Articles Posted in Construction Generally

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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.

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  • Demolition of “The Coop,” a 113-year-old building on Michigan State University’s campus, was delayed after a fire broke out on the building’s roof this week.

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New Tappan Zee Bridge.jpgDon’t worry. That shaking you feel isn’t an earthquake. It’s the construction of the new Tappan Zee bridge across the Hudson River north of New York. I’m kidding of course. Construction on the $3.9 billion project hasn’t even started yet, but much of the geotechnical work, not to mention the design, has. Now they are planning on picking up good vibrations with highly sophisticated shoebox-sized sensors posted around the construction site. This is nothing new, but the plan to make the data available online 24/7 is–at least as far as I know. Check back here in a few weeks to see the monitoring page.

But lest you think that the only people interested in the movers and shakers at the bridge are the contractor and the nimbies and gadflies nearby, note this: Columbia University’s Lamont-Doherty Earth Obversvatory is just downriver on the West side, home to gobs of the largest and most sophisticated earth measuring equipment you’ll find. My geotechnical engineer friends tell me that every year Lamont-Doherty hosts an open house, which is generally geared toward kids, but is fascinating for geeks (like me) of all ages. It’s usually in early October, so check their website if you’re anywhere near New York and take the kids. While you’re there you can swing by and see a pretty cool construction site at the new bridge.

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For a visual tour of the construction of New York’s Second Avenue Subway line, the Big Apple’s first major expansion of its subway system since 1932, check out CBS Sunday Morning’s video, NYC’s subway, still under construction.

Amidst the obligatory interviews on the surface with planners, engineers, and inconvenienced neighbors, the video offers interesting glimpses of the excavation and construction of the first phase of the $4.5 billion project. Phase 1 of the planned four phase, two-track line will provide service from 96th to 63rd Streets and is expected to be complete in December 2016. The new line, once all four phases are completed, is to shuttle commuters up the East Side from Hanover Square to 125th Street.

If you don’t have time for the six and half minute video, skip to the photo gallery, Building NYC’s Second Ave. Subway, for photos and renderings of the project and equipment. For more detailed information on the project, including monthly project updates, go straight to the horse’s mouth at MTA.info.

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The 22nd edition of Pillsbury’s Newsletter: Perspectives on Real Estate features articles on energy consumption data reporting (AB1103 and 531), construction and risk management, new foreign tax withholding forms, chapter 9 and public-private partnerships.

Articles include:

The Fall 2012 Edition of Perspectives on Real Estate is edited by: Laura Hannusch, Peter Freeman, Christine Roch and Noa Clark and can be downloaded in its entirety by clicking here.

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On November 20, 2012, the California Contractors State License Board posted an Industry Bulletin alerting licensees and applicants alike to a recent scam involving fraudulent calls asking licensees or applicants for their credit card information over the phone in connection with renewing their licenses, obtaining continuing education credits, or taking licensing exams. CSLB Registrar Steve Sands has confirmed that at least one “unscrupulous company” has used information from the CSLB’s website to contact licensees or applicants “to mislead and scam them.” The CSLB confirmed that it “will never ask for credit card information over the phone, nor will they process any payment over the phone.” CSLB fees are only payable through the mail via check or at CSLB headquarters via cash, check, or credit card. Moreover, there are no continuing education requirements to renew a CA CSLB license.

The CSLB confirmed that although California Business and Professions Code § 7080.5 requires it to make public the name and address of every accepted application for a license, and that it intends to continue to post this information, it could change its process if applicants continue to be preyed upon by unscrupulous companies. To read a copy of the Industry Bulletin, click here. To read additional CA CSLB 2012 Industry Bulletins, click here.

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On the eleventh anniversary of the September 11 terrorist attacks, One World Trade Center steadily progresses toward a late 2013 completion date. The spire on top of the 104-story skyscraper will reach 1,776 feet, a symbolic reference to America’s independence. David Childs of Skidmore, Owings and Merrill, Architect, is the architect for One World Trade Center, and Tishman Construction is the primary contractor. Although reports vary, the final construction cost of the tower will be close to $4 billion. The current images of One World Trade Center are inspiring and an uplifting image on this day of remembrance.

On June 14th, President Obama joined Governor Cuomo, Governor Christie and Mayor Bloomberg to see first-hand the tower’s progress. The President added a personal touch to one of the final steel beams to be installed at the top of the skyscraper by including the following signed message: “We remember We rebuild We come back stronger! Barack Obama.” One World Trade Center will be surrounded by three additional high-rise office buildings and the National September 11 Memorial & Museum.

While the tenth anniversary of 9/11 put the memorial on full display, the 100,000-square-foot museum is currently behind schedule. Delayed by funding, oversight, and financing, construction of the museum came to a halt after the tenth anniversary. On Monday night, however, the 9/11 Memorial and Museum Foundation (chaired by Mayor Bloomberg) and the Port Authority of New York and New Jersey (controlled by Mayors Cuomo and Christie) signed a memorandum of understanding, resolving the outstanding issues. The parties negotiated additional payments from the September 11 foundation, in an attempt to ensure that no additional public funds are needed to complete the National September 11 Memorial & Museum. Originally planned to open today on the eleventh anniversary, the museum is now likely to open at the end of 2013.

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When trouble, in the form of adverse changes in financial conditions or the property marketing environment, strikes during the period between construction contract signing and completion of procurement and construction activities, the developer often will have to consider taking the course of action that will maximize value for all stakeholders. Ultimately, it may reluctantly determine that the construction contracts and work should be suspended for some period of time or terminated altogether. Our white paper Shutting Down the Construction Project, updated to include California’s mechanic’s lien laws effective July 1, 2012, outlines significant issues that an owner should consider when suspending or terminating a California commercial construction project.

Things to consider include providing notice of the suspension/termination, if the contract is suspended, keeping the contract and subcontracts in effect, and closing out the claims exposure. Similar principles apply to projects in other states and projects of a residential, industrial or public nature. As becomes quickly apparent, the laws governing these issues are highly technical and often impose short deadlines for compliance, and also pose signfiicant risk to owners and contractors for non-compliance. To learn more about this, click here to our white paper.