Philadelphia Construction Law Blog

In what was seen as a seismic shift in judicial interpretation of the Pennsylvania Mechanic’s Lien Law of 1963, the Superior Court previously held that the construction trade unions could assert mechanic’s lien claims against property for unpaid health and welfare fund contributions by a contractor. In an opinion issued several days ago, the state’s highest court overturned that decision and reinstated the trial court’s order dismissing liens filed on that basis in Bricklayers’ of Western Pennsylvania Combined Funds, v. Scott’s Development Co.

The introduction of licensure bills in the Pennsylvania state legislature has become quite a regular occurrence over the last 10 years. The efforts have included attempts to establish licensing requirements for electricians, plumbers, crane operators, and a number of other trades. A good deal of debate remains about the idea generally.

Recent news accounts report that the Pennsylvania Department of Transportation has selected four teams made up of companies in finance, construction, manufacturing and other industries to submit proposals for PennDOT’s Rapid Bridge Replacement Project, which provides for the replacement of over 500 bridges statewide through public-private partnerships. The four teams are constituted as follows:

Although introduced as part of the 2013 legislative session, House Bill 427 now seems to be gaining some momentum in the state legislature. The bill, whose primary sponsor is Representative Readshaw, would impose a number of new rules for residential home builders.

The Pennsylvania House of Representatives recently passed legislation which removes the exemption for harassment, stalking, or threats to use weapons of mass destruction when involved in a labor dispute from the criminal code. The bill, which can be read in its entirety here, passed the house with a vote of 115-74 and has moved over to the Senate for consideration.

Your eyes did not deceive you when you read the title. Lead paint companies were hit with a $1.15 billion verdict – that is billion with a b – in California recently. In addition to the size of the award, the theory by which it was obtained is of some interest. The question for the construction industry in this region is whether this case is a precursor to similar litigation in Pennsylvania, New Jersey, or Delaware.

The next time you think your crane, backhoe, or front end loader will be there in the morning, pause for a moment and consider if you are doing all you can to protect your equipment.

On February 10, 2014, the Occupational Safety and Health Administration announced its intention to extend the time for compliance with the crane operator certification by 3 years, or until November 2017. There is also discussion about delaying its implementation indefinitely. Intense criticism and concern over the rule on this subject issued by OSHA in August 2010 is cited as the reason for the change. The Advisory Committee on Construction Safety and Health is leading the charge on the concerns and recommended the delay. Comments on the delay are due by March 12, 2014.

With tax season looming, many are beginning to assemble their papers, talk to their accountants, and make decisions about how best to pay Uncle Sam. In this context, some will be shocked to hear about data recently offered by the National Federation of Independent Businesses and other tax related groups that have studied effective tax rates. Pennsylvania and New Jersey developers and construction companies should certainly be aware of these facts and, perhaps, consider changing the manner in which their companies are organized from a tax perspective.

Now that it is February and almost everyone’s New Years’ resolutions are officially broken, it seems a good time to review what some are projecting as possible trends in the construction industry in 2014. The following is a simple list of predictions gathered from various sources.