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United States District Court for the Eastern District of Pennsylvania Decided a Construction Matter

1/9/2018 | Construction Blog

Earlier this month, the United States District Court for the Eastern District of Pennsylvania decided a construction matter that focused on two issues: 1. Whether the subcontractor waived any potential claims against the general contractor by signing the periodic releases and change orders; and 2. Even if so, whether statements made by the general contractor’s employees waived the general contractor’s claim to rely on the releases and change orders. The Court concluded that the general contractor never waived its right […]

FINAL VERSION OF NEW TAX BILL PRESERVES PRIVATE ACTIVITY BONDS

12/19/2017 | Construction Blog

The final version of the federal tax bill, which is expected to be passed by Congress this week, maintains for the most part the current tax status of private activity bonds which are important to the construction industry.   Private activity bonds provide tax credit incentives for investors for certain targeted developments such as affordable housing, economically distressed commercial development zones, historic building renovation, and infrastructure.    Earlier versions of the tax bill would have eliminated or sharply reduced funding for […]

New California Law

12/6/2017 | Construction Blog

A new California law requires prime contractors on private construction projects to be financially responsible for any wages, fringe benefits and union contributions left unpaid by subcontractors and their sub-subcontractors. The prime contractor’s financial responsibility under this new law, however, does not extend to any penalties or liquidated damages resulting from a subcontractor’s failure to pay wages. This law governs all private construction contracts entered into beginning January 1, 2018. As a result of this new law, prime contractors on […]

When is a property owner’s fee interest subject to the lien of an unpaid contractor renovating the property for tenant?

11/28/2017 | Construction Blog

Section 1303(d) of the Mechanics’ Lien Law of 1963 provides that “No lien shall be allowed against the estate of an owner in fee by reason of any consent given by such owner to a tenant to improve the leased premises unless it shall appear in writing signed by such owner that the erection, construction, alteration or repair was in fact for the immediate use and benefit of the owner.”  However, the terms of the owner’s lease with the tenant […]