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The Critical Path: Construction Law Blog

The Latest News and Legal Developments Impacting the California Construction Industry

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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.  

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Rice Solar Energy Project Construction Begins

The Rice Solar Energy Project located in Blythe in eastern Riverside County, is the first large-scale solar project in California to include energy storage capabilities.  The Project represents $750 million in direct investment into the state and the generation of 5,300 jobs over the course of the Project's 24-month California construction.  

CSLB Finds Millions in Unlicensed Construction Practices

The California Contractor State Licensing Board (CSLB) formed the Joint Enforcement Strike Force's (JESF) Construction Enforcement Project (CEP) to capitalize on multi-agency partnerships in a coordinated effort to enforce wage and licensure laws for contractors.  The results have been staggering so far: 411 audit referrals for an estimated $48,553,626 in unreported wages; $25,832,017 in EDD and Franchise Tax Board outstanding tax and civil liability suspension amounts with $10,815,762 in penalties recovered; $17, 705, 752 in EDD tax and civil liability suspensions with $6,626, 208 in recovered tax liability; and additional license liability suspensions by the Department of Industrial Relations totaling $1,972,328 with $1,835,869 in penalties recovered. 

LLCs Can Be Licensed California Construction Contractors in 2012

LLCs will finally have the ability to become licensed contractors in the state of California in 2012.  

Prior to 2012, LLCs were not permitted to hold California contractor's licenses.  However, beginning on January 1, 2012, that is about to change.  Beginning earlier this year, the Contractors State License Board (CSLB).  began processing license applications from LLCs for contractor's licenses.  Although the CSLB is not currently issuing LLC contractor licenses, it is expected to do so in 2012, as SB 392 becomes law and LLCs are lawfully permitted to hold California contractor licenses.  

Housing Starts Surge But Level Remains Low

California Construction News: Housing Starts Surge But Level Remains Low
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5 Lessons from Warren Buffett’s $2 Billion Solar Farm Purchase

California's Quiet Transportation Problems

California Construction News: California's Quiet Transportation Problems
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Central Valley County Sues to Stop State from Building Bullet Train

Construction Underwriting Tightens as Insurers Eye Project Losses

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The Influence of the Economic Crisis on the Construction Industry

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About Bowles & Verna LLP

Bowles & Verna represents some of the largest general contractors and subcontractors in California and the U.S., demonstrating expertise in all legal aspects of the design and construction process. The firm also represents a significant number of public agencies, design professionals, developers and owners in connection with construction claims.

Our experience encompasses a diverse range of matters involving all aspects and phases of construction. These matters include simple claims for payment to more complex matters such as construction defects, design team errors and omissions, contractor-subcontractor disputes, mechanic’s lien and stop notice actions, and state and federal claims resolutions schemes.

For more information please visit our website at www.bowlesverna.com or contact Kenneth G. Jones directly at (925) 935-3300 or by e-mail at kjones@bowlesverna.com.