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Attend ASA CALIFORNIA MEETINGS -They are open to members:   
Upcoming in 2010:
July 15, 2010 -- Teleconferences
GRC at 9:30 -- Board at 1:00
October 15, 2010 -- Ontario California
Come in the evening of the 14th and attend the
LA-Orange County-Inland Empire Chapter Awards Banquet

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
_________________________
 

GET A CLUE!

ASA’s Regular Legal Column By Michaelbrent Collings
Your Friendly Neighborhood Shark Bloodsucker Lawyer
Click to read.
Here's your Clue!


"Be careful what you call yourself!"


The Blue Book

Click on the item to read the article:

A 2010 Summary of New California Laws That May Impact the Construction Industry by William C. Last, Jr., Attorney at Law. 

I Forgot To File a Legal Action to Foreclose On My Mechanics Lien Within 90 days: Now What? Or My Contractor Recorded a Mechanic's Lien and didn’t File
A Timely Lawsuit to Foreclose On It: Now What?  By William C Last, Jr., Attorney at Law
   

Indemnification Language Versus The Additional Insured Endorsement
By Bryan K. Lang, Attorney at Crawford & Bangs, LLP


Another year, another new requirement, by Bryan K. Lang, Attorney at Crawford & Bands, LLP.

Ten Tips for construction creditors, by William L. Porter, Attorney at Law, Porter Law Group, Inc.

IMPROPER POST-AWARD CONTRACT PRICE NEGOTIATIONS UNDER THREAT OF “TERMINATION FOR CONVENIENCE” By Daniel F. McLennon McLennon Law Corp.

  REFERRAL FEE$$$$$$$$$$ By Sam K. Abdulaziz, Abdulaziz, Grossbart & Rudman

MECHANIC'S LIEN FORM TO CHANGE EFFECTIVE JANUARY 2011

THE EPA'S NEW LEAD RENOVATION, REPAIR AND PAINTING RULE.

TEN-YEAR STATUTE OF LIMITATIONS ON CONSTRUCTION DEFECT ACTIONS

CONSTRUCTION CHANGE DIRECTIVES

AN OVERVIEW OF THE ADDITIONAL LEGAL EXPOSURE A CONTRACTOR MAY ENCOUNTER IN CONSTRUCTING A GREEN BUILDING

HOW TO EXTEND THE LIFE OF A MECHANICS’ LIEN

CALIFORNIA APPELLATE COURT HOLDS THAT A GENERAL CONTRACTOR IS RESPONSIBLE FOR PAYING ITS UNLICENSED SUBCONTRACTORS EMPLOYEES WAGES

CALIFORNIA APPELLATE COURT HOLDS THAT A CONSTRUCTION MANAGER ON A PRIVATELY OWNED PROJECT DOES NOT NEED A
CONTRACTOR’S LICENSE

ASA and ASA of California argue Construction Contractors should be able to rely on owner plans and specifications.

DON’T LET YOUR PROFITS GET MOTHBALLED WITH THE CONSTRUCTION PROJECT!

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

ASAC Defends Subcontractors

In the last two weeks, ASAC has been the strongest advocate in the Capitol for ALL subcontractors. We opposed legislation that eliminates subcontractors’ rights to make bond claims for payment up to 75 days after public project completion, despite failing to properly file a preliminary notice.

Supporters of the bill contend that they are ‘paying twice’ since they made the final payment to the primary subcontractor and are then surprised when a bond claim is made by a sub tiered subcontractor they don’t know exists. GC’s allege that they then find themselves also reimbursing the surety for these amounts
(although it’s not clear that these amounts were in fact included in the primary subcontractor’s final payment application).

This is a particularly touchy subject for all parties, including the Associated General Contractors, Construction Employers Association and a variety of subcontractor organizations. Yet, in the give and take world of politics and the legislative process ASAC has stood firm. Following are reported portions of our lobbyist’s testimony before the Senate Judiciary Committee where he defended our rights in opposition to Assembly Bill 2216, sponsored by AGC.

“AB 2216 is a radical and sudden reversal of California public policy that has protected subcontractors since 1995, and their right to get paid for work they’ve finished and which was accepted by the project owner and general contractor.

This is a broad and complex (statutory) system that was agreed to in 1994 and a major component of that deal was to protect subs who hadn’t been paid for months after project completion. AB 2216 unilaterally ‘repeals the deal’ that was a multi-lateral negotiation and agreement. This bill allows subs to not get paid simply because they failed to send in a piece of paper.”

Dozens of emails and conversations among the parties occurred in the two weeks preceding the hearing in an attempt to reach a mutually acceptable and equitable compromise. ASAC would have agreed to a lesser number of days (50) after project completion in exchange for a 45 day notice of pending completion to be provided by the project owner, as well as a similar notice being posted on the job site 30 days prior to completion. This proposed amendment was also being recommended by the Judiciary Committee. However, AGC repeatedly rejected the offer to amend the bill to allow 50 days.

ASAC was in favor of a provision in the bill that cut the prompt pay requirement from 10 to 7 days. ASAC’s Government Relations Committee did not believe that this speedier 72 hour payment justified losing bond claim rights, especially if the claim was inadvertently misfiled, mistakenly addressed, or if the sub tiered
subcontractors are unaware of the project’s completion date. This particularly applies to material suppliers and out of area subcontractors.

ASAC urged the Committee to send this bill to ‘interim study’ during October through December, or between this legislative session and the next one starting in January 2011, as it is so complex and unresolved. The Committee even recommended that the issue be sent to the California Law Review Commission for a
complete analysis in an objective and non-adversarial environment. ASAC greatly appreciated the Committee’s suggestion.

By the time the hearing ended however, AB 2216 was referred to the Senate Rules Committee for disposition.  In other words, it wasn’t amended and its fate is very uncertain as the deadline for all bills to be voted on this session is approaching.

This isn’t the first time such a bill has been proposed. In keeping with ASAC’s basic tenet that it stands up for all subcontractors, we will continue to forthrightly work on this issue.
(Taken from the May-June Newsletter, Click to read more from the Newsletter!)


 NEW   Submitting an Invoice When You Are Not In Compliance With the Contract Requirements For A California Public Works Project
Results In False Claims Liability. By William C Last, Jr.


On February 26, 2010, a California Appellate Court held that a government contractor could be liable for false claims penalties by submitting an invoice for payment when the contractor was not in compliance with the material contract requirements.

In the case entitled, San Francisco Unified School District ex. Rel. Manuel Contreras v. Laidlaw Transit, Inc. No. A123914 (Cal.App. 1st Dist. February 26, 2010) the plaintiff sued defendant Laidlaw Transit Services, Inc., under the California False Claims Act (CFCA) seeking to recover funds on behalf of the San Francisco Unified School District. The Plaintiffs claimed that Laidlaw violated the CFCA by submitting claims for payment to the District at times when Laidlaw knew it was in breach of various terms of its contract to provide student bus transportation services. The appellate court held that under the CFCA, a vendor impliedly certifies compliance with its express contractual requirements when it bills a public agency for providing goods or services. Since the allegations in the complaint were that the implied certification was false and had a natural tendency to influence the public agency's decision to pay for the goods or services that was sufficient, if proven, to establish that a false claim was submitted under the CFCA.
To read the rest Click to read more...



         FAIRNESS TO SUBCONTRACTORS CONTRIBUTORS: These companies came through already in 2010 for ASAC!  Thank you to:

GOLD =$1000.00 SILVER =$750.00
American Fence Association - California Chapter Hakanson Construction Inc.
McLennon Law Corp.  
Drywall Information Trust Fund OTHER
NCPFC/NCGMA Bayside Interiors Inc.
Union Roofing Contractors Association R B Construction Inc.
University Marelich Mechanical Inc. Rosendin Electric
Wayne E. Swisher Cement Contractor Inc.  
Western Walls and Ceiling Contractors Association Inc.  
   
BRONZE =$500.00  
American Sheet Metal  
Area West Fence Company Inc.  
Audio Associates of San Diego  
Caston Plastering & Drywall Inc.  
Partition Specialties Inc.  
RPW/United Agencies  
Sierra Lathing Company Inc.  
   

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. The 2009 legislative year has begun. Our efforts have begun. Your support is needed now. Please write your check today.   For more information and a CONTRIBUTION FORM Please Click on the link.


    Choices in Insurance Plans!

The ASAC Insurance Committee has put together programs to suit your needs and your size.
See the NEWSLETTER for information on the plans, and contact the listed agents for more information and to sign up for any of these excellent programs!


NEW ASACCC Chapter Meetings Provide Education, Fun, and Networking Opportunities Plus Scholarships to Class of 2010!
To see pictures and more information go to Current Newsletter


NEW DATE: June 29, 2010     BULLETIN #10-12   Contractors State License Board Announces New E-Mail Alert Feature

SACRAMENTO – The Contractors State License Board (CSLB) has launched a new E-Mail Alert subscription service to provide licensees and consumers with instant notification of newly published industry bulletins, California Licensed Contractor newsletters, news releases and consumer alerts, and public meeting notices.
It only takes a few moments to sign up for one or all of these instant notification categories.

“These e-mail alerts are another way for us to meet our goal of providing the most up-todate information possible to licensees about the many issues affecting the construction industry and the operations of this Board,” said CSLB Registrar Steve Sands. Simply go to the CSLB website
www.cslb.ca.gov or www.CheckTheLicenseFirst.com and click on the “E-mail Alerts” button. Then, enter your contact information and hit “subscribe.”

That’s it. Once you confirm your subscription, messages will automatically be sent to your e-mail address, alerting you of newly released CSLB publications and notices. You can opt-out just as easily if you later decide to discontinue receiving any of the alerts.


Health Care Trends
There are a lot of changes to health care coming into effect soon, and there are trends you should be comparing your plan to.

First, and foremost, is the small group tax credit for groups with less than 25 employees and less than $50,000 in average wages (excluding the owner's salary). If you think your company may be eligible, please call our office at 1-800-743-6975 and we will send you the details on how it may, or
may not, apply to your company.
Secondly, employees with dependent children up to age 26 can keep them covered as dependents on their health plans regardless if they are a full time student or not.
There are tax increases and penalties for individuals and businesses, the largest of which affect companies of 50 employees or more only. Most of the big changes will not occur until 2014 so we will get that information for you at a later date.
As far as what you can expect this year for rate increases: For 2010, HMO rate increase trends are 8.5% with an average monthly premium of $427 for a single employee. The 2010 PPO rate increase trends are 14.3% and an average monthly premium of $500 for a single employee. Your company's
rates will be higher or lower based on the average age, health, location of your company and plan design.

Companies are doing several things to offset these rate increases:
1. Increasing co pays and deductibles, and adding Rx deductibles
2. Increasing employee's percentage of paying premiums
3. Changing insurance companies to lowest cost plan
4. Self-insuring
This in a nutshell is the basic information you will need right now. I will keep you informed as things change, but do not hesitate to call us if you need information specific to you and your company.
Article provided by Dave Hodges of Hodges Insurance Services, Inc, a member of the Redwood Empire Chapter of ASA. You can direct questions to Dave at 416 Aviation Blvd., Ste. E, Santa Rosa, CA 95403. Phone (707) 525-5710, Fax (707) 525-5718. david@hr-ins.com


NEW   Lease With Option to Buy By Sam K. Abdulaziz Abdulaziz, Grossbart & Rudman

In 2001, John Garcia entered into a lease with an option to buy a piece of property. The agreement included Garcia paying a $7,500 down payment with the remaining balance of the purchase price to be paid within two years. However, Garcia was unable to obtain the financing within that time and Garcia entered into an oral agreement with Ronald Roberts wherein Roberts purchased the property, giving Garcia an additional two years to purchase the property. Roberts agreed to pay the purchase price as a loan to Garcia subject to repayment with interest within two years. After the property transferred to
Roberts, both parties signed the written agreement for the lease option.
Click here to read..


 Attend ASA California Meetings -- They're open to embers.i>

Upcoming in 2010:
July 15, 2010 -- Teleconferences
October 21, 2010 -- Ontario California

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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