Construction Law

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...

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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...

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