Construction Law Blog - Recent Legislation

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Posted By: John P. Ahlers | Aug 13, 2009 | Topics: Construction News and Notes, Government Contracts, Recent Legislation | View Article

Federal Government Employment Eligibility and Verification Regulation

On June 6, 2008, the FAR council released a new provision requiring the use of the Department of Homeland Security's Electronic Employment Eligibility Verification System ("E-Verifiy"). The contractor performing construction work in excess of $100,000, a "covered contract" must enroll in E-Verify within thirty (30) calendar days of contract award and start using E-Verify within ninety (90) calendar days of enrollment to verify the employment eligibility of a new employee.

Posted By: John P. Ahlers | Aug 12, 2009 | Topics: Construction News and Notes, Government Contracts, Recent Legislation | View Article

American Recovery & Investment Act, Federal Work Requires Familiarity with Federal Acquisition Regulations (FARs) and Business and Ethics Compliance. New AGC Federal Government Contractor Ethics And Compliance Program, Tool Kit & Guidance Publication

The interest in bidding on federal work, considering the new American Recovery and Reinvestment Act (Stimulus Bill) has attracted many new bidders to federal procurements. Federal contractors need to take note of the recent Business and Ethics compliance provisions of the Federal Acquisition Regulations. Any contractor receiving a government contract in excess of $5 million with a duration of 120 or more days shall:

• Adopt a written code of business ethics and conduct and make its "available to each employee during the covered contract;
• Exercise "due diligence" to prevent and detect criminal conduct;
• Promote an organizational culture that encourages ethical conduct and compliance;
• Make a timely written disclosure to the agency inspector general with a copy to the contracting officer whenever the contractor as "credible evidence: of a violation of the Civil False Claims Act or a federal criminal law involving fraud, conflict of interest, bribery or gratuity violations.

Every contractor (except for small business) must establish a business ethics and awareness program and an internal control system within 90 days of contract award. The contractor's system and program shall include:

• Reasonable steps to communicate standards, procedures and provide training;
• An internal control system that includes standards and procedures to facilitate timely discovery of improper conduct, periodic assessments of criminal conduct, reporting mechanisms such as a hotline and disciplinary action for improper conduct for failing to prevent or detect improper conduct;
• Disclosure of improper conduct to the federal government. Not only must the contractor comply with these business and ethics provisions, these provisions must be included in subcontracts in purchase orders in excess of $5 million and 120 day's duration.

In addition, the contractor must verify subcontractor and supplier compliance. The Associated General Contractor's (AGC) Federal Government Contractor Ethics And Compliance Programs, tool kit and guidance publication includes generic ethics and compliance programs. This sample program assists contractors to navigate these complex and new regulatory waters.

Posted By: Sean Russel | Apr 28, 2008 | Topics: Recent Legislation | View Article

Conversions to Washington's Condominium Conversion Law

On August 1, 2008, new law concerning condominium conversions will take effect. SHB 2014 increases the notice requirements for conversions from 90 days to 120 days. Under the existing law, a condominium declarant must give apartment tenants 90 days notice of the conversion before tenants can be required to vacate. Under the new law, the condominium declarant may not require that a tenant vacate his/her unit until 120 days from the date of the notice have lapsed. The new law also increases the amount of relocation assistance that may be required by local jurisdictions. The current limit on relocation assistance is $500 per unit. Under the new law, relocation assistance may be three times the tenant's rental rate, or in cases where a tenant is at least 65 years of age, $1500. SHB 2014 does not apply to conversions where notice is provided prior to August 1, 2008.

See the entire bill by clicking on the following link:

http://apps.leg.wa.gov/documents/billdocs/2007-08/Pdf/Bills/Session%20Law%202008/2014-S.SL.pdf

Posted By: John P. Ahlers | Apr 02, 2008 | Topics: Recent Legislation | View Article

Heads Up Contractors and Subcontractors – Doing Business with the Federal Government

New federal acquisition regulation changes have been made which require all contractors to adopt "codes of business ethics and conduct" which impose substantially new duties on contractors aimed at preventing and revealing fraudulent criminal activities.  Contractors (other than small businesses) will also have to implement specific training programs and internal controls designed to prevent and/or detect fraud. 

Posted By: Brett Hill/John Shultz | Mar 18, 2008 | Topics: Recent Legislation | View Article

Negligent construction bill dies in House of Representatives

Senate Bill 6385 which sought to create a cause of action for homeowners against contractors for negligent construction failed to reach the House floor for debate and approval. 

Posted By: Brett Hill/John Shultz | Mar 07, 2007 | Topics: Recent Legislation | View Article

Legislation permitting claims against contractors for negligent construction passes Senate

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. 

Posted By: Brett Hill | Dec 28, 2007 | Topics: Change Orders, Claims, Recent Legislation | View Article

Mike M. Johnson Legislation Update

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. Johnson. The Bill will be introduced in the next legislative session in January 2008. Significant ground work has been done by A &C to provide legislators and stakeholders with input on the legislative fix.

Dec 28, 2007 | Topics: Employment, Recent Legislation | View Article

Legislative Update - Trust Fund Proposal

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. If the trust fund indicates that the subcontractor is delinquent, then the general contractor can pay the subcontractor and the trust fund by joint check.

Posted By: Brett Hill | Dec 28, 2007 | Topics: Liens/Bond Claims, Recent Legislation | View Article

Legislature Revises Lien Notice to Customer Requirements

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.

Posted By: Brett Hill | Dec 28, 2007 | Topics: Damages, Liens/Bond Claims, Recent Legislation | View Article

Court of Appeals clarifies requirements to recover against lien bond

In DBM Consulting Engineers, Inc. v. U.S. Fidelity and Guar. Co., ___ Wn. App. __, ____ P.3d. ___ (2007), the Court of Appeals clarified the steps that a lien claimant must take in order to recover against a lien bond.