Seattle Washington Building Expert Directory

The Miller Act Explained

May 21, 2014 — Beverley BevenFlorez-CDJ STAFF
Garret Murai, on his California Construction Law Blog, goes over the nuances of the Federal Miller Act. Murai explained, “Named after John E. Miller, former Arkansas Congressman, later U.S. Senator and still later federal judge, the Miller Act was enacted in 1935 in the middle of the Great Depression, to help ensure that subcontractors and material suppliers working on federal projects get paid, by requiring contractors who contract directly with the federal government on federal construction projects furnish payment and performance bonds.” Murai answered questions such as what is required under the act, who is protected, how a general contractor could protect itself from a Miller Act claim, as well as others. Read the court decision
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Change #7- Contractor’s Means & Methods (law note)

March 28, 2018 — Melissa Dewey Brumback - Construction Law in North Carolina
First, a little history: as you know, means, methods, techniques, sequences, and procedures are all part of the Contractor’s responsibility on a construction site. However, when the AIA A201 was last revised, in 2007, there was a provision put in for that rare time when the Contract Documents gave specific instructions concerning a particular construction method. If the Contractor viewed such instructions as unsafe, he was to give notice to the Owner and Architect, and was not to proceed with that portion of the Work without further written instructions from the Architect. If the Architect directed him to proceed, the Contractor was absolved from any risks with following that instruction. Instead, the Owner assumed the responsibility for any loss or damage. Read the court decision
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Reprinted courtesy of Melissa Dewey Brumback, Construction Law in North Carolina

Miller Act and “Public Work of the Federal Government”

March 01, 2017 — David Adelstein – Florida Construction Legal Updates
The Miller Act applies to the “construction, alteration, or repair of any public building or public work of the Federal Government.” 40 U.S.C. s. 3131. A recent opinion out of the Northern District of Oklahoma sheds light on what the Miller Act means regarding its application to any public work of the Federal Government. See U.S. v. Bronze Oak, LLC, 2017 WL 190099 (N.D.Ok. 2017). If the project is not a public works project of the Federal Government, the Miller Act does not apply. In this case, the Department of Transportation entered into an agreement with the Cherokee Nation where the Department would provide lump sum funding and the Nation would use the money to fund transportation projects. Based on the federal funding, the Nation issued a bid for a transportation project in Mayes County, Oklahoma and the project was awarded to a prime contractor. The prime contractor provided a payment bond that identified the United States as the obligee (as a Miller Act payment is required to do) and stated that it was issued per the Miller Act. Thereafter, the Nation and Mayes County, Oklahoma entered into a Memorandum of Understanding where the County would assume responsibility for the construction and maintenance of the project and the Nation would pay the County an agreed amount upon the completion of the project. Read the court decision
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Reprinted courtesy of David Adelstein, Florida Construction Legal Updates
Mr. Adelstein may be contacted at dadelstein@gmail.com

Margins May Shrink for Home Builders

November 06, 2013 — CDJ STAFF
Home builders are worried that the rising prices of new homes might not rise enough and be caught by the rising costs of building them, cutting into the profit margin. “If builders say the trajectory of margins is beginning to peak, then in a cyclical business, people tend to go from thinking the best to thinking the worst,” Stephen Kim, a Barclays analyst told the Wall Street Journal. As of the end of October, the U.S. Home Construction Index was 21% below its highest point in 2013, set back in May. Margins are still over those of last year. Meritage Homes saw a gross margin of 22.8% in 2013’s third quarter, when the same quarter in 2012 had a gross margin of 18.6%. Steven Hilton, the firm’s Chairman and CEO, predicted little or no growth and a decline toward 20% or 21%. On the other hand, with margins at 20.6%, Ryland Homes sees itself at a normal point. Larry Nicholson, the President and CEO of Ryland, said “there’s not a lot of room for it to grow.” Read the court decision
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Construction Termination Issues Part 4: What to Do When They Want to Fire You, the Architect or Engineer

August 14, 2023 — Melissa Dewey Brumback - Construction Law in North Carolina
What if you are told that your own design services are no longer needed or welcome on a project? Can they do that? What happens then? How do you protect yourself. As you probably realize, while rare, the Owner does have the legal right to fire you “for cause”. See B101 §9.4, as long as the Owner gives you 7 days written notice. In fact, the Owner can terminate your contract for any reason at all (maybe you root for the wrong basketball team?) by terminating you for convenience (i.e., for any reason whatsoever) under B101 §9.5, again with 7 days written notice. As with Contractor terminations, the money you get when fired for convenience is much greater than when you are terminated for cause. If you are fired “for convenience”, you get paid for all services previously rendered as well as termination expenses, including anticipated profit on the value of services not performed. See B101 §9.7. Read the court decision
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Reprinted courtesy of Melissa Dewey Brumback, Ragsdale Liggett
Ms. Brumback may be contacted at mbrumback@rl-law.com

So, You Have a Judgment Against a California Contractor or Subcontractor. What Next? How Can I Enforce Payment?

May 04, 2020 — William L. Porter - Porter Law Group
The Contractors’ State License Board (“CSLB”) represents the interests of the public in California construction matters. In the field of California construction, the CSLB is all powerful. The agency has the right to suspend the license of any contractor or subcontractor who does not pay on a construction related judgment against it. If you are successful in obtaining a court judgment against a contractor or a subcontractor in a construction-related case, you can utilize the services of the CSLB to suspend the contractors’ license of that contractor or subcontractor until the judgment has been paid. Once the license is suspended, the contractor or subcontractor has no legal right to work as a contractor or subcontractor and can even be arrested for doing so. Details on using the CSLB to suspend the license of a contractor or subcontractor who has a construction-related judgment against it can be accessed at this particular CSLB link: CSLB – Judgment. On receipt of notice of the construction-related judgment, the CSLB will either suspend the contractors’ license of any contractor or subcontractor who does not pay on the judgment or who does not appeal the judgment to the Court of Appeals or file bankruptcy within 90 days. There also exists an opportunity for the licensed debtor to file a bond with the CSLB. The bond will either have to be renewed annually or the judgment paid, whichever comes first. Read the court decision
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Reprinted courtesy of William L. Porter, Porter Law Group
Mr. Porter may be contacted at bporter@porterlaw.com

Quick Note: Notice of Contest of Claim Against Payment Bond

January 31, 2018 — David Adelstein - Florida Construction Legal Updates
On private jobs where the general contractor has an unconditional payment bond, subcontractors, sub-subcontractors and suppliers need to serve a notice of nonpayment to preserve payment bond rights. Read the court decision
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Reprinted courtesy of David Adelstein, Florida Construction Legal Updates
Mr. Adelstein may be contacted at dadelstein@gmail.com

Another Colorado District Court Refuses to Apply HB 10-1394 Retroactively

October 28, 2011 —

In Martinez v. Mike Wells Construction Company, 09CV227, Teller County District Court Judge Edward S. Colt refused to apply C.R.S. § 13-20-808 retroactively to provide coverage for the underlying construction defect allegations. According to the recitation of facts in Judge Colt’s March 2011 order, Martinez contracted with Mike Wells Construction to serve as the general contractor for the construction of a home. At that time, Mike Wells Construction was insured through ProBuilders Specialty Insurance Company, RRG. Disputes arose between Martinez and Mike Wells Construction, resulting in Martinez ordering it off of the project in mid-November 2007 and terminating its right to work there by letter dated November 28, 2007.

Mike Wells, the owner of the corporation, subsequently died. Martinez sued Mike Wells Construction in July 2009 for breach of contract and various claims relating to alleged defecting workmanship. Martinez provided notice of the suit to the special administrator of the probate estate. No answer having been filed, the court entered a default judgment against Mike Wells Construction and Martinez sought to garnish Mike Wells Construction’s ProBuilders insurance policy.

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Reprinted courtesy of Higgins, Hopkins, McLain & Roswell, LLC. Mr. McClain can be contacted at mclain@hhmrlaw.com

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