Construction Law

Micro construction

Posted on November 11, 2009
This is the world's biggest train set which covers 1,150 square meters (12,380 square feet), features almost six miles of track and is still not complete.Twin brothers Frederick and Gerrit Braun, 41, began work on the 'Miniatur Wunderland' in 2000.The set covers six regions including America , Switzerland , Scandinavia , Germany and the Austrian AlpsThe American section features giant models of the Rocky Mountains, Everglades, Grand Canyon ...

Corps of Engineers Reduces The Chance of Green River Flooding from 33% to 4%

Posted on November 10, 2009
The U.S. Army Corps of Engineers reports that repairs to the Howard Hanson Dam have dramatically reduced the chance of flooding in the Green River Valley this winter. The installation of a grout curtain in the dam is slowing the seepage through a damaged abutment...

A 12 STORY BUILDING IN CHINA LYING ON THE GROUND

Posted on November 08, 2009
(1) An underground garage was being dug on the south side, to a depth of 4.6 meters.(2) The excavated dirt was being piled up on the north side, to a height of 10 meters.(3) The building experienced uneven lateral pressure from south and north.(4) This resulted in a lateral pressure of 3,000 tons, which was greater than what the pilings could tolerate...

OREGON COURT OF APPEALS RULES THAT BUILDERS IN OREGON CAN BE SUED FOR "NEGLIGENT CONSTRUCTION" IF A BUILDING CODE VIOLATION IS INVOLVED

Posted on October 28, 2009
A recent decision by the Oregon Appeals Court allows property owners to file negligence lawsuits against contractors for building-code violations. In a construction defect case brought eight (8) years after the construction was substantially complete, the Court ruled that the breach of contract action against the contractor was barred by the six (6) year statute of limitation, however, allowed the homeowners to sue the contractor on a negligence cause of action which has a two (2) year statute of limitation with a "discovery" proviso (the cause of action must be commenced within two (2) years of discovery)...

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World's tallest building

Posted on October 21, 2009
To view video click here

Accident at Russia's Biggest Hydroelectric Plant

Posted on October 18, 2009
To view the file click here

Former Mayoral Candidate Files Lawsuit To Halt Seattle Tunnel

Posted on October 16, 2009
Seattle Citizens Against the Tunnel filed a lawsuit to prevent the WSDOT from proceeding with a plan to replace the Alaskan Way Viaduct with a tunnel. The lawsuit seeks to halt work on the tunnel until an Environmental Impact Study is completed in 2011...

City of Seattle Takes Another Step Toward Construction of the Alaska Way Viaduct Replacement Project

Posted on October 14, 2009
On October 19th the City Counsel will vote on an agreement to take on nearly a billion dollars of responsibility for streets, a new seawall, parking, a waterfront promenade and perhaps a street car. These costs are over and above the $3.1 billion State highway project...

Committee On Advancing The Competitiveness And Productivity Of U.S. Construction Industry (National Research Council) Publishes Its Findings

Posted on October 13, 2009
In 2008 the National Institute of Standards and Technology (NIST) requested that the National Research Council (NRC) appoint an ad hoc committee of experts to provide advice for "advancing the competitiveness and productivity of the U.S. construction industry...

The World Trade Center Collapse Still Being Debated By Engineers and Scientists

Posted on October 11, 2009
A summary of some the technical areas in dispute as to what caused the World Trade Center to collapse on September 11, 2001 is set forth in this article. The National Institute for Standards and Technology (NIST) and its building trade and scientific allies are one side of the debate and its equally credentialed science, profession and licensed critics (building and structural engineers, architects, physicists, chemists) on the other side, put forth their cases in these theories compiled from NIST's official report...

Are Bidders Choosing to "Bomb" Project Pricing?

Posted on October 08, 2009
According to a recent ENR article, if all bidders have experienced estimators and costs of materials and efficiencies of bidders are the same, the variances in bids should be very small. Nevertheless, as of late, bid tabulations are showing significant variances, the explanation offered for these variances are mistakes in bids, missing amendments, takeoffs or subcontractors' quotes, or the company owners have decided to bid the work at or below cost to keep work coming in or generate cash flow...

Employment Verification Form I-9 Extended To August 31, 2012

Posted on October 08, 2009
The U.S. Citizenship and Immigration Services (USCIS) announced that the Office of Management and Budget has extended its approval of Form I-9 (Employment Eligibility Verification) to August 31, 2012. Accordingly, USCIS has amended the form to reflect a new revision date of August 7, 2009...

Court Rules E-Verify Will Take Effect On September 8, 2009

Posted on October 04, 2009
The U.S. District Court for the District of Maryland upheld the legality of a federal regulation that will require many federal government contractors to use the E-Verify system to verify the employment eligibility of new hires, as well as certain existing employees...

Is The U.S. Headed For A Commercial Real Estate Crisis?

Posted on September 30, 2009
Tishman Construction CEO Daniel Tishman warns that in the next 5 to 7 years, $3.4 trillion in commercial real estate mortgages must be refinanced. Unemployment in the construction industry is about 18.2% nationally and he expects that many companies will struggle to find financing...

Cannon Beach, Oregon Considers Tsunami Evacuation Buildings

Posted on September 29, 2009
The former Mayor of Cannon Beach, an architect, has designed a conceptual city hall building that could double as a Tsunami evacuation building. The city hall would sit about 15 feet above the water on pilings, allowing the tsunami wave to flow under it...

The Tunnel Replacing The Alaskan Way Viaduct (The Widest In The World), Commences With The Geotechnical Investigation

Posted on August 26, 2009
A half dozen drill rigs are currently at work in downtown Seattle boring holes 100 to 300 feet deep, sampling soils for the construction of the tunnel that will replace the Alaskan Way Viaduct. Once the test drilling is completed, the Washington State Department of Transportation will put the tunnel boring machine (custom built for the project the size of an aircraft cylinder) out for bid...

Brightwater Sewage Treatment Plant to Open in 2011, But Without The Tunnel

Posted on August 24, 2009
The Brightwater Sewage Treatment Plant in Everett, WA is scheduled to open in 2011. Mechanical breakdowns of two tunnel boring machines have halted the 13-mile tunnel which was to carry treated waste water to Puget Sound. Until the tunnel is complete, the treated waste water will be sent through existing pipes to the Westpoint or Renton treatment plant...

WSDOT Testing Quieter Pavement On 405 In Bellevue

Posted on August 21, 2009
The Washington State Department of Transportation (WSDOT) is testing quieter pavement to reduce road noise on 405 in Bellevue in the vicinity of Factoria. The asphalt surface is noticeably quieter. Previous sections of I-5 on which WSDOT tested quieter pavement (I-5 through Lynnwood and SR520 between Medina and Bellevue) did not perform well...

Representative Clibborn declares the Viaduct Tunnel Replacement a "done deal"

Posted on August 19, 2009
The Washington State Department of Transportation is proceeding with the $4.2 billion Alaskan Way Viaduct replacement project despite opposition from Mayoral candidates who say the traffic should be dispersed on surface streets.To read the article click here

Repairs Begin on Howard Hanson Dam (Green River)

Posted on August 18, 2009
The Army Corps of Engineers has commenced repairs at the Howard Hanson Dam to control the potentially destabilizing seepage to the earth and abutment. The repair should reduce the likelihood of winter flooding in the populace Green River Valley. The work will increase the Dam's ability to reduce the downstream flooding risk...

Bell BCI Co. v. United States - Release of Cumulative Impact Claims

Posted on August 16, 2009
Bell involved a construction contract under which the government issued an extensive series of change orders. Following the first of those change orders, the parties executed Modification 93, which stated in part the increased contract amount set forth in the Modification represented "full and equitable adjustment for the remaining direct and indirect costs of the [changed work] ...

Federal Government Employment Eligibility and Verification Regulation

Posted on August 13, 2009
On June 6, 2008, the FAR council released a new provision requiring the use of the Department of Homeland Security's Electronic Employment Eligibility Verification System ("E-Verifiy"). The contractor performing construction work in excess of $100,000, a "covered contract" must enroll in E-Verify within thirty (30) calendar days of contract award and start using E-Verify within ninety (90) calendar days of enrollment to verify the employment eligibility of a new employee.

Ahlers & Cressman Clients are Five of the Ten Top Northwest Specialty Contractors

Posted on August 13, 2009
Five Ahlers & Cressman PLLC mechanical and electrical contractor clients made the top ten list of Washington State Specialty Contractors! McKinstry (1); J.H. Kelly, LLC (2); Veca Electric & Communications (4); Cochran, Inc. (6); and Valley Electric (10)...

American Recovery & Investment Act, Federal Work Requires Familiarity with Federal Acquisition Regulations (FARs) and Business and Ethics Compliance. New AGC Federal Government Contractor Ethics And Compliance Program, Tool Kit & Guidance Publication

Posted on August 11, 2009
The interest in bidding on federal work, considering the new American Recovery and Reinvestment Act (Stimulus Bill) has attracted many new bidders to federal procurements. Federal contractors need to take note of the recent Business and Ethics compliance provisions of the Federal Acquisition Regulations...

THE WIDER VIEW: Taking shape, the new bridge at the Hoover Dam

Posted on July 26, 2009
Creeping closer inch by inch 900ft above the mighty Colorado River the two sides of a 160million bridge at the Hoover Dam in America slowly take shape. The bridge will carry a new section of US Route 93 past the bottleneck of the old road which can be seen twisting and winding around and across the dam itself...

Recent changes in American Arbitration Association Rules

Posted on July 20, 2009
This article summarizes the recent changes to the American Arbitration Association rules regarding the fee schedule, pending construction arbitration rule changes, and continuing concerns of the AAA.

Fast facts regarding results in American Arbitration Association cases

Posted on July 20, 2009
Did You Know. . . That 91% of 2007 American Arbitration Association (AAA) construction arbitration awards involving cases with only one claim were outside the mid-range of the parties' claims? This is similar to arbitral award trends in the past two decades, and debunks the myth that arbitrators "split the baby...

Business Capitalizes on Ruling in Political Case

Posted on July 10, 2009
A U.S. Supreme Court which ruling focused on national security may end up becoming a significant decision for U.S. businesses. Ashcroft v. Iqbal, 556 U.S. ___, 128 S.Ct. 2931, (2009) will make it more difficult for plaintiff's to bring a lawsuit without asserting specific factual evidence, raising the threshold for moving a case into litigation and possibly saving companies millions of dollars in legal fees...

Entire New 13-Story Building Tips Over in Shanghai

Posted on July 07, 2009
This past Saturday, an entire apartment building in Shanghai collapsed. To be fair, the building was under construction and thus unoccupied, but it's still a minor miracle that there was only one fatality. http://gizmodo.com/5304233/entire-new-13%20story-building-tips-over-in-shanghai/gallery

GERMAN AUTO FACTORY

Posted on July 07, 2009
www.youtube.com/watch?v=nd5WGLWNllA

Contractor Prevails in Lien Claim on Leased Property (Charles and Joanne Haselwood v. Bremerton Ice Arena 2009 WL 1803272)

Posted on July 06, 2009
In 1971, the United States Secretary of Interior deeded 17.6 acres of land in downtown Bremerton to the City of Bremerton for use as a park and recreation center. The conveyance from the government prohibited the City from leasing the land except to another government agency, but did allow the City to provide recreational facilities and services by entering into private concession agreements...

Entire New 13-Story Building Tips Over in Shanghai

Posted on June 30, 2009
This past Saturday, an entire apartment building in Shanghai collapsed. To be fair, the building was under construction and thus unoccupied, but it's still a minor miracle that there was only one fatality. http://gizmodo.com/5304233/entire-new-13%20story-building-tips-over-in-shanghai/gallery

The Bricklayer's Lament - by Gerard Hoffnung

Posted on June 28, 2009
http://www.youtube.com/watch?v=zZUJLO6lMhI

Chelan Washington's wooden pipes emphasize the need for radical infrastructure upgrades

Posted on April 20, 2009
Chelan, Washington's wooden water mains were recently featured in the New York Times. The resort community on Lake Chelan relies in part on a handful of wooden water mains to transport drinking water. Wooden water mains are relics of the days when water was transported in bored out logs...

WSDOT goes out for bid for removal of the viaduct's southern mile

Posted on March 24, 2009
The Washington State Department of Transportation is seeking bids for the removal of the southern mile of the Alaskan Way Viaduct. This portion of the viaduct borders the Port of Seattle property and rests on unstable soils. The estimated value of the project is $15M...

The Stimulus Bill - The Audit and Oversight Provisions of the 2009 Stimulus Bill Will Startle Many Funding Recipients

Posted on February 23, 2009
President Obama, February 17, 2009, signed the American Recovery and Reinvestment Tax Act of 2009 (the Stimulus Bill). The Stimulus Bill includes approximately $787 billion in government spending and tax cuts. The U.S. Government (as well as state and local recipients of this money) will disburse the funds through a number of different spending vehicles - grants, government contracts, cooperative agreements, and other transactions...

Building Information Management Used (BIM) at Vancouver Centre for Structural Engineering

Posted on February 09, 2009
The structural design for the Vancouver Convention Centre was modeled in 3-D using building information modeling (BIM). By using BIM, the structural engineers were able to estimate the amount of steel needed within 5% of the final configuration. The AGC and other industry organizations have developed the Consensus Docs BIM Addendum 301 which provides a workable, practical, and reasonable allocation of risk and responsibilities associated with Building Information Modeling...

Russian Interstate

Posted on February 06, 2009
Click here to view file

More Infra-Structure Investment - A Major Over-Haul of the U.S. Electrical Grid Needed

Posted on February 05, 2009
Demand for electrical energy has surged up 25% since 1995 and the US network will need some 1.5 trillion dollars in investment over the next two decades in order to achieve the "green revolution" supported by President Barrack Obama. "Our biggest problem is building enough transmission lines to adequately transmit the power where it is needed and allow us to have a redundant system for the maintenance," said Otto Lynch...

Washington's Stop Notice: An Effective Hammer in the Contractor's Tool Chest when Progress Payments are Delinquent

Posted on February 02, 2009
Reliance on the traditional mechanic's lien to recover nonpayment can be a frustrating experience for a contractor lien claimant. Often, recording and enforcing a traditional mechanic's lien turns into an expensive and time consuming process. This frustration can be especially felt with relatively small claims because the cost of recording and enforcing a lien could be in excess of the claimed amount...

The Tallest Snowmen

Posted on February 01, 2009
Not your typical construction project, but one for the season... Photo 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24

Water Main Break Highlights Need for Infrastructure Investment

Posted on January 27, 2009
In Maryland, a water main break highlights the need for infrastructure investment. Both the state of Washington legislature as well at the Federal Government politicians are calling for investment in infrastructure as the vehicle to lift the US economy out of its present doldrums...

Washington's Stop Notice: An Effective Hammer in the Contractor's Tool Chest when Progress Payments are Delinquent

Posted on January 27, 2009
Reliance on the traditional mechanic's lien to recover nonpayment can be a frustrating experience for a contractor lien claimant. Often, recording and enforcing a traditional mechanic's lien turns into an expensive and time consuming process. This frustration can be especially felt with relatively small claims because the cost of recording and enforcing a lien could be in excess of the claimed amount...

Governor Gregoire Economic Stimulus Plan includes $8 million for Construction

Posted on January 25, 2009
On January 15, Governor Chris Gregoire unveiled her $1.2 billion economic stimulus package encouraging consumer spending, creating jobs and providing more unemployment assistance. The construction portion of that stimulus package was $800 million for construction projects...

Gloomy Construction Industry Forecast

Posted on January 21, 2009
An estimated two thirds of the nation's non-residential construction companies are planning to cut their pay rolls according to new employment and business forecast figures release by the AGC of America. All told those layoffs are forecast to result in a 30% decline on the number of people working on construction projects...

Congratulations Seattle Firm, McKinstry, Awarded $5B Federal Contract

Posted on January 14, 2009
The federal government, the single largest user of energy in the country, awarded Seattle-based McKinstry, a 10-year contract worth up to $5B for a series of energy efficient projects in federal government buildings. McKinstry will design, build and obtain funding for energy saving projects...

Rave for Obama - President elect backs another U.S. infra-structure project

Posted on January 13, 2009
President-elect Barack Obama during a speech on Thursday, January 8, called for the upgrading of the outdated U.S. electrical grid to a "smart grid." The smart grid will save the U.S. money, protect the power sources from blackout or attack and deliver clean, alternative forms of energy to all corners of the nation...

Protecting Your Company's Financial Interests During Tough Times

Posted on January 12, 2009
In today's construction market, contractors face increasing challenges thanks to a slowdown in construction projects, problems in obtaining credit, fewer investors for projects, high construction costs, and slow payment or nonpayment by clients. All of this can impact a contractor's ability to obtain payment from project owners or upper tier contractors or make payment to subcontractors and suppliers...

A&C Lawyer Larry Glosser appears on King 5 News

Posted on January 11, 2009
Ahlers & Cressman lawyer Larry Glosser recently appeared on King 5 news during the popular "Get Jesse" segment by anchor Jesse Jones. Mr. Glosser was recognized for his efforts in collecting a $200,000 judgment against a man who had swindled a number of people...

A Washington state company seeks approval to study ocean waves potential to produce electricity

Posted on January 11, 2009
A Washington state company, Grays Harbor Ocean Energy, applied for permits to study the potential in producing electricity from ocean waves in south California, Hawaii and the Atlantic coast. The company is asking for permits in seven locations on the Pacific and Atlantic coast...

Oregon Court binds Stucco manufacturer to warranty representations of its agent

Posted on January 05, 2009
Oregon Supreme Court held that evidence was sufficient to support jury finding that territory manager, as agent, had apparent authority to provide a warranty on manufacturers behalf.

Washington State Legislature Pushes Transportation Projects

Posted on December 08, 2008
Infrastructure projects are popular with Governor Gregoire. The State Legislature is considering two large transportation projects as part of the plan to create more Washington jobs. The two proposals being considered are the Alaska Way Viaduct and the Highway 520 Bridge Project both of which are not effected by shortfall in the state's operating budget because both projects are funded by gasoline tax and are not dependent upon the state budget (presently in the red)...

Alaska’s Thirty Billion Dollar Natural Gas Pipeline ("Palin’s Pipeline") May be Delayed

Posted on November 26, 2008
After Governor Sarah Palin returned home from the campaign trail, the thirty billion dollar pipeline she has been touting may well be in jeopardy. The economy downturn has lowered the demand for natural gas and has caused a decrease in the price of gas...

Second purchasers of new homes held to have limited rights against original developer

Posted on November 24, 2008
In this case, decided last month, the Court of Appeals held that second purchasers of new homes have few rights against the original developer who built the homes.

Specificity is required in arbitration demands

Posted on October 16, 2008
In Westcott Homes, LLC v. Chamness, __ Wn. App.__, 192 P.3d. 394 (September 15, 2008), the Court of Appeals addressed the issue of whether a series of emails satisfied the statutory requirements for initiating an arbitration. The Court of Appeals held that they did not...

Court of Appeals extends potential liability for residential developers

Posted on October 14, 2008
The Washington Court of Appeals recently extended the potential liability that residential developers face for construction defects. The case, Westlake View Condominium Assoc. v. Sixth Avenue View Partners, LLC, involved the construction of a condiminium located in Seattle.

Road Through Wildlife Refuge Divides Alaskans

Posted on September 30, 2008
Before it recesses for November elections, Congress is considering swapping land between the State of Alaska and Federal Government that would allow a road to be built through a national wildlife refuge on the Alaska peninsula. The issue before congress is whether Alaska will be allowed to swap 43,000 acres of state land for 200+ acres of the Izembek refuge needed for the road (a single lane gravel road, 17 miles estimated at $1 - $2 million per mile)...

Contractors Beware: Know the Terms of Your Payment Bond

Posted on September 22, 2008
Two recent court decisions strictly interpreting language contained in the AIA A312 Payment Bond form ("the Bond") have had a significant impact on general contractors and sureties. The courts in National Union v. Bramble (FL) and J.C. Gibson v. XL Specialty (MD), strictly interpreted the requirements contained in Paragraph 6 of the Bond...

State Dam's At Issue In Political Race

Posted on September 04, 2008
Hydroelectric power provides about 2/3's of Washington's electricity, a major reason the State's carbon footprint is much lower than places where coal or other fossil fuels are used to make power. Four dams along the Snake River, Ice Harbor, Lower Monumental, Little Goose and Lower Granite dams were build in the 1950s and 60s to open up the lower Snake River to navigation and to make electricity...

Court of Appeals rules that employee trust funds cannot recover against payment bond and retainage

Posted on July 29, 2008
In an unpublished opinion, the Division II Court of Appeals ruled this month that union managed employee benefit trust funds could not recover against a general contractor's payment bond and against an owner's retained percentage for unpaid trust fund contributions...

Alaska House of Representatives moves the TransCanada Pipeline One Step Closer to Reality

Posted on July 28, 2008
On Tuesday, July 22, 2008, the Alaska House of Representatives approved TransCanada's plans to build a $26 billion, 1,700 mile pipeline to transport natural gas from Alaska's North Slope to the US market. An Alaskan State license means streamlined permitting and the state of Alaska will match up to $500 million for funds TransCanada spends on preconstruction costs...

Boston’s Big Dig Plunged the State of Massachusetts into a Sea of Red Ink

Posted on July 24, 2008
The big dig project in Boston, Massachusetts has caused the state of Massachusetts to struggle under a massive debt burden.  The project escalated to $22 billion.  The state government now faced with an annual expense of $600 million over several years to pay off has sidelined road maintenance and other construction projects and is borrowing heavily to pay its highway workers...

Alaska House of Representatives moves the TransCanada Pipeline One Step Closer to Reality

Posted on July 23, 2008
On Tuesday, July 22, 2008, the Alaska House of Representatives approved TransCanada's plans to build a $26 billion, 1,700 mile pipeline to transport natural gas from Alaska's North Slope to the US market.  An Alaskan State license means streamlined permitting and the state of Alaska will match up to $500 million for funds TransCanada spends on preconstruction costs...

Sound Transit May Add Further Contingency Funds

Posted on July 21, 2008
Federal officials have asked Seattle Sound Transit to add another $150 million in contingency funds to the budget for the 3.15 mile light rail link to the University of Washington.  The additional were sought for overruns in the high-risk tunnel construction...

After Twenty Years, Portland’s Light Rail is Still a National Model

Posted on July 21, 2008
Portland, Oregon's light rail system, was built 20 years ago and it continues to expand with 50% more track expected in the next 18 months.  Ridership numbers are increasing.  City government is adding street cars and commuter rails to the public transportation mix...

Crane subcontractor not required to give pre-lien notice on public project

Posted on July 07, 2008
The Division II Court of Appeals ruled today that a second tier subcontractor that supplied and operated cranes was not required to give a pre-lien notice for its claim against the bond and retainage on a public project.

Redacted GAO Decision on Boeing Protest

Posted on June 25, 2008
Further to the June 18, 2008 post, GAO Sustains Boeing Bid Protest of Massive Air Force Contract, the United States Government Accountability Office has released the full, redacted, decision on the Boeing protest, which can be found here.    While this was certainly the World Series of bid protests, as noted in the previous posting, the process undertaken by Boeing and its team of attorneys is the same required by construction contractors in their protests of most federal procurements...

Tale of two construction sectors?

Posted on June 24, 2008
The Seattle Times reports the Washington State nonresidential construction industry is more than pulling its weight to pick up the slack caused by the downturn in residential construction.  The article notes that the glut of nonresidential building around the state has helped cushion the state's construction sector from the impact of the housing slump...

GAO Sustains Boeing Bid Protest of Massive Air Force Contract

Posted on June 17, 2008
Today, the United States Government Accountability Office ("GAO") upheld the bid protest of The Boeing Company ("Boeing") of the award of a $35 billion tanker contract to Northrop Grumman Corp. and European Aeronautic Defense and Space Co ("EADS").   The award of the massive government contract to the group which includes European based EADS had been widely criticized by lawmakers and patriots alike...

Two important new rules governing contractors’ business ethics and conduct

Posted on May 19, 2008
As previously advised on April 2, 2008, the ethics of companies doing business with the government and their compliance with standard government contracting requirements has been daily fair in the media.  Two new and related federal acquisition regulation rules, one final and one proposed, are the most recent manifestations of this new focus on contractor ethics...

Department of Labor & Industries Decides Sound Transit Concrete Bridge Segments Cast In a Pre-Cast Yard are Subject to Prevailing Wages

Posted on May 12, 2008
Not unexpectedly, the Department of Labor & Industries ("DLI") prodded and cajoled by labor interests has determined that pre‑cast bridge segments, cast in a pre‑cast yard, are subject to prevailing wages.  DLI relied upon three factors in arriving at this conclusion:  (1) the bridge segments are "sophisticatedly" engineered and ultimately their use is "complex", (2) the installation task of tying the rebar required "sophisticated skill", and (3) that the tasks required to build the segments was "beyond a simple repetitive work"...

Design Contract’s Enforceability of Limitation of Liability Provisions

Posted on May 11, 2008
Designers often seek to minimize their legal liability on a project by negotiating limitation of liability (LOL) clauses in their professional contracts.  An LOL clause in a design contract seeks to cap a design professional's liability for professional negligence at some specified dollar amount, often the amount of the designer's fee...

Contractor Prevails on Differing Site Condition and Notice Issue in Colorado

Posted on May 08, 2008
Recently, the Court of Appeals upheld a differing site conditions clause, reversing a trial court that had concluded that the contractor was not entitled to recover for additional costs incurred due to an unforeseen subsurface conditions.  The trial court had ruled that the contractor had assumed the risk of the subsurface conditions by entering into a fixed price contract.

City's Pre-Suit Claim Filing Ordinance Not Applicable to GC's Contract Claim

Posted on May 06, 2008
This case (Matia Contractors, Inc. v. City of Bellingham, Court of Appeals, Div I) addressed the question of whether a general contractor who is filing a lawsuit against a public entity for breach of contract is required to give notice to the public entity prior to filing its lawsuit...

Idaho Court denies GC's claim against project engineer

Posted on May 06, 2008
In Beco Constr. v. J-U-B Engineers, Inc., the Idaho Supreme Court denied a general contractor's claim against the project engineer on a public project located in Pocatello.  The general had alleged that the engineer's improper conduct and delays resulted in delays to the general's work on the project and liquidated damages assessed against the general contractor...

Conversions to Washington's Condominium Conversion Law

Posted on April 27, 2008
On August 1, 2008, new law concerning condominium conversions will take effect. SHB 2014 increases the notice requirements for conversions from 90 days to 120 days. Under the existing law, a condominium declarant must give apartment tenants 90 days notice of the conversion before tenants can be required to vacate...

ALASKA PUBLIC AGENCY ACTED WITHIN ITS AUTHORITY IN SPECIFYING EQUIPMENT WHICH EXCLUDED THE CONTRACTOR FROM THE BIDDING PROCESS

Posted on April 24, 2008
The Alaska Energy Authority ("AEA") is a public state agency which provides technical support to hundreds of Alaskan villages located off the electrical grid that produce and distribute their own energy needs. The AEA sought to upgrade the utilities in the native villages by installing new switch gear...

MAYOR OF SEATTLE PROPOSES EASY ENVIRONMENTAL REVIEWS FOR DEVELOPERS

Posted on April 23, 2008
Fewer Seattle construction projects will face environmental reviews, if the City Counsel agrees with the Mayor's proposal to exempt urban centers from State environmental policy guidelines. The change would limit reviews to larger residential, commercial and high-rise projects...

Donald Trump Tells His Lawyers, “You're Fired!” After Claiming They Treated Him Like a “Cash Cow.”

Posted on April 13, 2008
Real estate developer, Donald Trump, in a legal malpractice case, claims that his Manhattan law firm overcharged him and treated him like a "cash cow" after the lawyers won a construction case on the developer's behalf.  Trump has filed suit against the New York firm of Morrison Cohen, asserting that the firm did unnecessary work to generate higher bills...

Court of Appeals reaffirms limited review of arbitration awards

Posted on April 07, 2008
The Division Two Court of Appeals denied an owner's request to modify an arbitration award entered in favor of a contractor.  The case demonstrates the limited review of an arbitration award that a court will perform. 

Government Contractor Collects Consultant’s Fees incurred in Preparing a Request for Equitable Adjustment

Posted on April 06, 2008
In government contracting, claim preparation costs (attorneys' fees and consultant costs) are generally not recoverable by the contractor when pursuing a claim. On the other hand, if  consultant costs are incurred in preparing a "request for equitable adjustment,"  the consultant costs and attorneys' fees may be recoverable...

Proposed Oregon Natural Gas Pipeline Raises Environmental Concerns

Posted on April 03, 2008
The proposed Palomar Pipeline to be built across the state of Oregon shows a freeway wide clearcut slicing through 73 miles of public forest and crossing 50 rivers and streams.  At peak construction, Palomar Gas Transmission plans to employ up to 1,000 workers to clear the right-of-way, level terrain and bury the pipe in a trench 7 ft...

Heads Up Contractors and Subcontractors – Doing Business with the Federal Government

Posted on April 02, 2008
New federal acquisition regulation changes have been made which require all contractors to adopt "codes of business ethics and conduct" which impose substantially new duties on contractors aimed at preventing and revealing fraudulent criminal activities...

Civil Engineers Accused of Disaster Probe Cover-Ups

Posted on April 01, 2008
After the September 11, 2001 attack on the World Trade Center in New York and the levy failures in New Orleans caused by Hurricane Katrina in 2005, the federal government paid the American Society of Civil Engineers (ASCE) to investigate what went wrong...

Clark County "clean water charge" ruled constitutional

Posted on April 01, 2008
The Division Two Court of Appeals recently ruled that a clean water charge assessed by Clark County against property owners was not an unconstitutional property tax.

Port of Anchorage Overhaul to Cost $700 Million

Posted on March 31, 2008
Alaskans are questioning the $700M price tag for a huge expansion for the Port of Anchorage.  The Port of Anchorage is the main conduit for 75% of all goods sold statewide.  The present plan for the new Port calls for doubling the land mass of the Port by erecting a long steel wall in the bay and then filling in the area with gravel...

Homeowner's Bill of Rights: Is it Dead?

Posted on March 25, 2008
Rep. Mark Ericks, D-Bothell, sounded off in an editorial in the Seattle PI that a new task force will be established to propose new remedies for homeowners during the next legislative session.

Seattle Axes Plan for Floating Bridge Light-Rail

Posted on March 25, 2008
Seattle officials have nixed plans for the light-rail system on the new SR 520 floating bridge, despite design specifications that call for pontoons strong enough for a rail line.  The transit authorities indicated that beyond cost considerations, technical issues made the light-rail line all but impossible...

A Release in a Settlement Agreement is Not Effective Until All Amounts Due are Paid

Posted on March 25, 2008
An employee and his employer entered into a settlement agreement concerning a severance and salary dispute that required the employer to pay $50,000.  When the employer failed to make the payment due under the settlement agreement, the employee filed a lawsuit claiming the settlement agreement was void because the consideration specified in the agreement had never been paid and sought to recover the original claim amount rather than the $50,000...

A Contractor Faulty Estimate Should Not Trigger False Claims Act Violation

Posted on March 21, 2008
A threshold requirement under the False Claims Act is that a "false claim" exists, that is, that the claim be objectively "false."  Expressions of opinion, scientific judgments or statements as to conclusions about which reasonable minds may differ cannot be false as required by the False Claims Act...

Three year statute of limitations for claims against dissolved LLCs begins to run on date of administrative dissolution

Posted on March 18, 2008
The Court of Appeals ruled this week that the three statute of limitations for claims against LLCs that have been administratively dissolved begins to run on the date the LLC is administratively dissolved. 

Division One Court of Appeals clarifies application of discovery rule in breach of contract cases

Posted on March 18, 2008
In Harmony at Madrona Park Owners Assoc. v. Madison Harmony Dev., Inc., the Court of Appeals clarified when the discovery rule applies in breach of contract actions where construction defects are alleged. 

“Pay When Paid” vs. “Pay If Paid” Clauses: Mystery vs. Myth

Posted on March 17, 2008
A "Pay When Paid" clause provides that payment to the Subcontractor will be made within a certain period of time after the contractor has been paid by the owner, rather than within a period of time after the subcontractor has performed its work.  Generally, "Pay When Paid" clauses are interpreted to merely postpone payment for a reasonable time...

Negligent construction bill dies in House of Representatives

Posted on March 17, 2008
Senate Bill 6385 which sought to create a cause of action for homeowners against contractors for negligent construction failed to reach the House floor for debate and approval. 

Port of Seattle Reorganizes Construction Division

Posted on March 13, 2008
Engineers and construction managers at the Port of Seattle will join a Development Division aimed at preventing the kind of waste and fraud which auditors assert have plagued the Port authority for months.  A recent audit concluded the Port's construction program wasted millions of dollars, failed to rigorously negotiate with contractors, appeared to favor certain businesses and sometimes broke state law when awarding contracts...

Impact of Shift Work on Labor Productivity for Labor Intensive Contractors

Posted on March 13, 2008
Generally, a contractor has three options in accelerating a construction schedule: working longer hours, increasing the number of workers, or creating an additional shift of workers.

Pew Research Gives Washington State An “A” For Infrastructure Government Performance

Posted on March 12, 2008
From the great news for the state of Washington, bad news for Dino Rossi, a new 50 state report card released on May 4, 2008 gives Washington an "A" grade for government performance for infrastructure maintenance.  Pew Research gave 23 states a grade lower than C+ for the way they maintained bridges, roads, and other infrastructures, while a B- grade was the overall average...

Cement Demand Expected To Soar 43% By 2030

Posted on March 12, 2008
According to the Portland Cement Association, US demand for cement will increase 43% by 2030, driven by both population growth and environmental concerns.  With the population expected to increase by 63 million, "construction will boost demand for cement to record levels," according to Edward J...

MCA Takes On University of Washington Emergency Regulations for Renovation of Husky Stadium (February 2008)

Posted on March 12, 2008
The Mechanical Contractors' Association (MCA), in a strongly worded letter, has taken issue with the University of Washington's (University) decision to declare an emergency and adopt regulations that would permit the Husky Stadium renovation to proceed without the safeguards of competitive bidding...

Job Satisfaction of Women in Construction Trades

Posted on March 11, 2008
Tradeswomen in the Cincinnati, Ohio area were surveyed to assess to their satisfaction or dissatisfaction with construction work.  The study showed that pay, benefits and job security are most important to women in their occupation.  Although the tradeswomen are satisfied with the nature of the work in the construction trades, but are less satisfied with the pay, benefits, job security and availability of separate, hygienic/sanitary facilities...

AAA Takes On The New AIA 207 documents and ConsensusDOCs Contracts – Arbitration Clauses

Posted on March 11, 2008
The new AIA 201 2007 form departs with almost a century of American Institute of Architects (AIA) tradition of arbitrating disputes in American Arbitration Association (AAA) arbitration.  Up until 2007, the exclusive dispute resolution process under AIA documents was AAA arbitration...

Public Works Projects In Washington Get Funded By The Legislature:

Posted on March 11, 2008
The Washington State Senate Approved The A $7.5 Billion Highway Budget: The Washington State Senate approved new funding for Washington highways, including replacement of the Alaskan Way Viaduct in Seattle, and the new 520 floating bridge across Lake Washington...

A Design Omission Does Not Automatically Create a Contract Ambiguity

Posted on March 05, 2008
Dick Pacific/GHEMM, JV ("Dick Pacific") was the general contactor for the $138.3 Bassett Hospital at Fort Wainwright, AK.  The owner of the project was the U.S. Army Corps. of Engineers.  Dick Pacific subcontracted the installation of the medical case work to ISEC, Inc...

Allocation of Concurrent Delay Damages on Construction Projects

Posted on March 03, 2008
When delay events interact, that is when two events or parties cause a delay to the critical path at the same time, the issue is often whether the concurrent delays can be apportioned between causes or parties.

Contractor Uses Measured Mile Method to Calculate Loss of Efficiency Cause by Differing Site Conditions

Posted on March 03, 2008
The Army Corps of Engineers ordered a dredging contract to Bay West, Inc. to remove and transport 170,000 CY dredged materials from the Mississippi River.  The specifications provided that although the contractor was responsible for determining the character of the existing material "for its own purposes," the materials relocated could be assumed to consist of "predominantly previously dredged sand from the River channel...

Mechanic's lien filing period not tolled indefinitely when claimant joins in another foreclosure action

Posted on February 29, 2008
This week, in Van Wolvelaere v. Weathervane Window Co., the Washington Court of Appeals ruled that the 8 month statute of limitations for mechanic's liens was not tolled indefinitely after a lien claimant joins an existing lawsuit filed by another claimant to foreclose on the property at issue.

Miller Act Recovery Can Depend Upon Whether the Claimant is a “Subcontractor” or “Supplier”. (Federal Bond Claim)

Posted on February 29, 2008
The Miller Act provides recovery from the general contractor's bond for only first and second tier claimants.  A first-tier claimant is one who has a direct contract with the prime contractor, a second-tier claimant is a claimant who has a direct contract with the prime contractor's (first tier) subcontractor...

Court of Appeals rules that additional terms in paint supplier's invoices that materially alter the parties' agreement do not form a part of contract with purchaser

Posted on February 28, 2008
The Court of Appeals ruled that the warranty disclaimers and other terms in a paint supplier's invoices that materially altered its agreement with the purchaser did not form a part of the parties' contract and were not enforceable.

Court of Appeals rules on wages required for electrical workers on public projects

Posted on February 27, 2008
The Court of Appeals in D.W. Close v. Department of Labor and Industries ruled that electrical workers who pull low voltage wiring through conduit of more than 10 feet in length on construction projects are required to be compensated as "inside wireman"...

General Contractor’s Failure to Send Subcontractor a Subcontract Which Met the Terms of the Subcontractor’s Quotation, Prevented the General Contractor From Recovering Under Promissory Estoppel

Posted on February 27, 2008
The general rule in construction contracts is that if a prime contractor relies upon a subcontractor's bid, and incorporates the subcontractor's quote in its bid to the owner, the subcontractor may not withdraw its bid for a reasonable period of time after the prime contractor's bid has been accepted by the owner...

Delays by a Contractor’s Supplier Do Not Fall Within the Prime Contract's Force Majeure Clause

Posted on February 26, 2008
During the construction of a tower and fiber optic line, the contractor was delayed by its supplier, causing the contractor to incur an assessment of liquidated damages.  The prime contract force majeure clause defined a force majeure event as: "Any reasonable delay which is due exclusively to causes beyond the control and without the fault of contractor ...

Court Endorses the “Measured Mile” Method of Calculating Contractor Inefficiency

Posted on February 25, 2008
The Pennsylvania Appeals Court recently endorsed the "measured mile" method as the preferred method of calculating loss of productivity damages.  The court explained that this method compares the cost of completing work not subject to delay or acceleration, with the cost of completing the work during the period of impact...

Owners Owe Implied Obligations During Construction of the Project in Addition to Express Contract Obligations

Posted on February 25, 2008
Owners and contractors should keep in mind that in addition to the obligations the construction owners assume is part of the express contract terms, there are certain implied obligations that arise during the design and construction of a project.  In many instances, contractors and owners are unaware of these implied obligations: (1)  the duty to disclose material information to prospective bidders; (2) the duty to provide accurate plans and specifications; (3) the duty to provide accurate site information; (4) the duty to perform necessary regulatory approvals, permits and easements; (5) the duty to provide access to the work; (6) duties relating to owner/furnished products, materials or equipment; (7) the duty to timely review contractor submittals and requests; (8) the duty to approve valid requests for extension of time; (9) the duty to make timely inspections; (10) the duty to maintain the project site in a reasonably safe condition; (11) the duty not to hinder, delay or interfere with the timely completion of the work; and (12) the duty to coordinate the work of multiple prime contractors...

Though the Contractor Conducted a Survey of Hazardous Materials and There Were No Objective Standards to Determine the Adequacy of the Survey, L&I Found as a Matter of Law That the Survey Was Not Performed in Good Faith and the Contractor Was Cited

Posted on February 22, 2008
Seattle Pacific University ("SPU") engaged Prezant Associates, Inc. ("Prezant") to identify all asbestos containing materials for abatement on the Miller Science Building.  The contractor, in its bid, agreed to perform the inspection in accordance with the Washington Administrative Code (WAC) and certain federal regulations (CFRs)...

Class Action Lawsuit Filed Against New England Patriots for Videotaping

Posted on February 17, 2008
Today a former St. Louis Rams player and three fans filed a class action lawsuit on behalf of themelves and those similarly situated against the New England Patriots for damages resulting from the alleged videotaping of the St. Louis Rams' practice prior to Superbowl XXXVI...

Court of Appeals rules that one party cannot have unilateral right to select arbitrators

Posted on January 31, 2008
This week the Washington Court of Appeals ruled that arbitration clauses that provide only one party to the agreement the sole right to select the arbitrators are unenforceable.  The clause permitted one party to select arbitrators from its own affiliated entities...

Seattle School District in Race Against Rising Construction Costs

Posted on January 26, 2008
Rising construction costs from China's demand for steel and concrete, the regional condominium-building boom and the 2010 Olympics in Vancouver, B.C. have caused the Seattle School District to accelerate the schedule on several projects, but not without community concern...

American Safety v. City of Olympia

Posted on January 09, 2008
American Safety v. City of Olympia case (see Attached Article) increases the contractor's burden in recovering valid claims for changes (due to design revisions, differing site conditions or owner directed upgrades) . Not only must the contractor strictly comply with the notice requirements, if the contractor believes that the owner has relaxed the notice requirements, the Supreme Court has ruled the only way the contractor can be sure that the written notice requirements have been waived is to get that waiver in writing...

Memorable Quotes

Posted on January 08, 2008
Here are some profound words from our founding father Benjamin Franklin for the New Year. 

RAVES FOR IDAHO CONTRACTOR FIGHTING BACK ON ALLEGED DEFECTIVE CONSTRUCTION CLAIM

Posted on January 08, 2008
According to a lawsuit filed in Blaine County, Idaho, Tom Hanks ("Hanks") (the actor) and his wife Rita Wilson ("Wilson") hired Storey Construction, Inc. in 2001 to build a luxury home in Sun Valley, Idaho. The home was completed in 2002, and the movie star couple moved in...

American Safety v. City of Olympia: Supreme Court Affirms and Clarifies Mike M. Johnson

Posted on January 02, 2008
Last month, the Washington State Supreme Court affirmed its holding in Mike M. Johnson and reversed the Division 2 Court of Appeals in Am. Safety Cas. Ins. Co. v. City of Olympia, __ Wn.2d __, __ P.3d. __ (2007). The case again demonstrates the Washington State Supreme Court's position that contractors must strictly comply with the notice and claim procedures in their contracts, absent an "unequivocal" waiver of those procedures by the other party to the contract.

Mike M. Johnson Legislation Update

Posted on December 28, 2007
A & C lawyers John Ahlers, Paul Cressman and Bruce Cohen have been working closely with the Association of General Contractors (AGC) on legislation to address the contractor notice forfeiture dilemma created by the Wa Supreme Court's decision in Mike M...

Legislative Update - Trust Fund Proposal

Posted on December 28, 2007
A & C attorneys John Ahlers and Bruce Cohen have been working with the Assocation of General Contractors on legislation which would require that union trust funds, when requested to, advise general contractors as to the status of subcontractor trust fund payments...

Flour v. Walter - Severin Doctrine in WA?

Posted on December 28, 2007
The case had a complicated procedural history and facts are largely irrelevant for most of us, but there is one issue that may appeal to prime contractors. The Division I trial court applied the Severin doctrine to dismiss Flour's attempt to assert its subcontractor's claim against the owner.

Stevens v. Brink's Home Security - WA clarifies wages law

Posted on December 28, 2007
On October 18, 2007, the Washington State Supreme Court held that Brink's Home Security was required to pay wages to service technicians when driving company trucks from their homes to the first job site and back home from the last job site under Washington's Minimum Wage Act, RCW 49...

Legislature Revises Lien Notice to Customer Requirements

Posted on December 28, 2007
Effective July 22, 2007, the Notice to Customer provided to owners by contractors required to be registered and performing work on certain specified construction projects now must be signed by the owner and retained by the contractor for three years.

Builder had no duty to disclose concealed defects to second purchaser of home

Posted on September 26, 2007
The Division One Court of Appelas ruled that a buider/vendor of residential real estate does not owe a duty to disclose concealed defective conditions to the second purchaser.

Legislation permitting claims against contractors for negligent construction passes Senate

Posted on March 06, 2007
Until now, homeowners have only been able to sue their contractors for defective construction under expressed or implied warranties agreed to in their contract.  Mercer Island Senator, Brian Weinstein, however, is hoping to change that.  He is sponsoring senate bill 6385 which, if passed, would allow homeowners to sue their contractor for negligent construction...