| How Much Public Money Triggers Prevailing Wages? |
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3/26/2009 Link
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Construction projects and land acquisitions for development are frequently financed by a mix of private and public funding. As previously outlined in this blog Ohio’s governor has issued a set of “guidelines” for identifying when prevailing wage will be applicable to such a project. The Ohio Supreme Court, however, recently heard arguments in a case that may provide authority and direction with greater legal weight than the guidelines. Submitted by Stephen Withee.
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| JOINT VENTURERS: WILL YOU HAVE TO SHARE IN THE LIABILITIES OF A TROUBLED PROJECT? |
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3/23/2009 Link
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Simply defining a contractual relationship as a joint venture may not be enough to share in the liabilities of a troubled project. The Indiana Court of Appeals recently issued a published decision defining what it means to be a joint venture in Indiana. (See DLZ Indiana, LLC v. Greene County, Indiana; link: http://www.ai.org/judiciary/opinions/pdf/03120902.ewn.pdf) In 2001, Greene County, Indiana, entered into an agreement with United Consulting Engineers & Architects and DLZ of Indiana, LLC (collectively the “Firm”) for design services. The agreement provided that United and DLZ entered into the agreement “jointly and in collaboration.” Submitted by Dan King.
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| OHIO SENATE TO VOTE ON $7.6 BILLION TRANSPORTATION BILL |
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3/19/2009 Link
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On March 5, 2009, the Ohio House voted 53-45 to approve the transportation budget. In doing so, the House approved the Ohio Department of Transportation’s $7.6 billion budget for the next two years. This overall transportation budget also includes $2.2 billion in federal stimulus money, which Ohio is expected to receive. Out of this $2 billion, approximately 56% of the federal stimulus money, $1.1 billion, is projected to go to the highways and transit – the biggest beneficiary of the stimulus money. And, 85% of that is to be allotted to traditional road and bridge projects. Submitted by Bonnie Wolf.
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| Those Performing Remediation Now Have Something to Lien On |
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3/17/2009 Link
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As those in the construction industry know, the Indiana Mechanic’s Lien Statute (“Statute”) was enacted to provide contractors, subcontractors, materialmen and laborers an avenue to secure payment for work they perform on a property. Usually, the work provided or materials supplied are identifiable because the contractor or material supplier can point to an improvement or repair on the property resulting from the work or materials. Unfortunately, not all work that may be performed on a property is so easily categorized. While the Statute provides a general guideline to determine whether the work is properly lienable, the application of the Statute to any given work is for the court to decide. Submitted by Matthew Voors.
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| Assumption of a Duty to Provide a Safe Workplace in Indiana |
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3/17/2009 Link
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Although there is a general rule in Indiana that there is no duty to provide a safe workplace for independent contractors, a recent Indiana Court of Appeals should remind general contractors that they can quite easily become liable for jobsite injuries by assuming the duty to provide a safe workplace. Submitted by Michael Rogers.
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| Consider “Buy American” Clause When Performing Stimulus Work |
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3/17/2009 Link
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One component of the $787 billion economic stimulus package (the “Stimulus”) drew greater interest internationally than domestically. In spite of the comparatively limited domestic reaction, the so-called “Buy American” clause has implications for domestic contractors and suppliers on Stimulus projects. The clause effectively mandates the use, on Stimulus projects, of American iron, steel, and manufactured goods, absent a violation of U.S. trade agreements or the exercise of any other limited exception. Submitted by Eric D. Foerg.
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| Kentucky Senate to Vote on Bill Targeting Contractors Who Employ Unauthorized Workers |
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3/11/2009 Link
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The Kentucky Senate will soon vote on a bill that punishes contractors who hire unauthorized alien workers. House Bill 441, which would modify K.R.S. 337, was passed on Thursday, March 5 by a vote of 87-7. Submitted by Mike Shull.
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| A "Stark" Reality on Claim Notice Provisions in Indiana |
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3/11/2009 Link
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Although states vary widely in their respective treatment of contractual claim notice provisions and how rigidly they will be enforced, one Indiana court has made it clear that such provisions are to be strictly followed. Indiana contractors wishing to have their claims for additional costs considered and ultimately paid should be wary of, and prepared to comply with, their contract's notice requirements regardless of how burdensome they believe them to be. Submitted by Brian Falcon.
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| Federal Government Lends Unions a Helping Hand |
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3/4/2009 Link
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On February 6, 2009, President Obama signed an Executive Order encouraging government agencies to implement project labor agreements on large-scale construction projects. The Order further provided that if a government agency decides to utilize a labor agreement, then it may require all of the contractors and subcontractors for that particular project “to negotiate or become a party to a project labor agreement with one or more appropriate labor organizations.” The purpose of the Order is to promote “the efficient and expeditious completion of Federal construction contracts” by alleviating labor disputes that could cause unnecessary project delays and increased costs. However, not all in the construction industry are pleased with the Order. Stephen Sandherr, Chief Executive Officer of the Associated General Contractors of America, issued statement criticizing President Obama’s Executive Order claiming that it has the potential to limit a general contractor’s ability to compete for federal construction contracts. Further, Stefan Gleason, Vice President of the National Right to Work Legal Defense Foundation, stated that the Order encourages federal agencies to implement discriminatory, pro-union labor agreements that will cause undue harm and burden to the vast majority of private-sector construction workers who have not unionized. However, given the President’s recently adopted stimulus package, which includes larges sums of money earmarked for construction projects, only time will tell whether the Executive Order harms or helps the ailing construction industry. Submitted by Shannah Morris.
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| OSHA Regains Power to Cite General Contractors for Subcontractor Hazards |
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3/4/2009 Link
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The Eighth Circuit Court of Appeals recently published an opinion that substantially affects general contractors nationwide. In Secretary of Labor v. Summit Contractors, Inc., the Eighth Circuit overturned a prior decision of the Occupational Safety and Health Review Commission (“OSHRC”) and held that the Occupational Safety and Health Administration (“OSHA”) may cite general contractors under its “controlling employer” citation policy, even though none of the general contractor’s employees were exposed to the alleged hazard. Submitted by Bob Dimling and Andy Kaake.
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| Indiana Department of Transportation Announces Bid Date for "Shovel Ready" Projects Tabbed for Stimulus Money |
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3/3/2009 Link
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On Friday, February 27th, the Indiana Department of Transportation identified 29 infrastructure projects scattered around the State which have been designated to receive federal funding from the American Recovery and Reinvestment Act signed by President Barack Obama on February 17th. These projects are valued at 43.6 million dollars. Submitted by Dean Brackenridge.
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