Preserving Lien Rights on Private Projects in Washington: Three Common Mistakes to Avoid
September 16, 2024 —
Kristina Southwell - Ahlers Cressman & Sleight PLLCThe Washington Construction Lien Statute, RCW 60.04 et seq., exists to help secure payment for work performed for the improvement of real property.[
1] The statute grants “any person furnishing labor, professional services, materials, or equipment for the improvement of real property” the authority to claim “a lien upon the improvement for the contract price of labor, professional services, materials, or equipment furnished.” RCW 60.04.021.
Exercising lien rights is one of the most useful tools available to a contractor or supplier trying to recover payment owed on a project. A properly recorded lien binds the project property, which is typically the most valuable asset held by the owner, as security for the amounts owed to the lien claimant. Additionally, the lien statute provides a basis for the claimant to recover the costs of recording the lien and its attorneys’ fees and expenses incurred in litigating the foreclosure of the lien.
While the lien statute authorizes the right to lien, it also provides a series of strict requirements and procedures that a claimant must follow to properly exercise its rights. The claimant must carefully comply with all statutory requirements. This article does not endeavor to explain all the intricacies of the lien statute, but rather discusses three of the most common mistakes that result in the loss of lien rights.
See our lien and bond claim manual for a more detailed guide to construction liens in Washington.
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Kristina Southwell, Ahlers Cressman & Sleight PLLCMs. Southwell may be contacted at
kristina.southwell@acslawyers.com
A Game of Texas Hold’em: How Texas Stopped Wage Increases for Salaried Exempt Employees Nationwide
December 03, 2024 —
Matthew DeVries - Best Practices Construction LawConstruction contractors often have to deal with classification of employees, particularly those who work in the home office. Today’s guest post by
Alexandra Shulman and
Leah Lively addresses a recent court decision affecting the wage protection of employees under the the Fair Labor Standards Act (FLSA).
On November 15, 2024, a federal court in Texas vacated a U.S. Department of Labor (DOL) rule (the “2024 Rule”) that increased the minimum salary threshold for employees classified as exempt from overtime and minimum wage protections under the FLSA. The Texas court’s decision nullifies the 2024 Rule nationwide, effective immediately.
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Matthew DeVries, BuchalterMr. DeVries may be contacted at
mdevries@buchalter.com
Courthouse Reporter Series: Louisiana Supreme Court Holds Architect Has No Duty to Safeguard Third Parties Against Injury, Regardless of Knowledge of Dangerous Conditions on the Project
July 31, 2024 —
Stu Richeson - The Dispute ResolverIn Bonilla v. Verges Rome Architects, 2023-00928 (La. 3/22/24); 382 So.3d 62, the Louisiana Supreme Court held because the terms of the agreement between the architect and the public owner did not give the architect responsibility for the means and methods of construction or for safety on the project, the architect did not have a duty to safeguard third parties against injury, regardless of whether the architect may have had knowledge of dangerous conditions on the project.
In Bonilla, the City of New Orleans entered into a contract for the renovation of a building owned by the city. The city also entered into an agreement with Verges Rome Architects (“VRA”) to serve as the project architect. The general contractor on the project subcontracted the demolition work to Meza Services, Inc. (“Meza”).
An employee of Meza was injured while attempting to demolish a “vault” on the project. The vault was a ten-foot by ten-foot cinderblock room with a nine-foot-high concrete slab ceiling located on the second floor of the building. The walls of the vault had been partially demolished when one of the employees of Meza was directed by his supervisor to stand on the ceiling of the vault with a jackhammer to continue the demolition. Shortly after beginning the task, the vault structure collapsed and caused the employee to suffer significant injury.
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Stu Richeson, PhelpsMr. Richeson may be contacted at
stuart.richeson@phelps.com
The Benefits of Incorporating AI Into the Construction Lifecycle
December 23, 2024 —
Ian Warner - Construction ExecutiveInterest in artificial intelligence has been spreading like wildfire over the past few years. AI is not a new term for Trimble, which has been capturing and leveraging construction data for decades. From hardware to software, the field to the office or among stakeholders, harnessing and making meaning out of data is the crux of Trimble’s business. Generative AI is simply a new set of tools that provide a richer narrative around data, making it more insightful and actionable.
As a company that helps connect stakeholders across the entire construction lifecycle—design, construction and operations/ maintenance—AI has been woven in and leveraged across a number of Trimble solutions to help contractors do more with less, while also giving them greater decision-making power and the ability to focus on other key challenges.
While the use cases for AI are diverse and ever-changing, below are a few key areas where Trimble has doubled down on AI, with the goal of making contractors’ jobs less cumbersome and repetitive, safer and more capable of being upskilled—efforts which will only continue to grow in the coming years.
Reprinted courtesy of
Ian Warner, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Stop Losing Proposal Competitions
December 10, 2024 —
Christopher G. Hill - Construction Law MusingsFor this week’s Guest Post Friday here at Musings, we welcome back Matt Handal. Matt (@matthandal) provides proposal writing strategies that actually work at www.howtowritetheproposal.com. He is the author of Proposal Development Secrets, contributing editor of SMPS Marketer, and co-author of the Marketing Handbook for the Design & Construction Professional. His latest experiment is on business letters.
It’s frustrating. You’re a great designer or contractor. Clients love you. The problem is you spend hours producing great proposals, but keep losing. Not only that, most of the time you don’t even get short listed.
To make matters worse, the clients keep choosing firms you know you’re better than. So they get the contract and you’re left scrambling for work.
Even though these firms frustrate you, imagine what it’s like to be them. They’re not the best, or most qualified firm, yet they walk away with the contract. They are not scrambling for work. They’ve got a healthy backlog. Imagine how it must feel to be them.
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The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Incorrect Information Provided on Insurance Application Defeats Claim for Coverage
July 31, 2024 —
Tred R. Eyerly - Insurance Law HawaiiThe Eleventh Circuit affirmed the district court's finding of no duty to defend or indemnify because of an answer on the insured's application for insurance. Snell v. United Specialty Ins. Co., 2024 U.S. App. 12733 (11th Cir. May 28, 2024).
Snell was hired by a family, the Westons, to turn an above ground trampoline into a ground level trampoline. This involved various tasks like tree pruning and removal, installation of shrubs, trees, and sod, and setting up a sprinkler irrigation system. The trampoline aspect of the project involved site work to make a place for the trampoline and assembly and installation of the trampoline. The site work included excavation of a pit, installation of a drain and drainage sand, excavation of a trench to install a drainage pipe, installation of the drainage pipe and of a drain pump, construction of concrete block retainer walls and installation of a wood cap on the retainer walls. Then, Snell unboxed the trampoline, assembled it, and lowered it into the pit.
A few years later, a visitor to the Weston home sued the Westons for injuries to his daughter suffered on the trampoline. The complaint alleged the daughter was injured when she "fell off of the trampoline and struck her face on the wooden board" surrounding the tramline. The complaint was later amended to add Snell as a defendant.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Arizona Court Affirms Homeowners’ Association’s Right to Sue Over Construction Defects
October 15, 2024 —
Melissa Kenney - White and Williams LLPIn Gallery Community Association v. K. Hovnanian at Gallery LLC, No. 1 CA-CV 23-0375, 2024 Ariz. App. Unpub. LEXIS 696 (Ct. App.), the Court of Appeals of Arizona (Court of Appeals) discussed whether a homeowners’ association can file an action for breach of the implied warranty of workmanship and habitability arising from construction defects. At issue was whether the implied warranty extended to the areas within the community that the association maintained, including the common areas. The Court of Appeals held that homeowners’ associations can sue builder-vendors for breach of the implied warranty arising from construction defects.
In this case, a homeowners’ association, responsible for managing and maintaining a community of townhomes, sued the developer/builder for alleged construction defects in the common area and exteriors of homes that the association maintained for the homeowners in the community. The alleged defects included the pool cabana and staircase walls in the common areas and the exterior walls, roofs, and staircases on the separately owned townhomes in the community. The builder filed a motion for summary judgment, arguing that the implied warranty extended to dwelling actions initiated by homeowners – not homeowners’ associations – and that the alleged construction defects at issue were not related to a dwelling. The trial court granted the motion. The Court of Appeals vacated the trial court’s grant of summary judgment and remanded for further proceedings. In reaching its decision, the Court of Appeals determined that both common law and statutory law authorized the homeowners’ association’s breach of implied warranty claim.
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Melissa Kenney, White and WilliamsMs. Kenney may be contacted at
kenneyme@whiteandwilliams.com
EEOC Builds on Best Practice Guidance Regarding Harassment Within the Construction Industry
August 12, 2024 —
Abby M. Warren & Christohper A. Costain - Construction Law ZoneIn June 2024, the Equal Employment Opportunity Commission (EEOC) issued
guidance tailored to the construction industry concerning harassment in the workplace or at the jobsite. The guidance is important for construction industry leaders and employers to understand how to prevent and remedy harassment in the workplace — more than a third of all EEOC discrimination charges filed between 2019 and 2023 asserted harassment. The guidance represents the EEOC’s latest effort in executing its Strategic Enforcement Plan for Fiscal Years 2024 to 2028, which, in part, focuses on combatting systemic harassment and eliminating barriers in recruitment and hiring, particularly for underrepresented groups in certain industries, including women in construction, through the EEOC’s enforcement efforts. In this article, we highlight key principles and practices from this guidance
Leadership and Accountability
The guidance reiterates that consistent and demonstrated leadership is critical to creating and maintaining a workplace culture where harassment is unacceptable and strictly prohibited. Worksite leaders, including project owners, crew supervisors, and union stewards, are each expected to regularly communicate that harassment is intolerable through several suggested efforts.
Reprinted courtesy of
Abby M. Warren, Robinson+Cole and
Christohper A. Costain, Robinson+Cole
Ms. Warren may be contacted at awarren@rc.com
Mr. Costain may be contacted at ccostain@rc.com
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