, Sherpa, and Whittier burn areas. Residents can find shelter at the Goleta Valley Community Center at 5679 Hollister Avenue.
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One Sector Is Building Strength Amid Slow Growth
November 18, 2019 —
Michael Msika - BloombergIf you had to guess which stocks are posting top gains given this year’s gloomy economic outlook, you might be surprised by the answer.
Construction and material shares, despite most macro indicators pointing to slowing global growth, are now leading the pack in Europe. The sector’s up 32% already this year, knocking food-and-drinks stocks off the pedestal, and there appear few signs of the rally stopping anytime soon.
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Michael Msika, Bloomberg
Congratulations to Partner Vik Nagpal on his Nomination for West Coast Casualty’s Jerrold S. Oliver Award of Excellence!
March 27, 2023 —
Dolores Montoya - Bremer Whyte Brown & O'Meara LLPBremer Whyte Brown & O’Meara, LLP is honored to share that Downtown San Diego and Encinitas Managing Partner Vik Nagpal is nominated for West Coast Casualty’s Jerrold S. Oliver Award of Excellence!
Every year, West Coast Casualty recognizes an individual who is committed, trustworthy, and has contributed to the betterment of the construction defect community. The award is named after the late Judge Jerrold S. Oliver who is considered a “founding father” in the alternate resolution process in construction claims and litigation. Each year, members of the construction community are asked to nominate individuals who invoke the same spirit as Judge Oliver.
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Dolores Montoya, Bremer Whyte Brown & O'Meara LLP
Loss Caused by Theft, Continuous Water Discharge Not Covered
September 17, 2015 —
Tred R. Eyerly – Insurance Law HawaiiThe insured's claim for loss based on theft and water leaks was not covered under the property policy. SJP Props. v. Mount Vernon Fire Ins. Co., 2015 U.S. Dist. LEXIS 97216 (E.D. Mo. July 27, 2015).
SJP Properties bought and sold foreclosed properties. On July 13, 2006, it purchased at a foreclosure sale a property in St. Louis. The property was not inspected before or after the purchase, and sat vacant for more than two years. No one checked regularly on the property.
The property was insured under a commercial property policy issued by Mount Vernon, effective from March 8, 2006 to March 8, 2009. The policy covered vandalism, but excluded loss caused by theft. An exception for the exclusion provided coverage for "building damage caused by the breaking in or exiting of burglars." The policy also excluded loss or damage caused by fungus, wet rot, dry rot and bacteria or water leaks for a period of 14 days or more.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Acord Certificates of Liability Insurance: What They Don’t Tell You Can Hurt You
June 28, 2013 —
David McLainAs anyone involved in construction knows, one of the most heavily used forms for tracking insurance information during the subcontracting phase of a project is the Acord Certificate of Liability Insurance. General contractors often require subcontractors to provide these ubiquitous forms as evidence that the subcontractor maintains adequate insurance or insurance which complies with the requirements of the subcontract. Unfortunately, experience has shown that the Acord forms being used today are insufficient sources of the information needed by the developer and general contractor.
Historically, developers and GCs would require Acord forms to ensure that a subcontractor had a CGL insurance policy, with sufficient limits, and which named them as additional insureds. More recently, developers and GCs took the additional step of requiring a confirmation on the Acord forms that they were named as additional insureds for both ongoing and completed operations. This is important because coverage for ongoing operations only provides coverage during the construction process. Once the homes are put to their intended use, developers and GCs must be named as additional insureds for completed operations also in order to avail themselves of the benefits of the policy. Unfortunately, this is where the evolution of the use of the Acord forms ended, resulting in a failure to provide sufficient information to protect developers and GCs from the unknown.
My firm has had a rash of recent experience where our clients have not obtained the benefit of additional insured coverage for which they bargained because they relied on Acord forms which failed to provide sufficient information to allow them to protect themselves from insufficient insurance coverage on the part of the subcontractors with which they did business. For example, in one recent case a homeowners association alleged insufficient grading and drainage away from the homes within a development built by one of our clients. In reviewing the insurance information from the construction files, we found the Acord forms from the excavating company that performed all of the grading work around the homes. To our delight, the Acord form listed our client as an additional insured for both ongoing and completed operations.
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David M. McLainDavid M. McLain can be contacted at
mclain@hhmrlaw.com
Structural Failure of Precast-Concrete Span Sets Back Sydney Metro Job
January 04, 2018 —
Chris Webb - Engineering News-RecordOriginally Published by CDJ on February 23, 2017
A key component of Australia’s biggest public transport infrastructure project—Sydney’s $6.3-billion Metro North West—is the subject of a critical and detailed technical report describing how an elevated viaduct span failed at a stitch joint between two precast segments during construction last September. Project officials say the affected span, which did not suffer a progressive collapse, has since been removed and its replacement fast-tracked to avoid further delays. Little additional detail was provided.
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Chris Webb, ENR