Duane Morris Construction Law

January 22, 2013July 29, 2014 by Jose A. Aquino

NYS 2100 Commission Releases Report on Improving New York State’s Infrastructure

In November 2012, Governor Andrew Cuomo formed the NYS 2100 Commission in response to the recent, and extraordinary, weather events experienced in New York State (Super Storm Sandy, Hurricane Irene and Tropical Storm Lee). The Commission, consisting of 25 members, is co-chaired by Judith Rodin, President of Rockefeller Foundation, and Felix Rohatyn, former Chairman of the Municipal Assistance Corporation.

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January 14, 2013July 29, 2014 by Jose A. Aquino

New York Employers Must Comply with Employee Notice Requirements of New York Wage Theft Prevention Act by February 1st Deadline

The February 1st deadline to comply with the New York Wage Theft Prevention Act is fast approaching. The Act requires New York State employers to provide to each employee a written notice containing specific information about the employee’s wages. The notice must be given to all employees, including employees earning union wages and employees earning prevailing wages on public construction projects.

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January 9, 2013July 29, 2014 by Jose A. Aquino

Pennsylvania Court Distinguishes Between Corrective Work and Additional Work In Dismissing Mechanics’ Lien Claim

The Superior Court of Pennsylvania recently affirmed the dismissal of a contractor’s mechanics’ lien on the grounds that the lien was not filed within 6 months after the completion of the work as required by Pennsylvania’s Lien Law. In Neelu Enterprises, Inc. v. Agarwal, 2012 PA Super. 276, No. 787 MDA 2012 (December 18, 2012), Agarwal, as owner, hired Neelu Enterprises, Inc., a contractor, to build a house. The contractor completed a substantial portion of the work for which it was paid. However, the owner decided to terminate the contractor before the house was completed. The owner and contractor entered into a termination agreement on December 8, 2010. Thereafter, the contractor returned to the job site to correct deficiencies on several occasions through January 7, 2011. The contractor filed its mechanic’s lien on June 23, 2011, within 6 months of January 7, 2011, but more than 6 months from the date of the termination agreement. Pennsylvania’s Lien Law provides that a claimant must file a lien “within six (6) months after completion of his work.” 49 P.S. § 1502(a)(1).

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September 19, 2012July 29, 2014 by Richard P. Dyer

New York State Appoints Bridge Design Aesthetic Team to Review Tappan Zee Bridge Bids

The Governor of the State of New York announced today that a team of artists and designers has been appointed to review and provide recommendations concerning the evaluation of bids submitted by three design-build ventures for the replacement of the Tappan Zee Bridge. The Members of the Bridge Design Aesthetic Team include: Jeffrey Koons, Artist; Richard Meier, Architect; Thomas P. Campbell, Director of The Metropolitan Museum of Art; Alison Spear, Architect; Keith Brownlie, Bridge Designer; and Thomas Wermuth, Director, Hudson River Valley Institute and Vice President of Academic Affairs and Dean of Faculty, Marist College.

The full review team consists of over 35 additional professionals including government officials, community representations, local officials as well as technical advisors representing various disciplines including geotechnical, infrastructure, construction estimating, construction management, planning, environmental, financial, structural, transportation and traffic, roadway, public relations, and legal.

The review team is to make recommendations to the Governor that can include recommendation of one of the bids, authorize negotiations with one or more bidders, or authorize a request for a best and final offer from one or more bidders.

The biographies of all review team members can be found here.

August 1, 2012July 29, 2014 by Patrick J. Kearney

Delaware Revises its Payment Act and Mandates that All Construction Contracts Be Governed by Delaware Law

On June 25, 2012, Governor Jack A. Markell signed legislation that provides for significant revisions to a statute formerly known as the “Delaware Building and Construction Payments Act.” By enacting House Bill 109, the statute has been renamed the “Building Construction Procedures Act” (the “Act”).

More significantly, the scope of the Act has been expanded to include all services provided on construction projects. In addition, the Act now provides that all construction contracts must be governed by Delaware law and all litigation, arbitration, mediation or other dispute resolution procedures must take place in the state of Delaware. Specifically, the Act states:

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July 17, 2012July 29, 2014 by Richard P. Dyer

Court Holds A $500,000 SIR Fails To Comply With Insurance Requirements

A trial court in New York recently was faced with questions concerning the amount of damages a contracting party, Citibank, was entitled to because of the failure of its contractor to procure insurance. (See Spector v. Cushman & Wakefield, 2012 N.Y. Misc. LEXIS 2794; 2012 NY Slip Op 3155U (Sup. Ct. N.Y. Co.)) Citibank sought all expenses incurred in connection with an underlying personal injury action, i.e., the amount of any settlement or judgment and reasonable attorneys’ fees, because Citibank was a self-insured party. In addressing damages, the court noted that New York’s highest court has held that, where a party intended to be insured by its contractor has its own insurance nonetheless, the measure of damages is limited to out-of-pocket expenses such as premiums and any additional costs incurred, including deductibles, co-payments and rate increases in the party’s insurance. (Inchaustegui v. 666 Fifth Avenue Limited Partnership, 96 N.Y.2d 111, 725 N.Y.S.2d 627 (2001)) However, that decision acknowledged that where the party was left uninsured, it could recover “the full amount of the underlying tort liability and defense costs.” (Id. at 114) In this recent June 2012 trial court decision, the court granted Citibank’s summary judgment motion for defense costs because it was self-insured.

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May 30, 2012July 29, 2014 by Richard P. Dyer

Owner’s Claim For Defective Work Tripped Up By AIA’s Notice Of Claim Requirement

Notice of claim requirements in construction contracts are standard and often the cause of bad news to contractors pursuing claims for additional costs. However, these clauses can be, though not always, two-way streets. As a reminder to owners that notice of claim requirements under the AIA General Conditions apply equally to owners as to contractors, a trial court in New York recently dismissed a claim for defective work against a plumbing contractor because it was not the subject of a previous notice of claim.

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May 4, 2012July 29, 2014 by Patrick J. Kearney

Georgia Joins National Trend By Enacting Taxpayer Protection False Claims Act

On April 16, 2012, Governor Nathan Deal signed the Georgia Taxpayer Protection False Claims Act (House Bill 822) into law. The Georgia Taxpayer Protection False Claims Act, which goes into effect on July 1, 2012, establishes civil penalties for any person or legal entity that commits or conspires to engage in certain fraudulent acts, including but not limited to:

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April 11, 2012July 29, 2014 by Duane Morris

Duane Morris Construction Group Nominated for Chambers USA Award for Excellence

We’re happy to announce that our construction group has made Chambers’ short-list for the Chambers USA Award for Excellence. 2012 marks the third year in a row Duane Morris has been nominated. Criteria for the nomination includes notable achievements over a 12-month period such as outstanding work, impressive strategic growth and excellence in client service and is based on the independent research conducted for Chambers USA 2012. Congratulations to all of our construction attorneys for this recognition.

April 9, 2012July 29, 2014 by Patrick J. Kearney

Court Refuses to Impose Mandatory Civil Penalties in False Claims Act Case

The United States District Court for the Eastern District of Virginia recently issued a decision that may have broad implications to the calculation and imposition of civil penalties in False Claim Act (FCA) cases, because, for the first time, a court refused to issue mandatory civil penalties against a contractor that was found to have violated the FCA.

More specifically, United States ex rel. Bunk v. Birkart Globalistics GmbH & Co., et. al., No. 1:02-CV-1168 (E.D. Va. February 14, 2012), involves a qui tam claim that was filed against a contractor for violations of the FCA. The alleged violations stem from a bid submitted to the Department of Defense, which included a Certificate of Independent Pricing that stated:

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