Philadelphia Construction Law Blog

A new California law requires prime contractors on private construction projects to be financially responsible for any wages, fringe benefits and union contributions left unpaid by subcontractors and their sub-subcontractors. The prime contractor’s financial responsibility under this new law, however, does not extend to any penalties or liquidated damages resulting from a subcontractor’s failure to pay wages. This law governs all private construction contracts entered into beginning January 1, 2018. As a result of this new law, prime contractors on California private construction projects will need to closely monitor their subcontractors’ payroll practices and require the submission of payroll documentation similar to that required under the Davis-Bacon Act. The new law allows prime contractors to withhold payment from any subcontractor that does not provide the required payroll records. Could we see passage of a similar law in Pennsylvania and New Jersey – two states having strong construction labor unions?

On September 23, 2017, OSHA will begin enforcement of the new respirable crystalline silica standard for construction (“new silica rule”). OSHA announced that during the first 30 days of enforcement of the new silica rule, it will consider good-faith efforts by employers in their attempt to comply with the new silica rule. OSHA will offer outreach and assistance to help ensure employers are fully and properly complying with the new requirements. The memorandum issued by OSHA on the subject can be found under the following link: https://www.osha.gov/pls/oshaweb/owadisp.show_document?p_table=INTERPRETATIONS&p_id=31292

The Occupational Safety and Health Administration (OSHA) announced Thursday, April 7 that it will delay enforcement of its silica rule for the construction industry for 90 days, from the initial date of June 23 to the new deadline of Sept. 23. The reason for the delay, according to OSHA, is to secure additional guidance for the rule “due to the unique nature of the requirements in the construction standard.” http://www.constructiondive.com/news/osha-delays-enforcement-of-silica-rule-for-90-days/439957/

On January 4, 2017, the Associated Builders and Contractors, Associated General Contractors of America, National Association of Home Builders, U.S. Chamber of Commerce and eight other construction industry groups sent a letter to president-elect Donald Trump asking that he rescind President Barack Obama’s Executive Order 13502, which encourages federal agencies to require project labor agreements (PLAs) on large-scale projects. In the letter, the coalition of construction industry groups advocate that PLAs raise the cost of public projects by 12%-18% resulting in “fewer infrastructure improvements and reduced construction industry job creation.” The coalition further state that a PLA “stifles competition and prevents taxpayers from receiving the best possible construction product at the best possible price.” In the letter, the coalition insinuate that rescinding the mandate will increase infrastructure improvements and job creation. The building trades union have advocated the use of PLAs on public projects, so it remains to be seen whether they would reach out to president-elect Donald Trump prior to his inauguration asking that he save Executive Order 13502.

The Pennsylvania Mechanics’ Lien Law (“Lien Law”) was amended to establish a searchable construction project and mechanic’s lien directory which can affect the mechanic’s lien rights of Owners, Contractors, and Subcontractors.  The amendments apply to projects having a cost estimate of $1.5 million or more, and they become operable on December 31, 2016. Finding and Using the Directory Under the Lien Law amendments, the Commonwealth Department of General Services (“DGS”) is required to set up and operate the searchable directory. This directory (the “State Construction Notices Directory”) is to be a standalone internet website that will likely be linked through the DGS webpage (https://www.dgs.pa.gov). The link to the directory can be found at www.scnd.pa.gov/.  This link provides an instructional video explaining how the directory functions and allows a user to create an account to file notices.  DGS is required to inform the public about the directory and instructions on its use within 120 days of operation by publishing information about it in the Pennsylvania Bulletin. The Function of the Notices So, what are the notice requirements under the amended Lien Law? There are four types of notices referenced in the amendments, two of which can be filed by or on behalf of a searchable project Owner, and two by a Subcontractor (as defined in the Lien Law, a subcontractor has a contract to supply labor or material to a prime contractor, or to another subcontractor).  The Owner notices are: (1) Notice of Commencement and (2) Notice of Completion. They are […]