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San Mateo Construction Law Blog

What's Inconsequential in a Bid for a Public Contract?

A recent California decision, Bay Cities Paving & Grading, Inc. v. City of San Leandro, 2014 DJDAR 1809 (Cal. App. 1st Dist., Feb. 13, 2014), determined that the City of San Leandro ("City) did not abuse its discretion by accepting an immaterial deviation in the low bidder's bid bond.

It's the Result that Matters...

A recent California decision, Relentless Air Racing, LLC v. Airborne Turbine LTD. Partnership, 2014 DJDAR 57 (Cal. App. 2d Dist., Dec. 31, 2013), states that a judgment creditor does not have to demonstrate wrongful intent by alter ego parties when attempting to add them as additional judgment debtors on a judgment.

The Right to Repair Act is not the Exclusive Remedy When Actual Damages are Present

The California Legislature enacted S.B. 800 (aka the "Right to Repair Act") in 2002 to provide builders, subcontractors, product manufacturers and design professionals an opportunity to repair construction defects before a new homeowner initiated court proceedings. S.B. 800 applies to construction defects identified in new residential construction and was an effort by the Legislature to reduce construction defect lawsuits.

Excavation - Register or Beware the Penalties

Are you planning on breaking any ground during your next project?  Be aware that any digging or excavation work requires licensed contractors to call and register with the Underground Service Alert of Northern California or the Underground Service Alert of Southern California. 

Department of Industrial Relations: Current Events

Julie A. Su, the new Commissioner for the Department of Labor Standards Enforcement, has revamped the department's administration and implemented a new strategy to enforce California labor laws through the smarter use of resources and assessments. Key statistics of the Commissioner's changes demonstrate:

California Appellate Court Holds That A General Contractor is Responsible for Paying Its Unlicensed Subcontractors Employees Wages

In a case entitled Sanders Construction Co. Inc. v. Cerda (June 2009), a California Appellate Court held that the employees of an unlicensed subcontractor are "statutory employees" of the general contractor. As a result, the general contractor was liable for the unpaid wages that were due to the unlicensed subcontractors employees.

Public Works Contracting-Liquidated damages

In case entitled Greg Opinski Construction v. City of Oakdale (Cal. Ct. App. October 6, 2011) a California Appellate Court held that when a public works contract requires notice is given as a condition for getting an extension of time and notice is not given the contractor cannot later claim that the delay was caused by the public entity. This is noteworthy since it refutes prior precedent that allowed a contractor to assert that the liquidated damages should not be assessed since the public entity delayed the project during a period of concurrent delay.

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