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Economy Archives

California Construction Trends through 2014

California construction activity appears to be growing in 2014. Although the increases have been minimal in the first quarter, data generated by McGraw Hill Analytics predicts that there will be a ten percent increase in new construction projects in the western U.S. states this year. Indeed, in 2013, employment in the construction sector rose by 5.2 percent in California, indicating a growth in construction activity.

San Francisco's Construction Law Requires 30% Local Hiring

In the two years since the landmark mandatory local hiring law was adopted by the City of San Francisco, the City has seen a great increase in the hiring of its residents for construction projects. There is much work still to done, however, as local workers currently only make up an average of 20% of hours on city-funded public works projects.

In December 2010, the San Francisco Board of Supervisors approved amendments to the San Francisco Administrative Code (Chapter 6.22(g)) and adopted the San Francisco Local Hiring Policy for Construction. In the first year of the policy, the mandatory local requirement was 20% by trade. For projects advertised in year two, that percentage climbed to 25%. For projects advertised after March 25, 2013, the percentage climbed further to 30%.

Bi-partisan California State Senate Bill to Require Prevailing Wage

Senate Bill 7 seeks to close the loophole which has allowed California's 121 charter cities to remain exempt from California's prevailing wage regulations. The bill, largely viewed as a win for local contractors and the local labor force, has found opposition with municipalities' political representatives, who view the Bill as a further increase of the state's hold over the local government.

All state and local government agencies in California, with the exception of California's 121 charter cities, require contractors to pay prevailing wage, an hourly pay-and-benefits benchmark for workers, on taxpayer-funded projects. While most of the 121 charter cities also pay prevailing wage, some continue to use public funds to contract for projects without such a wage requirement.

Court Rejects Bank's Attempt to Abrogate Contractor's Stop Notice Rights

California Construction Law Update: California Court Rejects Bank's Attempt to Abrogate Contractor's Stop Notice Rights

Zakskorn Construction Company v. East West Bank (2011), Superior Court of Alameda County, California, Case No. RG 09-440355

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