The new RCW 39.04.360, effective June 6, 2024, outlines protections and payment assurances for contractors, subcontractors, and suppliers involved in public and private construction projects in Washington. This statute mandates timely issuance of change orders for undisputed additional work, imposes interest on delays, and clarifies the rights of aggrieved parties to seek appropriate relief, including
Construction
What to Consider When Analyzing Dispute Resolution Provisions for a Construction Project
Construction project owners, contractors, and design professionals sometimes fall into the trap of not giving careful consideration to the risks specific to a given project and will wait until an actual dispute arises before closely analyzing the dispute resolution provisions in a design or construction agreement. In my latest article in the Daily Journal of…
Basic Information About the Court System
Here are some useful basics if you have a dispute that may be headed to court for resolution.
- Which court? Most civil disputes are heard in the state trial court in the county where the dispute arose. This court has different names in different states, including “superior court,” “circuit court,” and “district court.”
- When does
New Federal Rule Banning Noncompetes May Impact Construction Industry
In late April, the Federal Trade Commission issued a final rule, effective on September 4, 2024, that banned nationwide noncompete clauses—generally a binding contract that prevents a worker from competing with an employer after they leave its employ. In my latest column for the Daily Journal of Commerce, I look at some of the…
WSBA Construction Law Section Midyear CLE Program
On June 14, 2024, the WSBA Construction Law Section is hosting its midyear CLE program, “Back to the Future: Leveraging Technology in Post-Covid Construction Disputes,” which will cover ethics, construction-related case law updates, technology, perspectives from the bench, arbitration, artificial intelligence, and legislative updates and appeals.
As part of the program, my colleague Colm Nelson…
License to Build: The Importance of License Terms in Design Agreements
For all their exposure to the plans, drawings, and related design documents needed at all stages of a construction project, owners and contractors, as well as many highly experienced practitioners involved in development and construction disputes, are only vaguely familiar at best with the law that governs ownership and use of architectural works. Architectural drawings…
Lesser-Known Insurance Policies for Addressing Risks of Construction Projects
Bringing a construction project to fruition involves significant risks to project owners, designers, and contractors. Many of those risks will be allocated in the parties’ contracts, in turn requiring those parties to obtain insurance and further allocating risks to insurance companies. Several commonly used insurance policies are at the heart of any construction project insurance…
Washington Court of Appeals Upholds Assessment of Tax Liability Against Prime Contractor in Lanzce G. Douglass, Inc. v. Department of Revenue
Under Washington law, prime contractors perform construction for consumers, while speculative builders construct on property they own. The differentiation between these classifications is important because prime contractors are subject to Washington’s business and occupation (“B&O”) tax and retail sales tax, while speculative builders are not. In Lanzce G. Douglass, Inc. v. Department of…
A Case in How to Delegate and Avoid Landowner Liability for Contractor Employees
In a case of first impression in Washington, the Washington State Supreme Court held that a landowner may satisfy its duty to guard an invitee “against known or obvious dangers on the premises by delegating the duty of protection to an independent contractor.” Eylander v. Prologis Targeted U.S. Logistics Fund, LP, 539 P.3d…
Strategies for Getting Difficult Construction Contracts to the Finish Line
Parties negotiating a design and construction contract for a large project will often leave for the end discussions of a few provisions that one side or the other has characterized as “deal-breakers.” Though the deal may be doomed to fail, one of the parties may also make a concession or concessions, have its bluff called…