Robert Sturgeon

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AB 1793 Amends Requirements for Contractors to Establish Substantial Compliance With State Contractor Licensing Requirements

On August 30, 2016, Governor Brown signed into law AB 1793, which amends the requirements under Business & Professions Code § 7031 for a contractor to establish “substantial compliance” with state contractor licensing requirements.  AB 1793 amends section 7031 by deleting the requirement that to establish substantial compliance, a contractor must show it did not … Continue Reading

New California Statutes Potentially Increase Contractors’ and Subcontractors’ Liability Exposure Under the Prevailing Wage Law

California has enacted several statues, effective January 1, 2014, which will likely increase contractors’ and subcontractors’ exposure to claims for prevailing wage violations on public works projects.  Under the Prevailing Wage Law, Cal. Labor Code § 1720 et seq., contractors and subcontractors working on public works are required to pay the wages prevailing in the … Continue Reading

Knowingly Underbidding For Government Contract May Lead to False Claims Liability

Contractors usually assume that the statutory prohibition on submitting “false claims” refers to inflated invoices, phony change order costs, and the like. However the courts are giving the relevant statutes a broader meaning which public works contractors should take into account. For example, the United States Ninth Circuit Court of Appeals recently ruled that a … Continue Reading

Arbitrators can decide validity of arbitration provision in construction contracts

Binding arbitration of construction disputes is frequently required by standard industry contracts. For example, the contract forms published by the American Institute of Architects either require or provide an option for arbitration under the Construction Industry Rules of the American Arbitration Association (“AAA”). The latter rules authorize the arbitrator to decide whether the contractual arbitration … Continue Reading
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