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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 tax […]

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 […]

Limitation of Liability Clauses Can Offer Effective Protection for Design Professionals and Parties to Construction Contracts

11/30/2017 | Articles & Alerts, Construction Blog

It is not uncommon for design professionals to negotiate limitation of liability clauses in their professional services contracts. These clauses typically limit the damages recoverable from the design professional, either under breach of contract, warranty, or negligence claims to a capped amount. Courts are routinely asked to enforce such provisions when, as a result of the negligence of mistake of a design professional, another party sustains damages. A recent 2017 case in Colorado, Taylor Morrison v Terracon Consultants points out […]

Related Practices: Construction Law, Construction Claims and Litigation, Project Consulting and Contract Preparation

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 […]