Blog

RCW 82.32.655 Tax Avoidance Statute/Speculative Building

  • Posted by Scott R. Sleight
  • On August 16, 2018
With land prices increasing, developers are looking for opportunities to save on development costs, including cost saving tax strategies.  Thus, we have seen increasing interest in development strategies that offer tax savings.  One strategy is speculative building:  Owners of property who self-perform construction avoid sales tax and B&O tax on the self-performed scope.  See Blog […]

Contractor’s Charge of Improvements to Real Property Not Required for Laborers to Have Lien Rights

  • Posted by Matt T. Paxton
  • On June 8, 2018
In Washington, persons furnishing labor, professional services, material, or equipment for improvements of real property are generally entitled to a lien on that property, but only if their labor is furnished at the direction of the owner or the owner’s “construction agent.”[1] Whether a lien attaches, therefore, can turn on whether the person directing work is […]

Federal Contractors Should Request Debriefings as a Matter of Course

  • Posted by Scott MacDonald
  • On May 25, 2018
Federal Contractors—especially those engaging in FAR Part 15 direct contract negotiations—should make it a routine practice to timely request debriefings after the Contracting Agency excludes the bidder from the competitive range (“pre-award debriefing”) or after the Agency issues the award (“post-award debriefing”). Debriefings allow the Contractor to understand the evaluation process used by the Contracting […]

Terminating a Subcontractor or Sub-tier Contractor—Not so Fast—Read Your Contract!

  • Posted by John P. Ahlers
  • On May 11, 2018
Every few months I receive a call from a general contractor or subcontractor who has just terminated a subcontractor or sub-tier contractor for non-performance and is “checking in with me to see if there are any liability issues.”  After the termination has taken place, if the termination is wrongful, there are serious legal consequences.  Calling […]

Federal Contractors Beware, Act Swiftly on Termination for Convenience Claims!

  • Posted by John P. Ahlers
  • On April 20, 2018
In a recent Board of Contract Appeals case,[1] an Afghani general contractor performing work for the US government (Army) in Afghanistan got a wake-up call that when it comes to termination for convenience clauses, the boards and courts will, unless good cause is shown otherwise, strictly enforce deadline clauses. FAR 52.249-2 provides as follows: (e) After termination, […]

Ninth Circuit Rules that US Federal Arbitration Act (FAA) Does Not Authorize Arbitrators to Issue Document-Only Subpoenas to Third Parties

  • Posted by John P. Ahlers
  • On April 3, 2018
The Ninth Circuit in CVS Health Corp. v. Vividus, LLC, 878 F.3d 703 (9th Cir. 2017) recently held that the Federal Arbitration Act (FAA) does not grant arbitrators the power to compel the production of documents from third parties outside a hearing.  To reach this result, the Ninth Circuit relied on a textual reading of […]

Recreational Marijuana Use In Washington And Implications On The Construction Industry – Part II

  • Posted by Ellie Perka
  • On March 30, 2018
Part I of this series discussed Washington’s statutes surrounding recreational marijuana and its increasing use among Washington’s younger demographics. Part II discusses how these laws impact the construction industry and how various courts across the country have decided marijuana-related employment disputes. Finally, it provides some guidance for employers trying to ensure job site safety in […]

Recreational Marijuana Use in Washington and Implications on the Construction Industry – Part I

  • Posted by Ellie Perka
  • On March 23, 2018
Washington was one of the first states to legalize adult recreational marijuana use with the approval of Washington Initiative 502 (I-502) on November 6, 2012.  At that time, only Colorado had legalized the recreational use of marijuana.  While it was legalized years ago, retail sales did not begin until 2014 and licenses are still difficult […]

A Contractor who Refuses to Perform Sets Itself up for Termination for Default

  • Posted by John P. Ahlers
  • On March 13, 2018
A fundamental provision in virtually all construction contracts is that, irrespective of a disagreement or dispute regarding a “change,” the contractor must nevertheless perform.  Generally, only if the dispute involves a substantial (cardinal) change beyond the contemplation of the parties at the time of contracting will the contractor be excused from further performance.  In the […]