Construction Law Blog
Recent case-law, statutory developments, articles and news impacting
the construction industry from the law firm Babst Calland
ABOUT THIS BLOG
The Babst Calland Construction Law Blog contains articles published by the attorneys at Babst Calland to provide timely legal and business information on issues important to the construction industry.
Tagged: COVID-19, Webinar, Workers' Compensation
Tagged: COVID-19, coronavirus, costs, delays, existing projects, force majeure, future projects, project schedule, safety protocols, supply chain
Tagged: COVID-19, Pennsylvania, commercial, non-exempt projects, public, residential
Tagged: COVID-19, Pennsylvania, commercial, non-exempt projects, residential
Tagged: Mechanics' lien, intent to lien, notice, service, subcontractor
- regulatory developments involving the use of drones on construction projects;
- amendments to Pennsylvania's Contractor and Subcontractor Payment Act (CASPA);
- case law dealing with Mechanics’ Lien claims;
- updates on the use of Project Labor Agreements on public projects;
- updates on "pay if paid" contract clauses;
- forum selection; and
- use of Master Services Agreements in the construction industry.
The use of a PLA is permitted where the contracting agency can establish extraordinary circumstances, and PennDOT did not make that demonstration in this case. The Markely Street Project is a long term road improvement, the first phase of which was completed a year ahead of schedule. Nor is there any evidence that there is a labor shortage in the greater Philadelphia area. The Keystone Report’s recommendations did not justify the PLA because it did not identify any extraordinary circumstances surrounding the Markley Street Project that warranted its use.(Emphasis supplied). Because of the PLA’s inherent unfairness to nonunion contractors and PennDOT’s failure to establish the “extraordinary circumstances” to justify its use, the Court held that the “PLA requirement in the bid solicitation for the Markley Street Project violates competitive bidding” and canceled the bid solicitation. The most signifcant aspect of the Allen Myers case is the Court’s willingness to examine the justifications for the use of PLAs by contracting agencies. If Commonwealth Court really means that PLAs are warranted only in “extraordinary circumstances,” then the routine use of PLAs for government contracts in the Commonwealth is of dubious validity.
Tagged: PennDOT, Procurement Code, Project Labor Agreement, union
Steps you can take:In response to the Act, both general contractors and subcontractors should review their contract provisions with counsel, general contractors may consider requiring subcontractors to obtain a bond or insurance to protect against wage claims by a subcontractor’s employees, and consider adding contract provisions to allow for review of their subcontractors’ pay practices, records, and history of wage claims and lawsuits for at minimum three years following final payment. General contractors should further consider requiring a subcontractor’s principal or officer to sign certified payrolls, thereby attesting that employees were paid properly.
Tagged: Industry news, Maryland, Proposed Legislation, subcontractor payment, wage payment
Tagged: Pipeline construction