In Pennsylvania, it is well-established that a homeowner can assert claims for fraud and violation of Pennsylvania’s consumer protection statute – the Unfair Trade Practices and Consumer Protection Law (“UTPCPL”) – against a contractor based upon the contractor’s representations, even absent any contractual relationship between the homeowner and the contractor. Essentially, where a contractor makes a representation on which reliance is “specially foreseeable” and the homeowner relies upon the representation and sustains damages as a result, the homeowner may have a claim against the contractor. This scenario often comes into play where a homeowner asserts a claim against the builder where the homeowner is not the initial purchaser of the home, but rather a subsequent purchaser.  Continue Reading Adams v. Hellings Builders, Inc.: PA Superior Court holds that a homebuilder can be liable for representations made in its promotional materials

By now, you have probably heard enough from us about the new changes to the Pennsylvania Mechanics’ Lien Law. If a newsletter article and several blog posts were not enough, here is one more reminder that the long-anticipated Pennsylvania State Construction Notices Directory is up and running. Already, owners have been active in registering searchable projects. Continue Reading It’s Official: PA Construction Notices Directory Is Up and Running

On January 23, 2017, Philadelphia Mayor Jim Kenney signed into law a wage equity ordinance that makes it unlawful for an employer in the city of Philadelphia to ask about the wage history of a prospective employee at any stage of the hiring process. Under the new law, an employer may not condition employment on the job candidate’s disclosure of their wage history (which includes fringe benefits) or refuse to hire a candidate because of their refusal to respond to an inquiry about their past wages. The ordinance also prohibits employers from relying on a candidate’s wage history in order to determine the amount that it will offer a candidate unless the candidate has “knowingly and willingly” disclosed such information to the employer during the hiring process. Continue Reading Philadelphia Becomes First City to Prohibit Employers from Inquiring About Prospective Employees’ Past Earnings

A New York appellate court issued a decision in 2016 that serves as an important reminder to all tiers of the construction industry: courts take the notice provisions in your construction contracts very seriously. In the Schindler Elevator Corp. v. Tully Const. Co., Inc. case, the Appellate Division dismissed a subcontractor’s claim in its entirety because emails and letters that the subcontractor provided to the prime contractor did not comply with the strict notice provision in the prime contract. Continue Reading New York Case Reminds Us That Some Courts Take Notice Provisions Very Seriously

The new — and much anticipated — Pennsylvania State Construction Notices Directory (“Directory”) is expected to go live this December 31. With this rollout, the PA legislature will have established a statewide directory system for owners to list projects and create a new lien notice requirement for projects in excess of $1.5 million. The Directory for the Pennsylvania Mechanics’ Lien Law, which was signed into law in October 2014, provides the following important changes:  Continue Reading PA Construction Notices Directory Goes Live December 31, 2016

As a follow-up to our July post on New Jersey state budget problems threatening public construction projects, the political fight over funding New Jersey’s Transportation Trust Fund (“TTF”) finally ended on September 30, 2016. Governor Chris Christie and the legislature agreed to a  compromise whereby the TTF will be reauthorized for eight years and funded with an additional 23 cent per gallon gas tax, for a total funding of $2 billion per year. As part of the compromise, the estate tax will be phased out by 2018, the sales tax will be reduced by 3/8th of a point, and other credits and deductions will be added to the NJ tax code.

Continue Reading A Deal on New Jersey’s Transportation Trust Fund: What Does it Mean for Affected Contractors?

On November 21, 2016, a federal judge in Texas issued a nationwide injunction blocking the Department of  Labor’s new overtime rule, which sought to expand the obligations of employers to pay overtime by, among other things, doubling the minimum salary threshold for the “white-collar” exemption under the FLSA. The decision brings relief to employers who were bracing themselves for the rule’s December 1, 2016 effective date.  Continue Reading Federal Judge Blocks DOL Overtime Rule

Are you a construction company owner, CFO, controller, or lead estimator involved in the bidding process?

On October 13th, join construction industry leaders, Bill Burke, Jason Copley, David Kane, and Anthony Stagliano, for a hands-on seminar, providing insights into effective strategies to maximize your profitability through innovative insurance, surety, legal, and accounting perspectives.

To register, contact Olivia Kornilowicz at 215.564.1700 or opk@cohenseglias.com.

Continue Reading Construction Executive Boot Camp 2016 – Interactive Panel Discussion and Cocktail Networking Event

In the world of construction, the old legal saying “equity aids the vigilant, not those who slumber on their rights” rings true. A weary contractor risks more than an OSHA violation – when a contractor fails to protect its legal rights, it can wake up near the end of the project only to find that it has lost a substantial amount of money with little ability to recover.

Continue Reading The Early Contractor Gets the Worm: The Active Process of Preserving Construction Claims

[Note from the Editor: Due to an inadvertent editing error, omitted from our post entitled NJ Supreme Court Gets It Right! Consequential Damages Caused By A Subcontractor’s Defective Construction Work Is Insured was the fact that the property damage at issue occurred after the project was completed.  The insurance coverage at issue in the case was completed operations coverage included in the commercial general liability form.  The corrected article appears below.] 

Consultant presenting insurance concept and risk managementThe New Jersey Supreme Court’s August 4, 2016 decision in Cypress Point Condominium Association, Inc. v. Adria Towers, LLC opened the door for general contractors to obtain insurance coverage under their commercial general liability (CGL) policies for property damage caused by their subcontractor’s defective work after the project was completed. Continue Reading NJ Supreme Court Gets it Right! Consequential Damages Caused by a Subcontractor’s Defective Construction Work is Insured