The construction industry has proved adaptable over the course of the pandemic — owners and general and trade contractors have worked closely to ensure that work continued, while keeping workers safe and complying with the various government-ordered and -recommended practices intended to slow the spread of COVID-19. By now, most owners and contractors are well
New Washington Case Strictly Construes Lien Statute and Rejects Warranty Work as Basis to Extend Lien Filing Period
In its March 11, 2021 opinion, Division Three of the Washington Court of Appeals considered whether the 90-day period to record a claim of lien is extended by a contractor performing work after substantial completion to correct nonconforming work – usually referred to as “warranty work.” In the case of Brashear Electric, Inc. v. Norcal Properties, LLC, the Court strictly construed the statutory term “repairing” to exclude the contractor’s correction of its own work and rejected the notion that warranty work extended the 90-day timeframe to file a lien claim.
Norcal Properties, LLC (“Norcal”) and Blue Bridge Properties, LLC (“Blue”) own adjacent properties. Norcal and Blue separately contracted with Vandervert Construction (“Vandervert”) to construct a building on each property. The prime agreements’ substantive provisions were identical. Vandervert subcontracted with Brashear Electric, Inc. (“Brashear”) to work on both projects.
Under the prime agreements, Vandervert promised to correct nonconforming work up to a year after substantial completion. Vandervert’s subcontracts with Brashear required Brashear to assume the prime agreements’ warranty provisions.
Strategic Tips That Parties Should Consider When Mediating Disputes
Nearly all construction industry standard form contracts require mediation as part of their dispute resolution provisions. Often confused with arbitration, mediation is a negotiation facilitated by a neutral third party. Unlike arbitration — a proceeding like a trial — mediation does not result in a final binding decision. And the mediator typically does not have
When to Have the Hard Talk About Setting Liquidated Damages
In my latest column for the Daily Journal of Commerce, I look at the concept of liquidated damages – in my experience one of the top five heavily negotiated (and litigated) clauses in a construction contract. Because a project owner’s potential delay damages are often difficult to determine with certainty at the beginning of
Oregon Prevailing Wage Presentation
On October 9, 2020, I will present on prevailing wages at the Oregon State Bar Construction Law Section’s seminar titled Public Contracting Issues: Federal and State. My presentation will address fundamental concepts, resources, administration, how to analyze prevailing wage issues, and tips for preparing coverage determinations. Click here to learn more and here to register
Disgorgement Liability in CA for Unlicensed Contractors Runs One Year from Completion or Cessation
In a very recently published case dealing with issues of first impression in California, here, the Second Appellate District in Los Angeles determined that the disgorgement penalty under BPC 7031(b) triggers a one-year statute of limitations given that it is a penalty, and the cause of action accrues from either the completion or cessation
Allocate Payments Clearly to Minimize Construction Disputes
In an ideal world, a contractor performs a portion of the work on a project as provided for in a construction contract, the owner pays the contractor an installment payment for that portion of the work, and the parties continue similarly until the work is finished. However, many factors can upset the equation – changes
When to Prepare for Project Disputes? Always.
Originally published as an Op-Ed in the Oregon Daily Journal of Commerce on June 19, 2020.
Whether you are an owner, contractor, or design professional, construction disputes are, unfortunately, inevitable. Below are some tips to avoid potential pitfalls and help resolve disputes as efficiently as possible, whether before or after formal litigation (or arbitration) commences.
New Oregon Law Complicates Retainage on Construction Projects
If you do not follow the Oregon legislature closely, you may have missed a new law, which went into effect January 1, 2020, that impacts the treatment of retainage on private and public construction projects over $500,000.
For private and public construction contracts entered into on or after January 1, 2020 that include a contract
Registration Now Open for the WSBA Construction Section’s Annual CLE Seminar (Via Webinar on June 12, 2020, on Alternative Procurement and Coronavirus Impacts)
The Construction Section of the Washington State Bar Association, in partnership with Stoel Rives, will present its annual full day seminar (via webinar) on June 12. Co-chaired by Bart Reed (Partner at Stoel Rives), Brett Hill (Partner at Ahlers, Cressman & Sleight), and Ron English (Retired General Counsel of the Seattle Public Schools), the webinar