The Georgia House of Representatives has followed the State Senate’s lead and passed Senate Bill (SB) 315[1] to restore statutory lien and bond waivers to their original intended purpose of waiving lien and bond rights only. We informed you in previous SGR Construction Blogs of SB 315 and its goal of addressing the confusion caused by ALA Construction Services, LLC v. Controlled Access, Inc.[2], in which the Georgia Court of Appeals held that Georgia statutory lien waivers can also waive breach of contract claims.[3] Prior to the ALA Construction decision, most Georgia construction professionals understood that Georgia statutory forms only… Read more
Tag: construction
“Beginning of Construction” for Investment Tax Credit for Solar Energy Projects Defined by the IRS
On June 22, 2018, the IRS released guidance to assist developers and owners of solar energy projects in determining the “beginning of construction” for solar energy projects for purposes of the Investment Tax Credit (ITC) under Section 48 of the Internal Revenue Code. In extending the ITC in 2015, Congress changed the previous “placed-in-service” standard for qualification for the credit to a “beginning of construction” standard for projects completed by the end of 2023. Projects beginning construction in 2019 will receive the current 30% ITC, while projects beginning construction in 2020 and 2021 will receive 26% and 22%, respectively. After… Read more
OSHA’s Enforcement of the Respirable Crystalline Silica in Construction Standard: What to Expect
On September 23, 2017, the Occupational Safety and Health Administration (“OSHA”) began enforcement of the new respirable crystalline silica in construction standard, codified at 29 CFR § 1926.1153. This standard establishes a new 8-hour time-weighted average Permissible Exposure Limit (“PEL”) of 50 μg/m3, an action level of 25 μg/m3, and a “host of ancillary requirements.” In a recent letter of interpretation, Thomas Galassi, Acting Deputy Assistant Secretary to OSHA Regional Administrators, announced that for the first thirty (30) days of enforcement, “OSHA will carefully evaluate good faith efforts taken by employers in their attempts to meet the new construction silica standard.”… Read more
Access to Adjoining Property During Construction
Just about every cooperative and condominium in New York City will at some point need access to a neighboring property to be able to do work on its building or will be asked to provide access for its neighbors to allow them to do work on their building.[1] The intrusion may be minimal – like putting protective planking on a roof – or extensive and disruptive – such as erecting scaffolding, closing off courtyards or terraces, or causing significant noise or vibration. What do you do? What can you do? The basic rules are pretty simple. The property owner who… Read more
Mercedes-Benz Stadium Fly-Through: Watch It
The New Mercedes-Benz Stadium, which will be home to the Atlanta Falcons and Atlanta United (set to begin play in 2017), is currently under construction. Several renderings of the unique design for the stadium have been available to the public for some time. However, a new fly-through video released this Tuesday shows the much-anticipated Mercedes-Benz Stadium in all its glory, including the unique retractable roof, a gigantic window providing a view of downtown Atlanta, and the 360-degree HD “halo” video board running the entire circumference of the stadium. The fly-through video gives fans a look at each part of the… Read more
Sovereign Immunity from a Surety’s Subrogation Claims? Not in Georgia
Authored by Darren Rowles and Scott Cahalan When a surety receives notice that its principal has defaulted, the surety is faced with a decision. Depending on the terms of the bond, the surety can either complete the work at its own expense, obtain bids from completion contractors and then arrange for them to contract directly with the owner or other obligee, allow the obligee to arrange for completion of the work with the costs to be paid by the surety, settle with the obligee, or it can choose to defend against the default and assert the principal’s claims, if any, against… Read more
Can You Arbitrate Where You Want To?
Authored by: Darren Rowles A forum selection clause is a contractual provision designating a certain state or court as the jurisdiction in which the parties will resolve disputes arising out of their contract. These clauses are very common in the construction industry. Just as common are agreements to arbitrate disputes arising out of the contract, which may also select where the dispute will be heard. If, for example, a Georgia company enters into contracts to perform work outside of the state, it might still want its contract to include a provision indicating that all disputes relating to the contract are… Read more