DIR Public Works Registration System Down, Public Works Contractors Not to be Penalized
July 15, 2024 —
Garret Murai - California Construction Law BlogIn a bit of a major freak-out this past Friday, June 28, 2024, public works contractors with Department of Industrial Relations (“DIR”) registrations expiring on June 30, 2024 were unable to renew their public works registrations. Those who had submitted checks were not receiving responses, DIR was not accepting online payments, and there was no telephone number or address to contact the DIR about the issue.
This, of course, could have been a big deal since Labor Code section 1725.5 prohibits contractors and subcontractors from bidding on, being listed in a bid, or being awarded a public works contract unless registered with the DIR.
Read the full story...Reprinted courtesy of
Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Celebrating Excellence: Lisa Bondy Dunn named by Law Week Colorado as the 2024 Barrister’s Best Construction Defects Lawyer for Defendants
October 28, 2024 —
David M. McLain – Colorado Construction LitigationWe are thrilled to announce that our very own Lisa Bondy Dunn has been recognized by Law Week Colorado as the 2024 Barrister’s Best Construction Defects Lawyer for Defendants. This prestigious accolade is a testament to Lisa’s dedication, expertise, and unwavering commitment to achieving the best outcomes for our clients.
Lisa, a Partner at Higgins, Hopkins, McLain & Roswell (“HHMR”), has long been a leader in construction defect litigation, defending builders, contractors, developers, and design professionals in Colorado’s complex legal landscape. Her deep understanding of the industry and her relentless pursuit of practical, cost-effective solutions have earned her the respect of peers, clients, insurers, mediators, arbitrators, and courts alike.
As noted by Law Week Colorado: “For over two decades, Lisa Dunn has represented developers, contractors and subcontractors in construction-related disputes. Dunn has spoken across the country on construction and insurance matters, and she’s worked on several appellate cases during her career. She’s admitted in four states, and has consulted and represented some of the nation’s largest builders.”
Read the full story...Reprinted courtesy of
David McLain, Higgins, Hopkins, McLain & Roswell, LLCMr. McLain may be contacted at
mclain@hhmrlaw.com
EEOC Issues Anti-Harassment Guidance To Construction-Industry Employers
July 22, 2024 —
Christopher Kelleher & Andrew Scroggins - The Construction SeytSeyfarth Synopsis: The Equal Employment Opportunity Commission (“EEOC”) has issued guidance tailored to the construction industry regarding compliance with anti-harassment laws. This lines up with our prediction in early 2024 that the EEOC had put the construction industry squarely in its sights. The guidance is important for construction-industry leaders and employers to understand to prevent and remedy workplace harassment, and to avoid potential harassment liability.
On June 18, 2024, the EEOC issued its
Promising Practices for Preventing Harassment in the Construction Industry. This guidance provides key recommendations that construction-industry leaders and employers should consider implementing to prevent and address harassment in the workplace, and avoid being the target of the EEOC’s enforcement efforts. The guidance is intended to supplement the EEOC’s
Strategic Enforcement Plan (“SEP”) for fiscal years 2024-2028, which provides direction on the EEOC’s current objectives, principles, and enforcement efforts – among them, increasing diversity in the construction industry and remedying harassment. (We’ve written previously about the
proposed and
final SEP.)
Reprinted courtesy of
Christopher Kelleher, Seyfarth and
Andrew Scroggins, Seyfarth
Mr. Kelleher may be contacted at ckelleher@seyfarth.com
Mr. Scroggins may be contacted at ascroggins@seyfarth.com
Read the full story...
Employees in Construction Industry Entitled to Compensation for Time Spent Complying with Employer-Mandated Security Protocols
August 19, 2024 —
Garret Murai - California Construction Law BlogWage and hour laws dictating how employers must compensate their employees for time worked can, given the innumerable ways that employees perform their jobs, raise a number of questions. The next case, Huerta v. CSI Electrical Contractors, 15 Cal.5th 908 (2024) – which I won’t spend a lot of time discussing since I think it applies in somewhat limited situations – addresses whether employees are entitled to be paid while waiting to enter and exit worksites and for meal periods when they are not allowed to exit a worksite.
The Huerta Case
The 9th Circuit Court of Appeals requested that the California Supreme Court address three questions related to whether employees should be compensated under California wage and hour laws for time spent waiting to enter and exit worksites and for meal periods when they are not allowed to exit a worksite:
- Whether employees should be paid for time spent waiting in a personal vehicle to be scanned in and out of a worksite;
- Whether employees should be paid for time spent traveling in a personal vehicle from a security gate to employee parking lots; and
- Whether employees should be paid during meal periods if they are not permitted to leave a worksite.
Read the full story...Reprinted courtesy of
Garret Murai, Nomos LLPMr. Murai may be contacted at
gmurai@nomosllp.com
Are Mechanic’s Liens the Be All End All of Construction Collections?
August 12, 2024 —
Christopher G. Hill - Construction Law MusingsFor those of you familiar with
Construction Law Musings, you are aware of my affinity and discussion of those
powerful but tricky collection tools: mechanic’s liens. You have heard me tout their ability to secure payment when a contractor or subcontractor has not been paid on a construction project (
even in the face of bankruptcy). If you read my construction law blog regularly (though recently not-so-regularly updated), you could get the impression that a mechanic’s lien is an automatic avenue to payment.
While
mechanic’s liens can be a powerful collection tool, this post is going to discuss some pros and cons of recording, and ultimately suing to enforce, a mechanic’s lien in Virginia.
Read the full story...Reprinted courtesy of
The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Bright-Line Changes: Prompt Payment Act Trends
September 16, 2024 —
Stephanie L. Cooksey - Peckar & Abramson, P.C.Untimely payment by the owner for contract work and additional work on construction projects can place an unfair financial burden on contractors and subcontractors. Most states have attempted to eliminate or mitigate this inequity in construction contracting through Prompt Payment Acts that govern payment deadlines and provide remedies for untimely payment. This article addresses the legislative trends aimed at minimizing the risk of non-payment, overdue payment, and withholding retainage in favor of downstream parties to a construction contract.
Fortifying Contractor Protections with “Bright-Line” Language
Over the last decade, states have been tightening prompt payment laws by replacing broad, general statutory language with bright-line rules. What is a bright-line rule? A specific or definite figure, a quantifiable marker—i.e., something owners, contractors, subcontractors, and suppliers should be aware of. Practically speaking, the more bright-line a prompt payment statute is, the greater the likelihood it will affect a construction project in your state.
A standard form construction contract, if not reviewed carefully, can create conflicts or confusion if it gives a party more leeway on payment deadlines than the applicable Prompt Payment Act. For example, consider an owner-issued Construction Change Directive (“CCD”) that requires a contractor to commence additional work immediately while a formal change order is negotiated. Consequently, a CCD can push financial burdens downstream, whether inadvertently or not, and may conflict with statutory payment deadlines. Nevertheless, an owner can be justified in its utilization of a CCD to maintain the project schedule. How should the parties competing interests be resolved?
Read the full story...Reprinted courtesy of
Peckar & Abramson, P.C.
There Are Consequences to Executed Documents Such as the Accord and Satisfaction Defense
October 01, 2024 —
David Adelstein - Florida Construction Legal UpdatesA federal government contractor in Jackson Construction Co., Inc. v. U.S., 62 Fed.Cl. 84 (Fed.Cl. 2024) sought delay damages against the government. It lost. The reason for the loss is a crucial reminder that documents parties sign ALWAYS matter. ALWAYS!!
In Jackson Construction Co., the contractor’s delay claim was premised on relocating a waterline. The contractor, however, received additional money for relocating the waterline, but no additional time, and this was memorialized in a modification to the contract (i.e., a change order). In executing the modification for the additional work, the contractor did NOT reserve rights for time or money. Indeed, the modification reflected that the monetary adjustment constitutes full compensation for the additional work including delay, namely:
The contract period of performance remains the same. It is further understood and agreed that this adjustment constitutes compensation in full on behalf of the contractor and his subcontractors and suppliers for all costs and markup directly or indirectly, including extended overhead, attributable to the change order, for all delays related thereto, and for performance of the change within the time frame stated.
Jackson Construction Co., supra, at 90.
Read the full story...Reprinted courtesy of
David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Lawsuit Gives Teeth to Massachusetts Pay Law
September 16, 2024 —
Joseph Barra - Robinson+Cole“The Massachusetts Legislature passed the state’s Prompt Pay Act 14 years ago to improve the downstream flow of money on most large-scale private construction projects. While the act established detailed protocols for administering applications for payment and other important construction phase processes, several questions about its interpretation and impact remained unanswered.
Over the years, I watched as a significant portion of the Massachusetts design and construction community either ignored the law’s exacting requirements or were unaware of their applicability. The first indication of how the act would be interpreted came in 2022, when the state appeals court decided Tocci Building Corp. v. IRIV Partners LLC. In that case, the court strictly construed the act. It held that an owner (and its agent) who failed to promptly advise the project’s general contractor of specific factual and legal reasons why it was withholding payment, coupled with a failure to certify that funds were being withheld in good faith, violated the law—making the contractor liable for the unpaid funds.
Read the full story...Reprinted courtesy of
Joseph Barra, Robinson+ColeMr. Barra may be contacted at
jbarra@rc.com