"Fairness in Construction" Fund
Gets Good Start"...........
3 Associations and 2 Companies In First With Donations:
BAYSIDE INTERIORS INC.
NORTHERN CALIFORNIA GLASS MANAGEMENT ASSOCIATION
NORTHERN CALIFORNIA PAINTING & FINISHING CONTRACTORS
UNION ROOFING CONTRACTORS ASSOCIATION
WESTERN FIRE PROTECTION INC.
ASAC recently sent letters to members and supporters
requesting donations to "Fairness in Construction". The
funds will help ASAC leadership keep up the good work
they are doing in Sacramento on your behalf.
Without representation at the Capitol in Sacramento,
subcontractors and suppliers would be at the mercy of
other groups who do have lobbyists. ASAC has very
competent representation in Skip Daum, our Legislative
Advocate. He is there watching for legislation you need
to Support, Watch, or Oppose. These issues are brought
to the ASAC Government Relations Committee for
discussion and decisions, and appropriate action is then
taken to make sure the laws passed in California are not
detrimental to ASAC members.
Court actions are reviewed by our Legal Counsel,
Crawford and Bangs LLP. In addition, the attorneys who
are members also provide input and keep leadership
advised of legal happenings.
Keep in mind that you do not have time to be there
yourself to watch out for your interests, nor do you
have the expertise. You trust ASAC to handle this for
you, and you can be assured it is being done well.
All of these efforts are expensive, and we need your
help. Please send your check payable to ASAC to:
American Subcontractors Association
California Inc.
PO Box 292867, Sacramento, CA 95829-2867
(Check with your tax advisor
for specific advice about the Federal and State Income
tax deductibility of this donation.)
Let us illustrate how important your contribution to the
ASA General Fund is by identifying your business as a
contributor in every issue of our statewide newsletter
for the coming year, as well as on our website,
www.ASACalif.com.
Your support means that
you want ASAC to succeed. Your support means that you
trust us to work for you. Your support means that we're
working as a TEAM that will not be denied the reforms we
seek.
Dated: May13, 2012
American Subcontractors Association of California
Meetings via Teleconference
ASAC meetings are open to all members.
Please contact Executive Director Jordi Grant to get
involved!
asac@asacalif.com
Government Relations
Committee
Friday - June 1, 2012
GRC 10:00 a.m. to 12:00 noon
Government Relations
Committee + Board of Directors
Thursday - July19, 2012
GRC 10:00 a.m. to 12:00 noon
ASAC Board Meeting 1:00 p.m. to 3:00 p.m.
ASAC - Leading
Construction Subcontractors to Equitable Legislation in
California
Important Changes to California
Construction Forms Beginning on July 1,
2012:
The Impact of 2010 Senate Bill
189
ASACalifornia Newsletter
Editor's Note:
The information in this article is so important we are
running it again. Your company must be ready for these
changes, and the information and links provided below
will help.
By William L.
Porter, Esq.*
The most important changes to California construction
law in decades will become effective on July 1, 2012.
Signed into law in 2010,
Senate Bill 189, reorganized and
renumbered all those California Civil Code provisions
dealing with such familiar construction claim remedies
as the Mechanics Lien, Stop Notice and Bond Claim. While
this effort greatly simplified the legal rules and made
them easier to follow, there are a number of important
substantive changes to these laws. These changes include
new definitions, new rules and new procedures found in
new Civil Code Sections 8000 to 9566. These changes also
mean that new forms will be necessary.
As a result of these
changes, all those in the construction industry should
begin using the new forms and procedures beginning on
July 1, 2012. Failure to do so could result in loss of
important legal rights. Some of the most
important changes to the forms are outlined below. A
website to access the new forms free of charge is also
identified below.
Changes to Construction Forms Generally:
Beginning on July 1, 2012, the most important forms
contractors, subcontractors and suppliers have been
using for decades to preserve their rights to payment
will become obsolete. Beginning on July 1, 2012, the
following forms must be discarded and new forms used:
The "Preliminary 20 Day Notice" (both public and
private), the four "Conditional" and "Unconditional"
Releases on "Progress Payment" and "Final Payment", the
"Mechanics Lien", the "Release of Mechanics Lien", the
"Stop Notice", "Release of Stop Notice" and "Notice of
Completion". There are other forms which have also
changed, but the above forms include the most important
changes. All of the new forms, updated to include all
legal changes as of July 1, 2012 are available at the
following website at no charge:
http://www.porterlaw.com/forms.htm .
Begin using these
forms on July 1, 2012. Further details are set forth
below:
The Preliminary Notice:
The document the construction industry has know for
decades as the "Preliminary 20 Day Notice" has a new
title. Although it should still be served within 20 days
after first providing work or materials to a project, it
is now simply called the "Preliminary Notice". In
addition to hand delivery and certified or registered
mail, the Preliminary Notice can now be served by
overnight delivery by an express mail carrier or in the
same manner in which a summons and complaint is served
in a civil action. The language of the "Notice" section
at the top of the private works Preliminary Notice has
also changed. The Preliminary Notice must also now
describe "the relationship to the parties of the person
giving the notice", meaning that the claimant must
generally state whether they are a contractor,
subcontractor or material supplier in relation to those
served. Also, unlike previously, the public Preliminary
Notice must now provide an "estimate of the total price
of the work provided and to be provided". There are
other changes, but these are the most important.
Free copies of both the
private and public Preliminary Notice forms are
available free of charge at
http://www.porterlaw.com/forms.htm .
Conditional and Unconditional Waiver and
Releases on Progress and Final Payment:
Each of the four traditional forms (The "Conditional
Waiver and Release on Progress Payment", the
"Unconditional Waiver and Release on Progress Payment",
the "Conditional Waiver and Release on Final Payment",
and the "Unconditional Waiver and Release on Final
Payment") has been changed at least slightly. The most
significant change is that the Conditional Waiver and
Release on Progress Payment allows the exclusion from
the waiver and release as to sums for which the claimant
has given a prior Conditional Waiver and Release but for
which payment has not been received.
Mechanics Lien:
The Mechanics Lien Form has also changed. However, the
changes for 2012 are only slight. The major changes to
the Mechanics Lien form took effect at the beginning of
2011 and include an important new notice provision and
new service requirements. The new form is also available
at the above website free of charge.
Stop Payment Notice:
The Stop Notice Form has also changed. To provide
greater clarity and distinguish itself from the "Stop
Work Notice" the Stop Notice is now more accurately
deemed the "Stop Payment Notice". Like the new
Preliminary Notice, the new Stop Payment Notice may now
be served by overnight delivery by an express mail
carrier or in the same manner in which a summons and
complaint is served in a civil action. Unlike the Prior
Stop Notice the new Stop Payment Notice must be served
on the "direct contractor" (previously termed the
"original contractor") as well as the owner or reputed
owner and the lender, if any.
Payment Bond Notice:
The Payment Bond Notice Form has also changed. The
Payment Bond Notice may now be served the same as the
above forms, that is by personal service or by
registered or certified mail, but also now by overnight
delivery by an express mail carrier or in the same
manner in which a summons and complaint is served in a
civil action. The major change though was as a result of
a companion Bill to SB 189, SB 293. Under prior law a
potential Payment Bond claimant who failed to properly
serve a Preliminary 20 Day Notice could still
successfully make a claim on a Payment Bond if the
claimant served a Payment Bond Notice within 15 days of
a Notice of Completion or 75 days from actual completion
(if there was no Notice of Completion). Serving the
Payment Bond Notice would "cure" the failure to properly
serve the Preliminary 20 Day Notice for those seeking to
make a claim on the Payment Bond. SB 293 changes this.
Under SB 293 and the resulting new Civil Code sections
8612 and 9560, a potential Payment Bond claimant who
failed to serve a Preliminary Notice and wished to cure
this failure by sending the Payment Bond Notice within
15 days of a Notice of Completion or 75 days after
actual completion (if there is no notice of completion)
will not be permitted to successfully make such a
Payment Bond Claim if either "(1) All progress payments,
except for those disputed in good faith, have been made
to a subcontractor who has a direct contractual
relationship with the general contractor to whom the
claimant has provided materials or services" or "(2) The
subcontractor who has a direct contractual relationship
with the general contractor to whom the claimant has
provided materials or services has been terminated from
the project pursuant to the contract, and all progress
payments, except those disputed in good faith, have been
made as of the termination date." This somewhat
confusing language represents a major change in the law.
However, for those who properly serve a Preliminary
Notice at the beginning of work on a project as they
should, this new law will have no impact on them.
Notice of Completion:
SB 189 changes the rules applicable to the Notice of
Completion. One significant change in this regard is
that under prior law a Notice of Completion was
generally valid if recorded within 10 days after the
true date of completion of the work of improvement. This
has been changed under the new law to 15 days for both
public and private works projects. There are other less
significant changes to the form. An example of a new
form is also available at the above website.
Other Forms:
The same changes as outlined above necessitated changes
to the "Release of Mechanics Lien", Partial Release of
Mechanics Lien", "Release of Stop Payment Notice",
"Partial Release of Stop Payment Notice", "Notice of
Cessation" and "Extension of Time to Enforce Mechanics
Lien". All of these forms are available on the website
cited above.
Free copies of both the
private and public Preliminary Notice forms are
available free of charge at
http://www.porterlaw.com/forms.htm .
*Mr.
Porter is a partner at Porter Law Group in Sacramento,
CA. Mr. Porter was chair of the committee of seven
California construction attorney selected to work with
the California Legislature and the California Law
Revision Commission in drafting 2010 Senate Bill 189, a
244 page bill which rewrote construction claims remedies
and became current California Civil Code Sections 8000 -
9566. The other attorneys on the committee were Conor H.
McElroy, John L. Boze, Bruce D. Rudman, Scott E.
Holbrook, Daniel F. McLennon and Patricia E. Walsh.
Date: May 13, 2012
California
Subcontractor Healthcare Construction Network (CASHCN)
www.cashcn.org
An initiative launched by the American
Subcontractors Association Bay Area Chapter
What it's all about:
The California Subcontractors Healthcare Construction
Network (CASHCN) was launched by the Bay Area Chapter,
ASA, Inc. to prepare Subcontractors for the wealth of
healthcare construction coming to California. In 1994
the California State Legislature passed SB 1953,
requiring 450 acute care hospitals to perform seismic
upgrades or close their doors. Over the next decade,
that represents a $100 billion opportunity for
Subcontractors who can prove they are qualified to
perform the work.
The CASHCN initiative includes a website, tools,
resources and workshops designed to help Subcontractors
prepare and qualify for this coming work.
The goal is to help connect General Contractors and
Owners with qualified Subcontractors to work on projects
in the healthcare sector.
The Website:
Please visit
www.cashcn.org.. The most significant benefit is the
prequalification form where once you enroll your
company, General Contractors and Owners can find you for
their next healthcare project. You must be a member of
ASA to access this benefit.
How to Access the Benefits:
Join ASA and you will be able to access this great
resource immediately. Contact your local ASA Chapter.
Questions?
Contact Sabrina Ritchie, Executive Director, at (925)
680-1166 or
sabrina@asabayarea.org. We look forward to welcoming
you as a member and helping you grow your business.
Date: May 13, 2012
Visit ASA California on
the Web!
www.ASACalif.com
Includes lists of ASAC members and Government Relations
Donors. Add it to your favorites and visit
often!
ASAC Appreciates
YOUR Help!
ASAC leaders ask you to do your part, helping our
Subcontractor and Supplier community with your letters
and phone calls.
Many of you came through in 2011, and we'll be asking
you to help again in 2012. Getting bills through the
California Legislature requires that we all participate.
Remember -- We only ask when we truly believe your
efforts will be influential in determining the direction
a bill or movement heads.
Those efforts do make a difference!
There's strength in numbers!!!!!
Date: May 13, 2012
Notes on the ASAC Website Layout:
The American Subcontractors Association of California
(ASAC) website is divided into the sections covering
ASAC'sbr>
strengths as an association. We have our
Legislative Advocacy
program tracking and developing the new construction
laws in Sacramento. The ASAC, also, is very fortunate to
have a Judicial Advocacy
program run by the finest construction attorneys up and
down California to follow and try the latest
construction cases in California's courts. And, lastly,
ASAC has an expanding Member
Benefits program from insurance offerings, to the
website which has been developed to help keep
subcontractors and suppliers informed of the latest
construction issues affecting their daily business. |
