On August 30, 2016, Governor Brown signed into law AB 1793, which amends the requirements under Business & Professions Code § 7031 for a contractor to establish “substantial compliance” with state contractor licensing requirements. AB 1793 amends section 7031 by
Construction & Infrastructure Law Blog
New Legal Developments in Construction & Infrastructure Industry
The Construction & Infrastructure Law Blog, published by Sheppard, Mullin, Richter & Hampton LLP, focuses on legal issues related to construction and infrastructure projects. It covers topics such as contract negotiation and compliance, retention and payment practices, bonds and mechanic's liens, prevailing wage laws, eminent domain authority, and dispute resolution in construction contexts. The blog also addresses sector-specific challenges, including those in energy infrastructure and transportation projects, and discusses recent legislative and regulatory developments affecting construction law. It provides insights into risk management, litigation, and statutory changes impacting contractors, subcontractors, owners, and developers involved in construction and infrastructure work.
Latest from Construction & Infrastructure Law Blog - Page 3
Revised Construction Industry Arbitration Rules Adopted by American Arbitration Association
The American Arbitration Association (“AAA”) issued revised Construction Industry Arbitration Rules which took effect July 1, 2015. There are significant changes in the new rules which are intended to make the arbitration process more efficient and cost-effective. The changes include…
Second-Lowest Bidder for Public Contracts May Sue Lowest Bidder Who Paid Less Than Prevailing Wages
Public agencies have little, if any, discretion when awarding public contracts because they are required to award the contract to the lowest bidder, subject to certain minimum qualifications. These limitations are designed to protect the public and its financial interests,…
Principal Architects on Residential Projects Liable for Construction Defects Outside Their Control; Developers and Owners May Pay the Price
Beacon Residential Community Assoc. v. Skidmore, Owings & Merrill, LLP (Cal. Supreme Court., 07/03/2014, S208173)
On July 3, 2014, the California Supreme Court decided the much watched case Beacon Residential Community Assoc. v. Skidmore, Owings & Merrill, LLP. …
New California Statutes Potentially Increase Contractors’ and Subcontractors’ Liability Exposure Under the Prevailing Wage Law
California has enacted several statues, effective January 1, 2014, which will likely increase contractors’ and subcontractors’ exposure to claims for prevailing wage violations on public works projects. Under the Prevailing Wage Law, Cal. Labor Code § 1720 et seq., contractors…
A Construction Defect Insurance Carrier Need Only Demonstrate That Another Insurance Carrier’s Policy May Potentially Cover The Claim In Order To Recover Equitable Contribution To A Settlement
A California Appellate Court recently clarified the burden of proof for an insurance company seeking contribution from another insurance company in settlement of a construction defect action. When a company involved in construction is sued for allegedly causing property damage…
New Court Decision Clarifies Mechanic’s Lien Valuation Statute
The amount of a mechanic’s lien in California is generally the lesser of: 1) the reasonable value of the work; or 2) the price agreed upon in the lien claimant’s contract. But does the same measure apply if a lien…
Knowingly Underbidding For Government Contract May Lead to False Claims Liability
Contractors usually assume that the statutory prohibition on submitting “false claims” refers to inflated invoices, phony change order costs, and the like. However the courts are giving the relevant statutes a broader meaning which public works contractors should take into…
Developers May Require That Construction Defect Disputes Be Resolved Through Arbitration
The California Supreme Court recently ruled that developers – by including an arbitration provision under the Federal Arbitration Act (FAA) in Homeowners’ Association Covenants, Conditions and Restrictions (“CC&R’s”) – may require that construction defect actions be resolved through arbitration rather…
Charter Cities Are Not Required to Pay Prevailing Wages on Local Public Works Projects
Labor unions have long been at odds with California charter cities over whether such cities must pay prevailing wages on public works projects. While many charter cities have either not exempted themselves from state prevailing wage laws, or have passed…