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Construction Law

Michigan Construction Law

A forum for sharing current developments in Michigan construction law.

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Last Entry: August 20, 2019 at 16:44:00

AGC of Michigan Announces Construction Law Webinar Series

Posted on December 21, 2009
As a follow-up to its October 30, 2009 seminar, AGC of Michigan has announced a series of lunchtime webinars featuring some of the authors of the recently-updated publication "Contractor's Guide to Michigan Construction Law" (Rev'd 2009). Webinar 1 - January 20, 2010 - 11:30 to 1:00 p...

Michigan Bill Would Allow Private Investments in Public Projects

Posted on December 21, 2009
Crain's Detroit Business reports today that legislation has been introduced in the Michigan legislature that would encourage private investors to fund public transportation infrastructure.House Bill 5461 would create the Private Investment Infrastructure Funding Act, under which municipalities could enter into collaborative relationships with other public entities to develop public facilities and could, among other things, solicit private sector investment for the financing of public facilities through a bid process...

AGC of Michigan Sponsor's Construction Law Seminar

Posted on October 26, 2009
On October 30, 2009, AGC of Michigan is hosting a seminar to address a number of pressing legal issues facing contractors today including payment, dispute resolution mechanisms, hiring and firing of employees, and bankruptcy.This seminar will also launch the 3rd Edition of "A Contractor's Guide to Michigan Construction Law," which has been in the works now for almost a year...

E-Verify Regulations Upheld, New Verification Requirements to Begin September 8

Posted on September 01, 2009
A federal lawsuit filed last December, seeking to block implementation of federal regulations requiring verification of employee immigration status (reported here), has ended with a ruling in favor of the Department of Homeland Security.As reported by FederalTimes...

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Court Appeals Rejects Narrow Constrution of "Common Work Area" for Crane Accident

Posted on August 31, 2009
The Michigan Court of Appeals recently reversed the grant of summary disposition to a Defendant finding that there were questions of fact as to whether the area where Plaintiff was injured could be construed as a common work area and whether the risk was posed to a significant number of workers...

Court Upholds City Ordinance Assessing Costs against Owners of Abandoned Homes

Posted on July 14, 2009
The Michigan Court of Appeals recently upheld a challenge to a Battle Creek ordinance imposing a fee against the owners of abandoned residential property. In Kenefick v City of Battle Creek, __ Mich App __ (2009) (approved for publication July 2, 2009), a city ordinance requiring owners of abandoned homes to pay a "monitoring fee" was challenged on grounds that it was both unconstitutionally vague and violated the Equal Protection Clause...

Michigan Seller Disclosure Act -- No Claim for Innocent Misrepresentation, Supreme Court Affirms Ruling

Posted on June 19, 2009
On June 17, 2009, Michigan Supreme Court entered an order affirming a 2008 Michigan Court of Appeals decision, which had held that Michigan law did not recognize claims for innocent misrepresentation under the Michigan Seller Disclosure Act (MCL 565.951, et seq)...

Assignment of Contractual Rights without the Consent of the Engineer

Posted on May 03, 2009
By: Gary D. Quesada, Hon. Aff. AIA, J.D.Principal Attorney, Cavanaugh & Quesada, PLCWhen entering a contract, an Engineer cannot accurately assess its risks without being assured that the other party will in fact remain its contracting partner throughout the Project...

OMB Publishes Updated Guidance for Implementing ARRA

Posted on April 07, 2009
On April 3, 2009, the Office of Management and Budget (OMB) published (here) Implementing Guidance for the American Recovery and Reinvestment Act of 2009 ("Recovery Act").This is the second installment of detailed government-wide guidance for carrying out programs and activities enacted in the Recovery Act...

Largest Construction Projects in Michigan, 2009 List

Posted on March 19, 2009
Crain's Detroit Business is out with the annual list of the Largest Construction Projects in Michigan for 2009 (here). Most of the projects in the Top 20 began several years ago, and are scheduled to complete in 2009 or early 2010. As in past years, school and hospital projects dominate the Top 20...

New Ethics, Disclosure Rules for Federal Contractors

Posted on February 25, 2009
On December 12, 2008, new federal rules on mandatory disclosure and ethics and compliance went into effect. Among other things, the rule requires government contractors to disclose evidence of violations of certain criminal laws by their employees or subcontractors and to implement certain internal controls within their companies...

Arbitration Award, Michigan Court of Appeals Clarifies Time to Confirm

Posted on February 15, 2009
The Michigan Court of Appeals recently clarified the deadline for confirming an arbitration award. In Greater Bethesda Healing Springs Ministry v Evangel Builders & Construction Managers, LLC, ___Mich App___(2009), the Michigan Court of Appeals, explained that MCR 3...

New Bill Would Allow Construction Liens on Public Property

Posted on January 30, 2009
On January 29, 2009, Sen. Dennis Olshove (D. Warren) introduced S.B. 140, which would allow construction liens to be recorded against government (public) property.Specifically, S.B. 140 would amend Section 107 of the Construction Lien Act (MCL 570.1107) by adding a new Subsection (7):(7) Real property owned or leased by a government entity or as to which a government entity contracts for an improvement is subject to a construction lien under this Act to the same extent as other real property...

Implementation of E-Verify Rule Delayed

Posted on January 14, 2009
Federal Computer Week reported on January 12, 2009 that -"Enforcement of a new rule that requires federal contractors to use the Homeland Security Department?s E-Verify system to check employees' work eligibility has been postponed until Feb. 20, the U...

Contractor Groups File Suit, Seek to Block New Immigration Checks

Posted on December 31, 2008
The Federal Times reported on December 30, 2008:"Five trade groups are suing the Homeland Security Department to block a new requirement that federal contractors check the immigration status of their employees using the department?s E-Verify system. "In documents filed in the U...

AGC Legal Brief Highlights Recent Builder's Trust Fund Decision, Other Michigan Decisions

Posted on December 11, 2008
The December, 2008 issue of the AGC Legal Brief highlights a number of recent court decisions and legislative changes affecting design professionals, contractors, subcontractors and residential builders in Michigan.The current issue of the AGC Legal Brief was written by attorneys from Dickinson Wright and its construction practice group, and includes the following articles:Joseph W...

Legally Blawged: Connecting Michigan's (Online) Legal Community

Posted on November 21, 2008
Earlier this year, I met two other Michigan attorneys who write legal blogs (blawgs). We began to meet for dinner and to share our experiences with blawgs as a way to develop and expand our practices. We call ourselves "Legally Blawged" and recently incorporated as a Michigan non-profit corporation (LegallyBlawged...

Statute of Limitations Bill Passed by House Judiciary Committee

Posted on November 14, 2008
On November 12, 2008, Senate Bill 865, which would revise the statute of limitations for bringing an action against an architect, professional engineer, land surveyor or construction contractor, was unanimously approved by the House Judiciary Committee...

Cavanaugh & Quesada, PLC -- Announcing New Firm

Posted on November 04, 2008
Peter Cavanaugh and Gary Quesada are pleased to announce the formation of Cavanaugh & Quesada, PLC. The new firm is located in the Historic Washington Square Building in Royal Oak (MI), and will focus on serving the unique legal needs of the design and construction communities...

New Bill Would Create "Commercial Real Estate Broker's Lien Act"

Posted on October 04, 2008
On May 14, 2008, Sen. Randy Richardville (R. Monroe) introduced S.B. 1313, which would create the "Commercial Real Estate Broker's Lien Act". The bill was reported out of committee on October 2, 2008.The bill would do all of the following:Specify circumstances under which a commercial real estate broker's lien would attach to commercial real estate...

Detroit City Council Approves Upper Rouge CSO Tunnel, DWSD Contract PC-764

Posted on September 25, 2008
The Detroit Free Press reports -- "The Detroit City Council approved today on a 6-0 vote a $314 million portion of a $1 billion tunnel system to store sewage and storm runoff during heavy rain with the city up against a Sept. 28 deadline to act or face the loss of low-interest loans that could have cost ratepayers an extra $100 million in interest on construction bonds and put the city in violation of its water pollution permit...

SBA Suspends Applications for Small Disadvantage Business (SDB) Program

Posted on September 24, 2008
The Small Business Administration (SBA) announced yesterday that it is suspending the receipt of applications for the Government-wide small disadvantaged business (SDB) program effective September 22, 2008. The announcement was made through the Federal Register...

AGC Legal Brief Highlights False Claims Act

Posted on September 22, 2008
The September 2008 issue of the AGC Legal Brief highlights the use of the False Claims Act (FCA) against contractors and subcontractors. The article, written by Attorney Patrick Facca, presents an overview of the FCA and outlines some of the risks associated with the statute...

Panel to Consider Arbitration Post-Hall Street Associates

Posted on September 16, 2008
On October 6, 2008, the ABA's Section on Public Contracts is sponsoring a Panel Discussion concerning the Supreme Court's ruling in Hall Street Associates v Mattel, ___ U.S. ___ (2008) and its impact on arbitration in federal procurement cases. We first reported on the Hall Street decision here...

New Article Outlines Laws and Programs Designed to Assist Service-Disabled Veteran-Owned Small Business in the Federal Marketplace

Posted on September 09, 2008
Korsak, "The Service-Disabled Veteran-Owned Small Business in the Federal Marketplace," The Army Lawyer, July 2008, pp. 45-58.Written by Lieutenant Commander Theron R. Korsak, this article is meant to introduce agency heads, contracting officers, Judge Advocates, and veterans to the laws and programs designed to assist service-disabled veteran-owned small businesses (SDVOSB) in federal contracting...

Michigan Seller Disclosure Act (SDA): Innocent Misrepresentation Not a Claim under SDA Rules Michigan Court of Appeals

Posted on August 26, 2008
Holding that innocent misrepresentation is not a viable theory of liability under the Seller Disclosure Act (SDA) (MCL 565.951, et seq), the Michigan Court of Appeals recently reversed a judgment awarding Plaintiffs $86,813 in damages and costs and remanded the case for entry of a judgment in favor of the Defendant-Sellers...

VA Proposes New Rules to Increase Opportunities for Service-Disabled Veteran-Owned Small Business (SDVOSB)

Posted on August 21, 2008
Veterans Administration (VA), Federal Acquisition Regulations: Supporting Veteran-Owned and Service- Disabled Veteran-Owned Small Businesses, Proposed Rules, 73 Fed. Reg. 49141, August 20, 2008.This proposed rule would implement portions of the Veterans Benefits, Health Care, and Information Technology Act of 2006 and Executive Order 13360, Providing Opportunities for Service-Disabled Veteran Businesses to Increase Their Federal Contracting and Subcontracting...

Avoiding Home Foreclosure in Michigan

Posted on August 14, 2008
Gary Nitzkin, who blogs at Michigan Collection Law Blog, recently posted an important article outlining a number of ways that homeowners can avoid losing their homes to foreclosure.Gary's suggestions include (a) asking your lender about a Home Retention Program, (b) talking directly with the lender's Loss Mitigation Department, (c) considering a Forbearance Agreement, a Loan Modification, deed in lieu of foreclosure or (d) negotiating a pre-foreclosure short sale...

AGC of Michigan Sponsors ConsensusDOCS Seminar

Posted on August 13, 2008
On Thursday, September 25, 2008, at 8:30 a.m., the AGC of Michigan will present ConsensusDOCS: A New United Voice for Construction Contracts at its office in Lansing. The session will run 8:30 a.m. - 11:30 a.m. and includes a continental breakfast and seminar materials...

New Article Discusses Interplay Between Section 523(a)(4) of Bankruptcy Code and Michigan Builder's Trust Fund Act

Posted on July 13, 2008
As discussed in an earlier post, the Michigan Builder's Trust Fund Act (MCL 570.151, et seq) may impose personal liability upon corporate officers, or members of a limited liability company, who misappropriate construction proceeds in violation of the statute...

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