Under the “design-build” construction method, the property owner enters into one contract with a single entity that provides the owner with both design and construction services. The advantages of “design-build” include faster construction and delivery, slower cost and schedule growth, and the elimination of potential disputes between the designer and contractor. Due to these advantages,
Construction Law
Buying Generic for Louisiana Public Works Act Projects
In public bid projects, it is not uncommon to see project specifications that specify particular brands “or their equivalent.” Louisiana law prohibits the use of name-brand specifications, known as “closed specifications,” so the propriety of these specifications is debatable. La. R.S. 38:2212(T). To comply with the statute, these brand particulars are generally interpreted to be…
Construction Contracts: Do You Know Who You Contracted With?
Recently, we have noticed an increase in the number of construction contracts that either identify (1) an incorrect entity or (2) a non-existent entity as a party to the contract. No big deal, right…..maybe not.
It should be easy enough for the persons signing the contract to confirm their respective names. It is not as…
Recovery of Attorney’s Fees in Construction Disputes
By the Kean Miller Construction Team
Under Louisiana law, a party may recover attorney’s fees from an opposing party only in two specific circumstances: (1) where there is a contract between the disputing parties that explicitly requires the payment of the attorney’s fees incurred by the opposing party, or (2) where a specific Louisiana statute…
Act 759 of 2014 – Amendments to Louisiana’s Public Bid Law
Act 759 of 2014 updated and amended a number of aspects of Louisiana’s Public Bid Law, set out at La. R.S. 38:2212, et seq. The 2014 Amendments included the following:
- A Public bid opening is no longer required. La. R.S. 38:2212.A.(3)(g)(iii), which previously provided, “[a]ll construction contracts on public works shall be opened in a
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President Obama Signs Executive Order Increasing the Federal Contractor Minimum Wage
On February 12, 2014, President Obama followed up on comments made during his State of the Union address and signed an Executive Order increasing the minimum wage for employees of federal contractors. The Order, which increases the minimum wage from $7.25 to $10.10 per hour, covers all employees who perform services or construction work under…
On the Horizon, Revisions to the Louisiana Private Works Act: “The More Things Change, the More they Stay the Same”
All persons associated with non-public construction projects in Louisiana are affected by, and should be familiar with, the Louisiana Private Works Act. La. R.S. 9:4801, et. seq. (“PWA”). The two fundamental policies behind the implementation of the PWA summarized are:
- To protect those who contribute to the improvement of immovable property by ensuring that the owner does not benefit from their labor without compensating them; and
- To incentivize the owner to take reasonable steps to ensure that contractors and suppliers are paid.
The PWA was first enacted in 1981 and was based upon the work and recommendations of the official advisory law revision commission and, the law reform agency and legal research agency of the State of Louisiana – The Louisiana Law Institute. Over the last thirty years, numerous amendments and revisions to the PWA have resulted in piece-meal changes to certain provisions that lead to confusion, ambiguity, and potential traps for the unwary.
Recognizing the undesirable effects of the many revisions, the 2012 Louisiana Legislature has once again turned to the Louisiana Law Institute for its recommendations to simplify and better organize the provisions of the PWA.…
Louisiana’s Unique Retainage Escrow Requirements for Construction Contracts
Background of Louisiana Revised Statute 9:4815
Louisiana has a unique statute in its Private Works Act which requires owners to deposit retainage funds in an interest bearing escrow account for construction contracts over $50,000. While a number of other states have statutory provisions as to how much retainage may be withheld under a construction contract, Louisiana’s statute, which does not regulate those substantive terms, instead dictates how those funds are handled during the course of the project.
The statute, found at Louisiana Revised Statute 9:4815, was added to the Private Works Act by Act 638 of 2010. While the bill as originally introduced applied to all funds withheld from periodic payments by an Owner, the final version of the Act applies only to “retainage.”
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Contractual Indemnity Coverage Under Someone Else’s Insurance Policy May Provide Coverage in Unexpected Places
Almost everyone knows insurance policies provide a defense and indemnity for insureds, if the terms and conditions of the insurance policy are met. Insureds include named insureds, other insureds (as defined by the policy) or additional insureds as provided by endorsement. However, insurance policies may also provide payment and defense to others who are not insureds under the policies.
Most liability policies provide coverage to the insureds for liability when the insureds have contractually agreed to provide indemnity and/or defense to or party to a contract. A typical example of contractual indemnity coverage can be found in a construction contract to supply labor and materials related to electrical wiring in the construction of a home, office, pipeline or oil rig.
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GO Zone Bonds Approved for Current Refundings
The Gulf Opportunity Zone Act of 2005 (the “Act”) added several new sections to the Internal Revenue Code that provide certain tax benefits for affected hurricane disaster areas. Section 1400N(a) authorized the issuance of Qualified Private Activity Bonds (“Qualified Bonds”) to finance the construction and rehabilitation of residential and nonresidential property located in the Gulf…