Construction Updates

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Re-Claiming Credit

When an employee leaves and sets up a competing business, may he or she claim experience for work done by the former employer? The Seventh Circuit recently considered whether an architect – a former employee of a firm – is...more

Pennsylvania Supreme Court Holds Contractor May Recover in Quantum Meruit Where Home Improvement Contract Does Not Satisfy...

Homeowners Raymond and Donna Mantia contracted Shafer Electric & Construction (“Shafer”) to build a two-car garage addition onto their house. Shafer’s proposal was extremely detailed as to the work to be completed. Despite...more

Colorado Construction Monitor - Summer 2014

In this Issue: - Denver’s construction activity approaching historic peak of 2007 - Market Update - Condominium Construction Defects Legislation Introduced - Whether for Cause or Convenience,...more

"Construction Alert" Texas Supreme Court Confirms Owners May Bring Negligence Claim Directly Against Subcontractors

Several cases have held that a homeowner cannot sue a subcontractor for defective work because the homeowner’s contract is with the general contractor and not the subcontractor. Those cases left it to the general contractor...more

Are You Done Yet? Compensation for Impacts of Public Works in Alberta

During the recent resurfacing of Bow Trail there was a message posted on a pylon sign by an adjacent business owner that read “Bow Trail is not Rome. Please Complete” (see “Road Construction Delays Cause Headaches for...more

The Construction Advantage – Issue 8

In our eighth issue of The Construction Advantage, we provide you with three new cases, with two of them coming from the Maine courts. We hope that this newsletter has been helpful and informative to you so far in 2014....more

IRS Clarifies and Expands "Beginning Construction" Tests for Production Tax Credit and Investment Tax Credit

In 2013, the Internal Revenue Service established two “beginning construction” tests – a physical work test and a 5% safe harbor test – to determine eligibility for the production tax credit (PTC) and investment tax credit...more

The Texas Department of Transportation and Abrams-Kiewit Joint Venture Reach Agreement on the Loop 375 Border Highway West...

On August 22, 2014, the Texas Department of Transportation and Abrams-Kiewit Joint Venture (Developer) reached commercial close on the Loop 375 Border Highway West Extension Project (Project). The contract, which includes...more

IRS Releases New Guidance on Beginning of Construction

The IRS recently released Notice 2014-46 (the Notice) which provides welcome guidance to tax equity investors and developers on the construction of wind, geothermal, biomass, landfill gas and certain hydropower and marine...more

Being a Contractor Just Got a Whole Lot Scarier

If you’re fortunate enough to live and work in California you have a lot to be thankful for. Temperate weather, beautiful beaches, rugged mountains and an array of attractions whether you’re an urbanite, outdoorsman or thrill...more

Nevada Supreme Court Clarifies Mechanic and Materialman Lien Issues

On August 7, 2014, the Nevada Supreme Court issued two opinions dealing with the priority of mechanics’ liens and the proof required for a materialman to establish a lien. These cases provide valuable guidance to lenders,...more

Confirmation That the Limitation Period for 'Building Actions' is 10 Years, Not Six

The recent Victorian Court of Appeal decision of Brirek Industries Pty Ltd v McKenzie Group Consulting (Vic) Pty Ltd [2014] VSCA 165 (Brirek Case) has settled the appropriate time period, at least in Victoria, in which a...more

IRS Comments on its PTC Start of Construction Guidance

On August 20, the American Wind Energy Association (AWEA) held a webinar to discuss Internal Revenue Service (IRS) Notice 2014-46, which clarified the rules for wind projects to be grandfathered for production tax credit...more

Nationality of Vessels on Sea Trials Under U.S. Law

In 2013, approximately 1,147 commercial and military vessels were delivered by United States shipyards. This total includes vessels of all types – 8 deep-draft vessels and structures, 219 OSVs, tugs, towboats, passenger and...more

New retainage law goes into effect November 6

Massachusetts enacted a new retainage law that will require owners, prime contractors and subcontractors to pay retainage according to the law’s terms on a construction contract if... ...more

Brirek Industries Pty Ltd v McKenzie Group Consulting (Vic) Pty Ltd – more claims against building practitioners?

On 6 August 2014, the Victorian Court of Appeal handed its decision in Brirek Industries Pty Ltd v McKenzie Group Consulting (Vic) Pty Ltd [2014] VSCA 165. The decision clarified the operation of limitation periods in...more

Federal District Court in New Jersey Holds that Economic Loss Rule Does Not Bar Contractor’s Tort Claims Against Architect Where...

The University of Medicine and Dentistry of New Jersey contracted HDR Architects and Engineers, P.C. (“HDR”) to design a medical school building. After the project went to bid, the Bedwell Company (“Bedwell”) contracted with...more

Corrective Action Catch 22: Court of Federal Claims Holds Agency Action Must Be Rational Even If GAO Protest Decision Was Not.

The United States Court of Federal Claims’ July 15, 2014 decision in RUSH Construction, Inc. v. United States, reflects the unusual circumstance in which the court effectively sat in appellate review of an earlier bid protest...more

A Subsequent Developer has no Ability to Force a Public Body to Call an Abandoning Developer’s Performance Bonds for...

The Arizona Court of Appeals decided on July 22, 2014 that a developer cannot compel a public entity to call its performance bonds to complete infrastructure improvements on a construction project that a prior developer...more

Caveat Venditor (Let the Seller Beware):Consumer Protection Laws Can Have Significant Implications

A decision by the District of Columbia Court of Appeals emphasizes the need for real estate developers to proceed with caution when making representations to potential home buyers in jurisdictions with consumer protection...more

California Public Works Contractors Must Register With State by March 2015

The California Legislature imposed a new registration requirement for contractors and subcontractors involved in public works projects. Senate Bill 854, passed in June, created a registration program, which went into effect...more

Construction Law Alert: “P3” is Way More than a New Buzzword - North Carolina's Approval of Public-Private Partnerships and...

August 23rd marks the one-year anniversary of House Bill 857 (“HB 857”) becoming law in North Carolina. Through the enactment of HB 857, the Tar Heel state opened its doors to what is commonly referred to across the country...more

Fifth Circuit Holding Breathes Life Back Into the Contractual Liability Exclusion

Liability insurance policies typically exclude coverage for obligations arising out of the insured’s “assumption of liability in a contract or agreement.” Earlier this year, the Texas Supreme Court took a narrow view of this...more

Foreign Investors Still Stimulating Miami’s Real Estate Boom

Miami, once the poster child for the recent housing bubble and subsequent crash, now has the strongest housing market in the U.S. and is one of the exclusive high-end real estate “export” economies in the world. This...more

Notice 2014-46 Provides Additional Guidance on Eligibility of Wind and Other Renewable Energy Facilities for the PTC or the ITC

On August 8, 2014, the Internal Revenue Service (IRS) released Notice 2014-46 (the “Notice”), which provides some important clarifications with respect to the requirement that construction of a project commence prior to...more

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