In California, the law requires competitive bidding for public works projects and government contracts to avoid favoritism, corruption, and fraud when those contracts are awarded. In general, contracts are awarded to the lowest responsible and responsive bidder—in addition to eliminating fraud, this is meant to obtain competitive pricing for public improvements in order to conserve tax revenue and to provide a fair means for qualified and bonded contractors to compete for these projects. While submitting a bid for such a project can be a lengthy and complex process, requiring detailed informat ..read more

For certain projects, California law requires specific qualifications for the building and construction workforce known as Skilled & Trained Workforce Requirements (STW). Currently, over 15 STW statutes in various state codes apply to various types of projects. Even if an STW statute or mandate does not apply, however, the Public Contract Code authorizes public entities and awarding bodies to require that bidders, contractors, and other entities use an STW. Knowing when and how these requirements apply can be confusing, but compliance is essential. Contractors and subcontractors violating ..read more

Panterra GP, Inc. v. Superior Court of Kern County (2022) When you have more than one company, make sure the one signing a construction contract as a contractor, is the one with the contractor’s license! Courts usually are extremely reluctant to rewrite (or “reform”) an agreement between two contracting parties. But that is exactly what could happen in Panterra GP, Inc. v. Superior Court of Kern County (2022) 74 Cal.App.5th 697 (“Panterra”). A case that could have far-reaching implications for both licensed and unlicensed contractors working in California. The main issue in Panterra revolves a ..read more

On March 29, 2021, the Biden Administration announced offshore wind energy projects employing President Biden’s ‘whole of government approach’ to position America to lead a “clean energy revolution” while creating thousands of potential union jobs across the country. The President’s Executive Order specifically committed to expanding the offshore wind industry on the Atlantic Coast (in the New York Bight, adjacent to the greater metropolitan Tri-State area), in the Gulf of Mexico, and in Pacific waters. In late May, the Biden Administration announced that it is seeking to create 30 gigawatts o ..read more

On April 28, 2021, the Ninth Circuit Court of Appeals in California Trucking Association v. Bonta, issued a decision that California’s AB-5 law, now Labor Code Section 2775, is not preempted by federal law. The three-judge panel ruled that the District Court was wrong when it granted a preliminary injunction that prohibited the application of Labor Code Section 2775 to motor carriers and independent owner operators including those providing services to the Construction Industry. What does this mean? AB-5 restricts most workers from being independent contractors and with its 3-prong, hard to sa ..read more

On April 16th, Governor Gavin Newsom signed into immediate effect Senate Bill 93 which will remain in force until December 31, 2024. The bill requires certain employers to offer new positions to former employees laid off for reasons related to the COVID-19 pandemic. Employers of all sizes must offer all new available job positions to qualified laid-off employees within 5 business days. If more than one laid-off employee is qualified for a position, preference will be given to the employee who had the greatest length of service. Employers covered by SB 93 include hotels, private clubs, event ce ..read more

Thousands of Californians lost their homes, in whole or in part, to the wildfires in 2017 and 2018. Many homeowners then began the challenging task of rebuilding. In the wake of this loss and the resulting shortage of available builders, some homeowners turned to handymen for help. Many homeowners came to find out the hard way that these handymen who were acting as their contractors didn’t have the experience needed to complete the work correctly, or in some cases, finish their work at all. Last year a new bill was introduced in Sacramento (SB 1189) which changes the Business and Professions C ..read more

One of the most important issues for construction companies is to get fully paid for the work they do. Since the advent of COVID-19, we have seen a rise in payment issues to the point that they have become one of the most contested issues of construction claims. The following are good business practices that maximize your chances of getting paid properly for the work you do. A) Obviously, Get The Job Done Right! I am sure right about now some of you are saying, “Duh!!! Of course you have to get the job done right!”  But, what we mean is to have a procedure whereby your staff and especiall ..read more

Construction Law Alert – Recent Court Decision on Enforceability of Pay-When-Paid Contract Clauses On April 17, 2020, the CA Court of Appeal handed down a decision that will have major implications for construction industry players including general contractors, subcontractors, and sureties. In Crosno Construction v. Travelers Casualty and Surety Company, the Court held that an open-ended “pay-when-paid” clause in a subcontractor’s contract was unenforceable. The clause allowed delaying of the payment until after general contractor’s litigation concluded against the owner. What is a pay-w ..read more

Mahyar Ghassemian gave an illuminating interview just yesterday with Exit Coach Radio on contract provisions that can help business owners with COVID-19 issues and other advice about dealing with this crisis. Click this link to her Exit Coach Radio Interview and give it a listen! The post Mahyar Ghassemian Exit Coach Radio Interview: How Contracts Can Help you Deal with COVID-19 first appeared on Ghassemian Law Group ..read more