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July 2014 Archives

Contractors, Architects and Owners Beware: Beacon Residential creates a duty of care by architects to homeowners associations

On July 3rd in Beacon Residential Community Assn v. Skidmore, Owings & Merrill LLP (Case No. S208173) the California Supreme Court confirmed that construction design professionals owe a duty of care to third party property purchasers who did not hire or contract with the professionals. This landmark decision is a game-changer for owners, architects and contractors alike, as liability for design and defect issues now directly impacts architects and may lead to added construction costs.

The Importance of an Effective Force Majeure Clause

Those engaged in construction or other closely related fields know that the wording of a contract can make or break your entire business. Some contractors will create their own agreements to bind themselves and clients together while some will utilize a standard industry form contract purchased from a third party. Either of the scenarios can yield unfavorable results if due care isn't taken in ensuring that certain clauses are included and are written correctly.

Reminder: New Bill Requires Listing of Subcontractor License Numbers on Bid Starting July 1, 2014

Last September, Governor Jerry Brown signed A.B. 44 into law, amending Section 4104(a) of the Public Contract Code. This bill requires prime contractors list the contractor license number of subcontractors when bidding on public construction projects. The bill also requires that public agencies include the new requirement placed on prime contractors on their public bid forms. The relevant code section now reads:

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