Articles Posted in Construction Generally

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UPDATE: The Sacramento Bee, West Sacramento setting the table as a major food industry hub, Mark Glover (Feb. 2, 2014) and Growing pains assail the senses in West Sacramento neighborhood, Darrell Smith (Jan. 5, 2014)

West Sacramento appears to be a growing global food hub. Today, it was announced that Shinmei Co. Ltd. of Kobe, Japan (“Shinmei Co.”), is on a fast track to build a $10 million factory to make rice buns in West Sacramento and a 28,000-square-foot building in the Southport Business Park. Sacramento builder Potter Taylor & Co., a locally and family owned business, has been slated to develop the site and build the plant. Construction is expected to commence early next year.

Today’s announcement follows closely on the heels of Japan’s Nippon Shokken’s August 2013 announcement that, after 18 months of construction, it was opening its 70,000 square foot facility to make sauces for the global market. Nippon Shokken and Shinmei Co. will be next door neighbors.

Just weeks before Nippon Shokken’s announcement, Norway’s Tomra Sorting Solutions announced that West Sacramento would soon see work beginning on its 60,000 square foot building that will be the North American headquarters for Tomra. West Sacramento’s Brown Construction Inc. is building this factory and VLMK Consulting Engineers of Portland, Oregon will be acting as the project’s engineer and architect. Tomra expects to occupy the building by March.

Last but not least, Germany’s Bayer CropScience moved into a 164,00 square foot building in West Sacramento in late July. It expects to acquire an additional 10 acres somewhere close to construction a greenhouse facility.

These companies join various domestic food distribution and manufacturing companies that have been located in West Sacramento for many years, including Farm Fresh to You, Tony’s Fine Foods, Nor Cal Beverage and Raley’s Family of Fine Stores.

Additional Sources: Sacramento Business Journal

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The California State Contractors License Board and California Department of Public Health warn that construction and other workers who disturb soil are at risk for contracting Valley Fever, and encourage employers to include protective measures in workplace health and safety plans. The Coccidioides immitis fungus lives in the soil in parts of California, particularly in the Central Valley, and in several southwestern U.S. states, and in Central and South America. Valley Fever is contracted by inhaling fungal spores that live in the dirt and that are stirred up by activity, including but not limited to construction, digging or driving, or working in dusty, wind-blown areas. Typically those who become infected experience pneumonia and flu-like symptoms.

Workers at higher risk for Valley Fever include wildland firefighters, construction workers, archaeologists, military personnel, and workers in mining, gas and oil extraction jobs. In 2007, 10 members of a 12-person construction crew excavating a trench developed Valley Fever (also known as coccidioidomycosis), an illness with pneumonia and flu-like symptoms. Seven of the 10 had abnormal chest x-rays, four had rashes, and one had an infection that spread beyond his lungs. Over 1000 Californians are hospitalized with Valley Fever every year. About 8 of every 100 people hospitalized die from the infection annually.

Although there is no vaccine against Valley Fever, the Department of Public Health suggests that employers and workers can take protective measures including but not limited to “incorporating the following elements into the company’s Injury and Illness Prevention Program and project-specific health and safety plans:
1. Determine if the worksite is in an area where Valley Fever is endemic (consistently present). Check with your local health department to determine whether cases have been known to occur in the proximity of your work area. See the map on page 2 to determine whether your company will be working in an endemic county.
2. Train workers and supervisors on the location of Valley Fever endemic areas, how to recognize symptoms of illness (see page 3), and ways to minimize exposure. Encourage workers to report respiratory symptoms that last more than a week to a crew leader, foreman, or supervisor.
3. Limit workers’ exposure to outdoor dust in disease-endemic areas. For example, suspend work during heavy wind or dust storms and minimize amount of soil disturbed.
4. When soil will be disturbed by heavy equipment or vehicles, wet the soil before disturbing it and continuously wet it while digging to keep dust levels down.
5. Heavy equipment, trucks, and other vehicles generate heavy dust. Provide vehicles with enclosed, air-conditioned cabs and make sure workers keep the windows closed. Heavy equipment cabs should be equipped with high efficiency particulate air (HEPA) filters. Two-way radios can be used for communication so that the windows can remain closed but allow communication with other workers.
6. Consult the local Air Pollution Control District regarding effective measures to control dust during construction. Measures may include seeding and using soil binders or paving and laying building pads as soon as possible after grading.
7. When digging a trench or fire line or performing other soil-disturbing tasks, position workers upwind when possible.
8. Place overnight camps, especially sleeping quarters and dining halls, away from sources of dust such as roadways.
9. When exposure to dust is unavoidable, provide NIOSH-approved respiratory protection with particulate filters rated as N95, N99, N100, P100, or HEPA. Household materials such as washcloths, bandanas, and handkerchiefs do not protect workers from breathing in dust and spores…”

They can also become vigilant about watching for warning symptoms, and seeking early medical attention if typical symptoms appear (between 7 and 21 days after breathing in spores) and include:
•Cough •Fever •Chest pain •Headache •Muscle aches •Rash on upper trunk or extremities •Joint pain in the knees or ankles •Fatigue
Additional Resources: California Department of Public Health; Centers for Disease Control and Prevention

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UPDATE: CSLB Industry Bulletin No. 14-05, CSLB Reminds Licensees about New Law to Help Identify Subcontractors Bidding on Public Works Projects (May 2, 2014)

UPDATE: CSLB Industry Bulletin No. 14-02, Compliance Dates Delayed For Some Energy-Related Regulations in CA Building Standards Codes (Feb. 10, 2014) — New Effective Date Jul. 1, 2014
UPDATE: New Construction Laws Effective This Wednesday

UPDATE: CSLB Summarizes New Laws That May Impact Licensees In The Coming Year

Contractor-related bills recently signed by California’s Governor Edmund G. Brown Jr. and chartered into law include:

Assembly Bill 44 Subletting and Subcontracting Fair Practices Act: Bidding Practices: AB 44 amends California’s Public Contract Code 4104 to require that prime contractors specify the contractor license numbers of subcontractors who will perform work on bids for public work projects. Cal Legis Seal.jpg

Assembly Bill 164 Infrastructure Financing: AB 164 extends California’s Little Miller Act by requiring a lease agreement between a governmental agency undertaking an infrastructure project and a private entity to include performance bonds as security to ensure the completion of construction, and payment bonds to secure payment of claims of laborers, mechanics, and materials suppliers employed on the project under contract.

Assembly Bill 433 Contractors: Fire Protection Systems: Fire Safety: State Fire Marshal: AB 433 adds and repeal Business & Professions Code § 7026.13 to, among other things, authorize, until January 1, 2017, the installation of a residential fire protection system for a 1or 2-family dwelling by a contractor holding a fire protection contractor classification or a plumbing contractor classification.

Assembly Bill 811 Excavations: AB 811 amends existing law to require regional notification centers to post on their website statewide information provided by operators and excavators regarding legal violations and damages resulting from violations.

Assembly Bill 1236 Contractors: Limited Liability Companies: AB 1236 amends Contractors State License Law that states insurance policies secured to satisfy limited liability company provisions are required to be written by an insurer or insurers licensed by the State of California and also permits those policies to be written by an eligible surplus insurer.

Senate Bill 822 Committee on Business, Professions and Economic Development, Professions and Vocations: Among other things, SB 822 amends Business & Professions Code § 7026.1 to provide that the term “contractor” or “consultant” does not include a common interest development manager, and a common interest development manager is not required to have a contractor’s license when performing management services, as defined in Business & Professions Code § 11500(d).

Additional Resources: California Contractor-Related 2013 Legislation and Bills to Watch

Photo: Edward Headington, Taken March 20, 2012 – Creative Commons

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UDPATE: CSLB, CSLB Pipeline Review Program Expands into Southern California (Summer 2014)

The California State Contractors Licensing Board (CSLB) confirmed in its 2013 Fall CLC Newsletter that there are 10 complaints pending against licensed contractors that PG&E claims did not go through the required permitting process to note the underground location of the existing utility pipelines in the area where work was to be performed and while digging in the area struck a gas pipeline. The CSLB warned that licensed contractors who damage natural gas lines during unauthorized digs can expect closer scrutiny by the CSLB. Although the CSLB has had the legal authority to take action against licensees for negligent pipeline breaks (Bus. & Prof. Code § 7110), there have been only 13 incidents in California brought to the CSLB in the last 2 years. Penalties could range from a warning letter to the licensee to revocation of the license, which would occur in the most serious cases.

Those who fail to register with the Underground Service Alert of Northern California or Underground Service Alert of Southern California are also subject to a fine of up to $50,000 and they can be held responsible for any repair costs. Even with the potentially stiff penalties, too many contractors may still be taking part in unauthorized excavations. The CSLB reported that, in 2012, 1,754 incidents of damage to utility lines were reported in California. An estimated 60% of those pipeline breaches were committed by contractors and the majority of the line breaks occurred during an unauthorized dig.

Any digging or excavation, even if it is just breaking ground with a shovel, requires licensed contractors to call 8-1-1 and to coordinate at least 2 days beforehand with the Underground Service Alert of Northern California or Underground Service Alert of Southern California.

Additional Resources: California State Contractors State License Board; Underground Service Alert of Northern California; Underground Service Alert of Southern California

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UPDATE: December 17, 2013 CSLB Sting Nabs Convicted Rapist

On October 11, 2013, the California Contractors State License Board (“CSLB”), in its news release entitled Sex Offenders, Convicted Felons Snagged in Contractors State License Board Statewide Sting, announced that 75 people may face criminal charges after being caught in 6 of the CSLB’s simultaneous, statewide undercover sting operations conducted this week as part of its fall California Blitz.

Bee StingThe CSLB’s Statewide Investigative Fraud Team (SWIFT) investigators, along with partners from a variety of state and local law enforcement agencies, conducted stings on October 9 and 10, 2013, in Clovis (Fresno County), Ontario (San Bernardino County), Roseville (Placer County), and Seaside (Monterey County). 1-day stings were conducted October 9, 2013, in South Lake Tahoe (El Dorado County) and October 10, 2013, in the area burned in the recent Silver Fire near Banning (Riverside County).

SWIFT investigators posed as homeowners seeking bids for home improvements. CSLB Registrar Steve Sands said that “Homeowners should be nervous when they hear the background of some of the people we caught in these stings.”

Most notable, among those arrested, 2 were registered sex offenders, 2 were individuals with several prior felonies including robbery, rape, burglary and drug possession, 3 were individuals with an active arrest warrant, and several individuals were caught using contractor license numbers belonging to others. 3 of the suspects were taken to jail, and 1 vehicle was towed. Mr. Sands also confirmed that “[u]nlicensed, illegal activity that puts homeowners at risk and legitimate contractors at a competitive disadvantage will not be tolerated.”

Of the 75 individuals arrested, 72 now may face misdemeanor charges for contracting without a license (Bus. & Prof. Code § 7028). The penalty for a conviction is up to six months in jail and/or a fine of up to $5,000.

Of those individuals arrested, 56 also may be charged with illegal advertising (Cal. Bus. & Prof. Code § 7027.1). State law requires contractors to place their license number in all print, broadcast, and online advertisements. Those without a license can advertise to perform jobs valued at less than $500, but the ad must state that they are not a licensed contractor. The penalty is a fine of $700 to $1,000.

10 others may be charged with requesting an excessive down payment (Cal. Bus. & Prof. Code § 7159.5). In California, a home improvement project down payment cannot exceed 10% of the contract total or $1,000, whichever is less, unless an appropriate bond is in place (Cal. Bus. & Prof. Code § 7159.5(a)(8)). This misdemeanor charge carries a maximum penalty of 6months in jail and/or up to a $5,000 fine.

13 of those individuals arrested also were issued Stop Orders (Cal. Bus. & Prof. Code § 7127). CSLB investigators can halt job site activity when any person with or without a contractor license does not have workers’ compensation insurance coverage for employees. Failure to comply with a Stop Order can result in misdemeanor charges and penalties, including 60 days in jail and/or up to $10,000 in fines.

A majority of those caught this week were identified through illegal ads posted on craigslist.org.

Additional Sources: California Contractors State License Board; CSLB Laws and Regulations

Photo: Kshitij Garg, Taken Feb. 14, 2009 – Creative Commons

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In addition to introducing their new celebrity part-owner, Shaquille O’Neal, the Sacramento Kings confirmed their concept for an “indoor-outdoor” facility for the new arena that will be constructed in Sacramento’s current Downtown Plaza.

At a recent press conference, majority owner Vivek Ranadive suggested that the design for the $448 million arena “will be the first basketball arena that has this indoor-outdoor feature to it. For concerts and other events, you could actually completely open it up and have 18,000 people inside and another 10,000 people outside.” He gave few other details, saying, “You’ll have to wait and see the plans.” Minority partner Mark Mastrov told The Sacramento Bee that attendees would be able to view events directly and on giant TV screens the arena’s bowl standing in an outdoor plaza. The designs have not been finalized and community input will be sought.

This news came on the heels of the Sacramento Kings’ announcement that AECOM has been selected as the lead architect for the Sacramento Kings’ new $448 million arena in Downtown Plaza. AECOM is responsible for designing a number of state-of-the-art sports and entertainment venue, including the acclaimed London 2012 Olympic Park and it is designing the Rio 2016 Olympic Park. It has served as the lead architect of 11 NBA arenas, including the Barclays Center, and it designed Aggies Stadium at the University of California, Davis.

The Sacramento Kings’ construction team includes previously hired project manager ICON Venue Group, lead builder Turner Construction, and Sacramento developer

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There are numerous contractor-related bills making their way through the California legislature this year. The following bills, although not an all-inclusive list, are worth noting:

Assembly Bill 44 – An Act to amend, repeal, and add Public Contract Code § 4104 relating to public contracts – signed into law by the Governor September 9, 2013 and operative July 1, 2014. The Subletting and Subcontracting Fair Practices Act, Cal. Public Contracting Code §§ 4100, et seq., requires an entity taking bids for the construction of any public work or improvement to specify that any person making a bid or offer to perform the work to, in his or her bid or offer, include specified information, including the name and location of the place of business of each subcontractor who will perform work or labor or render service to the prime contractor in or about the work or improvement. Commencing on July 1, 2014, any person making a bid or offer to perform the work to, in his or her bid or offer, will be required to include the California contractor license number of each subcontractor.

Assembly Bill 186 – An Act to add Business & Professions Code § 115.6 relating to professions and vocations, and making an appropriation therefore. As currently drafted, among other things, AB 186 would establish a temporary licensure process for an applicant who holds a current license in another jurisdiction, as specified, and who supplies satisfactory evidence of being married to, or in a domestic partnership or other legal union with, an active duty member of the Armed Forces of the United States who is assigned to a duty station in California under official active duty military orders. The temporary license would expire 12 months after issuance, upon issuance of the expedited license, or upon denial of the application for expedited licensure by the board, whichever occurs first.

Assembly Bill 433 – An Act to amend Business & Professions Code §§ 7026.12 and 7057, to add and repeal Business & Professions Code § 7026.13, and to add Health & Safety Code § 13110 relating to contractors. As currently drafted, among other things, AB 433 would authorize, until January 1, 2017, the installation of a residential fire protection system for a one- or 2-family dwelling by a contractor holding a fire protection contractor classification or a plumbing contractor classification.

Assembly Bill 811 – An Act to amend Government Code § Section 4216.6 relating to excavations – signed into law by the Governor September 6, 2013 and operative January 1, 2014. The new law requires statewide information, as defined, provided by operators and excavators regarding facility events, as defined, to be compiled and made available in an annual report by regional notification centers and posted on the Internet websites of those regional notification centers.

Assembly Bill 972 – An Act to amend Labor Code §§ 108.2 and 1776 relating to employment records. As currently drafted, among other things, AB 972 would require payroll records for projects that use an electrician to include the electrician’s state certification number.

Assembly Bill 993 – An Act to amend Business & Professions Code § 7085.5 relating to contractors. Existing law authorizes an arbitrator to grant any remedy or relief deemed just and equitable and within the scope of the Contractor State License Board’s (CSLB) referral to the arbitrator and the requirements of the board, including costs and expenses. As currently drafted, among other things, AB 993 would provide that a party that submits a dispute to arbitration waives any right to recover attorney’s fees or to challenge an arbitrator’s award of attorney’s fees in a civil action related to the dispute.

Assembly Bill 1114 – An Act to amend Business & Professions Code § 7157 relating to contractors. Existing law prohibits a salesperson or contractor’s agent from accepting compensation of any kind for, or on account of, a home improvement transaction, or any other transaction involving a work of improvement, from a person other than the contractor whom he or she represents with respect to the transaction, and from making a payment to any person other than his or her employer on account of the sales transaction. The law also prohibits a contractor from paying, crediting, or allowing any consideration or compensation of any kind to any other contractor or salesperson other than a licensee for, or on account of, the performance of a work of improvement or services, including, but not limited to, home improvement work or services, except as specified. As currently drafted, among other things, AB 1114 would delete the latter provision prohibiting contractors from paying, crediting, or allowing any consideration or compensation.

Assembly Bill 1236 – An Act to amend Business & Professions Code § 7071.19 relating to contractors – signed into law by the Governor August 16, 2013 and operative January 1, 2014. Existing laws authorizes the CSLB to issue a contractor’s license to a limited liability company, but requires, as a condition precedent to the issuance, reissuance, reinstatement, reactivation, renewal, or continued valid use of a limited liability company contractor’s license, that the applicant or licensee file or have on file a surety bond for damages arising out of specified claims of employees. It also requires the limited liability company to maintain a policy or policies of insurance against liability imposed on or against it for damages arising out of claims, as specified, as a condition of licensure, and the policy or policies of insurance secured to satisfy these provisions are required to be written by an insurer or insurers duly licensed by this state. Under the new law, those policies may be written by an eligible surplus line insurer, as specified.

Senate Bill 261 – An act to amend Business & Professions Code § 7114.2 relating to contractors – signed into law by the Governor August 27, 2013 and operative January 1, 2013. Existing law authorizes the CSLB to issue a citation, instead of initiating disciplinary proceedings, to a licensee when the CSLB has probable cause to believe that the licensee has committed acts in violation of the contractors’ State License Law, Business & Professions Code §§ 7000, et seq. In addition, under existing law, any person who willfully and intentionally uses, with intent to defraud, a contractor’s license number that does not correspond to the number on a currently valid contractor’s license held by that person, is guilty of a crime, and the CSLB may issue a citation to an unlicensed individual who is in violation of that provision, including an order of abatement and a civil penalty. Under the new law, any licensed or unlicensed person who commits any of those specified activities with respect to a contractor’s license is subject to the administrative remedies authorized by the Contractors’ State License Law.

Senate Bill 262 – An act to amend Business & Professions Code § 7068.1 relating to contractors – signed into law by the Governor August 27, 2013 and operative January 1, 2013. Existing law authorizes an applicant for contractor’s license to qualify the applicant’s knowledge and experience with a responsible managing officer (RMO), employee (RME), member, or manager who has certain qualifications. The license qualifier is responsible for exercising direct supervision and control of his or her employer’s or principal’s construction operations as necessary to secure full compliance with the Contractors’ State License Law and CSLB’s regulations relating to construction operations. Under the new law, among other things, instead, make the qualifying person responsible for exercising that direct supervision and control to secure compliance with that law and those regulations. A violation of these provisions is grounds for disciplinary action, and a misdemeanor punishable by imprisonment in a county jail not to exceed 6 months, by a fine of not less than $3,000, but not to exceed $5,000, or by both that imprisonment and fine.

Senate Bill 263 – An Act to amend Business & Professions Code § 7028 relating to contractors. Existing law makes it a misdemeanor for a person to engage in the business or act in the capacity of a contractor without having a license, unless the person is particularly exempted. As currently drafted, among other things, SB 263 would provide that, unless exempted, it is a misdemeanor for a person to engage in the business or act in the capacity of a contractor if the person either has never been licensed pursuant to the Contractors’ State License Law, or the person was a licensee, but performed acts covered by the law under a license that was inactive, expired, revoked, or under suspension for any reason failure to pay a civil penalty or comply with an order of correction, or failure to resolve all outstanding final liabilities, as specified.

Senate Bill 417– An Act to amend Business & Professions Code § 7018, to add Government Code § 15810 and to add Public Contract Code §§ 10142 and 20103 relating to public building and works. The State Contract Act, Cal. Public Contract Code §§ 10100, et seq., and the Local Agency Public Construction Act, Cal. Public Contract Code §§ 20100, et seq., generally set forth the authority and duties of state and local agencies for bidding and awarding contracts on public works. Among other things, they authorize a state or local agency to require that each prospective bidder for a public works contract complete and submit to the state or local agency a standardized questionnaire and financial statement, as provided. In addition, the State Building Construction Act of 1955 authorizes the State Public Works Board to acquire and construct public buildings for use by state agencies, when authorized by a separate act or appropriation enacted by the Legislature. As currently drafted, among other things, SB 417 would authorize state and local agencies subject to these Acts, prior to advertising for bids for construction of a public building or a public works project, to advise the CSLB of any supplemental license, certification, or education required of a contractor to qualify to bid on the contract for that project. It would require the CSLB to review the information received regarding any supplemental license, certification, or education requirements, and to post any supplemental requirements it approves in an easily identifiable location on the CSLB’s website. Any supplemental requirements that are not posted on the CSLB’s website before the bid opening would not apply to the bidding process for that contract.

Senate Bill 822 – An Act to amend Business & Professions Code §§ 5096, 5096.2, 5096.12, 7026.1, 7065.3, 7114, 7141, 7206, 7210, 7887, 9807, and 17914, to add Business & Professions Code § 7851, to repeal Business & Professions Code §§ 102.1 and 102.2, and to amend Health & Safety Code § 44011 relating to professions and vocations, and making an appropriation therefor. As currently drafted, among other things, SB 822 would provide that the term “contractor” or “consultant” does not apply to a common interest development manager, and a common interest development manager is not required to have a contractor’s license when performing management services, as defined.

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UPDATE: In its Notice of CSLB Quarterly Meeting, the Contractors State License Board (CSLB) indicated that, at its upcoming February 19, 2014 quarterly Board meeting, its Enforcement Committee Report may include an update on its Electrician Certification Enforcement Policy. The meeting is scheduled to commence at 9:00 a.m. on Wednesday, February 19, 2014, in Sandpebble Rooms C, D, E at the Hyatt Regency, 1333 Bayshore Highway, Burlingame, CA 94010, (650) 347-1234, and there will be a live webcast of the meeting.

The California Stare Contractors License Board (CSLB) recently reconfirmed that it has a “Zero Tolerance Policy In Effect for Non-Compliant Electricians.” In 2010 it established this policy and, at its June 11, 2013 board meeting, it reconfirmed its commitment to investigate and to initiate disciplinary action against any C-10 Electrical contractor that willfully employs an uncertified electrician to perform work as an electrician.

Except as otherwise contemplated by California Labor Code §§ 108(c) and 108.2, California Labor Code § 108.2(a) and (b) require anyone who performs work as an electrician for a C-10 Electrical contractor to hold an electrical certification card issued by the Department of Industrial Relations’ Division of Apprenticeship Standards (DAS) and, in turn, it requires DAS to report violations to the CSLB. An “electrician” is anyone who engages in the connection of electrical devices for a C-10 Electrical contractor (Cal. Lab. Code § 108(c)). The CSLB’s position is that electrical work must be performed by either a state-licensed or certified electrician; an indentured apprentice or state-registered electrician trainee may also perform electrical work if supervised by a state-certified electrician. The CSLB is legally required to open an investigation and initiate disciplinary action against the C-10 Electrical contractor (which may include license suspension or revocation) within 60 days of receipt of a referral or complaint from the DAS (Cal. Lab. Code § 108.2(j)).

In addition, existing California law requires that, except as specified, not less than the general prevailing rate of per diem wages be paid to workers employed on public works projects and, in addition, it requires contractors and subcontractors to keep payroll records that include, among other things, the name, address, and work classification of each journeyman, apprentice, worker, or other employee employed in connection with the public works project. Currently pending Assembly Bill 972 would further require contractors’ and subcontractors’ payroll records for public works projects that use an electrician to include the electricianss state certification numbers.

Additional Sources: Division of Labor Standards Enforcement, Electrician Certification Program; Division of Labor Standards Enforcement, Electrician Certification Program – Enforcement; Division of Labor Standards Enforcement, Electrician Certification FAQs; Statistics of the Division of Fair Labor Standards – Electrician Certification Unit (September 2013)

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Since the California Mechanic’s Lien Law was established more than 100 years ago, it has been black-letter law that a contractor or materials supplier has no right to assert a mechanic’s lien against public property. Thus, contractors and material suppliers (and even legal practitioners) have resigned themselves to the notion that the only available remedies on “public projects” are claims against payment bonds and the enforcement of stop notices. Within the last few years, however, the inflexible rule that “you cannot lien public property” has begun to change. In connection with the rise of construction projects arising from public-private collaboration, courts have begun to allow claimants to assert liens against private interests in publicly-owned property.

In the 2010 South Bay Expressway case, a bankruptcy court considered whether a general contractor that built a publicly-owned toll road could pursue a mechanic’s lien against a private developer’s leasehold interest in that public road. The California Department of Transportation had entered into a long-term lease with the developer, whereby the developer would construct the toll road and thereafter collect tolls and operate the public road. The court held that, as long as the lien claimant sought only to encumber and foreclose upon the developer’s leasehold interest, the lien was valid.

This recent legal development offers new hope to contractors that are not paid on “public projects.” In the wake of the South Bay Expressway decision, claimants are successfully recording and foreclosing upon mechanic’s liens on a variety of projects built on public land. For example, we’ve seen liens successfully asserted against, among other interests, a concessionaire’s leasehold interest in concession space at a public airport and a solar company’s long-term rights to operate a solar facility and sell electrical power to a municipality. In many such cases, absent the ability to enforce their lien rights, the contractors would have had no ability to enforce their rights to payment.

The bottom-line is this: a contractor should no longer assume that it has no lien rights simply because its work was completed on public property.

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UPDATE: Sacramento Business Journal, Sacramento Kings, Turner Construction plan contractor outreach meetings for arena (Feb. 27, 2014)

On July 30, it was announced that the Sacramento Kings ownership group has hired Turner Construction Company to build the planned arena at Downtown Plaza. Turner Construction Company has a number of stadium projects on its resume. KingsArenaII.jpg
The Sacramento Kings ownership group are also reportedly in the process of interviewing architectural firms to help design the new arena.

Photo © October 8, 2006, Michelle – creative commons.