Construction Updates

Read need-to-know updates, commentary, and analysis on Construction issues written by leading professionals.
News & Analysis as of

Prepare the ground for effective contract administration: the UK’s Privy Council looks at termination risks and the employer’s...

Introductory remarks - The UK’s Privy Council recently considered the interpretation of two clauses in the FIDIC Red Book 1999, concerning the obligations of an employer to evidence financial arrangements and to notify...more

Insurance Recovery Law - August 2015 #2

Good News for Corporate Policyholders: Insurer Cannot Refuse Coverage Based on Insured's Assignment of Rights Under Policies After Loss Has Occurred - Why it matters: Reversing its holding in a 2003 case, the Supreme...more

Construction & Engineering Toolkit: The Construction Industry Tax Deduction Scheme (CIS) - August 2015

In This Issue: The Construction Industry Tax Deduction Scheme (CIS) The Construction Industry Scheme (or CIS, as it is more commonly known) is a tax deduction scheme. It concerns construction work and...more

California Court of Appeal allows construction defect class action to proceed against homebuilders

In an unpublished decision on August 19, the California Court of Appeal, Fourth District, reinstated a class action asserting construction defect claims against a nationwide homebuilder. The case is located at 2015 WL...more

Decision Reflects Danger in Misclassifying Employees as Independent Contractors

A recent decision by a federal district court in Maryland highlights the dangers in classifying individuals as independent contractors instead of employees. (Randolph v. PowerComm Construction, Inc.) In this case, the...more

Federal Government Can Revoke Acceptance Years Later and Demand Replacement of Work

Many contractors mistakenly think that once the government accepts work and pays for it, that the work is, well, "accepted." Some also believe that the one-year warranty provided in the Federal Acquisition Regulation (FAR)...more

[Webinar] How Will Browning-Ferris Change the Test for Joint-Employer Status for Union and Non-Union Employers? - August 31st,...

The NLRB is expected to release its long-anticipated decision in Browning-Ferris Industries of California, Inc. shortly, possibly today. This decision will likely mark a radical departure from the currently accepted standard...more

Indiana Employment Law Update: 5 Changes to Laws You Should Know

A number of significant changes to Indiana employment law took effect on July 1, 2015. These changes affected employer’s obligations in areas such as hiring, wages, discrimination, and termination. If employers have not...more

Commercial Construction in the Golden State is Looking Pretty Golden

If the $2.1 trillion erased from the U.S. stock market over the last week has you white knuckled, you might consider commercial construction in the Golden State, where things are looking . . . well . . . pretty golden....more

Saul Ewing Top Ten Construction Clauses: Substantial Completion

Substantial completion is described in AIA Document A201™-2007 as “the stage in the progress of the Work when the Work or designated portion thereof is substantially complete in accordance with the Contract Documents so that...more

Density Bonus Comes to San Francisco

In the face of runaway housing costs, San Francisco is proposing to implement the state “density bonus” law. First adopted by the California legislature thirty-six years ago, the state law (California Government Code Section...more

Title Insurance: When Does a Construction Lender “Create” or “Suffer” a Mechanics Lien?

BB Syndication Services, Inc. v. First American Title Ins. Co., 785 F.3d 825 (7th Cir. 2015) – A construction lender sued a title insurance company seeking defense and indemnification in connection with claims in a...more

Tax Increment Financing Implementation Changes Coming Soon

As many of you who are involved in developing projects in urban renewal or downtown development areas know, the principal method for financing such projects is tax increment financing (TIF). Tax increment financing is...more

Hard Hats Required: Sales Taxes & Capital Improvements - Some Practical Pointers

We recently authored an article in State Tax Notes analyzing New York’s complicated rules affecting sales taxation of contractor services and capital improvements. In this follow-up post, we want to highlight a few practical...more

Letters of the Law: 'Q' is for Quality

Quality can be difficult to describe and equally difficult to deliver. To what quality does a contractor have to deliver construction works by law? How is that measured? As with many aspects of construction and...more

Judge Moon's Denial of Preliminary Injunction in Route 29 Lawsuit

Several months ago, business owners on Route 29 filed a lawsuit against federal and state transportation officials challenging the plan to build a grade separated interchange at Route 29 and Rio Road. The plaintiffs claimed...more

11th Circuit to decide whether construction defect notice under Florida repair statute is a “suit”

Recently, the United States District Court for the Southern District of Florida addressed what constitutes a “suit” within the context of Florida’s right-to-repair procedure for construction defect disputes. In Altman...more

Construction Alert: Minnesota Supreme Court Decides Best Value Bid Protest

The Minnesota Supreme Court decided Rochester City Lines, Co. v. City of Rochester last week, applying the "unreasonable, arbitrary, or capricious" standard to the best value bidding of public contracts, describing how that...more

U.S. construction companies and manager face fines of nearly $2 million for exposing workers to asbestos

The U.S. Occupational Safety and Health Administration (OHSA) has cited a construction company and its manager for asbestos-related violations and imposed fines of almost $2 million.  Safety regulators are increasingly taking...more

Summary of California Appellate Decisions -August 2015

Insurance; Duty To Defend; Insurance Coverage; Intentional Acts; Sexual Misconduct - Gonzalez v. Fire Insurance Exchange (2015) 234 Cal.App.4th 1220, 184 Cal.Rptr.3d 394 (WL 960927) - Facts: This is an...more

Four Common Construction Contracts

Like Baskin Robins, construction contracts come in a variety of different flavors although, thankfully, significantly fewer than 31 flavors. Here are four of the most common types of construction contracts between project...more

Federal Highway Administration Publishes CM/GC Notice of Proposed Rulemaking

On June 29, 2015, the Federal Highway Administration ("FHWA") issue a Notice of Proposed Rulemaking ("NPRM") related to the construction manager/general contractor ("CM/GC") method of contracting. The NPRM is a long-awaited...more

Construction and Engineering Toolkit: Novation - August 2015

In This Issue: Novation in construction and engineering projects Novation is the cornerstone of design and build procurement. It is the novation of the design consultants' appointments to the main building...more

Noncompliance with the California Contractor’s License Law Brings Severe Consequences

Pacific Caisson & Shoring, Inc. v. Bernards Brothers Inc., 236 Cal. App. 4th 1246 (Cal. Ct. App. 2015) - In California, a contractor must be licensed by the Contractors State License Board (Board) in order to lawfully...more

Winn Everett's Environmental Virtues Are Yin to the Yang of Casino Profits

The site in Everett where Steve Winn wants to build a resort/destination casino at a cost of more than a billion dollars has got to be the most run-down, contaminated, crummy looking oceanfront properties in Greater Boston. ...more

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