Williams v. Athletic Field - the most important and eagerly-anticipated lien decision of the year - was argued before the Washington Supreme Court earlier this week. Find the video of the oral argument here at TVW.
For those of you looking for a family-friendly outing this Saturday, June 11, be sure to go to Sound Transit's tour of the new Link Light Rail Capitol Hill station construction site. Here are the details, courtesy of the always interesting (if sometimes provocative) Seattle Transit Blog.
A tunnel boring machine, live music and balloon animals? For our money, it does not get much better than that.
Here's something for you bridge aficionados out there (including members of the WCLB). Massachusetts is on a bridge-building blitz, replacing 14 bridges this summer on a busy stretch of I-93 north of Boston. The schedule is truly ambitious, with each bridge slated to be demolished, rebuilt and opened for traffic within 55 hours.
According to this article at the Boston Globe, the project incorporates significant precast elements and includes penalties of up to $1.15 million per week for late delivery and a possible $7 million bonus for meeting all weekly deadlines.
Now we just need to find a way to replace this and this in 55 hours!
Mike Purdy summarizes here Washington's new bid preference law (copy at this link). The law does not adopt a straightforward preference for Washington contractors, but instead creates a "reciprocity" scheme: Nonresident contractors bidding on applicable Washington public works projects will be subject to a "comparable percentage disadvantage" if they are from a state that applies a percentage bidding preference to their own resident contractors. The new law is formally effective July 22, 2011 but actual implementation will wait until the General Administration adopts new reciprocity regulations.
See here for an interesting DJC post about three "living buildings" at various stages of construction in the Pacific Northwest. The one in Seattle is (according to at least one observer) "the most important building being built in the country today." The Washington Construction Law Blog cannot disagree!
Via AGC America, here is an interesting radio segment about a new Federal Acquisition Regulation that requires the greening of the federal procurement process. Is there any better way to spend a sunny Thursday afternoon than listening to Federal News Radio? I think not!
Sustainable Living Innovations is an exciting new venture that features the efforts of our two great clients Lydig Construction Inc. and SLI. The project is at the vanguard of truly sustainable and economical construction, and deserves a few moments of your time.
Here is a recent professional services lien priority decision that will be of interest to any lender financing construction activities.
In Zervas Group Architects, P.S. v. Whidbey Island Bank, Division One affirmed the trial court's decision that the project architect's lien had priority over the Bank's deed of trust. The key question was whether the Bank had notice of the services at the time it recorded its deed of trust. The Court held that it did, even though (1) the architect never filed a notice of professional services under RCW 60.04.031(5); and (2) the Bank inspected the property and observed no visible sign of construction. These were not enough to bring the Bank within the statute's safe harbor for subsequent mortgagees.
In a turn of phrase worthy of Sherlock Holmes, the Court noted as follows:
[T]he Bank had ample information from which to deduce, through implication or inquiry, the existence of a potential professional services lien claimant, to wit the architect on the project. The Bank knew the project was merely months away from obtaining construction permits, so that architectural services had to have been nearly complete.
The Court also suggested that the Bank had actual notice of the services, although does not identify what this was.
If you are a construction lender, the take-away is this: Do your due diligence and refine your powers of deductive reasoning. Merely relying on a lack of recorded notice and a visual inspection of the construction site is not enough.
Hey, it's an industrial insurance kind of day. Here's a good summary at the Washington AGC of the new reforms to the worker's compensation system that have just passed the legislature. The governor is expected to sign.
In a decision filed today that will be of interest to design firms and professionals across the state, the Washington Supreme Court for the first time in Michaels, et al. v. CH2M Hill, Inc. addressed the scope of the immunity provided to design professionals by the Industrial Insurance Act in RCW 51.24.035.
All in all, an interesting if not entirely surprising decision (which also contains an interesting discussion of the duties owed by design professionals). The take away is this: It is now clear that design professionals have immunity from tort suits (as a third party) only where (1) they are engaged in providing construction-related services on a construction-related project, and there is a nexus between the construction services and the injury; and (2) where the claim is for negligent supervision of the worksite, not negligent design. Otherwise, no third party immunity.
Continue Reading...On August 8, 2010, in Mattingly v. Palmer Ridge Homes LLC, Division II of the Washington Court of Appeals reversed summary judgment in favor of builder Palmer Ridge Homes. A copy of the decision may be found here: Download file The decision is significant for what it says about the enforceability of limitations contained in third-party warranties and by demonstrating the difference between "completion" and "substantial completion" -- and what consequences might follow.
Continue Reading...Amendments to the Washington Energy Code were to go into effect July 1, 2010. On May 25, 2010, however, the Building Industry Association of Washington (BIAW) brought suit in federal court in Seattle, arguing that federal law preempts Code amendments that impose requirements that exceed those established by federal statutes. A copy of BIAW's complaint can be viewed here: Download file On June 8, 2010, Governor Gregoire asked the Washington State Building Code Council to delay implementation of the Code amendments for nine months. The Governor's request was not based upon the BIAW lawsuit, but upon a desire not to impose new burdens on the construction industry at a time of economic fragility. The SBCC posted the Governor's letter here: http://sbcc.wa.gov/File.ashx?cid=953 The SBCC must still act upon the request.
On June 8, Division I of the Court of Appeals issued an unreported decision on the challenge by STITA, the incumbent provider of taxi services for Sea-Tac Airport, to a procurement by the Port of Seattle that led to an award to a competitor. The Court affirmed the trial court's denial of injunctive relief to STITA, based primarily on STITA's failure to comply with what the Court termed a "clear" process for handling protests stated in an addendum to the solicitation. Although the decision is unpublished, we address it here because of the case's notoriety. You can view it here: Download file.
Continue Reading...On May 24, 2010, Division I of the Washington Court of Appeals held that where two claimants against a specialty contractor's bond have the same statutory priority, the first of the claimants does not gain priority by being the first to reduce the claim to judgment. The case, Hosea v. Toth, can be viewed here: Download file
Continue Reading...On Monday, April 19, King County filed a $74 million default termination suit against one of its Brightwater contractors and its surety. A copy of the complaint is available here. Download file
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