Cambridge Massachusetts Building Expert Directory

New WA Law Caps Retainage on Private Projects at 5%

May 29, 2023 — Brett M. Hill & Ryanne S. Mathisen - Ahlers Cressman & Sleight PLLC
This month, Governor Jay Inslee signed into law a new statute that caps retainage on private construction projects to five percent (5%), provides a mechanism for subcontractors to get paid their retainage prior to project completion, and allows for contractors and subcontractors to post a retainage bond and get paid their retainage early. For those interested in reading the full text of this new law, the statute can be found here. The new statute goes into effect on July 23, 2023. Under the statute, when a contractor or subcontractor considers their work under a contract subject to retainage complete, they may notify the party they contracted to perform the work for. Within 15 days of receiving the notice of completion of work, the party receiving the notice must respond with either (1) notice of acceptance of work or (2) notice of uncompleted items to the contractor or subcontractor. If the party receiving notice does not provide notice of uncompleted items within 15 days or fails to respond to the notice of completion entirely, the unpaid retainage will begin to accrue interest at a rate of one percent (1%) per month, 30 days after the initial 15-day period. However, this interest will not accrue against a contractor who has not been paid the retainage by an upper-tier contractor or owner until payment has been received, so long as that contractor has submitted its subcontractor’s notice of completion to the upper-tier contractor or owner within 30 days of receipt. Reprinted courtesy of Brett M. Hill, Ahlers Cressman & Sleight PLLC and Ryanne S. Mathisen, Ahlers Cressman & Sleight PLLC Mr. Hill may be contacted at brett.hill@acslawyers.com Ms. Mathisen may be contacted at ryanne.mathisen@acslawyers.com Read the court decision
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Home Sales Topping $100 Million Smash U.S. Price Records

May 07, 2014 — Prashant Gopal – Bloomberg
The U.S. trophy-home market is shattering price records this year as an increasing number of residential properties change hands for more than $100 million. Barry Rosenstein, founder of hedge fund Jana Partners LLC, has purchased an 18-acre (7.3-hectare) beachfront property in East Hampton, New York, for $147 million, according to the New York Post. That would break the U.S. single-family price record of $120 million set last month with the sale of a Greenwich, Connecticut, waterfront estate on 51 acres. In Los Angeles, a 50,000-square-foot (4,600-square meter) home sold in February for $102 million in cash after a bidding war. The world’s richest people are moving cash to real estate as they seek havens for their wealth. In the U.S., an improving economy and stocks at a record are bolstering confidence among the affluent. Home purchases of $2 million or more jumped 33 percent in January and February from a year earlier to the highest level for the two-month period in data going back to 1988, according to an analysis by DataQuick. Read the court decision
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Reprinted courtesy of Prashant Gopal, Bloomberg
Mr. Gopal may be contacted at pgopal2@bloomberg.net

CDJ’s #3 Topic of the Year: Burch v. The Superior Court of Los Angeles County, 223 Cal.App.4th 1411 (2014)

December 31, 2014 — Beverley BevenFlorez-CDJ STAFF
In 2013, the case Liberty Mutual Insurance Company v. Brookfield Crystal Cove, LLC received a great deal of attention for its possible ramifications to how California’s Right to Repair Act (also known as SB 800) could be applied. However, 2014 had its share of SB 800 policy trends, most notably caused by the ruling in Burch. In their article, “Construction Law Client Alert: California’s Right to Repair Act (SB 800) Takes Another Hit, Then Fights Back,” authors Steven M. Cvitanovic and Whitney L. Stefco, of Haight Brown & Bonesteel, analyzed Burch as well as KB Home Greater Los Angeles v. The Superior Court of Los Angeles County, et al., both cases that had ramifications on how California’s Right to Repair Act is applied. Read the full story... Karen L. Moore of Low, Ball & Lynch discussed the Liberty Mutual and Burch cases in her article, “California’s Right to Repair Act is Not a Homeowner’s Exclusive Remedy when Construction Defects cause Actual Property Damage.” Read the full story... Read the court decision
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Construction Feb. Jobs Jump by 61,000, Jobless Rate Up from Jan.

March 22, 2018 — Tom Ichniowski – ENR
Construction jobs soared by 61,000 in February, and the industry's unemployment rate improved year over year, but last month's rate did rise from January's level, the federal Bureau of Labor Statistics reported. Read the court decision
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Reprinted courtesy of Tom Ichniowski, ENR
Mr. Ichniowski may be contacted at ichniowskit@enr.com

The Unwavering Un-waivable Implied Warranty of Workmanship and Habitability in Arizona

January 23, 2023 — Robert A. Henry & Emily R. Parker - Snell & Wilmer Real Estate Litigation Blog
The Arizona Supreme Court recently issued an opinion on the scope of the implied warranty of workmanship and habitability (the “implied warranty”) in contracts between homebuyers and builder/vendors that provides clear guidance of the law in this area, specifically on the issue of whether the implied warranty can be waived or disclaimed. It is also an interesting and helpful read for those who engage in new home residential sales and real estate transactions generally. The case: Zambrano v. M & RC, II LLC, 254 Ariz. 53 (2022). The takeaway holding: the implied warranty of workmanship and habitability cannot, under any circumstances, be disclaimed or waived. From a practice perspective, the foregoing is likely all one needs to ultimately know. However, the majority opinion (authored by Justice Timmer) and the dissent (authored by Justice King, and joined by Justice Bolick) are in these authors’ opinions worth a read for those who want a better understanding of the contours of how “public policy” plays into the analysis of the enforceability of contract terms, especially in the real estate context and even more particularly in connection with contracts for the sale of new homes. The careful analysis of both the majority opinion and the dissent provides an excellent history of the implied warranty, the public policy behind it, and its scope and application in the context of competing public policies, most notably the freedom to contract. Reprinted courtesy of Robert A. Henry, Snell & Wilmer and Emily R. Parker, Snell & Wilmer Mr. Henry may be contacted at bhenry@swlaw.com Ms. Parker may be contacted at eparker@swlaw.com Read the court decision
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Bid Protests: The Good, the Bad and the Ugly (Redeux)

September 17, 2014 — Garret Murai – California Construction Law Blog
This past week I gave a presentation on a panel entitled “Bid Protests: The Good, the Bad and the Ugly” before my local bar association. Thanks to those who attended, my co-presenters and the bar association for sponsoring. Rather than letting my notes gather dust I thought I would share some of the highlights. What is a bid protest? A bid protest is the procedure by which a bidder protests the rejection of its bid or award of a public works contract to another bidder. A bid protest may occur in one of two situations: (1) A public entity rejects the bid of an apparent low bidder and the apparent low bidder protests the rejection; or (2) A public entity awards the contract to the apparent low bidder and another bidder protests the award. Read the court decision
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Reprinted courtesy of Garret Murai, Kronick Moskovitz Tiedemann & Girard
Mr. Murai may be contacted at gmurai@kmtg.com

California Supreme Court Rules Developers can be Required to Include Affordable Housing

June 17, 2015 — Beverley BevenFlorez-CDJ STAFF
The Los Angeles Times reported that in a unanimous decision, the California Supreme court justices declared that “cities and counties” can “require developers to sell some housing at below-market rates.” Chief Justice Tani Cantil-Sakauye wrote, “It will come as no surprise to anyone familiar with California’s current housing market that the significant problems arising from a scarcity of affordable housing have not been solved over the past three decades,” as quoted in the Los Angeles Times. Los Angeles Mayor Eric Garcetti applauded the decision: “This gives Los Angeles and other local governments another possible tool to use as we tackle our affordable housing crisis.” Read the court decision
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Fannie-Freddie Propose Liquidity Rules for Mortgage Insurers

July 16, 2014 — Clea Benson and Zachary Tracer – Bloomberg
Ms. Benson may be contacted at cbenson20@bloomberg.net; Mr. Tracer may be contacted at ztracer1@bloomberg.net Private mortgage insurers looking to do business with Fannie Mae and Freddie Mac would have to hold minimum amounts of liquid assets under standards proposed by the companies and their regulator. To back loans packaged into securities by the U.S.-owned mortgage-finance giants, insurers would have to hold liquid assets worth at least 5.6 percent of their risk exposure, and possibly more depending on the quality of the loans they cover, according to the proposal released today by the companies and the Federal Housing Finance Agency. “Mortgage insurance counterparties must be able to fulfill their intended role of providing private capital, even in adverse market conditions,” FHFA Director Melvin L. Watt said in an e-mailed statement. Ms. Benson may be contacted at cbenson20@bloomberg.net; Mr. Tracer may be contacted at ztracer1@bloomberg.net Read the court decision
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Reprinted courtesy of Clea Benson and Zachary Tracer, Bloomberg

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