Subcontractor default insurance (“SDI”) — insurance that covers certain losses related to a subcontractor’s material breach of a subcontract — has been gaining in popularity over bonds among general contractors. However, for a number of reasons, sureties assert that bonds are better than SDI, despite the common complaint about bonds that sureties are slow to
Recent Washington Court Decision Examines Whether Lien Claim on Condominium Unit Was Frivolous (Subject to Release) or Excessive (Subject to Reduction)
On February 11, 2019, Division One of the Washington Court of Appeals issued an opinion in the case of Woodley v. Style Corp. d/b/a Servpro of Shoreline/Woodinville, No. 77352-6-I (Wash. Ct. App. Feb. 11, 2019). The case highlights the care that should be exercised in filing a lien claim for services furnished to improve a condominium and the consequences that may befall a claimant under Washington’s frivolous lien claim statute, RCW 60.04.081.
The case arose from water intrusion at a unit in the Bellevue Park condominium complex. After discovery of the condition, the condominium’s property management company contacted Servpro and executed a work authorization for the contractor to clean up the water and perform restoration work. Servpro was not paid for its work and filed a claim of lien. The lien named the association as the indebted person, recited that it applied to the 20 specific units and a common storage area of the condominium, and named each owner of the 20 units but did not allocate a specific portion of the total debt to each unit.
Here’s what building owners need to know following last year’s wildfires, earthquakes
California’s 2018 wildfire season — the most damaging and deadly on record — and a pair of earthquakes in Alaska can serve as case studies for Northwest property owners as to steps they can take to mitigate their risks in the event such disasters strike closer to home. In my latest article for the Seattle
California Employers: Ignore Piece-Rate Compensation Rules at Your Peril
A recent California Court of Appeal decision upheld the state’s complex rules for compensating piece-rate employees. In Nisei Farmers League v. California Labor & Workforce Dev. Agency, 2019 Cal.App. LEXIS 10 (Cal.Ct.App. Jan. 4, 2019), the Court held that the Labor Code’s requirement that piece-rate employees be separately compensated for “nonproductive time” was not unconstitutionally vague. With California’s “productive vs. non-productive time” rubric firmly in place, employers must take great care to track and compensate piece-rate employees’ time, or face stiff penalties.
What Does “Piece-Rate” Mean, And Why Might An Employer Chose It?
Piece-rate compensation plans are very popular in some industries. They can incentivize employee productivity, while giving an employer greater control over labor costs. Under a piece-rate compensation system, the worker is paid a fixed amount of money for each unit produced or action performed, regardless of the number of hours worked. Industries that pay employees on a piece-rate basis include:
Update on Alaska Way Viaduct Replacement
Occasional visitors to Seattle may be surprised to discover that their favorite route from the airport to downtown has changed. State Highway 99 no longer links to the Alaskan Way Viaduct into downtown Seattle. The waterfront viaduct has been closed and demolition has begun. The Battery Street tunnel that connected viaduct traffic to Aurora Avenue
Three “Basic Best Practices” New Year Resolution Tips for Construction Projects
Ultimately, improving our companies, like improving ourselves, is up to us and our own diligence and persistence in identifying and implementing improvements on an ongoing basis. A strong market as we start 2019 means a great opportunity to review for and ensure solid implementation of legal compliance and financial goals for your construction projects –
Practical Law and Stoel Rives LLP Publish New Lien Law Resources for Washington
Practical Law, a Thomson Reuters company and division of West Publishing Corporation that produces online legal resources for attorneys, is pleased to partner with Stoel Rives LLP to present its Washington Construction Lien Practice Note and Workflow Checklist.
The resources, now published and available through Practical Law’s online services, afford access to valuable content about
Reimagining the Dispute Resolution Provision in Construction and Design Contracts
In construction projects, experienced owners, contractors, or designers know that disputes will almost invariably arise — even when the parties have the best of intentions. And they understand that detailed contract provisions to resolve those disputes can have major benefits if they are properly drafted to suit the project, parties, and types of dispute most
When “Art” Strikes Development
A 2018 legal case in New York arose over the disposition of a collection of run-down warehouses in Long Island City, Queens, New York, which graffiti artists began to use as a canvas for their work after the buildings went undeveloped by the owner for many years. When the owner announced that he would demolish
Reminder of January 1, 2019 Mandatory New Notice Requirement by CA Residential Solar Contractors
In 2017, the California Legislature passed a bill that resulted in Business and Professions Code (BPC) section 7169, which ultimately would require Home Improvement Contractors, which include contractors that install solar systems on residences, to issue specific disclosures to any residential consumers who may want to purchase, finance or lease, and install a solar system on their property. Recently in August, the California Public Utilities Commission “endorse[d] the solar energy systems disclosure document as being compliant with [BPC section 7169]….” The Disclosure terms include:
- The total cost for the solar system, including financing and energy/power costs (if applicable);
- The statutory License Board Disclosure statement for contractors and / or the home improvement salesperson who sold the system information regarding with whom to file if there are complaints; and
- The statutory Three-Day Right to Cancel Disclosure if the contract is not negotiated at the contractor’s place of business.