Ahead of Schedule focuses on legal matters critical to the construction industry, offering insights, analysis, tips and updates regarding the law of project development, design and construction. The authors have well over 100 years combined experience in construction litigation and contract negotiation, along with prior office and field experience in engineering, construction and accounting. Stoel Rives’ work
Oregon House Bill 2434 Threatens to Cut Off Large Commercial and High Rise Residential Defect Claims
All large commercial property owners and developers should be aware of a substantial risk that Oregon’s statute of repose for construction and design defect claims may be shortened from 10 years to 6 years if HB 2434 (available here) passes. Though similar bills were unsuccessful in years past, this year the sponsors have carved out …
Obama Administration Implements Changes to Federal Contracting
For those readers interested in federal contracting and related labor issues, our colleague Dennis Westlind recently blogged about changes implemented by the Obama Administration. Those posts address the following topics:
• Project Labor Agreements on Federally Funded Construction Projects
• Executive Orders Affecting Federal Contractors
Stay tuned for more changes as the new administration implements
Chinese Drywall Defects a Growing Concern
Since we first blogged about Chinese drywall, homeowners in at least 19 states, including Washington and California, have reported problems associated with defective drywall.
Late last year, U.S. Consumer Product Safety Commission (CPSC) began receiving complaints about damage to homes constructed with drywall manufactured in China. The drywall reportedly contains elevated sulfur levels, which…
Recent Oregon Court of Appeals Case Resolves Statute of Limitations Issues in Construction Defect Cases
The Oregon Court of Appeals recently issued a ruling in the case of Waxman v. Waxman & Assoc., Inc. that resolves two significant issues regarding the statute of limitations in certain construction defect cases. First, the court ruled that where a plaintiff’s claim is based upon breach of contract, the applicable statute of limitations…
What do drywall, dog food and baby formula have in common?
With the widespread use Chinese products, it had to happen sooner or later—a construction defect made in China. According to the Wall Street Journal, gypsum wallboard—otherwise known as drywall—manufactured in China is releasing sulfur gases, which can smell foul and cause corrosion. Apparently the sulfur, a noxious chemical, has been linked to problems with…
The Green Building Bailout
Can green buildings save the economy? Maybe that’s a stretch, but green buildings do play a significant role in the country’s GDP. By 2010, the value of green building construction is projected to be $60 billion. Perhaps more important in these times, the government is recognizing that greening our schools, homes, and office buildings could…
Contractor Insolvencies and the Risks to the Owner/Developer
A retail construction project illustrates the risks to an owner when the general contractor encounters financial problems. As is typically the case, the general’s financial troubles started when he got behind in payments on earlier projects. As a result, the initial payments on the retail project went to pay subs and suppliers from the earlier projects, which…
Owner/Developer Insolvencies and the Risks to Contractors
Developer insolvencies are unfortunately becoming more and more common in our current economic climate and often result in partially completed projects being stopped. The consequences to contractors can be significant. A number of recent resort projects illustrate what the contractors and subs can typically expect.
First, the obvious, immediate problem is nonpayment, which in turn requires the…
May a Contractor Sue the Owner’s Lender?
When disputes arise between an owner and its lender, and the lender, for any number of reasons, stops funding a project, the question of whether the contractor can sue the lender sometimes arises. The theory often advanced is that the lender knew the contractor had started work and, if it did not intend to advance the…