ECA Archives

June 2004 - Legal Grounds

MTA Attacks Contractor Associations

By Bernard S. Kamine, Kamine Ungerer, LLP

The Los Angeles County Metropolitan Transportation Authority recently filed court
papers impugning the motives and integrity of both ECA and SCCA. It is strange
conduct for an agency that is literally begging contractors to bid on its projects.

September 2005 - Legal Grounds

Releases of Actually Served Stop Notices is Authorized

By Bernard S. Kamine, Kamine Ungerer, LLP

ECA obtains an amendment to Civil Code 3262, effective January 1, 2006, which
allows the release of a stop notice in order to facilitate settlement of payment
disputes among prime contractors, subs, and suppliers on public and private jobs.

April, May & June 2006 - Legal Grounds

Everything You Ever Wanted to Know about Extra Work and the Changes Clause

By Bernard S. Kamine, Kamine Ungerer, LLP

If there were no changes clause in the contract, the contractor would have a right to
build exactly what was called out in the plans and specifications. The owner could
direct no changes without the contractor's consent. If the contractor refused to
consent, the change could not be made. That is why every competently drafted
construction contract has a changes clause

October 2006 - Safety Update

Trench Collapses Present Employers With Contradictory Outcomes

By Gerry McEwen - Garrett/Moser Insurance Services

California safety regulators have cited a Los Angeles construction company in the
February collapse of a trench that injured a worker in Pasadena. But the Division of
Occupational Safety and Health (DOSH) found little or no employer fault in three other
incidents in which workers were killed.

November 2008 - Legal Grounds

Sole-sourcing To Match Existing & Or-Equals

By Bernard S. Kamine, Kamine Ungerer, PC

When there is a one line entry, deep in the project specifications, calling for a particular
product from one, designated manufacturer "to match existing," can the contractor,
nonetheless, accept or-equal bids from other manufacturers, and, more importantly,
must the agency consider and accept another manufacturer's product if it is equal to
what was specified?

May 2004 - Legal Grounds

Proving Productivity Losses

-By Gregory J. Dukellis Watt, Teider, Hoffar & Fitzgerald, LLP

When a contractor bids and is awarded a fixed price contract, it is betting that it can
achieve a certain level of productivity in performing the work such that the contract will
be financially successful. When losses are suffered, additional labor costs are
typically the largest element of those losses.

June 2009 - Legal Grounds

Carno & Carlton, LLP Secures $1.4 million Judgement

Saddleback Valley Unified School District has been ordered to pay $1.4 million to a
construction company and its attorneys for a troubled renovation project at a special
education school, the culmination of a two-year legal battle that the victorious party
called an "unfortunate waste" of precious school funds.

ECA 2009 Directory - Legal Grounds

What You Need To Know About Bid Protests

By Bernard S. Kamine, Kamine Ungerer, PC

When work is plentiful, and only 3 or 4 contractors bid each project, the second low
bidder just moves on to the next job opportunity. But when work is scarce, with 25 or
more bidders for each contract, then the second low bidder, and even the third or fourth
low bidders are likely to look for ways to get the award.

September 2009 - Legal Grounds

ECA Gets Or-equal Statute Amended

By Bernard S. Kamine, Kamine, Collings & Phelps, PC

The or-equal statute (Pub. Cont. Code � 3400) is supposed to encourage contractors
and manufacturers to develop and implement new and ingenious materials, products
and services that function as well, in all essential respects, as those specified, but at a
lower cost to taxpayers. To implement that purpose, the statute prohibits agencies from
requiring a material, product or service to be provided by one, sole, specified source.
But agencies often look for ways to circumvent this statute. This year, ECA sponsored
an amendment to tighten it up; the amendment was passed and recently signed by the
Governor.

September 2009 - Political Action

ECA-Sponsored AB 1086 Clarifies "Or-Equal" Statute

By Phil Vermeulen, ECA Legislative Advocate

Public Contract Code � 3400 is known as the "or-equal statute." Its purpose is to give
taxpayers the benefit of contractor/manufacturer ingenuity that reduces the cost of
construction while providing the same functionality of the product or construction method
specified by the public agency who is bidding-out the work.

February (Directory) 2010 - Legal Grounds

Notice, Claim & Lawsuit Deadlines

By Bernard S. Kamine, Kamine, Collings & Phelps, PC

The constant tug-of-war among owners, contractors and lenders makes the laws governing
construction disputes more and more complex. The time limits for various actions are
numerous and confusing. The penalty for missing these deadlines can be severe: A
contractor's right to withdraw a bid, enforce a subbid, replace a subcontractor, provide an
equal, or pursue a lien, stop notice or bond claim can be lost completely.

January 2011 - Legal Grounds

Contractors Get Help from Courts in 2010

By Bernard S. Kamine, Kamine, Collings & Phelps, PC

Contractors had a big year in the California appellate courts, and ECA played an important role in
two of the cases. In balancing the rights of contractors against the interests of construction
lenders, the court comes down on the side of contractors. ECA argued that doing so was
required by the state constitution.