A court of appeal case published on September 18, 2014, Los Alamitos Unified School District v. Howard Contracting, Inc., confirmed the existence of an exception to competitive bidding for “lease-leaseback” agreements awarded by school districts pursuant to Education Code section 17406. Many involved in school district construction have held the view that “lease-leaseback” agreements were exempt from competitive bidding, despite the fact that these agreements result in new construction projects which are ultimately owned by a school district. This case confirms that view by applying a plain meaning interpretation of section 17406. Continue Reading
The California legislature has enacted a number of laws that impact prevailing wage requirements, including provisions that affect charter cities, requirements to inform the Labor Commissioner of the completion of public works projects, exposure to liquidated damages for prevailing wage violations, and applying prevailing wage requirements to refinery construction projects. These laws went into effect on January 1, 2014, and are summarized below.
The Labor Day Bay Bridge celebration for the opening of the eastern span may be postponed. In the last few weeks, concern about issues with the Self Anchored Suspension Span (SAS) of the San Francisco-Oakland Bay Bridge, and specifically the cracked anchor bolts, has greatly increased from Governor Jerry Brown’s enlightened comment on May 7, 2013, that “shit happens.” Indeed, the problems with the bolts have heightened concern about public safety and a real possibility that the SAS will not be ready for use until 2014. After all, we are talking about the structural integrity of the state’s most traversed bridge, and at a cost of $6.4 billion, the largest public works project in California history.
The legislature is considering adopting a statute that would require workers on private projects to be paid prevailing wage if public subsidies exceed the lesser of $10,000 or 1% of the project cost. This would effectively eliminate the de minimis exception and likely change the landscape for public subsidies on private projects.
Curbed San Francisco posted an article yesterday with a number of great photographs of the construction work in progress on the Transbay Terminal in San Francisco. I have not seen images this detailed before, and they are fascinating. Apparently, the web of steel crossbeams are temporary supports. It is worth a look, click here.
This New York Times article describes a relatively new "accelerated bridge construction" technique using a self-propelled modular transport to lift a bridge into place. The article focuses on the River Street Bridge in Boston, but the technique is being used increasingly around the country. When done correctly, the bridge is lowered in place "like a lid fitting onto a box." The primary benefit of this technique is the incredible increase in speed of project completion, shaving months or even yeras off of a project. Click here to read the article.
On October 9, 2011, Governor Brown signed SB 293 in to law. SB 293 addressed a variety of issues in public works related statutes, including prompt payment periods between a prime contractor and subcontractor, procedures for filing 20-day preliminary notices, and procedures for making claims on payment bonds. Most noteworthy, however, is the adoption of a new Public Contract Code section 7201 which caps retention of progress payment for all public works projects at 5%.
On August 8, 2011, the 1st District Court of Appeal broke new ground when it published a decision holding that Phase 2 of the Presidio Parkway project can move forward as a public-private partnership (P3). The Presidio Parkway Project is the first project to reach award under California’s new public-private partnership statute, Streets and Highways Code section 143. The project was challenged on three separate grounds by the Professional Engineers in California Government (PECG), an engineers’ union. The Court of Appeal affirmed the trial court’s ruling approving the California Department of Transportation’s (Caltrans) use of the new statute, and should encourage the consideration of P3s as a project delivery method in California.
I just came across this short video regarding Disney’s use of Building Information Modeling on the construction of their new Fantasyland. It demonstrates the benefits of BIM in a little over 3 minutes. Watch it here.
On March 24, 2011 the Ninth Circuit Court of Appeals made it more difficult to bring a complaint claiming a violation of the Federal False Claims Act (FCA). The Court held that FCA complaints must not only “state with particularity the circumstances constituting fraud or mistake” (under Federal Rule of Civil Procedure 9(b)), but must “also plead plausible allegations” (under Federal Rule of Civil Procedure 8(a). In Mary Angela Cafasso v. General Dynamics C4 Systems, Inc. (March 24, 2011) 11 C.D.O.S. 3557 the Court upheld the dismissal of the plaintiffs’ False Claims Act complaint before trial because, although the “complaint alleges unsavory conduct … unsavory conduct is not, without more, actionable under the [False Claims Act].”