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 […]

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 […]

Ahlers Cressman & Sleight at Alliance Northwest

  • Posted by Scott MacDonald
  • On February 1, 2018
Please join AHLERS CRESSMAN & SLEIGHT PLLC at Alliance Northwest March 15th in Puyallup, WA!  This year, Saki James Yamada will be giving a one-hour seminar entitled Insurance and Bonding, where he will provide tips and tricks for dealing with insurers and sureties. Come learn how to protect your business before, during, and after performance of the contract. AC&S will also have our booth […]

Big Bertha Lawsuits—Hitachi Zosen Weighs In

  • Posted by John P. Ahlers
  • On January 17, 2018
In a recent article published by Seattle Business Magazine, the Japanese manufacturer of the much-maligned tunnel machine (nicknamed “Bertha”) provided its version of events and its position to the public.  The interview took place after executives from Hitachi Zosen were not invited to the ceremony celebrating Bertha’s breakthrough at the end of its two-mile journey […]