PG&E BANKRUPTCY UPDATE – COURT ENTERS ORDERS THAT WILL ALLOW MANY CONTRACTORS AND SUPPLIERS TO GET PAID FOR PRE-BANKRUPTCY WORK

Yesterday, January 31, 2019, the U.S. District Bankruptcy Court issued a number of “First Day” orders in the PG&E bankruptcy, including two that provide a way for many contractors, subcontractors, and suppliers to get paid much more quickly than if they had to submit claims through the normal general creditor claim process. Read more →

NEW SEXUAL HARASSMENT PREVENTION TRAINING LAW

As of January 1, 2019, employers with at least five employees will be required to provide training and education to all employees, both supervisory and nonsupervisory, for prevention of sexual harassment, abusive conduct, and harassment based upon gender identity, gender expression, and sexual orientation. Read more →

PG&E’S BANKRUPTCY – WHAT YOU SHOULD KNOW AND WHAT YOU CAN DO TO PROTECT YOUR RIGHTS

Monday, January 14, 2019, Pacific Gas & Electric Company (PG&E) announced that it intends to file for Chapter 11 bankruptcy within 15 days, raising concerns for contractors who are doing work for or who are owed money by PG&E. Read more →

CHANGE IN LABOR CODE WILL REQUIRE UPDATING SUBCONTRACT FORMS FOR STATE AND LOCAL PROJECTS

With the New Year, prime contractors who perform work for state and local public agencies will want to update the Labor Code exhibit that they attach to their subcontracts. Read more →

CALIFORNIA PUBLIC UTILITIES COMMISSION ENTERS ORDER TO DETERMINE WHETHER PENALTIES SHOULD BE IMPOSED ON PG&E FOR INTENTIONAL VIOLATION OF UTILITY LOCATION AND MARKING LAWS

On Friday, December 14, 2018, the California Public Utilities Commission (CPUC) entered an order opening a formal proceeding against Pacific Gas and Electric Company (PG&E) for what CPUC staff determined are systemic violations of rules to prevent damage to natural gas pipelines during excavation activities. Read more →

NINTH CIRCUIT UPHOLDS READY – MIXED CONCRETE PREVAILING WAGE LAW

On September 20, 2018, the United States Ninth Circuit Court of Appeal upheld the enforceability of Section 1720.9 of the Labor Code (AB 219). Allied Concrete & Supply Co. v. Baker, 2018 U.S. App. LEXIS 26881(9th Cir. Sept. 20, 2018). Read more →

TWO IMPORTANT NEW CASES FROM THE CALIFORNIA SUPREME COURT

The California Supreme Court recently issued two important decisions. The first case, United Riggers & Erectors, Inc. v. Coast Iron & Steel Co., 2018 Cal. LEXIS 3510 (May 14, 2018) clarified what constitutes a good faith dispute that allows an owner or general contractor to withhold payment under prompt payment laws. Read more →

Changes In Labor Laws Will Require Subcontract Forms For State and Local Projects to be Updated

With the New Year, general contractors who do state and local public works projects will want to update the Labor Code exhibit that they attach to their subcontracts. Typically, contractors attach this exhibit in order to take advantage of the safe harbor protections afforded by Labor Code Section 1775, as discussed below. Read more →

UPDATE ON AB 219 – APPLICATION OF PREVAILING WAGE LAWS TO READY-MIXED CONCRETE DELIVERIES

AB 219 added “the hauling and delivery of ready-mixed concrete” to the definition of “public works,” for the purposes of prevailing wage requirements. Under AB 219, entities that haul and deliver ready-mixed concrete on a public work of improvement must: Read more →

GOVERNOR SIGNS NEW LAW THAT MAKES A GENERAL CONTRACTOR LIABLE IF A SUBCONTRACTOR DOES NOT PAY ITS EMPLOYEES

On October 14, 2017, Governor Brown signed new law that will make a general contractor liable if a subcontractor fails to pay its employees on a private project. The new law, AB 1701, applies to construction contracts entered into after January 1, 2018, for “erection, construction, alteration, or repair of a building, structure, or other private work.” AB Section 218.7 adds Section 218.7 to the Labor Code. Read more →

UPDATE ON AB 219 – APPLICATION OF PREVAILING WAGE LAWS TO READY-MIXED CONCRETE DELIVERIES

AB 219 added “the hauling and delivery of ready-mixed concrete” to the definition of “public works,” for the purposes of prevailing wage requirements. Under AB 219, entities that haul and deliver ready-mixed concrete on a public work of improvement must: Read more →

NEW CALIFORNIA LEGISLATION

The Legislature in this current session passed an unusually large number of bills that affect the construction community. One of those bills, AB 626, creates new rights for contractors with regard to change orders. AB 626 was the subject of a previous Construction Alert. The following is a summary of some of the other laws that relate to construction. Read more →

NEW CALIFORNIA LAW PROVIDES CONTRACTORS AND SUBCONTRACTORS WITH ADDITIONAL RIGHTS ON LOCAL AND SOME STATE PUBLIC WORKS PROJECTS

Governor Brown recently signed AB 626, a new law that was passed by the legislature to provide contractors and subcontractors on local and some state public projects with additional rights. AB 626 was sponsored by United Contractors. Bob Rosin of our firm assisted United Contractors and testified at legislative committee meetings in support of the new law. Read more →

CONSTRUCTION ALERT October 2015 – NEW SCHOOL DISTRICT PROCUREMENT LAWS IMPOSE EXTREMELY STRINGENT “SKILLED WORKFORCE” REQUIREMENTS

Governor Brown recently signed two new laws authorizing school districts to award construction contracts by means other than competitive bidding. These laws, AB 1185 and AB 1358, also introduce extremely stringent “skilled workforce” requirements. The skilled workforce requirements will make it extremely difficult for most nonunion contractors to perform work on projects awarded pursuant to the new laws. The laws are part of an ongoing effort by unions and their legislative allies to promote union contractors and deter nonunion companies from participating in construction of public works. Read more →