Monthly Archives: June 2012

BIG PROJECT IN THE LEHIGH VALLEY

On behalf of Kaplin Stewart Meloff Reiter & Stein, P.C. posted in Current Events in Construction on Jun 25, 2012.

Alvin H. Butz, one of the Lehigh Valley’s largest construction companies, has broken ground on a new project in Allentown. Phase II of the Butz Corporate Center is a $10 million building located on Hamilton Street. The 6 story, 50,000 square foot Class A office and retail space will bring approximately 150 jobs to the Allentown area. It follows on Phase I of Butz’s corporate center project, which opened in 2006 and is estimated to have created 200 jobs in the city.

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Insurer Does Not Have A Duty To Defend Contractor Against Faulty Workmanship Claims

On behalf of Kaplin Stewart Meloff Reiter & Stein, P.C. posted in Insurance on Jun 21, 2012.

Does a contractor’s insurance company have a duty to defend the contractor in a lawsuit for faulty workmanship where the contractor has evidence that it did not cause the property damage? A Pennsylvania Court recently held that an insurer had no duty to defend under these facts.

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Pennsylvania House Bill 2470 Referred to House Rules Committee

On behalf of Kaplin Stewart Meloff Reiter & Stein, P.C. posted in Pending Legislation on Jun 20, 2012.

Pennsylvania House Bill 2470 was referred out of the House Finance Committee to the House Rules Committee today. The legislation, which is a major initiative of Pennsylvania residential home builders’ organizations, is designed to extend approvals already obtained for development.

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TRUSTEE OF EMPLOYEE BENEFITS FUND FOR UNION HAS STANDING TO FILE A MECHANICS’ LIEN IN PENNSYLVANIA

On behalf of Kaplin Stewart Meloff Reiter & Stein, P.C. posted in Mechanic's Liens on Jun 18, 2012.

In the case of Bricklayers of Western Pennsylvania Combined Funds, Inc. v. Scott’s Development Company, the majority of the Pennsylvania Superior Court, sitting en banc, overruled the lower court’s decision to dismiss a mechanics’ lien claim by the trustee of the employee benefits fund for the union on the basis that the trustee lacked standing to file the lien under the Pennsylvania Mechanics’ Lien Law (hereinafter “Lien Law”) for unpaid contributions to union members because neither the trustee nor the union were a “subcontractor” under the Lien Law. Under the Lien Law, only a “contractor” and “subcontractor” are permitted to file a lien claim against the owner of real property for debts due to a “contractor” or “subcontractor” relating to improvements made to the property. Under the Lien Law, a “subcontractor” is defined as:

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Will A Permanent Federal Highway Appropriations Bill Ever Get Passed?

On behalf of Kaplin Stewart Meloff Reiter & Stein, P.C. posted in Pending Legislation on Jun 13, 2012.

On March 31st of this year, Congress passed a stopgap highway transportation funding bill for the 9th consecutive time. That 90 day extension avoided a complete cutoff of funding to construction and state transportation funds and is set to expire again on June 30th. With Democrats and Republicans in Congress still battling it out, a 10th stopgap bill now seems more likely.

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NOT SO FAST; ECONOMIC WASTE IN PENNSYLVANIA

On behalf of Kaplin Stewart Meloff Reiter & Stein, P.C. posted in General on Jun 11, 2012.

Television has glamorized contractor criticism of late. Often times, a rip-out and rebuild is recommended when it is unnecessary. This type of sensationalism makes for good TV, but the suggestion that a home with a construction defect be completely ripped apart, requiring complete re-construction, is often not a smart move legally.

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Use of Subcontractor’s Bid in GC’s Bid Does Not Create A Contract in Pennsylvania

On behalf of Kaplin Stewart Meloff Reiter & Stein, P.C. posted in Contract Bidding on Jun 7, 2012.

On May 21, 2012, the Pennsylvania Commonwealth Court addressed an issue which comes up often but has not been addressed by Pennsylvania appellate courts. The issue: Does a general contractor’s use of a subcontractor’s bid in the general contractor’s bid constitute an acceptance of the subcontractor’s bid?

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Military Construction Appropriations Bill Passes After Debate on PLA’s and Davis-Bacon Amendments

On behalf of Kaplin Stewart Meloff Reiter & Stein, P.C. posted in Pending Legislation on Jun 4, 2012.

2013 appropriations bill to fund military construction and various Veterans’ Administration needspassed the House on Friday, June 1, 2012. While it did not do so without significant debate over PLA’s and Davis-Bacon requirements, the entire delegations of both Pennsylvania and New Jersey voted in favor of it.

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Rise in Steel Shipments Compared to 2011 Numbers Could Be a Good Sign

On behalf of Kaplin Stewart Meloff Reiter & Stein, P.C. posted in Construction Industry News on Jun 2, 2012.

Opinions vary in the construction industry as to whether the economy has turned the corner. Many report an uptick in available projects, while others say the pickings remain slim. There are any number of reports and polls to consider when reaching a conclusion about the current state of the construction economy and where we are headed. At least one more suggests the possibility of better times.

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