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Attend ASA CALIFORNIA MEETINGS -They are open to members:   
SAVE THE DATE: ASA BUSINESS FORUM AND CONVENTION 2012 SET FOR MARCH 1-3 IN SAN ANTONIO, CA.

For meetings in your area contact your local chapter.
Click here for Chapter location and Information.
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ASAC Health Plans Pay ASAC and Your Local Chapter!
Act now and Hodges Insurance will provide all your adds and terms and cobra administration for free. Contact Dave Hodges for details.
Call today! 1-800-743-6975
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The Blue Book

Previous Articles
Click to read the article:

Description of CSLB License Classifications
CLICK TO READ

 Senate Bill 189 Becomes Law: Resulting In Significant Changes To California's Lien Laws After July 1, 2012
By William C. Last, Jr., Esq. LAST & FAORO
CLICK TO READ

Appellate Court Affirms that Oral Agreement for Home Improvement Project May Be Enforced Against Sophisticated Homeowner Notwithstanding Business & Professions Code Requirement that All Home Improvement Contracts Be in Writing
By Jonathan M. Bowne, Esq., LAST & FAORO
CLICK TO READ

 **Two Important Changes to Mechanics Liens Kick In January 2011**  By Jonathan M. Bowne, Esq., LAST & FAORO
CLICK TO READ

Public Entities Must Tell Even if the Contractor Doesn‘t Ask!
By Theresa Crawford Tate, CRAWFORD & BANGS, LLP
CLICK TO READ


Convert your STATE FUND Workers Compensation plan from an individual policy to the ASAC group program and
save 6% Call 888-310-2722 for details. Ask for group #12 ASAC / PDCC Rated “A”

RETIREMENT PLAN:
 ASAC has established a retirement plan in which you as a member can participate.
The retirement plan is custom designed to meet your needs. 401K, Pension, SEP and Defined Benefit Plans are all available.
We offer most major no load funds in our pension and 401k plans. Whether you have an existing retirement plan or are considering establishing a plan, ASAC can help. Please contact our Benefits Administrator David Hodges.
 1-800/743-6975

NEW!!   SB 293 & SB 474 - Signed by Governor TWO Victories for the Construction Industry!

October 11, 2011 American Subcontractors Association of California Supported!

SB 293 - RETENTION affects retention in public works projects

SB 474 - INDEMNIFICATION affects commercial construction

See Below for What these 2 Bills Governor Brown Signed mean to YOU and YOUR Company!  These two new laws are MAJOR improvements for the construction industry!  THANKS TO ALL OF YOU WHO HELPED BY WRITING LETTERS!

SB 293 (Padilla) (SCROLL DOWN FOR SB 474)
Introduced in behalf of the California State Council of Laborers, and as subsequently amended to cap retentions in public projects, it was supported by numerous groups. ASAC always supported the 5% retention cap and shorter pay period but was in full support of SB 474 when it was also amended to preserve subcontractors' late bond claim rights. In support as of the final senate staff analysis were:

Air-conditioning & Refrigeration Contractors Association
Associated General Contractors of California
Building Industry Credit Association
California Chapters of the National Electrical Contractors Association
California Landscape & Irrigation Council
California Legislative Conference of Plumbing, Heating, and Piping Industry
Concrete Contractors Association, Inc.
Engineering & Utility Contractors Association
Golden State Building Exchange
Los Angeles Department of Water and Power
State Building and Construction Trades Council
(per staff report)

In opposition were hundreds of public entities.

SB 293 takes effect January 1, 2012. It:

1.Decreases, from 10 to 7, the number of days by which a prime contractor or subcontractor must pay a subcontractor after receiving a progress payment, unless otherwise agreed to in writing.

2.Requires a subcontractor to give written notice to the surety and bond principal that he or she is enforcing a claim prior to completion or recordation of the Notice of Completion of a project, except as specified, if the 20-day public works preliminary notice was required by any person that has no direct contractual relationship with the contractor and who has not given notice as provided in Civil Code Section 3098, that person may enforce a claim by giving written notice to the surety and bond principal within 15 days after recordation of a notice of completion. If no notice of completion has been recorded, the time for giving written notice to the surety and the bond principal is extended to 75 days after completion of the work of improvement. This provision would not apply in the event that all progress payments, other than 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 in the case of a subcontractor who has been terminated from the project pursuant to the contract, all such progress payments have been made as of the termination date, except those disputed in good faith.

3.Exempts a laborer from preliminary notice requirements to a surety and bond principal and any deadline to enforce a claim after the completion of a project for private works of improvement.

4.Prohibits a public entity from retaining more than five percent of a contract price until final completion and acceptance of a project.

5.Requires that retention proceeds between an original contractor and a subcontractor, or between two subcontractors, not exceed five percent of payment or contract price. Does not apply if the contractor provides written notice to the subcontractor, prior to or at the time that the bid is requested, that a bond may be required and the subcontractor subsequently is unable or refuses to furnish to the contractor a performance or payment bond issued by an admitted surety insurer.

6. Prohibits progress payments on public works contracts from being made in excess of 100 percent of the percentage of actual work completed.

7.Authorizes a public entity to retain more than five percent of the contract price in public works projects under the following conditions:

A. For certain projects awarded by state departments, the project is substantially complex and the department includes this finding and the actual retention amount in the bid documents;

B. For projects awarded by local entities, the governing body of the local public entity, or its designee, has approved or ratified by a majority vote during a properly noticed and normally scheduled public hearing prior to bid that the project is substantially complex, and includes this finding and the actual retention amount in the bid documents;
and,

C. Retention proceeds between an original contractor and a subcontractor, or between two subcontractors, shall not exceed the specified retention percentage in the contract between the public entity and the original contractor.

1.Sunsets these retention provisions on January 1, 2016.

2.Defines "public entity" to mean the state, including every state agency, office, department, division, bureau, board, or commission, the California State University, the University of California, a city, county, city and county, including chartered cities and chartered counties, district, special district, public authority, political subdivision, public corporation, or nonprofit transit corporation wholly owned by a public agency and formed to carry out the purposes of the public agency.

SB 474 (Evans)...Indemnity Reform

Cosponsored by :
California Association of Sheet Metal and Air Conditioning, Contractors' National Association,
California Legislative Conference of the Plumbing, Heating and Piping Industry,
Concrete Contractors Association,
Crane Owners Association,
California Chapters of the National Electrical Contractors Association.

In opposition, among others, were:
Associated General Contractors
California Conference of Carpenters
Construction Employers Association

SB 474 takes effect on January 1, 2013

SB 474's staff synopsis as enrolled and sent to the Governor:

1. Prohibits construction contracts requiring indemnity, insurance, or defense obligations by a subcontractor for the active negligence or willful misconduct of a general contractor, his/her agents, or certain other subcontractors.

2. Provides that, unless otherwise prohibited under this bill, the parties to a construction contract can freely contract for other protections and obligations of each party, but allows numerous exemptions, including residential construction contracts, direct contracts with a public agency or owner, and insurance contracts for project wrap up and workers' compensation.

3. Requires an insurer to uphold their contractual obligations to additional insureds pursuant to Presley Homes, Inc. v. American State Insurance Company (2001) 90 Cal.App.4th 571.

4. Provides that an insurer maintains reimbursement rights from a general contractor or other subcontractor pursuant to the holding in Buss v. Superior Court (1997) 16 Cal.4th 35.

5. Provides a defense or settlement option for commercial construction contracts similar to existing law regarding residential construction contracts under which a subcontractor, after receiving claim information from the general contractor, has the option to defend the claim or pay its portion of the claim.

6. Provides that in the event a contractor fails to maintain its obligations to defend or pay its portion of the claim, the general contractor may make a claim for compensatory and consequential damages and reasonable attorney's fees.

7. Clarifies that a public agency is prohibited from shifting its liability for its active negligence to a contractor, subcontractor, or materials supplier.

8. Establishes that a project owner, not acting as a project manager, general contractor, or materials supplier, is prohibited from shifting liability for its active negligence to a contractor, subcontractor, or materials supplier.

9. Provides that these new rights and obligations shall be construed to affect the obligation, if any, of either a contractor or construction manager to indemnify, including defending or paying the costs to defend, a public agency against any claim arising from the alleged active negligence of the public agency under Civil Code Section 2782(b) or to indemnify, including defending or paying the costs to defend, an owner of privately owned real property to be improved against any claim arising from the alleged active negligence of the owner under Civil Code Section 2782(c).

10.Provides that the foregoing changes shall not be construed to affect the obligation, if any, of either a contractor or construction manager to provide or maintain insurance covering the acts or omissions of the promisor, including additional insurance endorsements covering the acts or omissions of the promisor during ongoing and completed operations pursuant to a construction contract with a public agency under Civil Code Section 2782(b) or an owner of privately owned real property to be improved under Civil Code Section 2782(c).

ASA California will continue to educate its members and supporters - watch your e-mail for more information on how these two bills will help YOU!

Non-Members: Please e-mail us at asac@asacalif.com to find out how you can join the association that is LEADING SUBCONTRACTORS AND SUPPLIERS TO EQUITABLE LEGISLATION IN CALIFORNIA!  Visit ASA California on the Web!

www.ASACalif.com  Soon to include a list of ASAC members and Government Relations Donors.  Add it to your favorites and visit often!

ASAC Appreciates YOUR Help!

ASAC leaders asked you to do your part, helping our Subcontractor community with your letters and phone calls.
Many of you came through, and can take pride in helping get these two bills through the Legislature.
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!!!!!

Santo Pernicano                                                          Daniel McLennon, Esq.
ASAC President                                                          ASAC Government Relations Chair
AREA-WEST FENCE CO.                                          McLENNON LAW CORPORATION
619-561-4900                                                             415-394-6688
santo@areawestfence.com                                      dmclennon@mclennonlaw.com



 A PRELIMINARY PRIMER  By Theresa Crawford Tate, Crawford & Bangs   September 2011

It’s not until a project falls apart and payments stop that most contractors start to wonder if all the preliminary steps at the start of the job were done correctly. Prior to that, everything was looking rosy and no one usually contemplates a worst-case scenario (except the attorneys). Did you get a signed contract back
from the owner or general contractor? Did you correctly serve your 20-day Preliminary Lien Notice? Is there still time to serve a Stop Notice or record a Mechanic’s Lien? In the financial mess that has ruled the construction industry for the last several years, these preliminary steps have been critical in deciding who gets paid and who doesn’t. The construction industry standard for service of the 20-day Preliminary Lien Notice (“Preliminary Notice”) was critiqued by the California Appellate Court in the case of Force Framing v. Chinatrust Bank (114 Cal. Rptr.3d 855). Thankfully, the California Appellate Court recognized that reasonable due diligence on the part of a contractor in serving its Preliminary Notice did not include performing a full title search.
Read the whole article in the Newsletter by clicking here:  Newsletter


ASAC MEMBERSHIP DIRECTORY GOES ON-LINE

IN KEEPING WITH OUR PROMISE TO HELP YOU MARKET YOUR COMPANY, ASAC IS POSTING MEMBERSHIP CONTACT INFORMATION ON THE CHAPTER WEBSITE. THE LIST WILL BE OPEN TO THE GENERAL CONTRACTORS AND OTHER SUBCONTRACTORS WHO MIGHT USE YOUR COMPANY ON A PROJECT.  To see Directory Click on MEMBER DIRECTORY at top of page.

** If you want your e-address on the site, you will need to OPT IN by contacting the webmaster at memlist@asacalif.com. Please send any address changes or corrections to this same place. **
Logos next to the names are available for a one time set-up fee of $40.00. Contact us at memlist@asacalif.com to arrange this option.


         FAIRNESS TO SUBCONTRACTORS CONTRIBUTORS: These companies came through already in 2011 for ASAC!  Thank you to:

GOLD =$1000.00 SILVER =$750.00
Area West Fence Co. Hakanson Construction Inc.
Associated Tile Contractors of Northern CA  
Lescure Company Inc.
McLennon Law Corp.  
Union Roofing Contractors Association/td>  
   
  OTHER
BRONZE =$500.00 Western Fire Protection Inc.
California Sheet Metal Works Inc.  
Frank M. Booth Design Build Co.  
Nor CA Glass Management Association  
Nor CA Painting & Finishing Contractors Inc.  
RPW/United Agencies  

As you can imagine, running bills in the California Legislature and defending your subcontractor rights is a costly undertaking. ASAC asks that you contribute what you are able to this effort. Please write your check today.   For more information and a CONTRIBUTION FORM Please Click on the link.


Public/Private Partnerships -- A NEW CONCERN FOR 2011-2012

-3Ps, Public/Private Partnerships is an emerging trend whereby the public provides lands that are being developed by private companies that have no legal obligation to pay contractors. The contractors have no lien rights because the land is publically owned, there is no public money to go after with a Stop Notice, and payment and performance bonds are not required to be in place.

Much of the money is coming from out of the United States. The developers are forming LLCs and other protected entities.  If the project goes bad or gets canceled, the developer can bankrupt the LLC and move on without paying anybody -- there is no recourse for the contractors.   

The ugly problem is already with us: a toll road was built in the San Diego area. The developer went bankrupt, banks were first in line to scoop up any monies that existed, and contractors had no lien rights and are not being paid.

ASAC proposes requiring the developer to provide payment and performance bonds, in a manner similar to the Little Miller Act.

Opposition would be the foreign investors. Support would come from Surety / Bonding companies, General Contractors, Bankers, and Subcontractors.

Please help us gather information on this issue. Send an e-mail to asac@asacalif.com with information on any Public-Private Partnership Projects (4-Ps !!) you know about. So far we are aware of these three, but what about in your locality?
1. San Francisco has the $1 billion, Presidio project.
2. San Diego there was that toll road ...
3. The new HUGE Solar Power plant in the desert.

SAVE THE DATE: ASA BUSINESS FORUM AND CONVENTION 2012 SET FOR MARCH 1-3 IN SAN ANTONIO

ASA’s flagship education and networking event for subcontractors, the ASA Business Forum and Convention, will take place March 1-3, 2012, at the Hyatt Regency San Antonio. In addition to dozens of educational sessions designed to help construction subcontractors improve their businesses, the convention will include special events and networking opportunities. The Hyatt Regency San Antonio is located near the Alamo in the heart of San Antonio’s famed River Walk, providing immediate access to lush River Walk area restaurants and boutiques. Mark your calendar now for this once-a-year event! Throughout the year, visit www.asaonline.com for updates on convention programming and special events. Call (888) 421-1442 to make your hotel room reservation. The cutoff for the ASA special room rate of $189 (single/double) is Jan. 28, 2012.


A CHANCE TO HELP A FELLOW CONSTRUCTION ORGANIZATION RE: TIE-OFF REQUIREMENTS DURING THE ERECTION AND DISMANTLING OF SCAFFOLDING

I am reaching out to construction industry colleagues to obtain an informal poll about experiences and challenges others in the subcontracting trades might be having regarding tie-off requirements during the erection and dismantling of scaffolding.

I am hearing more and more reports from the field of GC’s and OCIP safety inspectors demanding tie-off during scaffold erection and dismantling. Given that masonry is a heavy trade utilizing tubular heavy gauge scaffold, I don’t know if this challenge is limited to our trade or whether others might also be encountering the same problem.

Federal and Cal/OSHA language on the subject is vague at best, and the issue has become a pressing problem for our contractors that contend to these inspectors time and again that such tie-off is not a viable option nor is it a safe one.

II would appreciate your input as to what you are hearing on this issue and what, if any, measures have been taken in defense of these tie-off requirements. Please reply julie@ccmca.org with any information you might have.

Julie Trost
Executive Directorbr> 7844 Madison Avenue, Suite 140
Fair Oaks, CA 95628
p. 916.966.7666 f. 916.966.1411
www.ccmca.org


ASAC Quarterly Meetings  October 28, 2011  California State Capitol, Sacramento CA FOR ASA California MEMBERS  NOW IS THE TIME TO REVIEW YOUR INSURANCE

For most contractors there has been little urgency to review their Liability insurance over the past few years.

Payrolls and sales have been down, and so have premiums. Insurance has not been a major expense factor. There are two major reasons why that situation might be changing, and why you should start giving some serious thought to your insurance program.

The first is the economy itself. There are signs that indicate that the decline in construction over the past few years has now slowed, or hopefully stopped, and work is beginning to come back. It will be many years before we return to where we were, but we are hearing that many contractors are having to hire back a few employees as business starts to pick up. This will definitely impact your insurance costs.

TThe second reason is the insurance marketplace itself. Workers Comp rates are already beginning to rise. General Liability rates often follow. Property insurance rates are likely to  increase as a result of all the natural disasters both in the US and around the world. You need to be prepared to bid new jobs accurately by knowing what your insurance costs are likely to be in the future, not what they are now.

Your association has been planning ahead for when this turn-around would take place. We have been working to put together a Liability/Package program tailored specifically for our members. It has very attractive cash flow advantages that any contractor would appreciate.  These include monthly payroll reporting, rolling the deposit at renewal, no minimum premium, audits both up and down, competitive rates, and broad coverages.

To learn more, please call one of these ASAC members who send part of their commission to the association.  CALL NOW AND START SAVING

IOA Insurance Services
Sacramento CA
Ken Wagner 916-692-7007
ken.wagner@ioausa.com
Lic# 0E67768

Rancho Mesa Insurance Services
San Diego CA
Sam Clayton 619-937-0167
sclayton@ranchomesa.com
Lic# OC32169

RPW / United Agencies
Downey CA
Gregg Wright 562-373-9351
gwright@unitedagencies.com
Lic#


Notes on the ASAC Website Layout: The American Subcontractors Association of California (ASAC) website is divided into the sections covering ASAC's 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.



American Subcontractors Association of California
American Subcontractors Association California Inc. 
 P.O. Box 292867, Sacramento, CA. 95829-2867
Phone: 888-310-2722   Fax: 530-662-2865  Email
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