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San Mateo Construction Law Blog

Prejudgment Interest is Set at 7% on a Mechanic's Lien Claim Against Non-Contracting, Innocent Owners

In a recent case, Palomar Grading & Paving, Inc. v. Wells Fargo Bank, N.A. et al., Court of Appeal (2014 S.O.S. 4573) the appeal court held that "We determine it is the constitutional default rate that should apply to prejudgment interest on a mechanic's lien as applied to noncontracting, innocent owners."  California's constitutional default rate for prejudgment interest is 7%. 

Cal/OSHA Will Step-Up Inspections at Bay Area Construction Sites

Cal/OSHA will focus on safety compliance at construction sites in the San Francisco Bay Area following a number of recent accidents. Inspectors have been deployed to inspect construction sites to determine whether adequate measures have been taken to identify safety hazards and prevent injury.

The Subletting and Subcontracting Fair Practices Act goes into Effect on July 1, 2014

As our earlier post and emails have indicated, last year Governor Brown signed into law a new twist to The Subletting and Subcontracting Fair Practices Act (Act). The change goes into effect on July 1, 2014. If you are a contractor submitting a bid to a public entity for a California public works project will be required to include the contractor license number of each subcontractor you have listed.

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:

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