General – Page 9 – Duane Morris Construction Law

June 10, 2014July 26, 2014 by Patrick J. Kearney

Legislation Proposed to Allow ERISA Trusts to Pursue Mechanics’ Liens

On April 17, 2014, the Supreme Court of Pennsylvania issued a decision in Bricklayers of Western Pennsylvania Combined Funds, Inc. v. Scott’s Development Company, et al., that held that union workers (employees of the primary contractor) were not “subcontractors” as that term is defined in the Pennsylvania’s Mechanics’ Lien Law of 1963, and that trustees of the union’s employee benefits trust funds were not entitled to file mechanic’s lien claims on the employees’ behalf for unpaid contributions to the trust funds.

Following this ruling, Rep. William Keller, D-Philadelphia, introduced HB 2319 to the General Assembly which would amend the Mechanic’s Lien Law to classify union benefit fund trustees as subcontractors allowed to pursue claims for non-payment against employers and property owners under the Mechanic’s Lien Law.

Duane Morris will continue to monitor the progress of this legislation.

May 23, 2014July 26, 2014 by Patrick J. Kearney

The Service-Disabled Veteran-Owned Business Act Becomes Law in New York

The Service-Disabled Veteran-Owned Business Act (the “Act”) was signed into law by Governor Andrew M. Cuomo on May 12, 2014. Under this new law, veteran business owners will be eligible to become certified as a New York State Service-Disabled Veteran-Owned Business (SDVOB). The goal of the Act is to encourage and support eligible businesses to play a greater role in the economy of the State by increasing participation in New York State’s contracting opportunities. Towards that end, New York will award 6 percent of state contracts to businesses owned by disabled veterans and create the new Division of Service-Disabled Veterans’ Business Development within the New York State Office of General Services (“OGS”) for the establishment of a statewide certification program. The Division will be responsible for certifying eligible SDVOBs, and assist and promote the compliance of SDVOB participation in the state’s procurement activities.

The statute provides that rules and regulations must be issued within 90 days of the effective date of the Act. However, understanding the strong interest in the program and the need to commence certifying businesses as soon as possible, OGS will be issuing emergency regulations on or before the week of June 2, 2014 prior to the adoption of permanent regulations.

April 11, 2014July 27, 2014 by Duane Morris

Duane Morris’ Construction Group Nominated for 2014 Chambers USA Award for Excellence

Duane Morris is pleased to announce that the firm’s Construction Group has once again been nominated for one of the prestigious Chambers USA Awards for Excellence. This is the fourth overall nomination for the group, which has been recognized among the top national practices by Chambers for the past several years. Duane Morris is one of only five firms to be finalists in the construction category this year.

The Awards for Excellence honor outstanding firms based on research conducted for Chambers USA 2014. These awards reflect a law firm’s preeminence in key practice areas, as well as notable achievements over a 12-month period, including outstanding work; impressive strategic growth; and excellence in client service.

The Chambers USA Awards for Excellence winners will be announced on Thursday, May 22, 2014 at Cipriani 42nd Street in New York City

April 4, 2014July 27, 2014 by Duane Morris

Duane Morris Partner Albert Bates, Jr. to Present at the Deloitte Energy Conference

Duane Morris partner Albert Bates, Jr., will be presenting at the 2014 Deloitte Energy Conference: A Global Industry . . . Competing Locally, which will be held on Tuesday, May 13, and Wednesday, May 14, 2014, at the Gaylord National Resort and Convention Center in National Harbor, Maryland. Mr. Bates will serve as a panelist during the Elective Session – Sector Breakouts on Power on May 14, 2014, where he will discuss strategic considerations of major capital projects, including evolving project delivery systems and inherent risks, as well as proactive project risk management and controls.

CPE Credit Amount and CPE Field of Study Subject Area(s) are pending review by the National CPE Compliance Group. Participants can receive up to 12 hours of CPE credits for attending this conference in multiple subject areas depending upon sessions attended.

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March 10, 2014July 28, 2014 by Patrick J. Kearney

Managing Snow and Weather Related Delays on a Construction Project

This winter it seems like no one has been able to escape the fury of Mother Nature. As a result, construction projects all over the country are now behind schedule. Because “time is money” for all of the project participants, disputes related to time extensions, liquidated damages, acceleration claims, and other delay damages are expected. In anticipation of these disputes, contractors and owners should review their contracts and consult with an attorney before submitting or responding to a weather related claim.

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March 10, 2014July 27, 2014 by Duane Morris

Recent Changes in New York City’s Standard Construction Contract

With its new Standard Construction Contract, issued in December 2013, the City of New York (the “City”) has implemented numerous significant changes as compared with its 2008 standard contract. The most widely discussed change in the City’s standard construction contract is the elimination of an express “no damage for delay” clause. At least ostensibly, the new contract represents a more flexible approach to delay damages by enabling the contractor to recover for delays in factual settings not previously amenable to delay claims. This Alert briefly summarizes some of the new provisions.

Click here to read the full Alert.

February 18, 2014July 29, 2014 by Jose A. Aquino

Itemization of Mechanic’s Lien Not Necessary Where Construction Contract Apprised Owner of Lienor’s Claim

New York Lien Law § 38 states that the holder of a mechanic’s lien “shall, on demand in writing, deliver to the owner or contractor making such demand a statement in writing which shall set forth the items of labor and/or material and the value thereof which make up the amount for which he [or she] claims a lien, and which shall also set forth the terms of the contract under which such items were furnished.” In Associated Building Services Inc. v Pentecostal Faith Church, 112 A.D.3d 1130, 976 N.Y.S.2d 699 (3rd Dept. 2013), the Court held that a lienor is not always required to provide an itemization of labor and materials furnished to substantiate its mechanic’s lien.

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January 30, 2014July 27, 2014 by Duane Morris

Duane Morris’ Robert Hendrickson and Ron Oliner on “Public Works Projects and Municipal Bankruptcies”

The good news is that public works construction projects for municipalities are projected to remain a major sector of construction activity for the foreseeable future. The not-so-good news is that municipal bankruptcy filings are on the rise, and they are likely to increase. The issues facing parties under contract with a municipality when it files for bankruptcy protection are playing out nationally in places like Stockton, California, and Detroit, Michigan. Construction lawyers now more than ever need to know the risks of a public owner filing for bankruptcy protection before project completion, and what they can do in the event it does so before the project is closed out—thereby jeopardizing the owner’s ability to pay.

Click here to read the full article, written by Duane Morris partners Robert Hendrickson and Ron Oliner.

November 7, 2013July 27, 2014 by Adam L. Gill

Prevailing Party Clauses – Draft With Care

Drafting a ‘prevailing party’ clause requires more care than one might assume. This point is highlighted by the recent 8th Circuit opinion in DocMagic, Inc. v. The Mortgage Partnership of America, L.L.C., 729 F.3d 808, 2013 U.S. App. LEXIS 18329 (8th Cir., Sept. 4, 2013). DocMagic entered into an agreement with Lenders One, whereby Lenders One would supply DocMagic with a list of its members so that DocMagic could solicit new clients for its mortgage loan preparation software. Id. at *2. The agreement contained a choice of law provision, which selected Missouri law. Missouri law [1] The agreement also contained a ‘prevailing party’ clause, which merely stated that “the prevailing party shall be entitled to reasonable legal fees and other costs and expenses incurred in resolving such dispute….” Id. *3.

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November 1, 2013July 28, 2014 by Duane Morris

Duane Morris Named Law Firm of the Year for Construction Law by U.S. News-Best Lawyers for the Second-Consecutive Year

Duane Morris’ Construction Group received a preeminent ranking in the U.S. News-Best Lawyers 2014 Best Law Firms results released today: the selection as Law Firm of the Year for Construction Law. Duane Morris is the only firm to ever hold this honor for two consecutive years.
Only one law firm is recognized as the 2014 Law Firm of the Year per practice group. According to U.S. News Best Lawyers, Duane Morris received this designation for Construction Law due to its impressive overall performance.

For the full story, please click here.